VF Corporation plans to cut costs aggressively after announcing new estimates for the fourth quarter of 2008, which should see earnings down by between 7 and 11 percent. Revenues probably went down by 2 percent instead of their previously predicted growth of 3 to 4 percent. VF expects sales for all of 2008 to have been up by 6 percent, down from the earlier forecast of 7-8 percent growth.
The parent company of The North Face, Jansport, Eagle Creek, Reef, Vans, Napapijri and Eastpak, is budgeting savings of $100 million a year, it would not say how they will be obtained. At the end of 2008 it had about $350 million in cash and no long-term debt payments due until October 2010.
For the full 2009 year, VF’s sales should dip slightly, but per-share earnings should exceed the goal of a 10-11 percent increase, excluding the effects of a stronger dollar and higher pension costs. These are expected to be about $90 million due to the condition of the global securities market.