VF Corporation Reports Second Quarter Fiscal 2025 Results
Q2'FY25 Income Statement Review
- Results demonstrated broad-based year-over-year sequential improvement relative to Q1'FY25, with all key metrics in line with, or above the company's expectations
-
Revenue
$2.8 billion , down 6% vs. last year, an improvement vs. Q1'FY25 down 10%- The North Face® down 3% (down 4% in constant dollars) as expected. This compares against a strong Q2'FY24 of up 19% (up 17% in constant dollars)
- Vans® down 11% vs. last year, relative to Q1'FY25 down 21% vs. last year
- Gross margin 52.2%, up 120 basis points vs. last year
- Operating margin 9.9%, down 210 basis points vs. last year; adjusted operating margin down 60 basis points vs. last year to 11.4%
-
Earnings (loss) per share (EPS)
$0.52 vs. Q2'FY24$(1.16) ; adjusted EPS$0.60 vs. Q2'FY24$0.63
Balance Sheet Review
- Q2'FY25 ending inventories down 13% relative to the prior year
-
Net debt at the end of Q2'FY25 was
$5.7 billion , down by approximately$446 million relative to last year. Shortly after the fiscal quarter end, VF received$1.475 billion of net proceeds following the close of the Supreme sale, allowing VF to further reduce net debt.
Financial Outlook
-
For Q3'FY25 VF expects the following on a continuing operations basis:
-
Revenue in the range of
$2.7 billion to$2.75 billion , down 1% to down 3% year-over-year in reported dollars, inclusive of an expected negative FX impact of approximately 100 basis points -
Adjusted operating income in the range of
$170 million to$200 million (Q3'FY24:$218 million )
-
Revenue in the range of
-
For FY25 VF expects free cash flow from continuing operations plus proceeds from non-core physical asset sales of approximately
$425 million , with core fundamentals in line with previous guidance. Relative to the original full year guidance of$600 million , the change reflects the sale of Supreme and additional reinvestment initiatives in the second half of FY25, which are partially offset by the greater than anticipated proceeds for non-core physical asset sales.
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Summary Revenue Information |
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(Unaudited) |
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|
|
Three Months Ended September |
|
Six Months Ended September |
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(Dollars in millions) |
|
|
2024 |
|
|
|
2023 |
|
|
% Change |
|
% Change (constant currency) |
|
|
2024 |
|
|
|
2023 |
|
|
% Change |
|
% Change (constant currency) |
||||
|
Brand: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
The North Face® |
|
$ |
1,091.4 |
|
$ |
1,128.8 |
|
(3 |
)% |
|
(4 |
)% |
|
$ |
1,615.6 |
|
$ |
1,667.0 |
|
(3 |
)% |
|
(3 |
)% |
||||
|
Vans® |
|
|
667.4 |
|
|
|
748.8 |
|
|
(11 |
)% |
|
(11 |
)% |
|
|
1,249.3 |
|
|
|
1,486.3 |
|
|
(16 |
)% |
|
(16 |
)% |
|
Timberland® |
|
|
475.3 |
|
|
|
488.6 |
|
|
(3 |
)% |
|
(3 |
)% |
|
|
704.8 |
|
|
|
742.5 |
|
|
(5 |
)% |
|
(5 |
)% |
|
Dickies® |
|
|
152.4 |
|
|
|
171.4 |
|
|
(11 |
)% |
|
(11 |
)% |
|
|
269.2 |
|
|
|
308.1 |
|
|
(13 |
)% |
|
(12 |
)% |
|
Other Brands |
|
|
371.4 |
|
|
|
382.4 |
|
|
(3 |
)% |
|
(3 |
)% |
|
|
688.2 |
|
|
|
684.3 |
|
|
1 |
% |
|
0 |
% |
|
VF Revenue |
|
$ |
2,757.9 |
|
|
$ |
2,920.1 |
|
|
(6 |
)% |
|
(6 |
)% |
|
$ |
4,527.0 |
|
|
$ |
4,888.2 |
|
|
(7 |
)% |
|
(7 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
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Region: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
$ |
1,355.9 |
|
|
$ |
1,506.1 |
|
|
(10 |
)% |
|
(9 |
)% |
|
$ |
2,331.6 |
|
|
$ |
2,624.9 |
|
|
(11 |
)% |
|
(11 |
)% |
|
EMEA |
|
|
1,009.6 |
|
|
|
1,042.8 |
|
|
(3 |
)% |
|
(5 |
)% |
|
|
1,541.9 |
|
|
|
1,607.1 |
|
|
(4 |
)% |
|
(5 |
)% |
|
APAC |
|
|
392.5 |
|
|
|
371.3 |
|
|
6 |
% |
|
5 |
% |
|
|
653.6 |
|
|
|
656.3 |
|
|
0 |
% |
|
1 |
% |
|
VF Revenue |
|
$ |
2,757.9 |
|
|
$ |
2,920.1 |
|
|
(6 |
)% |
|
(6 |
)% |
|
$ |
4,527.0 |
|
|
$ |
4,888.2 |
|
|
(7 |
)% |
|
(7 |
)% |
|
International |
|
$ |
1,572.5 |
|
|
$ |
1,605.0 |
|
|
(2 |
)% |
|
(3 |
)% |
|
$ |
2,482.2 |
|
|
$ |
2,578.4 |
|
|
(4 |
)% |
|
(4 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Channel: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
DTC |
|
$ |
914.9 |
|
|
$ |
997.5 |
|
|
(8 |
