VF Corp Stock Is Falling: What's Going On?

V.F. Corp VFC shares are trading lower Tuesday after the company reported mixed fiscal second-quarter financial results and withdrew guidance. Multiple analysts also lowered price targets following the print.

What Happened: VF Corp, which owns several popular retail brands including Vans and The North Face, reported quarterly sales of $3.03 billion, beating estimates of $3.02 billion. The company reported earnings of 63 cents per share, which missed estimates of 66 cents per share, per Benzinga Pro.

VF Corp also announced a transformation program aimed at enhancing the company's focus on brand building and operating performance.

"In my first 100 days, as I have spent time with our brands, teams, and customers around the world, I have developed even stronger conviction in the company's significant potential, which is far greater than what we are delivering today," said Bracken Darrell, president and CEO of VF Corp.

"Our transformation plan, Reinvent, will improve our brand-building and execution while addressing with urgency our top priorities of improving North America, accelerating the Vans turnaround, significantly reducing our fixed costs and reducing leverage."

VF Corp withdrew its full-year revenue and earnings guidance. The company said it expects full-year free cash flow of approximately $600 million, down from previous guidance of $900 million.

VF Corp does not expect Vans performance to improve in the second half of the year. The company also sees a more difficult wholesale environment ahead in the U.S. 

Following the company's quarterly results, Telsey Advisory Group analyst Dana Telsey maintained VF Corp with an Outperform rating and lowered the price target from $27 to $20. Wedbush analyst Tom Nikic maintained a Neutral rating and lowered the price target from $20 to $15.

See Also: Pfizer Q3 Earnings: Swings To Quarterly Loss On COVID-19 Products' Write-Offs, Sales Fall 42%

VFC Price Action: VF Corp shares were down 10.3% at $15.35 at the time of publication, according to Benzinga Pro.

Photo: tum322 from Pixabay.