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VF Corp., the parent organisation behind brands like Vans, North Face, and Timberland, has identified a cybersecurity breach that might “materially impact” their business operations. Here are some key details:
- The company identified the system breach on December 13, 2023.
- This incident may undermine the company’s ability to fulfill online orders, with some disruptions already experienced.
- Cyber attackers encrypted some systems and stole data, including personal information.
- VF’s physical retail outlets continue to operate, and purchases can be made there.
The share price of VF Corp. saw a decline of 5.1% in premarket trading on the day the breach was reported. The company has stated that the cybersecurity incident still holds a “reasonable” prospect to cause further disruptions in its business operations.
Despite the breach, VF Corp. has not yet established whether this incident will substantially impact its overall financial condition or operational results. As of now, consumers can still place online orders on the majority of the company’s e-commerce sites worldwide.
According to VF Corp., the cyber attackers disrupted their operations by encrypting certain systems, not only halting operations but also stealing data. This stolen information includes personal data, which raises concerns over the potential misuse of this information by malicious entities.
As of the end of 2023, VF Corp’s market performance had declined by 27.9%, contrasting with the S&P 500’s 22.9% rise. Even in light of the cyberattack, VF Corp. intends to keep its physical retail stores open for customers to make purchases.
The breach has once again underscored the importance of robust cybersecurity measures and protocols for companies, particularly those operating within the e-commerce domain. The incident also aligns with a growing trend of prominent corporations being targeted by cyber attackers, resulting in significant disruptions and potential reputational damage.
