VF Corp. Shares Fall After Guidance Slashed

VF Corp. shares are down 2.1% in Monday premarket trading after the apparel, footwear and accessories company slashed its annual guidance. VF Corp. reported third-quarter net income of $498.5 million, or $1.19 per share, up from $459.9 million, or $1.07 per share. The FactSet consensus was $1.15 per share. Revenue for the quarter was $3.49 billion, down from $3.53 billion last year and below the FactSet estimate of $3.63 billion. Jeanswear revenue, which includes the Wrangler and Lee brands, was down 6%, while outdoor and action sports, which includes the Vans and Timberland brands, was up 2%. The company raised its quarterly dividend 14% to 42 cents per share, payable on Dec. 19, 2016 to shareholders of record at the close of business on Dec. 9, 2016. VF Corp. expects 2016 revenue to increase 2% to about $12.2 billion compared with the previous estimate of 3% to 4% growth. Earnings per share are expected to rise 3% to $3.13 compared with previous guidance of a 5% rise to $3.20. VF Corp. shares are down 12.2% for the year to date while the S&P 500 Index is up 4.8% for the same period.