VF Corp temporarily closes 60% of its stores in China

China
Published:  14 February, 2020
Credit:Timberland

The U.S. headquartered footwear and lifestyle apparel manufacturer said its financial results in the Asia Pacific region will be impacted by the coronavirus crisis in the near term, but the Group remains confident that it is well positioned to tackle the challenging situation.

VF Corp said that about 60% if its owned and partner stores in China have been temporarily closed due to coronavirus mitigation efforts, with the stores currently open experiencing significant declines in retail traffic. “While the coronavirus will impact our financial results in the Asia Pacific region in the near term, VF’s growth opportunity in China and across the Asia Pacific region is significant and the fundamentals of our business are strong. VF is well positioned to navigate the impact of the coronavirus situation given the diversity of our business and operating model in other key geographies”, said Steve Rendle, Chairman, President and CEO, VF Corporation.

In Fiscal 2019, the Asia Pacific region and mainland China represented 12% and 6% of the Group’s total revenue. Approximately 16% of VF’s total cost of goods sold is sourced directly from mainland China, of which 7% is destined for the U.S. market.

VF Corp’s brands include Vans, The North Face, Timberland and Dickies.