(Reuters) - VF Corp (NYSE:VFC) missed expectations for its third-quarter results on Tuesday, and said its CFO Matt Puckett will step down later this year, sending the Vans sneaker maker's shares down about 7% in extended trading.
The company, which withdrew its annual forecasts in October and announced a cost reduction plan, said it had begun an in-depth strategic review of its Global Packs business, including brands such as Kipling and JanSport.
"We're really taking an objective look at all the brands," said Bracken Darrell, who took over as CEO in June 2023 as VFC looked to stem the fall in demand for its sneakers. VFC's shares fell nearly 32% in 2023.
Apparel and footwear makers have struggled with weak wholesale volumes as retailers trim their inventories amid soft discretionary demand in the U.S.
VFC's third-quarter revenue dropped 16% due to subdued demand during the critical holiday shopping quarter, despite higher promotions.
Its North Face business also saw a downturn in volumes in the U.S.
"We are seeing slowing consumer confidence and greater caution continuing in the wholesale channel," said Puckett in a post-earnings call. He will remain CFO until VFC appoints his successor.
VFC has stepped up promotions for its Vans sneakers, which have lost traction among customers, with revenues falling for the past several quarters.
In the reported quarter, revenue from the Vans brand was down 28%, while the Americas region was down 24% overall.
The Timberland parent reported an adjusted profit of 57 cents per share, missing LSEG estimates of 77 cents, as per LSEG data.
Its revenue was at $2.96 billion, missing Street expectations of $3.24 billion.
VF Corp said its earnings per share were impacted by about 4-5 cents due to a cyber security incident in December, which disrupted order fulfillment on its e-commerce website.