V.F. Corp.'s shares fell 7% in premarket trading on Oct. 25 after the company reported fiscal second-quarter adjusted EPS that fell below analysts' expectations.
The Greensboro, N.C.-based clothing retailer reported that adjusted EPS for the quarter ended Sept. 28 grew 6% to $1.26 from the year-earlier period, missing
Net revenue increased 5% year over year to $3.39 billion from $3.22 billion, while international revenue grew 4%.
V.F. Corp. reiterated its guidance for fiscal 2020 of adjusted EPS ranging from $3.32 to $3.37 and adjusted revenue of about $11.8 billion.
However, it noted that international revenue growth is now expected in the 4%-5% range, compared to 4%-6% previously, while direct-to-consumer sales growth was revised to 11%-12% from 10%-12%. The company also adjusted its expectations for growth in its active division from 7%-8% to 8%-9% and its work division from 3%-5% to 2%-3%.
"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," said Steve Rendle, executive chairman, president and CEO.
The company's board of directors raised the quarterly dividend by 12% to 48 cents per share. The new dividend is payable Dec. 20 to shareholders of record Dec. 10.
In premarket trading, V.F. Corp.'s shares were down 7.5% or $6.82 at, $84.