VF Corp. stock falls on reduced profit outlook, CEO transition

VF Corp.
VFC,
-0.78%
shares fell 7% in premarket trades on Monday after the apparel maker warned its 2022 adjusted profit will fall below its earlier view and said it’s launching a search for a new chief executive officer. VF Corp. said it now expects 2022 adjusted earnings of $2 to $2.20 a share from $2.40 to $2.50 a share in its earlier view, due to macroeconomic factors as well as the impact of weaker-than-anticipated consumer demand across its categories, primarily in North America. The company is seeing “a more elevated than expected promotional environment as well as order cancellations in the wholesale channel to manage trade inventories.” The company is also launching the search for a new CEO after the retirement of Steve Rendle. Lead independent director Benno Dorer has been named interim president and CEO.