(Bloomberg) -- VF Corp., owner of brands like Vans and the North Face, sank as much as 11% in postmarket trading to become the worst performer in the S&P 500 even as the company announced it was reviewing brands for possible divestment as part of its turnaround plan.
The company is undertaking a “strategic review” of its brands, said Chief Executive Officer Bracken Darrell, to ensure that assets retained within its portfolio are those that can create “the greatest long-term value.”
“We meant it when we said no sacred cows, so we're really taking an objective look at all the brands,” he said on an earnings call.
The company is moving ahead with previously announced plans to sell its backpack brands Jansport and Eastpak with the intention of paying down its debt with the proceeds.
“Reducing debt and strengthening the balance sheet remains a top priority,” Darrell said, adding that VF has also identified “non-core physical assets” to “be monetized in the coming quarters.”
Describing third-quarter results as “clearly disappointing,” Darrell said the company was taking steps to stabilize and grow its business. Quarterly sales slid 16% to $2.96 billion, below the consensus estimate of $3.24 billion.
(Updates with new headline; previous version of this story corrected name of CEO in the fifth paragraph)
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