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.
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