)% |
|
(8 |
)% |
|
$ |
1,655.9 |
|
|
$ |
1,852.8 |
|
|
(11 |
)% |
|
(10 |
)% |
|
Wholesale (a) |
|
|
1,843.0 |
|
|
|
1,922.7 |
|
|
(4 |
)% |
|
(5 |
)% |
|
|
2,871.1 |
|
|
|
3,035.4 |
|
|
(5 |
)% |
|
(6 |
)% |
|
VF Revenue |
|
$ |
2,757.9 |
|
|
$ |
2,920.1 |
|
|
(6 |
)% |
|
(6 |
)% |
|
$ |
4,527.0 |
|
|
$ |
4,888.2 |
|
|
(7 |
)% |
|
(7 |
)% |
|
All references to the periods ended |
||||||||||||||||||||||||||||
|
Note: Amounts may not sum due to rounding |
||||||||||||||||||||||||||||
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(a) Royalty revenues are included in the wholesale channel for all periods. |
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Dividend Declared
VF’s Board of Directors declared a quarterly dividend of
Webcast Information
VF will host its second quarter fiscal 2025 conference call beginning at
VF will host its FY25 Investor Day, the first of a two-part investor event, on
About VF
Founded in 1899,
Financial Presentation Disclosure
All per share amounts are presented on a diluted basis. This release refers to “reported” and “constant dollar” or “constant currency” amounts, terms that are described under the heading below “Constant Currency - Excluding the Impact of Foreign Currency.” Unless otherwise noted, “reported” and “constant dollar” or “constant currency” amounts are the same. This release also refers to “continuing” and “discontinued” operations amounts, which are concepts described under the heading “Discontinued Operations - Supreme.” Unless otherwise noted, results presented are based on continuing operations. This release also refers to “adjusted” amounts, a term that is described under the heading below “Adjusted Amounts - Excluding Reinvent and Transaction and Deal Related Activities.” Unless otherwise noted, “reported” and “adjusted” amounts are the same.
Discontinued Operations - Supreme
On
Constant Currency - Excluding the Impact of Foreign Currency
This release refers to “reported” amounts in accordance with
Adjusted Amounts - Excluding Reinvent and Transaction and Deal Related Activities
The adjusted amounts in this release exclude costs related to Reinvent, VF's transformation program. Costs, including restructuring charges and project-related costs, were approximately
The adjusted amounts in this release exclude transaction and deal related activities associated with the review of strategic alternatives for the Global Packs business, consisting of the Kipling®, Eastpak® and
Combined, the above items negatively impacted earnings per share by
Reconciliations of measures calculated in accordance with GAAP to adjusted amounts are presented in the supplemental financial information included with this release, which identifies and quantifies all excluded items, and provides management’s view of why this information is useful to investors. The company also provides guidance on a non-GAAP basis as we cannot predict certain elements which are included in reported GAAP results. VF defines free cash flow as cash flow from operations less capital expenditures and software purchases and defines net debt as short and long term borrowings less cash and cash equivalents.
Forward-looking Statements
Certain statements included in this release are "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements are made based on VF's expectations and beliefs concerning future events impacting VF and therefore involve several risks and uncertainties. You can identify these statements by the fact that they use words such as “will,” “anticipate,” "believe," “estimate,” “expect,” “should,” and “may” and other words and terms of similar meaning or use of future dates, however, the absence of these words or similar expressions does not mean that a statement is not forward-looking. All statements regarding VF’s plans, objectives, projections and expectations relating to VF’s operations or financial performance, and assumptions related thereto are forward-looking statements. VF cautions that forward-looking statements are not guarantees and that actual results could differ materially from those expressed or implied in the forward-looking statements. VF undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Potential risks and uncertainties that could cause the actual results of operations or financial condition