It looks like there’s a double-shot of challenging news items for VF Corporation (NYSE:VFC) today. First of all, Steve Rendle has officially stepped down as the company’s president, chairman and CEO. On top of that, VFC stock stumbled as VF Corporation reported weak product demand and consequently lowered its sales forecast for the year.
You might not be very familiar with VF Corporation, but there’s a good chance you’ve heard of the company’s Vans sneakers. You might also know about VF Corporation’s streetwear brand, known as Supreme.
It’s a tough time for retailers as inflation is still elevated in the U.S. despite some recent declines. Perhaps, then, it’s not ideal timing for VF Corporation’s leader to retire from the company. Yet, that’s exactly what’s happening now.
Steve Rendle has been with VF Corporation for nearly a quarter of a century but is now retiring as the company’s president, chairman and chief executive. Therefore, not only will VF Corporation have to function without its longtime leader, but it will find a new permanent CEO.
What’s Happening With VFC Stock?
None of this bodes well for VF Corporation — or at least, that’s how today’s financial traders seem to be interpreting the news. VFC stock tumbled 8% soon after the opening bell rang on Wall Street and stayed down during the first hour of the trading session.
Investors weren’t only reacting to Rendle’s departure, though. VF Corporation just slashed its full-year sales forecast. The company cited weaker-than-expected North American demand for the VF Corporation’s products.
Excluding the impact of currency, VF Corporation had previously predicted a full-year sales increase of up to 6%. Now, the company has revised that forecast to a maximum of 4%.
VF Corporation’s investors already struggled with steep losses this year. Those losses just deepened due to the aforementioned news items. Eventually, the market might consider VFC stock a great opportunity and give it a price boost. Today will offer little if any relief for VF Corporation’s shareholders, however.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
