Shares of VF Corp. were sharply declining following the revelation of a security breach that may have a significant impact on the company's operations. As the parent company of popular brands like Vans and The North Face, VF Corp. saw its stock drop by 7.7% to $18.38 in premarket trading.
The breach, which was detected on December 13th, disrupted business operations by encrypting certain information technology systems and stealing data from the company. In response to this incident, VF Corp. immediately launched an investigation with the assistance of external cybersecurity experts. They also activated their incident response plan, leading to the shutdown of some systems.
Despite these measures, VF Corp. stated that while its retail stores remain open globally and customers can still place orders on most of its brand e-commerce platforms, their "ability to fulfill orders is currently impacted."
The full extent of the breach is still unknown as the investigation is ongoing. However, VF Corp. acknowledged that it will likely have a material impact on business operations until recovery efforts are completed. At this time, the company has not determined whether the incident will have a significant effect on its financial condition or results of operations.
In response to the breach, a VF spokesperson expressed that the company will continue to evaluate and enhance its security measures in order to bolster resilience in an ever-evolving threat landscape.