Dive Brief:
- VF Corp. estimates that a cyberattack the company reported in December impacted 35.5 million consumers, according to new documents filed with the U.S. Securities and Exchange Commission.
- While personal data was stolen, VF Corp. emphasized that it doesn’t retain or collect social security numbers, bank account information or payment card information.
- At the time of the incident the company experienced disruption to some of its operations, but the company’s stores, e-commerce sites and distribution centers are now operating “with minimal issues,” the company said.
Dive Insight:
Vans and The North Face parent company VF Corp. released more information regarding a cyber incident it reported at the height of the holiday season.
At that time, the company said that customers could place orders on most of its brands’ e-commerce sites globally, but its ability to fulfill the orders was impacted.
When VF Corp. discovered the incident it shut down a number of its systems, thereby disrupting operations. Some customers canceled orders, wholesale shipments saw delays and the company experienced reduced demand. However, the company believes the impact of the cyberattack is unlikely to be material to its financial state.
VF Corp. is seeking reimbursement of costs, expenses and losses from its insurers.
The company is in the middle of a transformation program meant to bolster sales as some of its brands falter. The company recently cut around 500 jobs globally in order to give it “the financial flexibility to invest behind our brands and better position us for long term growth,” according to a statement at the time of the layoffs. This past fall saw activist investors calling for hundreds of millions of dollars in cost cuts and a board shakeup.
