VFCorp. has lowered its guidance for 2023 as it expects slower growth in revenue due to declining sales and high inventory levels.
Vans, one of the company’s most popular brands, is seeing a slowdown in sales with lackluster demand during the back-to-school shopping season. Meanwhile, North Face is struggling with excess inventory.
The company now expects its overall sales to rise between 5% and 6% in 2023, which will be lower than its previous guidance of at least 7%. As a result, earnings are now expected to be between $2.60 and $2.70 per share, down from its prior forecast of $3.05 to $.315 per share.
Looking ahead, the company is betting its growth on North Face and Supreme, which are projected to see an increase in revenue in the high single-digit to low double-digit percentage range, VFCorp noted.
Vans and Timberland sales are expected to see an increase in sales in the mid-single-digit percentage range.
“We are confident in our ability to deliver consistent, sustainable growth for our portfolio of brands over the long term,” said CEO Steve Rendle.
