VF’s Steve Rendle on the Macro Headwinds

Steve Rendle has his eye on the horizon and is watching the storm.
“The environment has become more uncertain over the past several months,” said Rendle, chairman, president and chief executive officer of VF Corp., on a conference call with analysts going over second-quarter results Friday.
“Several factors, mainly [foreign exchange], tariffs and the ongoing disruption in Hong Kong, have largely offset the underlying operational strength of our business,” he said. “While all of the items just mentioned are small individually, collectively they’re weighing on our opportunities for upside performance for the remainder of fiscal 2020.”
VF is one of the strongest companies in fashion — powered by Vans and The North Face in particular — and is compensating.
All told, the macro weaknesses cited are expected to equal 7 cents in earnings per share for the year, but the company plans to make up for that lost ground and reaffirmed its annual EPS outlook of $3.32 to $3.37.
VF’s second-quarter net income increased 28 percent to $649 million, or $1.61 a diluted share. Adjusted earnings from continuing operations of $1.26 a share marked a 6 percent increase from a year earlier, but fell short of the $1.31 analysts were projecting.
Revenues for the three months

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Rachel Meadows

Rachel Meadows

Trending topics news writer who enjoys cooking, walking her dog and travel.

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