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VF Corporation Reports Third Quarter Earnings, Reaffirms Full Year Fiscal 2023 EPS Outlook and Revenue Within the Prior Range and Unveils Actions to Strengthen Financial Position

VF Corporation (NYSE: VFC) today announced financial results for its third quarter (Q3'FY23) ended December 31, 2022 and a series of actions to accelerate the path to its target leverage ratio and sharpen its focus, including declaring a quarterly per share dividend of $0.30, reflecting a 41% decrease over the previous quarter’s dividend.

Q3'FY23 Financial Highlights

  • Revenue down 3% (up 3% in constant dollars) to $3.5 billion
  • Earnings per share (EPS) down 1% to $1.31; Adjusted EPS down 17% to $1.12

Benno Dorer, Interim President and CEO, said: “We are pleased to reaffirm the recently communicated full year 2023 EPS outlook with revenue growth at approximately 3%, after navigating an increasingly challenging fiscal Q3. Spending the last few weeks with VF's dedicated and talented teams around the world has reinforced my belief in the tremendous opportunity ahead for our company. We are committed to improving execution through a sharpened focus on the biggest consumer opportunities and enhanced operational performance. Consistent with this objective, we are shifting resource priorities across the Company, including by reducing the dividend, exploring the sale of non-core assets, cutting costs and eliminating non-strategic spend, while enhancing the focus on the consumer through targeted investments. We are confident these actions will enable a return to profitable and sustainable growth and, with that, strong shareholder value creation.”

Q3’FY23 Operating Highlights

  • EMEA region down 2% and up 10% in constant dollars, the seventh consecutive quarter of double-digit growth in constant dollars
  • Asia Pacific region down 7% and up 4% in constant dollars, reflecting a sequential improvement across the region and in Greater China, where sales were down 11% and down 1% in constant dollars, and continued strong growth in the rest of Asia
  • Standout performance in the outdoor brands, led by The North Face® up 7% and up 13% in constant dollars, with Timberland® flat and up 6% in constant dollars
  • Vans® down 13% and down 9% in constant dollars, reflecting positive performances in Europe and Asia outside of Greater China, while the Americas remained negative
  • Balanced performance across both Direct to Consumer and Wholesale channels
  • Supply chain challenges remained persistent in the quarter and are being addressed, with actions in place to return to full customer service at a normalized cost

FY23 Outlook*

  • Total VF revenue up approximately 3% in constant dollars, within the previous outlook range
    • Vans® revenue is expected to decline by high single digits % in constant dollars, compared to the previous outlook of down mid-single digits %
    • The North Face® is expected to be up by at least 14% in constant dollars, compared to the previous outlook of up at least 12%
  • Adjusted gross margin down approximately 200 basis points, compared to the previous outlook of down 100 to 150 basis points
  • Adjusted operating margin approximately 9.5%, compared to the previous outlook of approximately 11.0%
  • Adjusted EPS $2.05 to $2.15, within the previous outlook of $2.00 to $2.20
  • Adjusted cash flow from operations** approximately $0.7 billion, compared to the previous outlook of at least $0.9 billion; Capital expenditures approximately $200 million versus the previous outlook of $230 million
  • Inventory is expected to reduce by approximately $300 million during Q4'FY23

FY24 Expectations*

  • Total VF revenue up by at least low-single digit % in constant dollars
  • Gross and operating margin expansion
  • Operating earnings to grow by double-digits
  • Operating cash flow to grow faster than earnings

Actions to Accelerate Path to Target Leverage Ratio and Sharpen the Company's Focus

The Company's capital deployment priorities in the near to medium term are focused on optimizing and driving the performance of the portfolio, reducing leverage and returning capital to shareholders. VF is also evaluating and deploying a series of strategic actions to strengthen the Company's financial position and sharpen focus on its greatest value creation opportunities, including:

