VF has begun reopening its outlets, and now plans to reopen all stores globally in the mid- calendar year 2020. Since then, VF has reopened its Asia Pacific retail stores, including Mainland China.
In its Europe, Middle East and Africa region, VF has also begun a phased reopening of its retail stores and is prepared to embark on a similar strategy for North American stores, subject to local government guidance. E-commerce is still under way
Net revenues of retailer for the quarter ended March 28 fell 10.8 percent to $2.10 billion frtom $2.36 billion, with the decrease mostly due to lower consumer demand connected with the coronavirus outbreak and temporary store shutdowns as mandated by local authorities.
Gross margin for the period fell 150 basis points to 53.1 percent. That was driven by elevated promotional activity to clear excess inventory, but was partially offset by favorable mix shift toward higher margin businesses.
The organization reported a net loss of $483.8 million, or $1.22 a diluted share, compared with a net profit of $128.8 million or 32 cents for the year-ago. The quarter ‘s results included a loss from discontinued activities, its workwear company and the spin-off of its jeans company which is now trading a year ago under the name Kontoor Brands Inc. Earnings per share in constant dollars fell 69 per cent on an adjusted basis to 10 cents.
The company expects revenues to drop dramatically more than 50 percent from the first quarter of fiscal 2021 and to hit $600 million in full-year free cash flow over fiscal year 2021.