Drag queen ad causes North Face stock drop

Drag queen ad causes North Face stock drop

VF Corp’s stock price has declined significantly this year due to sales pressures, macroeconomic conditions, and dividend reduction, and the latest controversy surrounding a pride ad has caused another sharp drop in the stock.

VF Corp (NYSE: VFC), the parent company of trending apparel and footwear brands such as The North Face, Vans, and Timberland, saw its stock price decline significantly this year owing to sales pressures, macroeconomic conditions, and dividend reduction. 

Shares of the Denver, Colorado-based company experienced another sharp fall on Wednesday, May 24, after reporting Q4 2023 earnings and revenue that beat analyst estimates, though both metrics declined year-over-year.

In addition, the latest stock tumble likewise came just a day after VF Corp was embroiled in controversy for releasing a ‘come out’ pride ad, featuring activist Pattie Gonia. 

Recently, stocks tied to corporations like Walt Disney and Bud Light owner faced substantial selling pressure after extreme backlash against their efforts to encourage liberal or progressive agendas.

VF Corp stock analysis

In the past 30 days, shares of VF Corp plummeted nearly 20%. During that period, the stock experienced a notable trading range from $18.14 to $23.50.

At the time of publication, VFC was currently worth $18.35, down 3.27 percent in the past 24 hours. 

Year to date, the company lost almost 35 percent in stock price value, significantly underperforming the broader S&P 500 market index, which gained 7.6 percent since the start of 2023. 

Analysts slash price targets on VFC

After the  earnings notice, plenty of analysts slashed their price objectives on VF Corp’s stock.

Financial specialists at Telsey Advisory Group trimmed the price target from $36 to $27, while maintaining the outperform rating.

Citigroup analysts lowered the price target on VFC from $22 to $20, reiterating the neutral rating for the stock.

In the end, Wells Fargo likewise trimmed the price target on the stock from $22 to $20, though the bank’s analyst Ike Boruchov maintained an equal-weight rating. 

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