of VF to differ materially from those expressed or implied by forward-looking statements include, but are not limited to: the level of consumer demand for apparel and footwear; disruption to VF’s distribution system; changes in global economic conditions and the financial strength of VF’s consumers and customers, including as a result of current inflationary pressures; fluctuations in the price, availability and quality of raw materials and finished products; disruption and volatility in the global capital and credit markets; VF’s response to changing fashion trends, evolving consumer preferences and changing patterns of consumer behavior; VF's ability to maintain the image, health and equity of its brands, including through investment in brand building and product innovation; intense competition from online retailers and other direct-to-consumer business risks; increasing pressure on margins; retail industry changes and challenges; VF's ability to execute its Reinvent transformation program and other business priorities, including measures to streamline and right-size its cost base and strengthen the balance sheet while reducing leverage; VF’s ability to successfully establish a global commercial organization, and identify and capture efficiencies in its business model; any inability of VF or third parties on which it relies, to maintain the strength and security of information technology systems; the fact that VF’s facilities and systems, and those of third parties on which we rely, are frequent targets of cyber-attacks of varying levels of severity, and may in the future be vulnerable to such attacks, and any inability or failure by VF or such third parties to anticipate or detect data or information security breaches or other cyber-attacks, including the cyber incident that was reported by VF in
|
Condensed Consolidated Statements of Operations (Unaudited) (In thousands, except per share amounts) |
||||||||||||||||
|
|
|
Three Months Ended September |
|
Six Months Ended September |
||||||||||||
|
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Net revenues |
|
$ |
2,757,948 |
|
|
$ |
2,920,123 |
|
|
$ |
4,527,008 |
|
|
$ |
4,888,186 |
|
|
Costs and operating expenses |
|
|
|
|
|
|
|
|
||||||||
|
Cost of goods sold |
|
|
1,317,391 |
|
|
|
1,430,194 |
|
|
|
2,180,773 |
|
|
|
2,369,828 |
|
|
Selling, general and administrative expenses |
|
|
1,166,654 |
|
|
|
1,139,390 |
|
|
|
2,195,352 |
|
|
|
2,197,668 |
|
|
Total costs and operating expenses |
|
|
2,484,045 |
|
|
|
2,569,584 |
|
|
|
4,376,125 |
|
|
|
4,567,496 |
|
|
Operating income |
|
|
273,903 |
|
|
|
350,539 |
|
|
|
150,883 |
|
|
|
320,690 |
|
|
Interest expense, net |
|
|
(42,688 |
) |
|
|
(41,111 |
) |
|
|
(83,635 |
) |
|
|
(76,687 |
) |
|
Other income (expense), net |
|
|
(660 |
) |
|
|
(2,183 |
) |
|
|
(2,146 |
) |
|
|
(5,826 |
) |
|
Income from continuing operations before income taxes |
|
|
230,555 |
|
|
|
307,245 |
|
|
|
65,102 |
|
|
|
238,177 |
|
|
Income tax expense |
|
|
28,046 |
|
|
|
758,887 |
|
|
|
14,620 |
|
|
|
752,794 |
|
|
Income (loss) from continuing operations |
|
|
202,509 |
|
|
|
(451,642 |
) |
|
|
50,482 |
|
|
|
(514,617 |
) |
|
Income (loss) from discontinued operations, net of tax |
|
|
(150,331 |
) |
|
|
945 |
|
|
|
(257,190 |
) |
|
|
6,495 |
|
|
Net income (loss) |
|
$ |
52,178 |
|
|
$ |
(450,697 |
) |
|
$ |
(206,708 |
) |
|
$ |
(508,122 |
) |
|
Earnings (loss) per common share - basic (a) |
|
|
|
|
|
|
|
|
||||||||
|
Continuing operations |
|
$ |
0.52 |
|
|
$ |
(1.16 |
) |
|
$ |
0.13 |
|
|
$ |
(1.33 |
) |
|
Discontinued operations |
|
|
(0.39 |
) |
|
|
— |
|
|
|
(0.66 |
) |
|
|
0.02 |
|
|
Total earnings (loss) per common share - basic |
|
$ |
0.13 |
|
|
$ |
(1.16 |
) |
|
$ |
(0.53 |
) |
|
$ |
(1.31 |
) |
|
Earnings (loss) per common share - diluted (a) |
|
|
|
|
|
|
|
|
||||||||
|
Continuing operations |
|
$ |
0.52 |
|
|
$ |
(1.16 |
) |
|
$ |
0.13 |
|
|
$ |
(1.33 |
) |
|
Discontinued operations |
|
|
(0.38 |
) |
|
|
— |
|
|
|
(0.66 |
) |
|
|
0.02 |
|
|
Total earnings (loss) per common share - diluted |
|
$ |
0.13 |
|
|
$ |
(1.16 |
) |
|
$ |
(0.53 |
) |
|
$ |
(1.31 |
) |
|
Weighted average shares outstanding |
|
|
|
|
|
|
|
|
||||||||
|
Basic |
|
|
389,044 |
|
|
|
388,338 |
|
|
|
388,892 |
|
|
|
388,249 |
|
|
Diluted |
|
|
390,945 |
|
|
|
