Revenue Performance - VF Corporation reported a 4% decrease in revenues for Fiscal 2025, totaling $9.5 billion compared to $9.9 billion in Fiscal 2024[248]. - The Outdoor segment saw a 1% revenue increase to $5.6 billion, while the Active segment experienced a 12% decline to $3.1 billion[251]. - Total segment revenues decreased to $9,504.7 million in Fiscal 2025 from $9,915.7 million in Fiscal 2024, reflecting a decline of approximately 4.1%[263]. - The Outdoor segment reported revenues of $5,576.3 million in Fiscal 2025, a slight increase of 1.4% from $5,501.4 million in Fiscal 2024, with a segment profit margin rising to 13.0%[267]. - The Active segment experienced a 12.1% revenue decline to $3,095.3 million in Fiscal 2025, with segment profit decreasing by 35.7% to $152.8 million[270]. - The Work segment's revenues decreased by 6.6% to $833.1 million in Fiscal 2025, but segment profit surged by 201.2% to $53.1 million[275]. - Global direct-to-consumer revenues for Outdoor increased by 6% in Fiscal 2025, primarily driven by The North Face brand[269]. - The North Face brand's global revenues increased by 1% in Fiscal 2025, with a notable 18% increase in the Asia-Pacific region[268]. - Vans brand global revenues decreased by 16% in Fiscal 2025, significantly impacted by a 16% decline in the Americas region[271]. - International revenues decreased by 2% in Fiscal 2025, with a 1% unfavorable impact from foreign currency; revenues in the Europe region decreased by 3% and in the Americas (non-U.S.) region by 7%[285]. - Direct-to-consumer revenues decreased by 6% in Fiscal 2025, with e-commerce revenues also down by 6% and retail store revenues down by 8%[287]. Financial Performance - Gross margin improved by 190 basis points to 53.5% in Fiscal 2025, driven by lower product costs and improved inventory quality[250][252]. - Earnings per share increased to $0.18 in Fiscal 2025, compared to a loss of $2.62 in Fiscal 2024, aided by lower impairment charges and improved profitability in the Outdoor and Work segments[251]. - Operating margin improved to 3.2% in Fiscal 2025 from a negative 1.5% in Fiscal 2024[256]. - Cash provided by operating activities decreased to $438.5 million in Fiscal 2025 from $884.7 million in Fiscal 2024[297]. - Cash provided by investing activities increased significantly to $1,432.5 million in Fiscal 2025, primarily due to proceeds from the sale of Supreme amounting to $1.506 billion[299]. - Cash used by financing activities increased to $2,146.0 million in Fiscal 2025, driven by a $1.0 billion prepayment of the DDTL and a $750.0 million early redemption of long-term debt[300]. - Cash dividends totaled $0.36 per share in Fiscal 2025, down from $0.78 in Fiscal 2024, with a dividend payout ratio of (74.5%) of diluted earnings per share[313]. - As of March 2025, VF had $2.5 billion remaining for future share repurchases under its authorization[302]. - VF's long-term debt ratings were 'BB' by S&P and 'Ba1' by Moody's, with a stable outlook[311]. - VF's total contractual obligations at the end of Fiscal 2025 amount to $8,234 million, with $2,899 million due in 2026[314]. - Long-term debt recorded is $3,996 million, with significant payments of $1,865 million due thereafter[314]. - Working capital increased to $1,088.2 million in March 2025 from $733.6 million in March 2024, and the current ratio improved to 1.4 from 1.2[289]. - VF had $429.4 million in cash and cash equivalents at the end of Fiscal 2025, indicating sufficient liquidity to meet obligations[319]. Impairment and Taxation - The company recorded goodwill and intangible asset impairment charges of $89.2 million in Fiscal 2025, primarily related to the Dickies and Icebreaker brands[254]. - The effective income tax rate was 52.2% in Fiscal 2025, a significant increase from (257.5%) in Fiscal 2024, with a net discrete tax expense of $19.4 million impacting the rate by 13.4%[258]. - Income from continuing operations in Fiscal 2025 was $69.3 million ($0.18 per diluted share), a recovery from a loss of ($1.0) billion (($2.62) per diluted share) in Fiscal 2024[259]. - VF recorded an impairment charge of $51.0 million for the Dickies indefinite-lived trademark intangible asset due to a downturn in financial results[357]. - VF recorded a goodwill impairment charge of $38.2 million related to the Icebreaker reporting unit for the year ended March 2025[358]. - VF has $531.0 million in valuation allowances against deferred tax assets, indicating potential uncertainty in realizing these assets[368]. - The realization of deferred tax assets is contingent on future taxable income, which is uncertain and may be affected by changes in tax laws[368]. - Future adjustments to income tax expense may occur if the realizable amount of deferred tax assets differs from the recorded amount[368]. Corporate Strategy and Initiatives - VF completed the sale of the Supreme brand for $1.506 billion on October 1, 2024, resulting in an after-tax loss of $126.6 million[240]. - The company initiated the Reinvent transformation program in October 2023, aiming for $500 million to $600 million in net operating income expansion by Fiscal 2028[244]. - Corporate and other expenses increased by $77.1 million in Fiscal 2025 compared to Fiscal 2024, primarily due to higher restructuring charges and project-related costs[284]. Risk Management - VF has exposure to foreign currency exchange rate risks, with approximately 55% of revenues generated internationally[326]. - A hypothetical 1% increase in interest rates would increase reported net income by approximately $3.2 million[325]. - VF's pension costs have fluctuated significantly, ranging from $12.1 million in March 2024 to $101.9 million in March 2023[323]. - VF evaluates potential impairment whenever events indicate that the carrying value of an asset may not be recoverable[343]. - Recent accounting standards have been adopted, details can be found in Note 1 of the consolidated financial statements[369]. - VF's market risks are discussed in the "Risk Management" section of the Annual Report[370].

