Sales for sneaker brand Vans are slowing down.
Vans’ parent company VF Corporation, a footwear and apparel company that also owns Timberland, slashed its full-year forecasts Thursday amid declining demand for the brand’s outerwear, shoes, and sneakers.
VF Corp. shares dropped nearly 8 percent Thursday morning in premarket trading when the company posted weak sales for the third quarter. The decline continued throughout the day and shares were trading at $85.79 at about 3 p.m. ET, which is down $2.76 a share from the opening bell.
Vans, of Santa Ana, Calif., known for its slip-on skateboarding shoes that have earned mainstream traction from stars like the Kardashians and Rihanna, posted its slowest revenue growth in two years at 12 percent in the third quarter on the heels of a new line launch inspired by skater Anthony van Engelen. Vans has been in business for more than 50 years, and it had annual revenues topping $3 billion last year.
And sister brands Timberland and The North Face, meanwhile, reported $1.66 billion in revenue, just under the average analyst estimate of $1.7 billion. VF says the decline is due to slowed online sales in the U.S., Europe and in the Middle East.
Moving forward, VF said its focusing on its brands in the workwear category, like Dickies, which makes uniforms for American workers.