388,338 |
|
|
|
390,198 |
|
|
|
388,249 |
|
|
Cash dividends per common share |
|
$ |
0.09 |
|
|
$ |
0.30 |
|
|
$ |
0.18 |
|
|
$ |
0.60 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Basis of presentation of condensed consolidated financial statements: VF operates and reports using a 52/53 week fiscal year ending on the Saturday closest to |
||||||||||||||||
|
(a) Amounts have been calculated using unrounded numbers. |
||||||||||||||||
|
Condensed Consolidated Balance Sheets (Unaudited) (In thousands) |
||||||||||||
|
|
|
September |
|
March |
|
September |
||||||
|
|
|
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
|
ASSETS |
|
|
|
|
|
|
||||||
|
Current assets |
|
|
|
|
|
|
||||||
|
Cash and equivalents |
|
$ |
492,164 |
|
$ |
656,376 |
|
$ |
484,825 |
|||
|
Accounts receivable, net |
|
|
1,820,197 |
|
|
|
1,263,329 |
|
|
|
1,881,531 |
|
|
Inventories |
|
|
2,082,918 |
|
|
|
1,697,823 |
|
|
|
2,405,291 |
|
|
Other current assets |
|
|
472,595 |
|
|
|
493,194 |
|
|
|
358,124 |
|
|
Current assets of discontinued operations |
|
|
1,590,984 |
|
|
|
116,225 |
|
|
|
113,791 |
|
|
Total current assets |
|
|
6,458,858 |
|
|
|
4,226,947 |
|
|
|
5,243,562 |
|
|
Property, plant and equipment, net |
|
|
755,802 |
|
|
|
788,992 |
|
|
|
885,882 |
|
|
|
|
|
2,426,628 |
|
|
|
2,421,838 |
|
|
|
2,924,664 |
|
|
Operating lease right-of-use assets |
|
|
1,313,030 |
|
|
|
1,255,074 |
|
|
|
1,248,524 |
|
|
Other assets |
|
|
1,265,320 |
|
|
|
1,210,470 |
|
|
|
1,143,728 |
|
|
Other assets of discontinued operations |
|
|
— |
|
|
|
1,709,642 |
|
|
|
1,695,992 |
|
|
Total assets |
|
$ |
12,219,638 |
|
|
$ |
11,612,963 |
|
|
$ |
13,142,352 |
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
||||||
|
Current liabilities |
|
|
|
|
|
|
||||||
|
Short-term borrowings |
|
$ |
463,200 |
|
|
$ |
263,938 |
|
|
$ |
1,023,276 |
|
|
Current portion of long-term debt |
|
|
1,750,097 |
|
|
|
1,000,721 |
|
|
|
966 |
|
|
Accounts payable |
|
|
1,134,637 |
|
|
|
788,477 |
|
|
|
961,667 |
|
|
Accrued liabilities |
|
|
1,486,706 |
|
|
|
1,323,982 |
|
|
|
1,486,757 |
|
|
Current liabilities of discontinued operations |
|
|
147,791 |
|
|
|
79,861 |
|
|
|
72,167 |
|
|
Total current liabilities |
|
|
4,982,431 |
|
|
|
3,456,979 |
|
|
|
3,544,833 |
|
|
Long-term debt |
|
|
4,028,549 |
|
|
|
4,702,284 |
|
|
|
5,656,725 |
|
|
Operating lease liabilities |
|
|
1,136,605 |
|
|
|
1,087,304 |
|
|
|
1,066,933 |
|
|
Other liabilities |
|
|
665,686 |
|
|
|
636,090 |
|
|
|
598,409 |
|
|
Other liabilities of discontinued operations |
|
|
— |
|
|
|
71,941 |
|
|
|
65,407 |
|
|
Total liabilities |
|
|
10,813,271 |
|
|
|
9,954,598 |
|
|
|
10,932,307 |
|
|
Stockholders' equity |
|
|
1,406,367 |
|
|
|
1,658,365 |
|
|
|
2,210,045 |
|
|
Total liabilities and stockholders' equity |
|
$ |
12,219,638 |
|
|
$ |
11,612,963 |
|
|
$ |
13,142,352 |
|
|
Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands) |
||||||||
|
|
|
Six Months Ended September |
||||||
|
|
|
|
2024 |
|
|
|
2023 |
|
|
Operating activities |
|
|
|
|
||||
|
Net loss |
|
$ |
(206,708 |
) |
|
$ |
(508,122 |
) |
|
Income (loss) from discontinued operations, net of tax |
|
|
(257,190 |
) |
|
|
6,495 |
|
|
Income (loss) from continuing operations, net of tax |
|
|
50,482 |
|
|
|
(514,617 |
) |
|
Depreciation and amortization |
|
|
126,396 |
|
|
|
136,936 |
|
|
Reduction in the carrying amount of right-of-use assets |
|
|
179,206 |
|
|
|
183,335 |
|
|
Write-off of income tax receivables and interest |
|
|
— |
|
|
|
921,409 |
|
|
Other adjustments, including changes in operating assets and liabilities |
|
|
(657,907 |
) |
|
|
(787,783 |
) |
|
Cash used by operating activities - continuing operations |
|
|
(301,823 |
) |
|
|
(60,720 |
) |
|
Cash provided by operating activities - discontinued operations |
|
|
20,052 |
|
|
|
41,459 |
|
|
Cash used by operating activities |
|
|
(281,771 |
) |
|
|
(19,261 |
) |
|
Investing activities |
|
|
|
|
||||
|
Proceeds from sale of assets |
|
|
76,683 |
|
|
|
281 |
|
|
Capital expenditures |
|
|
(45,953 |
) |
|
|
(93,833 |
) |
|
Software purchases |
|
|
(25,727 |
) |
|
|
(41,150 |
) |
|
Other, net |
|
|
(21,424 |
) |
|
|
(11,026 |
) |
|
Cash used by investing activities - continuing operations |
|
|
(16,421 |
) |
|
|
(145,728 |
) |
|
Cash used by investing activities - discontinued operations |
