- VF Corp VFC named Benno Dorer, Lead Independent Director, as its Interim President and Chief Executive Officer after Steve Rendle's decision to retire from his positions. Richard Carucci, a director on the Board since 2009, will serve as Interim Chairman.
- VF also reduced its FY23 outlook largely to reflect the impact of weaker-than-anticipated consumer demand across its categories, primarily in North America.
- Telsey Advisory Group analyst Dana Telsey reiterated an Outperform rating on the shares of VFC and lowered the price target from $45 to $36.
- The analyst noted Dorer's experience includes large, global consumer packaged goods companies. Most recently, he served as the CEO of Clorox Co CLX from 2015 to 2020.
- The analyst specified that VF Corp has again lowered its FY23 outlook, given the weaker consumer demand.
- The more conservative outlook, the analyst said, reflects weaker consumer demand, with some impact from inflationary pressures in Europe and COVID-19 disruptions in China.
- The third downward guidance revision for FY23 is disappointing despite a challenging macro environment as the revision has been made in a short interval, added the analyst.
- Despite the majority of VFC's other brands posting decent growth to-date in FY23, the Vans brand has been the stock's primary driver over the past several years, and is now the basis of VF's shares' underperformance, in the analyst's view.
- In this scenario, the analyst believes a fresh perspective from a new business leader could prove valuable moving forward.
- Near-term macro uncertainties and a flagging Vans business remain headwinds, clouding near-term visibility with the Vans reset likely to take some time.
- Meanwhile, the analyst expects the company's strong brand portfolio with a favorable mix across categories (active, outdoor, work and street) can drive broad-based growth across channels and geographies longer-term.
- Price Action: VFC shares are trading lower by 1.47% at $29.07 on the last check Tuesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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