(Reuters) VF Corp’s quarterly profit and revenue estimates fell short of Wall Street expectations on Friday. The Vans owner was dealing with product delays due to disruptions in global supply chains and production problems in Vietnam.

Premarket trading saw shares of the Denver-based company fall 8.1% to $68.05

Since mid-July there has been a resurgence of COVID-19 infected factories in Vietnam due to the Delta variant. This forced apparel manufacturers to stop production and employ drastically fewer people.

The country is a major manufacturing center for many brands, including VF (NYSE :). Nike Inc (NYSE:), and Adidas AG (DE) have both threatened to close down factories during busy holiday shopping periods.

As companies face rising freight costs, higher raw material prices and tighter margins for clothing labels, the margins have come under severe pressure.

Nike last month raised concerns about product delays during the holiday season because of a supply chain problem and stated that it will take many months for production to resume at full capacity in Vietnam where approximately half its shoes are manufactured.

Crocs (NASDAQ.) Inc stated Thursday that they plan to move some production from Vietnam into China, Indonesia, and Bosnia. The manufacturer of casual footwear had originally planned to source 70% from Vietnam in the current year.

VF has Timberland and The North Face brands. VF sources around 25% of its products from Vietnam. The Vans brand’s exposure is expected to increase, Cowen analysts reported earlier in the month.

According to Refinitiv IIBES, total revenues rose by 23% to $2.20 billion during the second quarter versus estimates of $3.50 trillion.

VF’s adjusted earnings were $1.11 per share, which was below the estimates of $1.15 per sharing.