Shares of
VF Corp.
were falling sharply after the parent company of Vans and The North Face said a security breach may impact its business.
The stock was down 8.2% to $18.27 on Monday.
In a securities filing Monday, VF said the breach—which was detected Dec. 13—disrupted business operations by encrypting some information technology systems and stealing data from the company.
After learning about the incident, VF started an investigation with external cybersecurity experts, activated its incident response plan, and shut down some systems. The company said while its retail stores are open globally and consumers can place orders on most of its brand e-commerce sites, its “ability to fulfill orders is currently impacted.”
As the investigation is still unfolding, the full scope of the incident is unknown, VF said in the filing. That said, it “has had and is reasonably likely to continue to have a material impact” on business operations until recovery efforts are concluded, and the company “has not yet determined whether the incident is reasonably likely to materially impact” its financial condition or results of operations.
A VF spokesperson told Barron’s via email that “the Company will continue to review its security measures to look for opportunities to strengthen resiliency in an ever-evolving threat landscape.”
Write to Emily Dattilo at [email protected]
Read the full article here