|
|
(4,413 |
) |
|
|
(4,003 |
) |
|
Cash used by investing activities |
|
|
(20,834 |
) |
|
|
(149,731 |
) |
|
Financing activities |
|
|
|
|
||||
|
Net increase from short-term borrowings and long-term debt |
|
|
198,711 |
|
|
|
109,663 |
|
|
Cash dividends paid |
|
|
(70,048 |
) |
|
|
(233,172 |
) |
|
Proceeds from issuance of Common Stock, net of payments for tax withholdings |
|
|
(2,689 |
) |
|
|
(2,392 |
) |
|
Cash provided (used) by financing activities |
|
|
125,974 |
|
|
|
(125,901 |
) |
|
Effect of foreign currency rate changes on cash, cash equivalents and restricted cash |
|
|
14,304 |
|
|
|
(21,190 |
) |
|
Net change in cash, cash equivalents and restricted cash |
|
|
(162,327 |
) |
|
|
(316,083 |
) |
|
Cash, cash equivalents and restricted cash – beginning of year |
|
|
676,957 |
|
|
|
816,319 |
|
|
Cash, cash equivalents and restricted cash – end of period |
|
$ |
514,630 |
|
|
$ |
500,236 |
|
|
Supplemental Financial Information Reportable Segment Information (Unaudited) |
||||||||||||||
|
|
|
Three Months Ended September |
|
% Change |
|
% Change Constant Currency (a) |
||||||||
|
|
|
|
2024 |
|
|
|
2023 |
|
|
|
||||
|
Segment revenues |
|
|
|
|
|
|
|
|
||||||
|
Outdoor |
|
$ |
1,658,672 |
|
|
$ |
1,713,679 |
|
|
(3)% |
|
(4)% |
||
|
Active |
|
|
879,767 |
|
|
|
968,171 |
|
|
(9)% |
|
(9)% |
||
|
Work |
|
|
219,509 |
|
|
|
238,273 |
|
|
(8)% |
|
(8)% |
||
|
Total segment revenues |
|
$ |
2,757,948 |
|
|
$ |
2,920,123 |
|
|
(6)% |
|
(6)% |
||
|
Segment profit |
|
|
|
|
|
|
|
|
||||||
|
Outdoor |
|
$ |
287,414 |
|
|
$ |
296,750 |
|
|
|
|
|
||
|
Active |
|
|
103,659 |
|
|
|
121,189 |
|
|
|
|
|
||
|
Work |
|
|
20,408 |
|
|
|
8,515 |
|
|
|
|
|
||
|
Total segment profit |
|
|
411,481 |
|
|
|
426,454 |
|
|
|
|
|
||
|
Corporate and other expenses |
|
|
(138,238 |
) |
|
|
(78,098 |
) |
|
|
|
|
||
|
Interest expense, net |
|
|
(42,688 |
) |
|
|
(41,111 |
) |
|
|
|
|
||
|
Income from continuing operations before income taxes |
|
$ |
230,555 |
|
|
$ |
307,245 |
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
||||||
|
(a) Refer to constant currency definition on the following pages. |
||||||||||||||
|
Supplemental Financial Information Reportable Segment Information (Unaudited) (In thousands) |
||||||||||||||
|
|
|
Six Months Ended September |
|
% Change |
|
% Change Constant Currency (a) |
||||||||
|
|
|
|
2024 |
|
|
|
2023 |
|
|
|
||||
|
Segment revenues |
|
|
|
|
|
|
|
|
||||||
|
Outdoor |
|
$ |
2,448,871 |
|
|
$ |
2,543,376 |
|
|
(4)% |
|
(4)% |
||
|
Active |
|
|
1,683,665 |
|
|
|
1,915,907 |
|
|
(12)% |
|
(12)% |
||
|
Work |
|
|
394,472 |
|
|
|
428,903 |
|
|
(8)% |
|
(8)% |
||
|
Total segment revenues |
|
$ |
4,527,008 |
|
|
$ |
4,888,186 |
|
|
(7)% |
|
(7)% |
||
|
Segment profit |
|
|
|
|
|
|
|
|
||||||
|
Outdoor |
|
$ |
203,999 |
|
|
$ |
253,089 |
|
|
|
|
|
||
|
Active |
|
|
172,759 |
|
|
|
222,324 |
|
|
|
|
|
||
|
Work |
|
|
25,736 |
|
|
|
15,346 |
|
|
|
|
|
||
|
Total segment profit |
|
|
402,494 |
|
|
|
490,759 |
|
|
|
|
|
||
|
Corporate and other expenses |
|
|
(253,757 |
) |
|
|
(175,895 |
) |
|
|
|
|
||
|
Interest expense, net |
|
|
(83,635 |
) |
|
|
(76,687 |
) |
|
|
|
|
||
|
Income from continuing operations before income taxes |
|
$ |
65,102 |
|
|
$ |
238,177 |
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
||||||
|
(a) Refer to constant currency definition on the following pages. |
||||||||||||||
|
Supplemental Financial Information Reportable Segment Information – Constant Currency Basis (Unaudited) (In thousands) |
||||||||||||
|
|
|
Three Months Ended |
||||||||||
|
|
|
As Reported |
|
Adjust for Foreign |
|
|
||||||
|
|
|
under GAAP |
|
Currency Exchange |
|
Constant Currency |
||||||
|
Segment revenues |
|
|
|
|
|
|
||||||
|
Outdoor |
|
$ |
1,658,672 |
|
|
$ |
(10,924 |
) |
|
$ |
1,647,748 |
|
|
Active |
|
|
879,767 |
|
|
|
(576 |
) |
|
|
879,191 |
|
|
Work |
|
|
219,509 |
|
|
|
(44 |
) |
|
|
219,465 |
|
|
Total segment revenues |
|
$ |
2,757,948 |
|
|
$ |
(11,544 |
) |
|
$ |
2,746,404 |
|
|
Segment profit |
|
|
|
|
|
|
||||||
|
Outdoor |
|
$ |
287,414 |
|
|
$ |
(4,332 |
) |
|
$ |
283,082 |
|
|
Active |
|
|
103,659 |
|
|
|
(681 |
) |
|
|
102,978 |
|
|
Work |
|
|
20,408 |
|
|
|
(51 |
) |
|
|
20,357 |
|
|
Total segment profit |
|
|
411,481 |
|
|
|
(5,064 |
) |
|
|
406,417 |
|
|