  • Rightsizing the dividend payout to accelerate the return to the Company's target leverage ratio and provide additional financial flexibility, positioning VF to navigate the current macro-economic challenges while continuing to make investments to advance its strategy. As a result, VF's next quarterly per share payment will reduce to $0.30 from $0.51 per share. The Company expects to grow future dividends in line with earnings
  • Continuing to pursue the portfolio optimization agenda. The Company is commencing a review of strategic alternatives for its Global Packs business, consisting of the Kipling®, Eastpak®, and JanSport® brands. While these iconic and profitable businesses are strong contributors of value, VF is committed to ensuring they are optimally positioned to achieve their full potential while enhancing management focus on the Company’s greatest strategic priorities
  • Concluding a number of asset sales during H2'FY23, including the sale and leaseback of VF's European headquarters in Stabio, Switzerland
  • Reducing working capital and aligning inventories to optimal levels, without compromising brand equity
  • Increasing our efforts to reduce costs in order to point resources toward the Company's highest value creation opportunities, including completing the previously announced actions which will deliver approximately $225 million in annualized savings once complete in FY24

Matt Puckett, CFO, said: “As we close FY23 and move into FY24, we have clear plans in place to address the ongoing challenging macro-economic environment in the near term. I am confident the actions we are taking will lead to improved operating performance and will strengthen the Company's financial position, enabling VF to deliver long-term, sustainable and profitable growth.”

* FY23 outlook and FY24 expectations assume no additional significant COVID-19 related lockdowns in any key commercial or production regions and no significant worsening in global inflation rates and consumer sentiment

** Excludes the impact of an $876 million payment VF made on October 19, 2022 to the U.S. Treasury for the dispute regarding the timing of income inclusion associated with VF's acquisition of Timberland in 2011, as previously disclosed

Summary Revenue Information

(Unaudited)

 

 

Three Months Ended December

 

Nine Months Ended December

(Dollars in millions)

 

2022

 

2021

 

% Change

 

% Change (constant currency)

 

2022

 

2021

 

% Change

 

% Change (constant currency)

Brand:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vans®

 

$

926.9

 

$

1,060.4

 

(13

)%

 

(9

)%

 

$

2,825.9

 

$

3,170.7

 

(11

)%

 

(7

)%

The North Face®

 

 

1,321.2

 

 

1,240.3

 

7

%

 

13

%

 

 

2,753.2

 

 

2,490.2

 

11

%

 

17

%

Timberland®

 

 

595.5

 

 

593.4

 

%

 

6

%

 

 

1,389.1

 

 

1,388.2

 

%

 

7

%

Dickies®

 

 

177.0

 

 

211.5

 

(16

)%

 

(13

)%

 

 

533.7

 

 

640.7

 

(17

)%

 

(14

)%

Other Brands

 

 

510.1

 

 

518.8

 

(2

)%

 

5

%

 

 

1,371.0

 

 

1,327.4

 

3

%

 

11

%

VF Revenue

 

$

3,530.7

 

$

3,624.4

 

(3

)%

 

3

%

 

$

8,872.9

 

$

9,017.2

 

(2

)%

 

4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Region:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

2,093.9

 

$

2,132.7

 

(2

)%

 

(1

)%

 

$

5,233.1

 

$

5,241.7

 

%

 

%

EMEA

 

 

983.3

 

 

1,003.3

 

(2

)%

 

10

%

 

 

2,510.4

 

 

2,515.9

 

%

 

14

%

APAC

 

 

453.4

 

 

488.3

 

(7

)%

 

4

%

 

 

1,129.3

 

 

1,259.6

 

(10

)%

 

(2

)%

VF Revenue

 

$

3,530.7

 

$

3,624.4

 

(3

)%

 

3

%

 

$

8,872.9

 

$

9,017.2

 

(2

)%

 

4

%

International

 

$

1,629.3

 

$

1,676.5

 

(3

)%

 

8

%

 

