(Reuters) – VF Corp (NYSE:) reported a fourth-quarter loss and reported revenue below analysts’ estimates on Wednesday as sales across all its brands fell, reflecting faltering demand for its apparel and footwear amid tight consumer spending.
Shares of the North Face owner, which have fallen 34.5% this year, fell nearly 8% in extended trading.
The Denver clothing retailer also named former Spotify (NYSE:) CFO Paul Vogel as its new CFO, effective July 8. He succeeds Matt Puckett, who announced his decision to retire in February.
Premium apparel, footwear and handbag retailers such as Under Armor (NYSE:), Calvin Klein-owned PVH Corp (NYSE:) and Tapestry (NYSE:) have seen slowing demand in the United States.
VF Corp, which owns brands including Altra and Timberland as well as streetwear brand Supreme, delayed its fiscal 2024 guidance back in October. It did not provide profit or sales guidance for fiscal 2025.
CEO Bracken Darrell, who joined the company last July, is trying to turn the business around by laying off staff and cutting costs.
“As we approach fiscal 2025, we will continue to implement our broader turnaround plans, including… turning around the Americas, rebuilding Vans, reducing costs and repaying debt, while also pursuing actions arising from our strategic portfolio review. “Darrell said.
Sales of VF Corp’s largest brand Vans, which accounted for about 32% of the company’s total revenue in 2023, fell 26% due to efforts to clear inventory in the wholesale channel.
Revenue in the Americas, its biggest market, fell 22%, with the only bright spot coming from Greater China, where sales rose 5% from a year ago.
The company’s fourth-quarter revenue fell to $2.37 billion in the quarter ended March 30, compared with analyst estimates of $2.41 billion, according to LSEG.
The company reported a quarterly loss of 32 cents per share, compared with analysts’ expectations of a profit of 1 cent.