Corporate and other expenses |
|
|
(138,238 |
) |
|
|
(103 |
) |
|
|
(138,341 |
) |
|
Interest expense, net |
|
|
(42,688 |
) |
|
|
— |
|
|
|
(42,688 |
) |
|
Income from continuing operations before income taxes |
|
$ |
230,555 |
|
|
$ |
(5,167 |
) |
|
$ |
225,388 |
|
|
Diluted earnings per share growth from continuing operations |
|
|
145 |
% |
|
|
(1 |
)% |
|
|
144 |
% |
|
|
|
|
|
|
|
|
||||||
|
Constant Currency Financial Information |
||||||||||||
|
VF is a global company that reports financial information in |
||||||||||||
|
To calculate foreign currency translation on a constant currency basis, operating results for the current year period for entities reporting in currencies other than the |
||||||||||||
|
These constant currency performance measures should be viewed in addition to, and not in lieu of or superior to, our operating performance measures calculated in accordance with GAAP. The constant currency information presented may not be comparable to similarly titled measures reported by other companies. |
||||||||||||
|
Supplemental Financial Information Reportable Segment Information – Constant Currency Basis (Unaudited) (In thousands) |
||||||||||||
|
|
|
Six Months Ended |
||||||||||
|
|
|
As Reported |
|
Adjust for Foreign |
|
|
||||||
|
|
|
under GAAP |
|
Currency Exchange |
|
Constant Currency |
||||||
|
Segment revenues |
|
|
|
|
|
|
||||||
|
Outdoor |
|
$ |
2,448,871 |
|
|
$ |
(4,236 |
) |
|
$ |
2,444,635 |
|
|
Active |
|
|
1,683,665 |
|
|
|
2,966 |
|
|
|
1,686,631 |
|
|
Work |
|
|
394,472 |
|
|
|
839 |
|
|
|
395,311 |
|
|
Total segment revenues |
|
$ |
4,527,008 |
|
|
$ |
(431 |
) |
|
$ |
4,526,577 |
|
|
Segment profit |
|
|
|
|
|
|
||||||
|
Outdoor |
|
$ |
203,999 |
|
|
$ |
(3,544 |
) |
|
$ |
200,455 |
|
|
Active |
|
|
172,759 |
|
|
|
(462 |
) |
|
|
172,297 |
|
|
Work |
|
|
25,736 |
|
|
|
(81 |
) |
|
|
25,655 |
|
|
Total segment profit |
|
|
402,494 |
|
|
|
(4,087 |
) |
|
|
398,407 |
|
|
Corporate and other expenses |
|
|
(253,757 |
) |
|
|
(814 |
) |
|
|
(254,571 |
) |
|
Interest expense, net |
|
|
(83,635 |
) |
|
|
— |
|
|
|
(83,635 |
) |
|
Income from continuing operations before income taxes |
|
$ |
65,102 |
|
|
$ |
(4,901 |
) |
|
$ |
60,201 |
|
|
Diluted earnings per share growth from continuing operations |
|
|
110 |
% |
|
|
(1 |
)% |
|
|
109 |
% |
|
|
|
|
|
|
|
|
||||||
|
Constant Currency Financial Information |
||||||||||||
|
VF is a global company that reports financial information in |
||||||||||||
|
To calculate foreign currency translation on a constant currency basis, operating results for the current year period for entities reporting in currencies other than the |
||||||||||||
|
These constant currency performance measures should be viewed in addition to, and not in lieu of or superior to, our operating performance measures calculated in accordance with GAAP. The constant currency information presented may not be comparable to similarly titled measures reported by other companies. |
||||||||||||
|
Supplemental Financial Information
Reconciliation of Select GAAP Measures to Non-GAAP Measures - Three and Six Months Ended (Unaudited) (In thousands, except per share amounts) |
||||||||||||||||
|
Three Months Ended |
|
As Reported u nder GAAP |
|
Reinvent (a) |
|
Transaction and Deal Related Activities (b) |
|
Adjusted |
||||||||
|
Revenues |
|
$ |
2,757,948 |
|
|
$ |
— |
|
$ |
— |
|
$ |
2,757,948 |
|
||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Gross profit |
|
|
1,440,557 |
|
|
|
— |
|
|
|
— |
|
|
|
1,440,557 |
|
|
Percent |
|
|
52.2 |
% |
|
|
|
|
|
|
52.2 |
% |
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Operating income |
|
|
273,903 |
|
|
|
41,279 |
|
|
|
— |
|
|
|
315,182 |
|
|
Percent |
|
|
9.9 |
% |
|
|
|
|
|
|
11.4 |
% |
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Diluted earnings per share from continuing operations (c) |
|
|
0.52 |
|
|
|
0.08 |
|
|
|
— |
|
|
|
0.60 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Six Months Ended |
|
As Reported u nder GAAP |
|
Reinvent (a) |
|
Transaction and Deal Related Activities (b) |
|
Adjusted |
||||||||
|
Revenues |
|
$ |
4,527,008 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
4,527,008 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Gross profit |
|
|
2,346,235 |
|
|
|
412 |
|
|
|
— |
|
|
|
2,346,647 |
|
|
Percent |
