It’s going timber(land)Investors are tired of winter and go hunting for the sun after North Face and Timberland owner VF. Corp sends an H2 storm warning and loses its tour leader.
- Shares in VF Corp. fell over 11% on Monday for its worst day since covid hit in March 2020, now hovering near its lowest levels since 2013. The dump came after the brand slashed its guidance for the second half the year, now expecting FY revenue growth of 4% at the high-end, down from 6%.
- The outdoor wear brand cited weaker-than-expected demand, particularly in the North American region where there are fewer sales and more cancellations – higher inflation means penny-pinching consumers who have less cash to splash on a $320 jacket. They’re hardly discount stores, are they?
- That’s not all tho – its CEO is stepping down, rather abruptly. Steve Rendle has led the brand for around five years – during which time shares have lost over 55%, though that’s hardly entirely his fault – but is now retiring and leaving it in the hands of board member Benno Dorer, temporarily at least. Sounds like the new guy has his work cut out for him.
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A fashion faux pasInvestors of VF Corp (the guys behind top tier brands like Vans and North Face) leave the earnings show early after next season's forecast fails to impress.
- Prices shrunk 6.5% on Friday to their lowest point since August 2020, having yet to recover to pre-pandemic levels despite lockdowns being lifted and stores reopening.
- Is the pandemic-induced activewear boom over? Despite beating on both ends with EPS of $1.35 on revenues of $3.6bn (up 28%), investors were digesting a warning of a slowdown in activewear demand across its international brands.
- There was no grand finale to the show either – VF Corp cut its 2022 forecast as it struggles to overcome supply chain delays and worker shortages.
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