Shares of VF Corp. fell Friday morning in pre-market trading as the growth rate of its Vans brand slowed and second-quarter earnings missed projections.
The Vans business has been a powerhouse for VF and while it’s still growing, up 16 percent in constant dollars in the second quarter, it was growing at a 23 percent clip in the first quarter and a year ago was trending up 27 percent.
That appeared to spook investors, who sent shares of the firm down 7.7 percent to $83.85 in pre-market trading.
Steve Rendle, chairman, president and chief executive officer, said he was “pleased” with the company’s overall quarterly results, which were driven by its biggest brands as well as the international and direct-to-consumer businesses.
VF’s net income for the quarter increased 28 percent to $649 million, or $1.61 a diluted share, from $507.1 million, or $1.04, a year earlier.
Adjusted earnings from continuing operations of $1.26 a share marked a 6 percent increase from a year earlier, but fell short of the $1.31 analysts were projecting.
The company hopes to make up the lost ground and still expects adjusted EPS from continuing operations of $3.32 to $3.37.
Revenues for the three months ended Sept. 28 rose 5 percent to $3.39 billion.
Revenues in the active segment increased 9 percent while the take in the outdoor segment rose 4 percent, including an 8 percent increase at North Face.
“The quality and fundamentals of our business remain solid as a result of the focus and strategic execution of our business teams around the globe,” Rendle said. “Despite an increasingly uncertain geopolitical and macroeconomic environment, we are confident in the trajectory of our business as we move into the second half of our fiscal year, as reaffirmed by our outlook. We remain deeply committed to transforming VF into a more consumer-minded and retail-centric organization while delivering superior returns to shareholders.”