Core Viewpoint - V.F. Corporation (VFC) reported a narrower-than-expected loss per share in the fourth quarter of fiscal 2025, despite a sales miss, with revenues declining year over year but improvements in earnings and margins [1][2][3] Financial Performance - Adjusted loss per share was 13 cents, better than the Zacks Consensus Estimate of a loss of 15 cents, and improved from a loss of 30 cents per share in the same quarter last year [2] - Net revenues were $2.14 billion, down 5% year over year, and below the consensus estimate of $2.18 billion [2] - Adjusted gross margin expanded by 560 basis points to 53.4% due to lower material costs and improved inventory quality [3] Revenue Breakdown - Revenues in the Americas fell 6% year over year, while EMEA revenues decreased by 4% and APAC revenues were flat [5] - Wholesale revenues declined by 4%, and direct-to-consumer revenues were down 5% year over year [6] - The Outdoor segment saw a revenue increase of 5% to $1.28 billion, while the Active segment declined by 18% to $645.3 million [7] Future Outlook - Management projects a revenue decline of 3-5% on a constant dollar basis for the first half of fiscal 2026, with Q1 expected to be the smallest quarter of the fiscal year [11] - An operating loss of $110-$125 million is anticipated for Q1, with gross margins expected to rise year over year [12] - Adjusted operating income is forecasted to expand year over year in fiscal 2026, with higher free cash flow expected compared to fiscal 2025 [13] Cost-Saving Initiatives - The company has achieved its initial target of $300 million in gross cost savings by the end of fiscal 2025 and aims for $500-$600 million in net operating income expansion through the next phase of its Reinvent program [10]

V.F. (VFC) reported $2.14 billion in revenue for the quarter ended March 2025, representing a year-over-year decline of 9.7%. EPS of -$0.13 for the same period compares to -$0.32 a year ago.The reported revenue represents a surprise of -1.62% over the Zacks Consensus Estimate of $2.18 billion. With the consensus EPS estimate being -$0.15, the EPS surprise was +13.33%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their n ...

