Lee, Wrangler owner’s shares fall on fading jeans business
Bengaluru/New York — VF Corp shares fell 9% on Friday after the apparel maker lowered revenue forecasts for its jeans business and reported slow outdoor wear sales even as its popular Van sneakers lifted quarterly profit. In August, VF said it would spin off its less profitable Wrangler and Lee jeans into a publicly traded company, allowing it to focus on Vans and its outdoor wear businesses to help improve profit margins. On Friday, it said revenue for the year from its jeans business will fall in a range of 1 to 2%, compared with previous forecasts for flat revenue growth. Its shares were down as much as 9.1% at $79.09 in midday trading. They have risen roughly 18% year to date. Second-quarter revenue at Timberland, part of the company’s outdoor wear business, fell 2%, Wrangler was down 5% and Lee was off 9%. Gross margin from continuing operations decreased 10 basis points to 50.1%. Big picture “There is noise in this quarter, but when you zoom out and click and look at the big p...
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