$

4,132.7

 

$

4,257.5

 

(3

)%

 

8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Channel:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DTC

 

$

1,937.4

 

$

1,981.5

 

(2

)%

 

3

%

 

$

4,082.6

 

$

4,247.3

 

(4

)%

 

1

%

Wholesale (a)

 

 

1,593.3

 

 

1,642.9

 

(3

)%

 

2

%

 

 

4,790.3

 

 

4,769.9

 

%

 

6

%

VF Revenue

 

$

3,530.7

 

$

3,624.4

 

(3

)%

 

3

%

 

$

8,872.9

 

$

9,017.2

 

(2

)%

 

4

%

All references to periods ended December 2022 relate to the 13-week and 39-week fiscal periods ended December 31, 2022 and all references to periods ended December 2021 relate to the 13-week and 39-week fiscal periods ended January 1, 2022.

Note: Amounts may not sum due to rounding

(a) Royalty revenues are included in the wholesale channel for all periods.

Q3'FY23 Income Statement Review

  • Revenue $3.5 billion, down 3% (up 3% in constant dollars) with the big four brands down 3% (up 2% in constant dollars) and the balance of the portfolio down 2% (up 5% in constant dollars)
    • The North Face® revenue $1.3 billion, up 7% (up 13% in constant dollars)
    • Vans® revenue $0.9 billion, down 13% (down 9% in constant dollars)
  • Gross margin 54.9%, down 120 basis points; Adjusted gross margin 54.9%, down 140 basis points due primarily to increased promotions
  • Operating margin 14.6%, down 410 basis points; Adjusted operating margin 14.9%, down 280 basis points
  • Earnings per share (EPS) $1.31, down 1%; Adjusted EPS $1.12, down 17%

Q3'FY23 Balance Sheet Review

  • Inventories declined by $158 million during Q3’FY23 and increased by 101% relative to last year; excluding the increase of in-transit inventory of approximately $415 million, the increase was approximately 75% relative to last year, primarily driven by core and excess replenishment inventory
    • VF modified terms with the majority of its suppliers in the first quarter of fiscal 2023 to take ownership of inventory near point of shipment rather than destination
  • Accounts payable increased 62%, which was largely driven by the modified terms with the majority of suppliers

Q3’FY23 Shareholder Returns

  • Return of $198 million to shareholders through cash dividends
  • VF’s Board of Directors declared a quarterly dividend of $0.30 per share, reflecting a 41% decrease from the previous quarter’s dividend. This dividend will be payable on March 21, 2023, to shareholders of record at the close of business on March 10, 2023. Subject to approval by its Board of Directors, VF intends to continue to pay quarterly dividends

COVID-19 Update

To help mitigate the spread of COVID-19 and in response to public health advisories and governmental actions and regulations, VF has modified its business practices in certain locations, including the temporary closing of offices and retail stores, instituting travel bans and restrictions and implementing health and safety measures including social distancing and quarantines.

VF's supply chain is currently fully operational. Suppliers are complying with local public health advisories and governmental restrictions. Most final product manufacturing and assembly suppliers are back to normal operating levels, though manufacturing and freight lead times remain elevated. VF is working with its suppliers to minimize disruption and is employing expedited freight strategically as needed. VF's distribution centers are operational in accordance with local government guidelines.

In North America, no stores were closed during the third quarter. Currently, all stores are open.

In the EMEA region, no stores were closed during the third quarter due to COVID-19. Currently, all stores are open.

In the APAC region, including Mainland China, 4% of stores were closed at the beginning of the third quarter with a peak of 27% of stores (including partner doors) closed and an average of 11% of stores closed throughout the quarter. At the end of the third quarter, 3% of stores were closed and, as of today, no stores are closed.

VF is continuing to monitor the evolution of COVID-19 globally and will comply with guidance from government entities and public health authorities to prioritize the health and well-being of its employees, customers, trade partners and consumers.

