Are attire retailers too optimistic about their earnings outlooks? In that case, VF Corp. ‘s revenue warning could possibly be an indication of issues to return. The dad or mum of manufacturers akin to The North Face, Vans and Timberland stated Monday its full-year outcomes will miss the mark it set just a few weeks in the past when it posted its fiscal second-quarter outcomes . Rewinding to that earnings report on the finish of October, the attire maker’s outlook wasn’t precisely rosy. It reiterated its income forecast however slashed earnings outlook, citing expectations of a extra promotional surroundings. On Monday, VF stated there is a “extra elevated than anticipated promotional surroundings” because it lowered its EPS steerage as soon as once more and stated its CEO is stepping down . Shares fell almost 7% in buying and selling on the information. The corporate’s inventory is now down almost 55% 12 months to this point. The brand new forecast requires earnings of $2.00 to $2.20 per share, after changes, in contrast with an estimate of $2.40 per share from Refinitiv. That is down from $2.40 to $2.50 per share a number of weeks in the past and much decrease than the vary of $2.60 to $2.70 previous to the October earnings report. All advised, it is a 21% discount in a matter of weeks. Within the year-ago quarter, VF earned $3.18 per share. What’s extra, the newest revision is not simply concerning the promotional surroundings, and that is why it might be one thing for traders to observe. This time, VF additionally lower its gross sales forecast. It expects income to rise between 3% and 4% in fixed {dollars}, down from a previous estimate of 5% to six% development, on the identical foundation. Since VF has dozens of manufacturers, direct-to-consumer web sites, its personal brick-and-mortar shops and partnerships with quite a few retailers, it has a very good view of the retail panorama. From that vantage level, it stated a wide range of components are hurting quantity. It defined that broad-based demand in North America, its largest market, is weaker than anticipated, and there are extra wholesale cancellations. And “to a lesser diploma,” there may be much less demand in Europe and there are Covid-19 disruptions in China, it stated. Seems like an ideal storm, would not it?