North Face owner VF Corp. falls 10% after guidance cut, CEO steps down

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

CEO Steve Rendle is stepping down from his put up after virtually six years, efficient instantly, the corporate stated 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.

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Shares of the corporate fell 10% Monday.

VF Corp. stated it now expects full-year income to extend by 3% or 4% over the prior yr, down from beforehand projected progress 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.

This 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 consumer demand,” particularly in its North American market, which has triggered fewer gross sales and extra order cancellations. It additionally cited the general tightening of client spending on account of inflation and Covid-related disruption in China.

Those challenges could take a toll on short-term profitability, the corporate stated.