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VF(VFC) - 2025 Q4 - Annual Results
VFCVF(VFC)2025-05-21 10:02

Financial Performance - Q4'25 revenue was 2.1billion,down52.1 billion, down 5% year-over-year, with adjusted operating income of 22 million, exceeding guidance[12] - Q4 2025 revenue decreased by 5% to 2,143.8millioncomparedto2,143.8 million compared to 2,247.3 million in Q4 2024[35] - Total segment revenues decreased by 4% year-over-year to 9.505billion,withtheOutdoorsegmentshowingaslightincreaseof19.505 billion, with the Outdoor segment showing a slight increase of 1% to 5.576 billion, while the Active segment declined by 12% to 3.095billion[49]−Globalrevenuedecreasedby53.095 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 968.882millioninthepreviousyear[45]−NetlossforQ42025was968.882 million in the previous year[45] - Net loss for Q4 2025 was 150.8 million, compared to a net loss of 418.3millioninQ42024[39]−TotaloperatinglossforQ42025was418.3 million in Q4 2024[39] - Total operating loss for Q4 2025 was 72.9 million, an improvement from a loss of 373.4millioninQ42024[39]−AdjustedoperatingincomeforthetwelvemonthsendedMarch2025wasreportedat373.4 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 303.8million[75]BrandPerformance−TheNorthFace®andTimberland®brandsshowedgrowth,whileVans®andDickies®experienceddeclines,withVans®down22303.8 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 492.6millioninQ42025[35]−RevenuegrowthforTheNorthFace®intheAPACregionwas12492.6 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 500to500 to 600 million in net operating income expansion in the medium term[13] - Cash dividends of 35millionwerepaidduringthequarter,reflectingthecompany′scommitmenttoreturningvaluetoshareholders[27]−VFincurredapproximately35 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 190.1million[67]DebtandCashFlow−Netdebtdecreasedby190.1 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 313million,withtotalfreecashflowincludingproceedsfromnon−coreassetsalesat313 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 438.489million,downfrom438.489 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 431.475million,downfrom431.475 million, down from 676.957 million at the beginning of the year[45] - Long-term debt reduced to 3,425.7millioninMarch2025from3,425.7 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 995.2millioninQ42025[35]−EMEArevenuedeclinedby4995.2 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 507.566millionintheprioryear,indicatingimprovedassetvaluation[49]−NoncashgoodwillimpairmentchargesrecognizedbyVFamountedto507.566 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 51.0millionforthetwelvemonthsendedMarch2025[68]−Theimpairmentchargesresultedinanettaxbenefitof51.0 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 0.39forQ42025,comparedtoalossof0.39 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]