VFC - Why VF Corporation Stock Dropped Today
2023-12-18 16:16:52 ET
Shares of VF Corporation (NYSE: VFC) fell as much as 9% early Monday, then settled to trade down 7% as of 1:30 p.m. ET after the parent company of brands including Vans, The North Face, Timberland, and Smart Wool disclosed a cyberattack that could have a material impact on its holiday sales.
In an SEC filing this morning, VF says it detected unauthorized access to a portion of its information technology (IT) systems on Dec. 13, 2023. VF immediately took steps to contain and remediate the incident, including shutting down some systems and starting discussions with leading external cybersecurity experts. It also noted the threat actor disrupted operations by not only encrypting some of its IT systems, but also stealing some data from the company, including personal data.
Worse yet, VF says it's still working to bring the impacted portions of its IT systems back online while putting workarounds in place to reduce disruption to its ability to serve customers during the crucial holiday season. Though VF-operated retail stores are still open and consumers can still purchase available merchandise, the cyberattack has impacted its ability to fulfill orders placed by customers online.
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Why VF Corporation Stock Dropped Today