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Shares of VF Corporation (NYSE:VFC), the owner of brands including Vans, The North Face, Timberland, and Dickies, declined ahead of the opening bell on Monday after the company announced its Chairman, President and CEO, Steve Rendle, will retire after six years of leading the company.
The company announced that Benno Dorer, Lead Independent Director of the Board of Directors, has been named Interim President and Chief Executive Officer, effective immediately, and it has commenced a search for a permanent Chief Executive Officer.
VF Corporation also revised its outlook due to the impact of weaker-than-anticipated consumer demand, primarily in North America.
VF now expects total revenue growth in the second half of fiscal 2023 to be modestly lower than previously outlined, with revenue for the full year expected to increase 3% to 4% in constant dollars, compared to the previous guidance of up 5% to 6% in constant dollars.
VF said the promotional environment, primarily in North America, and SG&A deleverage from lower volumes are expected to impact profitability in the near term.
Adjusted diluted earnings per share for the full year is now expected to be $2.00 to $2.20, versus $3.18 in the prior year and compared to the previous outlook of $2.40 to $2.50. Analysts were forecasting full year EPS of $2.40.
VF Corporation shares were lower by nearly 7%.