Webcast Information

VF will host its third quarter fiscal 2023 conference call beginning at 4:30 p.m. Eastern Time today. The conference call will be broadcast live via the Internet, accessible at ir.vfc.com. For those unable to listen to the live broadcast, an archived version will be available at the same location.

Presentation

A presentation on third quarter fiscal 2023 results will be available at ir.vfc.com today before the conference call and will be archived at the same location.

About VF

Founded in 1899, VF Corporation is one of the world’s largest apparel, footwear and accessories companies connecting people to the lifestyles, activities and experiences they cherish most through a family of iconic outdoor, active and workwear brands including Vans®, The North Face®, Timberland® and Dickies®. Our purpose is to power movements of sustainable and active lifestyles for the betterment of people and our planet. We connect this purpose with a relentless drive to succeed to create value for all stakeholders and use our company as a force for good. For more information, please visit vfc.com.

Financial Presentation Disclosure

All per share amounts are presented on a diluted basis. This release refers to “reported” and “constant dollar” amounts, terms that are described under the heading below “Constant Currency - Excluding the Impact of Foreign Currency.” Unless otherwise noted, “reported” and “constant dollar” amounts are the same. This release also refers to “continuing” and “discontinued” operations amounts, which are concepts described under the heading below “Discontinued Operations - Occupational Workwear Business.” 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 Transaction and Deal Related Activities, Costs Related to Specified Strategic Business Decisions, Noncash Impairment Charges, Pension Settlement Charge and a Tax Item.” Unless otherwise noted, “reported” and “adjusted” amounts are the same.

Constant Currency - Excluding the Impact of Foreign Currency

This release refers to “reported” amounts in accordance with U.S. generally accepted accounting principles (“GAAP”), which include translation and transactional impacts from foreign currency exchange rates. This release also refers to “constant dollar” amounts, which exclude the impact of translating foreign currencies into U.S. dollars. Reconciliations of GAAP measures to constant currency 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.

Discontinued Operations - Occupational Workwear Business

On June 28, 2021, VF completed the sale of its Occupational Workwear business. The Occupational Workwear business was comprised primarily of the following brands and businesses: Red Kap®, VF Solutions®, Bulwark®, Workrite®, Walls®, Terra®, Kodiak®, Work Authority® and Horace Small®. The business also included a license for certain Dickies® occupational workwear products that were historically sold through the business-to-business channel. Accordingly, the company has reported the operating results and cash flows of the business in discontinued operations for all periods through the date of sale.

Adjusted Amounts - Excluding Transaction and Deal Related Activities, Costs Related to Specified Strategic Business Decisions, Noncash Impairment Charges, Pension Settlement Charge and a Tax Item

The adjusted amounts in this release exclude transaction and deal related activities associated with the acquisition of the Supreme® brand. Total transaction and deal related activities include integration costs of approximately $0.3 million in the first nine months of fiscal 2023.

The adjusted amounts in this release exclude costs related to VF's business model transformation primarily driven by Corporate actions and resulting restructuring costs, and a transformation initiative for our Asia-Pacific regional operations. Total costs were approximately $11 million in the third quarter of fiscal 2023 and $72 million in the first nine months of fiscal 2023.

The adjusted amounts in this release exclude noncash impairment charges related to the Supreme® reporting unit goodwill and indefinite-lived trademark intangible asset of approximately $422 million in the first nine months of fiscal 2023. The impairment charges were driven by non-operating factors including higher interest rates and foreign currency fluctuations.

The adjusted amounts in this release exclude a noncash pension settlement charge. The pension settlement charge resulted from the purchase of a group annuity contract, which was an action taken to streamline administration, manage financial risk associated with pension plans, and to transfer a portion of the liability associated with VF's U.S. pension plan to an insurance company. Total expense was approximately $92 million in the first nine months of fiscal 2023.

