Why Is VF Corp Stock Tumbling Today?

VF Corp VFC stock is trading lower Monday amid reports of the parent company of brands like The North Face, Timberland, and Vans grappling with the aftermath of a cyberattack that has impacted its ability to fulfill orders. 

The hiccup came in the middle of the critical holiday shopping period.

On December 13, 2023, VF Corporation detected unauthorized activities in some IT systems.

The company initiated measures to contain and assess the incident. It involved launching an investigation with leading cybersecurity experts, activating its incident response plan, and shutting down some systems. 

The cyberattack disrupted VF's business operations by encrypting specific IT systems and resulted in data theft, including personal information.

Also Read: North Face Brand Owner VF To Slash 500 Jobs: Report

VF is actively working to restore the affected IT systems and establish alternative processes for some offline operations. 

This effort aims to minimize disruption to its retail and e-commerce consumer services and wholesale customer transactions. 

While VF's global retail stores remain open, and customers can place orders on most brand e-commerce sites, the company faces challenges in order fulfillment due to the cyberattack.

The company and its cybersecurity team are diligently working to manage and reduce the impact of this cyber incident. VF has also informed federal law enforcement and is collaborating with them.

The investigation into the cyberattack is still ongoing, and the extent, nature, and impact of the incident remain unclear. The incident has significantly affected and will likely continue affecting VF's business operations. 

The company has yet to determine whether the incident will have a material impact on its financial condition or operational results.

Price Action: VFC shares traded lower by 7.43% at $18.43 on the last check Monday.

Also Read: VF Corp Shares Dip on Mixed Q2 Results and Withdrawn Guidance; Analysts Adjust Price Targets

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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