|
|
51.8 |
% |
|
|
|
|
|
|
51.8 |
% |
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Operating income |
|
|
150,883 |
|
|
|
59,128 |
|
|
|
490 |
|
|
|
210,501 |
|
|
Percent |
|
|
3.3 |
% |
|
|
|
|
|
|
4.6 |
% |
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Diluted earnings per share from continuing operations (c) |
|
|
0.13 |
|
|
|
0.11 |
|
|
|
— |
|
|
|
0.24 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
(a) Costs related to Reinvent, VF's transformation program, including restructuring charges and project-related costs, were
The Company currently estimates that it will incur approximately |
||||||||||||||||
|
(b) Transaction and deal related activities reflect activities associated with the review of strategic alternatives for the Global Packs business, consisting of the Kipling®, Eastpak® and |
||||||||||||||||
|
(c) Amounts shown in the table have been calculated using unrounded numbers. The diluted earnings per share impacts were calculated using 390,945,000 and 390,198,000 weighted average common shares for the three and six months ended |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Non-GAAP Financial Information |
||||||||||||||||
|
The financial information above has been presented on a GAAP basis and on an adjusted basis, which excludes the impact of Reinvent and transaction and deal related activities. The adjusted presentation provides non-GAAP measures. Management believes these measures provide investors with useful supplemental information regarding VF's underlying business trends and the performance of VF's ongoing operations and are useful for period-over-period comparisons of such operations. |
||||||||||||||||
|
Management uses the above financial measures internally in its budgeting and review process and, in some cases, as a factor in determining compensation. While management believes that these non-GAAP financial measures are useful in evaluating the business, this information should be considered as supplemental in nature and should be viewed in addition to, and not in lieu of or superior to, VF's operating performance measures calculated in accordance with GAAP. In addition, these non-GAAP financial measures may not be the same as similarly titled measures presented by other companies. |
||||||||||||||||
|
Supplemental Financial Information
Reconciliation of Select GAAP Measures to Non-GAAP Measures - Three and Six Months Ended (Unaudited) (In thousands, except per share amounts) |
||||||||||||||||
|
Three Months Ended |
|
As Reported u nder GAAP |
|
Transaction and Deal Related Activities (a) |
|
Tax Items (b) |
|
Adjusted |
||||||||
|
Revenues |
|
$ |
2,920,123 |
|
|
$ |
— |
|
$ |
— |
|
$ |
2,920,123 |
|
||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Gross profit |
|
|
1,489,929 |
|
|
|
— |
|
|
|
— |
|
|
|
1,489,929 |
|
|
Percent |
|
|
51.0 |
% |
|
|
|
|
|
|
51.0 |
% |
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Operating income |
|
|
350,539 |
|
|
|
328 |
|
|
|
— |
|
|
|
350,867 |
|
|
Percent |
|
|
12.0 |
% |
|
|
|
|
|
|
12.0 |
% |
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Diluted earnings (loss) per share from continuing operations (c) |
|
|
(1.16 |
) |
|
|
— |
|
|
|
1.79 |
|
|
|
0.63 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Six Months Ended |
|
As Reported u nder GAAP |
|
Transaction and Deal Related Activities (a) |
|
Tax Items (b) |
|
Adjusted |
||||||||
|
Revenues |
|
$ |
4,888,186 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
4,888,186 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Gross profit |
|
|
2,518,358 |
|
|
|
— |
|
|
|
— |
|
|
|
2,518,358 |
|
|
Percent |
|
|
51.5 |
% |
|
|
|
|
|
|
51.5 |
% |
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Operating income |
|
|
320,690 |
|
|
|
1,446 |
|
|
|
— |
|
|
|
322,136 |
|
|
Percent |
|
|
6.6 |
% |
|
|
|
|
|
|
6.6 |
% |
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Diluted earnings (loss) per share from continuing operations (c) |
|
|
(1.33 |
) |
|
|
— |
|
|
|
1.79 |
|
|
|
0.47 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
(a) Transaction and deal related activities reflect activities associated with the review of strategic alternatives for the Global Packs business, consisting of the Kipling®, Eastpak® and |
||||||||||||||||
|
