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VF Corporation, owner of The North Face and Timberland, on Monday lowered its revenue and earnings expectations for the second half of its fiscal yr and said its chairman and chief executive is retiring.
CEO Steve Rendle is stepping down from his post after almost six years, effective immediately, the corporate said in a press release. Benno Dorer, who sits on the corporate’s board, will function interim CEO while the corporate searches for Rendle’s everlasting substitute. Richard Carucci will function interim chairman of the board.
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Shares of the corporate fell 11% to $29.51 by market close on Monday. Credit Suisse on Monday downgraded the stock to a “neutral” rating in light of what it called an “abrupt” CEO transition and the reduced forecast.
VF Corp. said it now expects full-year revenue to extend by 3% or 4% over the prior yr, down from previously projected growth of 5% or 6%. It estimates its full-year earnings to are available in at about $2.00 to $2.20 per share, down from previous guidance of $2.40 to $2.50, announced just a few weeks ago.
VF Corp. reported full-year earnings of $3.18 per share last yr.
That is the second time in lower than two months that VF Corp. has slashed its guidance. VF attributed its lowered financial outlook to “weaker than anticipated consumer demand,” especially in its North American market, which has caused fewer sales and more order cancellations. It also cited the general tightening of consumer spending in consequence of inflation and Covid-related disruption in China.
Those challenges may take a toll on short-term profitability, the corporate said.