The adjusted amounts in this release exclude a discrete tax benefit of approximately $95 million in the third quarter and first nine months of fiscal 2023 related to a favorable adjustment to VF's transition tax liability pursuant to the Tax Cuts and Jobs Act based on examinations by the IRS.

Combined, the above items positively impacted earnings per share by $0.19 during the third quarter of fiscal 2023 and negatively impacted earnings per share by $1.07 during the first nine months of fiscal 2023. All adjusted amounts referenced herein exclude the effects of these amounts.

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. Additionally, the impact of the payment of taxes and interest related to the dispute with the IRS regarding the Timberland acquisition in 2011 has been excluded from fiscal 2023 adjusted cash flow from operations.

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 our 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,” “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. We caution 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: risks arising from the widespread outbreak of an illness or any other communicable disease, or any other public health crisis, including the coronavirus (COVID-19) global pandemic; the level of consumer demand for apparel, footwear and accessories; disruption to VF’s distribution system; changes in global economic conditions and the financial strength of VF’s customers, including as a result of current inflationary pressures; fluctuations in the price, availability and quality of raw materials and contracted 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; intense competition from online retailers and other direct-to-consumer business risks; third-party manufacturing and product innovation; increasing pressure on margins; VF’s ability to implement its business strategy; VF’s ability to grow its international, direct-to-consumer and digital businesses; VF’s ability to transform its model to be more consumer-minded, retail-centric and hyper-digital; retail industry changes and challenges; VF’s ability to create and maintain an agile and efficient operating model and organizational structure; VF’s and its vendors’ ability to maintain the strength and security of information technology systems; the risk that VF’s facilities and systems and those of our third-party service providers may be vulnerable to and unable to anticipate or detect data or information security breaches and data or financial loss; VF’s ability to properly collect, use, manage and secure business, consumer and employee data and comply with privacy and security regulations; foreign currency fluctuations; stability of VF’s vendors’ manufacturing facilities and VF’s ability to establish and maintain effective supply chain capabilities; continued use by VF’s suppliers of ethical business practices; VF’s ability to accurately forecast demand for products; continuity of members of VF’s management; VF’s ability to recruit, develop or retain qualified employees; VF’s ability to protect trademarks and other intellectual property rights; possible goodwill and other asset impairment such as the recent impairment charges related to the Supreme® reporting unit goodwill and indefinite-lived trademark intangible asset; maintenance by VF’s licensees and distributors of the value of VF’s brands; VF’s ability to execute acquisitions and dispositions and integrate acquisitions; business resiliency in response to natural or man-made economic, political or environmental disruptions; changes in tax laws and additional tax liabilities, including for the timing of income inclusion associated with our acquisition of the Timberland® brand in 2011; legal, regulatory, political, economic, and geopolitical risks, including those related to the current conflict in Ukraine; changes to laws and regulations; adverse or unexpected weather conditions; VF's indebtedness and its ability to obtain financing on favorable terms, if needed, could prevent VF from fulfilling its financial obligations; VF's ability to pay and declare dividends or repurchase its stock in the future; climate change and increased focus on environmental, social and governance issues; and tax risks associated with the spin-off of our Jeanswear business completed in 2019. More information on potential factors that could affect VF’s financial results is included from time to time in VF’s public reports filed with the SEC, including VF’s Annual Report on Form 10-K, and Quarterly Reports on Form 10-Q, and Forms 8-K filed or furnished with the SEC.

