Vans, Supreme Owner Cuts Forecast on Lower Demand; CEO Departs




  • In Business
  • 2022-12-05 18:38:31Z
  • By Bloomberg

(Bloomberg) -- VF Corp., the owner of Vans sneakers and the Supreme streetwear brand, fell the most in more than two years after cutting its forecast and announcing the retirement of Chairman and Chief Executive Officer Steve Rendle.

Most Read from Bloomberg

  • 'Huge, Missing and Growing:' $65 Trillion in Dollar Debt Sparks Concern

  • Stocks Slump as Fed-Hike Jitters Lift Bond Yields: Markets Wrap

  • China's Covid Pivot Accelerates as Cities Ease Testing Rules

  • Ambitious Plans to Build Indonesia a Brand New Capital City Are Falling Apart

  • OPEC+ Pauses as Russia Sanctions and China Covid Rules Roil Crude Markets

The retailer now sees sales for the full year rising no more than 4%, excluding the impact of currency, down from its previous guidance of as much as 6%. It also expects profit to be lower than previously forecast. The company said lower demand in North America is resulting in more promotions as well as order cancellations in the wholesale channel.

The news caused shares of VF to fall as much as 12%, their biggest drop since March 2020. Credit Suisse cut its rating on the stock to neutral from outperform, saying "the abrupt CEO transition and lack of clarity on which brand is seeing incremental pressure add too much near-term uncertainty."

Retailers have been offering deep discounts in recent months to clear excess inventory that resulted from a combination of over-ordering and sinking consumer demand. Some wholesale partners, including department stores, have canceled orders to minimize the amount of merchandise they're acquiring as inflation-strained consumers grow more cautious.

Covid-19 restrictions in China and inflation in Europe are also hurting the outlook, but to a lesser degree than North America, the company said.

Rendle, 63, served as CEO for almost six years as part of a nearly 25-year career with VF. Benno Dorer, 58, lead independent director on VF's board, has been named interim CEO while the company searches for a permanent replacement. Richard Carucci will serve as interim chairman.

Rendle's retirement leaves four major US apparel brands with interim CEOs: Gap Inc., Kohl's Corp., Under Armour Inc. and VF.

--With assistance from Ryan Vlastelica.

(Updates with analyst downgrade and shares in third paragraph.)

Most Read from Bloomberg Businessweek

  • 11 Hours With Sam Bankman-Fried: Inside the Bahamian Penthouse After FTX's Fall

  • TikTok's Viral Challenges Keep Luring Young Kids to Their Deaths

  • Can Duolingo Actually Teach You Spanish?

  • Forget Zoom Calls, Remote Work Startups Want to Build a Virtual Office

  • The Club With a 60,000-Woman Waitlist

©2022 Bloomberg L.P.

COMMENTS

More Related News

Oil Steadies After Slump as IEA Points to Rising China Demand
Oil Steadies After Slump as IEA Points to Rising China Demand

(Bloomberg) -- Oil steadied after sinking to the lowest close in about a month as traders took stock of the outlook for demand in China and the latest...

Foreign Investors Buy Taiwan Stocks at Fastest Pace Since 2005
Foreign Investors Buy Taiwan Stocks at Fastest Pace Since 2005

(Bloomberg) -- Foreign investors net bought NT$120 billion ($4 billion) worth of Taiwanese stocks last week, the most since 2005, Bloomberg data shows. Net...

Magnitude 7.7 Earthquake Strikes in Turkey
Magnitude 7.7 Earthquake Strikes in Turkey

(Bloomberg) -- A powerful earthquake struck southern Turkey before dawn on Monday, killing at least five people and trapping an unknown number of others in...

Dollar Rebound Set to Extend Amid Fed Speakers, China Tensions
Dollar Rebound Set to Extend Amid Fed Speakers, China Tensions

(Bloomberg) -- Three straight days of gains are giving hope to embattled dollar bulls who are looking to a slew of Federal Reserve speakers and rising US...

Adani Saga Enters Third Week as Officials Jump in to Calm Nerves
Adani Saga Enters Third Week as Officials Jump in to Calm Nerves

(Bloomberg) -- Indian policy makers and regulators stepped in over the weekend to calm frayed nerves over concerns the turmoil surrounding billionaire Gautam...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Business