VF Corp. cut its forecast for profit this year amid a sluggish retail market in the US.
“We continue to operate in an uneven, global economic environment including especially sluggish retail conditions in the Americas, our largest market,” said Eric Wiseman, CEO of the company that owns apparel brands including Vans, Timberland, and North Face.
The company said Monday that it now sees profit at $3.13 per share this year, down from a previous projection of $3.20, and less than analysts’ average forecast of $3.19 according to Bloomberg.
“With a strong balance sheet, powerful brands, and a growing global presence, we have great confidence in our ability to maintain near-term profitability, yet we’re not satisfied with our third quarter results,” Wiseman said.
Like other retailers, VF is grappling with the trend of declining traffic to malls. Visits fell 50% between 2010 and 2013, according to real estate research firm Cushman & Wakefield. And, 15% of malls are expected to disappear in the next decade, according to a study by Green Street Advisors.
Traditional retailers are also working to adapt to the rise of online shopping in various ways including improving loyalty programs and offering free shipping.
VF revenue fell 1% year-over-year to $3.5 billion.
Its shares were little changed in early trading. They fell 5% in pre-market trading after the earnings announcement was made.