Financial Data and Key Metrics Changes - Revenue for Q4 fiscal year 2025 was down 3% year-over-year, aligning with guidance of a decline between 2% to 4% [7][28] - Operating income increased by 400 basis points year-over-year to $22 million, exceeding guidance [7] - Gross margin improved by 560 basis points to 53.4%, driven by lower material costs and reduced discounting [7][30] - Net debt decreased by 26% year-over-year, with leverage reduced by one full turn to 4.1 times [8][31] - Adjusted loss per share improved to negative $0.13 from negative $0.30 in the same quarter last year [30] Business Line Data and Key Metrics Changes - Vans revenue declined by 20% in Q4, attributed to strategic actions and reduced storefronts, with 60% of the decline linked to deliberate revenue management [10][11] - The North Face brand saw a revenue increase of 4% in Q4, with direct-to-consumer (DTC) sales rising by 9% [17][28] - Timberland reported a strong performance with a 13% revenue increase in Q4, benefiting from lower discounts [17][28] Market Data and Key Metrics Changes - The APAC region experienced a revenue growth of 2%, while The Americas and EMEA regions saw declines of 5% and 2% respectively due to reduced promotional activities [29] - DTC sales were down 3%, while wholesale sales decreased by 2% [29] Company Strategy and Development Direction - The company is focused on a transformation strategy called "Reinvent," aimed at improving operational profitability and simplifying the business structure for long-term growth [7][30] - Strategic actions include reducing unprofitable storefronts and managing marketplace dynamics to achieve profitable growth [11][12] - The company is diversifying its supply chain and has reduced reliance on China for finished goods to less than 2% [20][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the turnaround of Vans, indicating that progress is being made despite current numerical setbacks [10][14] - The company is navigating macroeconomic uncertainties with a proactive approach, leveraging its asset-light model for flexibility [20][22] - Future cash flow is expected to improve year-over-year, with operating cash flow and free cash flow anticipated to rise [33] Other Important Information - The company is not providing full-year guidance but expects Q1 revenue to decline by 3% to 5% on a constant dollar basis [34] - The impact of tariffs is being managed through strategic pricing and cost management initiatives [26][27] Q&A Session Summary Question: Thoughts on gross margin and free cash flow - Management expects continued improvement in gross margins and free cash flow, with the $313 million free cash flow not including Supreme [41][44] Question: One-time strategic reset actions at Vans - The impact of strategic reset actions will continue into Q1 and Q2, with expectations of fading by Q3 and being eliminated by Q4 [52][56] Question: Free cash flow and debt management - The company plans to use free cash flow and a revolver to manage upcoming debt maturities, with confidence in improving cash flow [61][64] Question: Store count strategy and dividend considerations - The company has aggressively edited its store count, with further optimization expected but heavy lifting largely completed [126][128] - Dividend reductions are on the table if necessary, but no immediate changes are anticipated [132][134] Question: Gross margin components and outlook - Management discussed the contributions to gross margin improvements, including product cost tailwinds and lower promotions, with expectations for these trends to continue [140]

V.F. Corporation (VFC) Q4 2025 Earnings Call May 21, 2025 08:00 AM ET Speaker0 Ladies and gentlemen, thank you for standing by. My name is Krista, and I will be your conference operator today. At this time, I would like to welcome everyone to the VF Corporation Fourth Quarter Fiscal Year twenty five Earnings Conference Call. Lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. Thank you. And I would now like to turn the con ...

Q4'25 Earnings May 21, 2025 Q4'25 EARNINGS Financial Presentation Disclosure All per share amounts are presented on a diluted basis. This presentation refers to "reported" (R$) and "constant dollar" (C$) 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, and amounts will be as "reported" unless otherwise specified. ...