VF CORPORATION

Condensed Consolidated Statements of Operations

(Unaudited)

(In thousands, except per share amounts)

 

 

 

 

 

 

 

Three Months Ended December

 

Nine Months Ended December

 

 

2022

 

2021

 

2022

 

2021

Net revenues

 

$

3,530,667

 

 

$

3,624,384

 

 

$

8,872,862

 

 

$

9,017,176

 

Costs and operating expenses

 

 

 

 

 

 

 

 

Cost of goods sold

 

 

1,593,048

 

 

 

1,592,604

 

 

 

4,134,207

 

 

 

4,027,601

 

Selling, general and administrative expenses

 

 

1,421,586

 

 

 

1,353,338

 

 

 

3,828,157

 

 

 

3,549,763

 

Impairment of goodwill and intangible assets

 

 

 

 

 

 

 

 

421,922

 

 

 

 

Total costs and operating expenses

 

 

3,014,634

 

 

 

2,945,942

 

 

 

8,384,286

 

 

 

7,577,364

 

Operating income

 

 

516,033

 

 

 

678,442

 

 

 

488,576

 

 

 

1,439,812

 

Interest expense, net

 

 

(50,230

)

 

 

(33,388

)

 

 

(115,395

)

 

 

(100,533

)

Loss on debt extinguishment

 

 

 

 

 

(3,645

)

 

 

 

 

 

(3,645

)

Other income (expense), net

 

 

(9,901

)

 

 

(95

)

 

 

(113,895

)

 

 

16,495

 

Income from continuing operations before income taxes

 

 

455,902

 

 

 

641,314

 

 

 

259,286

 

 

 

1,352,129

 

Income tax expense (benefit)

 

 

(51,966

)

 

 

123,513

 

 

 

(74,190

)

 

 

216,303

 

Income from continuing operations

 

 

507,868

 

 

 

517,801

 

 

 

333,476

 

 

 

1,135,826

 

Income from discontinued operations, net of tax

 

 

 

 

 

 

 

 

 

 

 

170,273

 

Net income

 

$

507,868

 

 

$

517,801

 

 

$

333,476

 

 

$

1,306,099

 

Earnings per common share - basic (a)

 

 

 

 

 

 

 

 

Continuing operations

 

$

1.31

 

 

$

1.33

 

 

$

0.86

 

 

$

2.90

 

Discontinued operations

 

 

 

 

 

 

 

 

 

 

 

0.44

 

Total earnings per common share - basic

 

$

1.31

 

 

$

1.33

 

 

$

0.86

 

 

$

3.34

 

Earnings per common share - diluted (a)

 

 

 

 

 

 

 

 

Continuing operations

 

$

1.31

 

 

$

1.32

 

 

$

0.86

 

 

$

2.89

 

Discontinued operations

 

 

 

 

 

 

 

 

 

 

 

0.43

 

Total earnings per common share - diluted

 

$

1.31

 

 

$

1.32

 

 

$

0.86

 

 

$

3.32

 

Weighted average shares outstanding

 

 

 

 

 

 

 

 

Basic

 

 

387,739

 

 

 

390,430

 

 

 

387,663

 

 

 

391,187

 

Diluted

 

 

388,192

 

 

 

392,495

 

 

 

388,357

 

 

 

393,547

 

Cash dividends per common share

 

$

0.51

 

 

$

0.50

 

 

$

1.51

 

 

$

1.48

 

 

 

 

 

 

 

 

 

 

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 March 31 of each year. For presentation purposes herein, all references to periods ended December 2022 relate to the 13-week and 39-week fiscal periods ended December 31, 2022 and all references to periods ended December 2021 relate to the 13-week and 39-week fiscal periods ended January 1, 2022. References to March 2022 relate to information as of April 2, 2022.

(a) Amounts have been calculated using unrounded numbers.