(b) Tax items include the impact to tax expense resulting from the decision by the |
||||||||||||||||
|
(c) Amounts shown in the table have been calculated using unrounded numbers. The GAAP diluted loss per share was calculated using 388,338,000 and 388,249,000 weighted average common shares for the three and six months ended |
||||||||||||||||
|
|
||||||||||||||||
|
Non-GAAP Financial Information |
||||||||||||||||
|
The financial information above has been presented on a GAAP basis and on an adjusted basis, which excludes the impact of transaction and deal related activities and certain tax items. The adjusted presentation provides non-GAAP measures. Management believes these measures provide investors with useful supplemental information regarding VF's underlying business trends and the performance of VF's ongoing operations and are useful for period-over-period comparisons of such operations. |
||||||||||||||||
|
Management uses the above financial measures internally in its budgeting and review process and, in some cases, as a factor in determining compensation. While management believes that these non-GAAP financial measures are useful in evaluating the business, this information should be considered as supplemental in nature and should be viewed in addition to, and not in lieu of or superior to, VF's operating performance measures calculated in accordance with GAAP. In addition, these non-GAAP financial measures may not be the same as similarly titled measures presented by other companies. |
||||||||||||||||
|
Supplemental Financial Information Top 4 Brand Revenue Information (Unaudited) |
||||||||||||||||
|
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
Top 4 Brand Revenue Growth |
|
|
|
EMEA |
|
APAC |
|
Global |
|
|
|
EMEA |
|
APAC |
|
Global |
|
The North Face® |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% change |
|
(14)% |
|
0% |
|
20% |
|
(3)% |
|
(13)% |
|
(2)% |
|
23% |
|
(3)% |
|
% change constant currency* |
|
(13)% |
|
(2)% |
|
19% |
|
(4)% |
|
(12)% |
|
(4)% |
|
24% |
|
(3)% |
|
Vans® |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% change |
|
(10)% |
|
(7)% |
|
(27)% |
|
(11)% |
|
(18)% |
|
(5)% |
|
(28)% |
|
(16)% |
|
% change constant currency* |
|
(9)% |
|
(8)% |
|
(26)% |
|
(11)% |
|
(17)% |
|
(6)% |
|
(27)% |
|
(16)% |
|
Timberland® |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% change |
|
(4)% |
|
(3)% |
|
3% |
|
(3)% |
|
(2)% |
|
(7)% |
|
(8)% |
|
(5)% |
|
% change constant currency* |
|
(3)% |
|
(5)% |
|
3% |
|
(3)% |
|
(1)% |
|
(8)% |
|
(7)% |
|
(5)% |
|
Dickies® |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% change |
|
(14)% |
|
2% |
|
(16)% |
|
(11)% |
|
(14)% |
|
0% |
|
(25)% |
|
(13)% |
|
% change constant currency* |
|
(14)% |
|
1% |
|
(15)% |
|
(11)% |
|
(14)% |
|
0% |
|
(23)% |
|
(12)% |
|
*Refer to constant currency definition on previous pages. |
||||||||||||||||
|
Supplemental Financial Information Geographic and Channel Revenue Information (Unaudited) |
||||||||
|
|
|
Three Months Ended |
|
Six Months Ended |
||||
|
|
|
% Change |
|
% Change Constant Currency* |
|
% Change |
|
% Change Constant Currency* |
|
Geographic Revenue Growth |
|
|
|
|
|
|
|
|
|
|
|
(10)% |
|
(9)% |
|
(11)% |
|
(11)% |
|
EMEA |
|
(3)% |
|
(5)% |
|
(4)% |
|
(5)% |
|
APAC |
|
6% |
|
5% |
|
0% |
|
1% |
|
|
|
10% |
|
9% |
|
5% |
|
6% |
|
International |
|
(2)% |
|
(3)% |
|
(4)% |
|
(4)% |
|
Global |
|
(6)% |
|
(6)% |
|
(7)% |
|
(7)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
||||
|
|
|
% Change |
|
% Change Constant Currency* |
|
% Change |
|
% Change Constant Currency* |
|
Channel Revenue Growth |
|
|
|
|
|
|
|
|
|
Wholesale (a) |
|
(4)% |
|
(5)% |
|
(5)% |
|
(6)% |
|
Direct-to-consumer |
|
(8)% |
|
(8)% |
|
(11)% |
|
(10)% |
|
Digital |
|
(5)% |
|
(5)% |
|
(7)% |
|
(7)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
As of September |
|
|
|
|
||
|
|
|
2024 |
|
2023 |
|
|
|
|
|
DTC Store Count |
|
|
|
|
|
|
|
|
|
Total |
|
1,160 |
|
1,235 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Refer to constant currency definition on previous pages. |
||||||||
|
(a) Royalty revenues are included in the wholesale channel for all periods. |
||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20241028757895/en/
Investor Contact:
ir@vfc.com
Media Contact:
corporate_communications@vfc.com
Source:
