U.S. Markets closed
  • S&P Futures

    4,170.50
    -21.00 (-0.50%)
     
  • Dow Futures

    34,094.00
    -3.00 (-0.01%)
     
  • Nasdaq Futures

    12,659.00
    -187.75 (-1.46%)
     
  • Russell 2000 Futures

    2,007.50
    -0.40 (-0.02%)
     
  • Crude Oil

    75.99
    +0.11 (+0.14%)
     
  • Gold

    1,931.60
    +0.80 (+0.04%)
     
  • Silver

    23.65
    +0.03 (+0.13%)
     
  • EUR/USD

    1.0898
    -0.0013 (-0.1199%)
     
  • 10-Yr Bond

    3.3960
    -0.0010 (-0.03%)
     
  • Vix

    18.73
    +0.86 (+4.81%)
     
  • GBP/USD

    1.2218
    -0.0011 (-0.0916%)
     
  • USD/JPY

    128.6700
    +0.0660 (+0.0513%)
     
  • BTC-USD

    23,560.58
    -411.12 (-1.72%)
     
  • CMC Crypto 200

    537.20
    -8.12 (-1.49%)
     
  • FTSE 100

    7,820.16
    +59.05 (+0.76%)
     
  • Nikkei 225

    27,587.79
    +185.74 (+0.68%)
     

Outlook Revisions Could Hamper The Sheen Of VF Corp, Says Analyst

  • VF Corp (NYSE: 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 (NYSE: 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.

Latest Ratings for VFC

Date

Firm

Action

From

To

Jan 2022

Truist Securities

Maintains

Hold

Jan 2022

Deutsche Bank

Maintains

Buy

Jan 2022

Barclays

Maintains

Equal-Weight

View More Analyst Ratings for VFC

View the Latest Analyst Ratings

See more from Benzinga

Don't miss real-time alerts on your stocks - join Benzinga Pro for free! Try the tool that will help you invest smarter, faster, and better.

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.