Financial Performance - Q4'25 revenue was $2.1 billion, down 5% year-over-year, with adjusted operating income of $22 million, exceeding guidance[12] - Q4 2025 revenue decreased by 5% to $2,143.8 million compared to $2,247.3 million in Q4 2024[35] - Total segment revenues decreased by 4% year-over-year to $9.505 billion, with the Outdoor segment showing a slight increase of 1% to $5.576 billion, while the Active segment declined by 12% to $3.095 billion[49] - Global revenue decreased by 5% in Q4 2025 and 4% for the full year, with constant currency changes of (3%) and (4%) respectively[94] - The company reported a net loss of $189.716 million for the twelve months ended March 2025, a significant improvement from a net loss of $968.882 million in the previous year[45] - Net loss for Q4 2025 was $150.8 million, compared to a net loss of $418.3 million in Q4 2024[39] - Total operating loss for Q4 2025 was $72.9 million, an improvement from a loss of $373.4 million in Q4 2024[39] - Adjusted operating income for the twelve months ended March 2025 was reported at $556.1 million, while GAAP operating income was $303.8 million[75] Brand Performance - The North Face® and Timberland® brands showed growth, while Vans® and Dickies® experienced declines, with Vans® down 22% year-over-year[14] - The North Face® brand revenue increased by 2% to $834.5 million, while Vans® brand revenue decreased by 22% to $492.6 million in Q4 2025[35] - Revenue growth for The North Face® in the APAC region was 12% for the three months ended March 2025, while Vans® experienced a decline of 25% in the same period[92] Cost Management and Savings - The company achieved $300 million in gross cost savings in FY'25, targeting $500 to $600 million in net operating income expansion in the medium term[13] - Cash dividends of $35 million were paid during the quarter, reflecting the company's commitment to returning value to shareholders[27] - VF incurred approximately $200.0 million in restructuring charges related to the Reinvent transformation program, with cumulative charges through Q4 of Fiscal 2025 totaling approximately $190.1 million[67] Debt and Cash Flow - Net debt decreased by $1.8 billion (26%) year-over-year, ending FY'25 with leverage of 4.1x, down one full turn from the previous year[26] - Free cash flow for FY'25 was $313 million, with total free cash flow including proceeds from non-core asset sales at $401 million[14] - Cash provided by operating activities for continuing operations was $438.489 million, down from $884.714 million in the previous year, reflecting operational challenges[45] - Cash, cash equivalents, and restricted cash at the end of the year stood at $431.475 million, down from $676.957 million at the beginning of the year[45] - Long-term debt reduced to $3,425.7 million in March 2025 from $4,702.3 million in March 2024[42] Operational Strategy - The company is focused on a deliberate rationalization of channel distribution to strengthen brand foundations and improve profitability[18] - The company plans to streamline operations and strengthen its balance sheet while reducing leverage as part of its ongoing transformation strategy[33] - The company plans to focus on market expansion and new product development to drive future growth, although specific details were not disclosed in the earnings call[46] Regional Performance - The Americas and EMEA regions saw revenue declines, while the APAC region remained flat, with a slight growth of 2%[24] - The Americas region revenue decreased by 6% to $995.2 million in Q4 2025[35] - EMEA revenue declined by 4% in Q4 2025 and 3% for the full year, with constant currency changes of (2%) and (3%) respectively[94] - APAC revenue remained flat at 0% in Q4 2025, with a 1% increase for the full year, and constant currency changes of 2% for both periods[94] - Greater China revenue declined by 3% in Q4 2025 but increased by 3% for the full year, with constant currency changes of (1%) and 4% respectively[94] Impairment and Charges - Impairment of goodwill and intangible assets was recorded at $89.242 million, a decrease from $507.566 million in the prior year, indicating improved asset valuation[49] - Noncash goodwill impairment charges recognized by VF amounted to $36.2 million for the three months ended March 2026 and $51.0 million for the twelve months ended March 2025[68] - The impairment charges resulted in a net tax benefit of $10.5 million for the twelve months ended March 2025[68] Shareholder Information - The company reported a basic loss per share of $0.39 for Q4 2025, compared to a loss of $1.08 in Q4 2024[39] - The adjusted diluted earnings per share for the twelve months ended March 2025 was calculated using 392,571,000 weighted average common shares[70] - VF's management believes that non-GAAP financial measures provide useful supplemental information regarding business trends and ongoing operations[71]

