VF Corp. Shares are falling due to the loss of first quarter profits

Shares of VF Corporation (VFC) are trading lower on Thursday after the company reported a loss in its first-quarter earnings results. The parent company of brands such as Vans and The North Face has launched a transformation strategy called “Reinvent”.

Yahoo Finance’s Seana Smith and Madison Mills explain the details.

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This post was written by Angel Smith

Video transcription

We’re seeing several retail stocks move in opposite directions today following the BOJ and Court F earnings reports. BOJ rose more than 2% after beating estimates in the first quarter, which is a different story for F Corp, which posted a surprise loss report for the quarter.

This comes after some difficulties that the Corporation has faced over the last few years, right?

This is the company that owns delivery trucks and the North Face.

Shares fell 11%.

It was the lowest daily level since immediately after the global financial crisis in 2009. The company says it has a new transportation plan but still has a long way to go, but it said the downgrade of the name means it has been relegated to market performance and called the results disappointing .

And it’s not that surprising to me.

Yes, the expectations in print were a bit more positive, but we know this company has struggled to sell vans, and we know vans are not a hot topic right now.

So you’ll be putting a lot of pressure on a company like North Face to cooperate.

Yes.

David Swartz, whom we spoke with earlier this week, talked about Macy’s lack of progress.

However, I bring this up because he makes a similar argument only regarding the lack of progress in this turnaround story when it comes to VF Corp. And you say that these results basically reinforce the idea that it’s not a big surprise, but it’s something that will take some time.

I think when you talk about the stock being under pressure for a long time, we’re looking at a further decline of only about 4%, which really speaks to the problems with VF. We know that the company has really done well. to cut costs, instead trying to repay, actually announced layoffs, um, at the end of last year, it affected about 500 employees.

So they are taking some steps to right-size their company and better position it here for future growth.

But again, as we said, analysts really have some reservations about this latest print and really reinforce the fact that this turnaround, that it’s definitely going to take some time, especially when you look at the macro environment that we’re in right now.