VF Corp. lowers full-year steering, publicizes CEO is retiring

VF Company, proprietor of The North Face and Timberland, on Monday lowered its income and earnings expectations for the second half of its fiscal yr and mentioned its chairman and chief govt is retiring.

CEO Steve Rendle is stepping down from his publish after virtually six years, efficient instantly, the corporate mentioned in a press launch. Benno Dorer, who sits on the corporate’s board, will function interim CEO whereas the corporate searches for Rendle’s everlasting substitute. Richard Carucci will function interim chairman of the board.

Shares of the corporate fell 7% in early buying and selling Monday.

VF Corp. mentioned it now expects full-year income to extend by 3% or 4% over the prior yr, down from beforehand projected development of 5% or 6%. It estimates its full-year earnings to come back in at about $2.00 to $2.20 per share, down from earlier steering of $2.40 to $2.50, introduced a number of weeks in the past.

VF Corp. reported full-year earnings of $3.18 per share final yr.

That is the second time in lower than two months that VF Corp. has slashed its steering. VF attributed its lowered monetary outlook to “weaker than anticipated shopper demand,” particularly in its North American market, which has prompted fewer gross sales and extra order cancellations. It additionally cited the general tightening of shopper spending on account of inflation and Covid-related disruption in China.

These challenges might take a toll on short-term profitability, the corporate mentioned.