Asharq Al-awsat English Middle-east and International News and Opinion from Asharq Al-awsat Newspaper

Vans Owner Cuts Full-Year Revenue Forecast on Delivery Delays

Vans Owner Cuts Full-Year Revenue Forecast on Delivery Delays

Friday, 28 January, 2022 - 12:30
Shoes and backpack of Vans are seen in a shop window in Sao Paulo, Brazil August 29, 2019. (Reuters)

VF Corp cut its full-year revenue forecast on Friday, hurt by delivery delays and worker shortages at Vietnam factories due to the pandemic.

Port congestion, labor shortages and higher freight charges have added to US apparel makers' woes as they struggle to ensure their stores are amply stocked.

Worker shortages in Vietnam, a manufacturing hub for many US apparel makers, have led to production delays for many companies that had just begun to recover from forced factory closures due to COVID-19 lockdowns last year.

The apparel maker forecast fiscal 2022 revenue of about $11.85 billion, compared with its prior estimate of about $12 billion.

The Denver, Colorado-based company's total revenue rose 22% to $3.62 billion in the third quarter ended Jan. 1, beating analysts' average estimate of $3.60 billion, according to IBES data from Refinitiv.

Editor Picks