V.F. Corporation VFC provides more details on its line of action to combat the impact of coronavirus. Apart from extending store-closure duration, the company announced temporary pay cuts for various executives and other capital plans to stay financially resilient amid such unprecedented times. It also withdrew its fiscal 2020 view and refrained from providing any update on the same.
In response to the pandemic, the company’s board has decided to forgo the cash retainer for the next four months, whereas its CEO and executive leadership team are liable to base salary reduction of 50% and 25%, respectively, for the same period. However, after four months, these measures will be evaluated and modified according to requirements.
In order to retain financial strength, V.F. Corp has been taking proactive measures to raise liquidity and flexibility, as part of its Enterprise Protection Strategy. The company will draw down the balance $1 billion available under its existing senior unsecured revolving credit facility. Including this, the company now has roughly $2.4 billion cash. It had earlier announced $1 billion drawings on its current revolving credit facility.
Moreover, management has been exploring its capital structure in order to cash in on opportunities. It has also temporarily put share repurchases on hold, having $2.8 billion available under its current buyback authorization. However, V.F. Corp will continue to pay its regular dividend, subject to its board’s approval. Meanwhile, V.F. Corp is on track to proceed with the sale of its Occupational Workwear business, which was announced in January.
More Detail on Store Closures
Regarding the extension of its store closures, V.F. Corp stated that its entire offices and retail stores in North America will remain shut till May 3. The associated employees will continue to get full pay and benefits. In EMEA, all of the company’s offices will continue to be closed until May 3, while the retail stores will be shut til further notice. In the region, management has chosen to temporarily lower working time while salaries will be at or above 95% of their normal pay for the office, wholesale and distribution center employees.
However, retail employees will receive full pay during the period. In the APAC region, majority of the company’s offices remain closed with associates working remotely. However, most retail stores in APAC, particularly in Mainland China, have re-opened. All workers in this region will receive full pay and benefits.
Furthermore, V.F. Corp’s distribution centers have been in operation to cater to customers, including medical professionals, first responders and other related workers. These centers are adhering to all safety and necessary protocols. The distribution centers’ employees can avail nearly 14-day emergency pay in the United States and Canada. Outside these regions, employees will continue to receive full pay and benefits in alignment with local regulations.
A Few Other Players’ Actions
Certainly, apparel and accessories players have been largely facing the brunt of the alarming spread of the global pandemic. Naming a few, L Brands LB, Macy’s M and Tilly's TLYS have taken such measures. Women’s apparel retailer, L Brands suspended its quarterly dividend payout, cut down on capital expenditures and drawn down $950 million from its revolving credit facility. It has also temporarily reduced base compensation by 20% for senior vice presidents and above as well as deferred annual merit increases and furloughed majority of its store associates effective Apr 5, till further notice.
Renowned omni-channel retailer, Macy’s has suspended its second-quarter fiscal 2020 dividend and lowered capital expenditures for the current fiscal year. The company has also chosen to access the $1.5-billion available under its revolving credit facility. While apparel and accessories dealer, Tilly's has borrowed roughly $23.7 million under its credit facility, shut down its distribution center in Irvine, CA, and furloughed most of its associates. It has also recognized additional cost reductions for fiscal 2020.
Coming back to V.F. Corp, the Zacks Rank #5 (Strong Sell) company’s shares have plummeted 41.2% compared with the industry’s 40.8% decline in the past three months.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Free: Zacks’ Single Best Stock Set to Double
Today you are invited to download our latest Special Report that reveals 5 stocks with the most potential to gain +100% or more in 2020. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.
This pioneering tech ticker had soared to all-time highs and then subsided to a price that is irresistible. Now a pending acquisition could super-charge the company’s drive past competitors in the development of true Artificial Intelligence. The earlier you get in to this stock, the greater your potential gain.
See 5 Stocks Set to Double>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
V.F. Corporation (VFC) : Free Stock Analysis Report
Macy's, Inc. (M) : Free Stock Analysis Report
Tilly's, Inc. (TLYS) : Free Stock Analysis Report
L Brands, Inc. (LB) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
"corp" - Google News
April 09, 2020 at 02:27AM
https://ift.tt/2JNohGL
V.F. Corp Extends Closure, Updates Plans Amid Coronavirus - Yahoo Finance
"corp" - Google News
https://ift.tt/2RhVoHj
Shoes Man Tutorial
Pos News Update
Meme Update
Korean Entertainment News
Japan News Update
Bagikan Berita Ini
0 Response to "V.F. Corp Extends Closure, Updates Plans Amid Coronavirus - Yahoo Finance"
Post a Comment