V.F. Corporation VFC will release its fourth-quarter earnings results before the opening bell on Wednesday, May 21. Analysts expect the Denver, Colorado-based company to report a quarterly loss at 14 cents per share, versus a year-ago loss of 32 cents per share in the year- ago period. According to data from Benzinga Pro, V.F. Corporation projects to report quarterly revenue at $2.17 billion, compared to $2.37 billion a year earlier. On Jan. 29, the company reported third-quarter sales of $2.834 billion, be ...

Core Viewpoint - V. F. Corporation (VFC) stock has shown a short-term bullish trend by crossing its 50-day simple moving average (SMA), closing at $14.85, which is above the SMA of $13.92, indicating positive momentum in the apparel retail sector [1][6]. Company Performance - VFC shares have rallied 42.1% in the past month, outperforming the Zacks Textile - Apparel industry's growth of 24.1%, as well as the broader Zacks Consumer Discretionary sector and the S&P 500, which grew by 16.4% and 11.4% respectively [6]. - Despite this growth, VFC's performance is weaker compared to competitors such as Ralph Lauren Corporation (30.3%), lululemon athletica inc. (27%), and Guess Inc. (24.2%) [7]. Financial Metrics - VFC stock is currently trading 48.8% below its 52-week high of $29.02 and 57.8% above its 52-week low of $9.41 [9]. - The company has achieved $300 million in gross cost savings and aims for $500-$600 million in operating income expansion by fiscal 2028, resulting in a 150-basis-point expansion in gross margin and a 360-basis-point boost in operating margin, now above 11% [13]. - VFC has reduced net debt by nearly $2 billion, enhancing its financial health and flexibility for reinvestment and shareholder returns [14]. Strategic Initiatives - The "Reinvent" transformation plan is central to VFC's recovery, focusing on brand architecture, leadership, and operational structure, with key brands like The North Face and Timberland showing revenue growth of 5% and 11% respectively in Q3 fiscal 2025 [10][11]. - The Americas region has returned to growth for the first time in over two years, indicating successful market-specific strategies [12]. Earnings Estimates - The Zacks Consensus Estimate for VFC's fiscal 2025 EPS remains unchanged, while the estimate for fiscal 2026 EPS has decreased by 3.8% [17]. - For fiscal 2025, the revenue estimate implies an 8.6% year-over-year decline, while fiscal 2026 estimates suggest 1.8% revenue growth and 38.6% earnings growth [17]. Valuation - VFC trades at a forward 12-month price-to-earnings (P/E) multiple of 13.95X, which is above the industry average of 12.75X but below its five-year high of 59.87X [18][19]. - Compared to competitors, VFC's valuation is higher than Guess's 6.53X but lower than Ralph Lauren's 19.52X and lululemon's 20.79X [19]. Market Outlook - VFC is showing signs of a credible turnaround with operational efficiencies and key brands regaining traction, although challenges remain, particularly in the Vans segment and macroeconomic conditions [22]. - The company's premium valuation raises concerns about long-term sustainability amid competition and economic uncertainty, but improving fundamentals suggest a cautiously optimistic outlook [23].

Group 1 - V.F. Corporation is set to report its fiscal Q4 results for the January-March period on May 21 before the market opens [1] - The company's brand turnaround is still in the early stages [1] Group 2 - The investment philosophy focuses on identifying mispriced securities by understanding the drivers behind a company's financials [1] - A DCF model valuation is often used to reveal the potential of a stock [1] - This methodology allows for a flexible approach to investing, considering all prospects of a stock to assess risk-to-reward [1]