Ike Boruchow, an analyst at Wells Fargo, noted that the company’s business model remains “under heavy pressure” with inventory up more than 100 percent over the past year.
“U.S. wholesale partners reduced first-half orders given greater caution and reduced VF service levels;likely doesn’t inflect until back-to-school and inventory will enter heavy at Vans, as well as The North Face and Dickies,” Boruchow noted in a research note to clients.
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