VF Corp’s net income slides to £253.61 million in the third quarter

VF Corp. (NYSE: VFC) said on Wednesday that its revenue in the fiscal third quarter came in weaker than expected. The company, however, earned more in Q3 than what analysts had anticipated.

Shares of the company tanked 1.5% in premarket trading on Wednesday and lost another 3.5% on market open.

VF Corp’s Q3 financial results versus analysts’ estimates

VF Corp. said that its net income in the third quarter printed at £253.61 million that translates to 64.28 pence per share. In the same quarter last year, it had reported a higher £339.66 million of net income or 85 pence per share.

On an adjusted basis, the apparel and footwear company earned 67.93 pence per share in Q3. In terms of revenue, VF Corp posted £2.17 billion versus the year-ago figure of £2.31 billion. In the prior quarter (Q2), the U.S. company had reported £198.78 million of net income.

According to FactSet, experts had forecast the company to record a higher £2.19 billion of revenue in the third quarter. Their estimate for per-share earnings was capped at a slightly lower 65.47 pence per share.

VF Corp said that its Vans brand saw a 6% annualised decline in Q3 sales. Its outdoor segment registered a 5% year over year decline, but The North Face sales remained flat compared to the same quarter last year.

Dickies brand, as per the Denver-based company, noted a 9% increase in sales contributing to an 8% growth in work segment sales as a whole in the third quarter. VF Corp also said on Wednesday that the majority of its stores across the globe are now open for the public.

In separate news from the United States, Blackstone Group also published its earnings report for the fiscal fourth quarter on Wednesday.

VF Corp’s guidance for the full financial year

For the full financial year, American worldwide firm now forecasts its revenue to fall between £6.65 billion and £6.72 billion. In its previous guidance, VF Corp had expected at least £6.57 billion of annual revenue.

For adjusted per-share earnings, the NYSE-listed company expects 95 pence this year versus the FactSet Consensus of 98 pence per share. Analysts are calling for £6.72 billion of full-year revenue.

VF Corp performed fairly downbeat in the stock market last year with an annual decline of just under 15%. At the time of writing, it has a market capitalisation of £23.35 billion.