VF Corporation: CEO Appointment Comes at Critical and Uncertain Time; Shares Very Undervalued

Narrow-moat VF announced that Bracken Darrell will join as CEO on July 17. The firm has been without a permanent CEO since December when Steve Rendle was dismissed and replaced on an interim basis by former wide-moat Clorox CEO Benno Dorer. Darrell comes to VF from consumer electronics and software firm Logitech, where he has served as CEO for the past 10 years. He also has management experience at wide-moat Procter & Gamble and Whirlpool. He joins VF at a crucial time after a poor (March-ended) fiscal 2023 in which it repeatedly lowered guidance, cut its dividend, recognized large write-downs related to Supreme, and paid nearly $900 million after losing a tax case (being appealed). Now, in fiscal 2024, VF faces sluggish demand for apparel and footwear while it endeavors to improve its supply chain and fix Vans and Supreme. While Darrell’s history of leading a public company for a decade provides confidence, it is perhaps surprising that VF has chosen a CEO with no experience in the apparel and footwear industry.