By Ananya Mariam Rajesh

(Reuters] VF Corp (NYSE 🙂 has cut its full year revenue forecast for Vans shoemaker VF Corp on Friday due to material shortages, labour issues at factories, and a slump in China sales because COVID-related lockdowns. Its shares dropped more than 6%.

The U.S. apparel industry relies on Asia for its bulk of production and growth.

VF Corp stated that the Omicron coronavirus variant, which is rapidly spreading worldwide, was also affecting its global sales.

Matt Puckett, Chief Financial Officer at VF, stated that the latest virus outbreak in Europe had led to a decline in consumer confidence and deterioration of traffic. He also said that stretched staff members were being employed by VF stores.

VF claimed that despite the shortage of raw materials and labor, it anticipates that manufacturing will return to its full potential in the weeks ahead.

From $12 billion, the company has reduced its revenue projection for fiscal 2022 to $11.85 million. The company expects that revenue from its “Active”, which is home to the Vans, Supreme and Supreme brands, will rise between 31% to 33%, as opposed to a range of 35% and 37%.

According to IBES data from Refinitiv, the company, which is based in Denver, Colorado, saw its total revenue rise 22% to $3.62 Billion for the quarter that ended January 1. This was slightly more than analysts’ average estimate at $3.60 Billion.

From a year ago, net income rose 49% to $517.8million, which is $1.32 per share.