VF CORPORATION

Condensed Consolidated Balance Sheets

(Unaudited)

(In thousands)

 

 

 

 

 

 

 

 

 

December

 

March

 

December

 

 

2022

 

2022

 

2021

ASSETS

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash and equivalents

 

$

571,347

 

$

1,275,943

 

$

1,333,839

Accounts receivable, net

 

 

1,564,957

 

 

1,467,842

 

 

1,495,859

Inventories

 

 

2,591,915

 

 

1,418,673

 

 

1,287,210

Other current assets

 

 

515,763

 

 

425,622

 

 

483,738

Total current assets

 

 

5,243,982

 

 

4,588,080

 

 

4,600,646

Property, plant and equipment, net

 

 

932,663

 

 

1,041,777

 

 

1,049,691

Goodwill and intangible assets, net

 

 

4,932,913

 

 

5,394,158

 

 

5,419,777

Operating lease right-of-use assets

 

 

1,293,041

 

 

1,247,056

 

 

1,302,545

Other assets

 

 

1,910,698

 

 

1,071,137

 

 

1,163,663

Total assets

 

$

14,313,297

 

$

13,342,208

 

$

13,536,322

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Short-term borrowings

 

$

901,668

 

$

335,462

 

$

106,010

Current portion of long-term debt

 

 

910,616

 

 

501,051

 

 

500,915

Accounts payable

 

 

906,340

 

 

562,992

 

 

559,716

Accrued liabilities

 

 

1,827,610

 

 

1,915,892

 

 

2,057,237

Total current liabilities

 

 

4,546,234

 

 

3,315,397

 

 

3,223,878

Long-term debt

 

 

4,617,441

 

 

4,584,261

 

 

4,646,379

Operating lease liabilities

 

 

1,068,744

 

 

1,023,759

 

 

1,093,013

Other liabilities

 

 

761,246

 

 

888,436

 

 

919,652

Total liabilities

 

 

10,993,665

 

 

9,811,853

 

 

9,882,922

Stockholders' equity

 

 

3,319,632

 

 

3,530,355

 

 

3,653,400

Total liabilities and stockholders' equity

 

$

14,313,297

 

$

13,342,208

 

$

13,536,322

 

VF CORPORATION

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(In thousands)

 

 

 

 

 

Nine Months Ended December

 

 

2022

 

2021

Operating activities

 

 

 

 

Net income

 

$

333,476

 

 

$

1,306,099

 

Income from discontinued operations, net of tax

 

 

 

 

 

170,273

 

Income from continuing operations, net of tax

 

 

333,476

 

 

 

1,135,826

 

Impairment of goodwill and intangible assets

 

 

421,922

 

 

 

 

Depreciation and amortization

 

 

192,174

 

 

 

199,652

 

Reduction in the carrying amount of right-of-use assets

 

 

280,845

 

 

 

309,588

 

Other adjustments

 

 

(2,061,889

)

 

 

(853,776

)

Cash provided (used) by operating activities - continuing operations

 

 

(833,472

)

 

 

791,290

 

Cash provided by operating activities - discontinued operations

 

 

 

 

 

6,090

 

Cash provided (used) by operating activities

 

 

(833,472

)

 

 

797,380

 

Investing activities

 

 

 

 

Business acquisitions, net of cash received

 

 

 

 

 

3,760

 

Proceeds from sale of businesses, net of cash sold

 

 

 

 

 

616,529

 

Proceeds from sale of short-term investments

 

 

 

 

 

598,806

 

Capital expenditures

 

 

(130,214

)

 

 

(214,220

)

Software purchases

 

 

(75,460

)

 

 

(63,758

)

Other, net

 

 

(1,159

)

 

 

12,819

 

Cash provided (used) by investing activities - continuing operations

 

 

(206,833

)

 

 

953,936

 

Cash used by investing activities - discontinued operations

 

 

 

 

 

(525

)

Cash provided (used) by investing activities

 

 

(206,833

)

 

 

953,411

 

Financing activities

 

 

 

 

Contingent consideration payment

 

 

(56,976

)

 

 

 

Net increase (decrease) from short-term borrowings and long-term debt

 

 

1,064,601

 

 

 

(411,400

)

Share repurchases

 

 

 

 

 

(299,999

)

Cash dividends paid

 

 

(586,335

)

 

 

(579,194

)

Proceeds from issuance of Common Stock, net of (payments) for tax withholdings

 

 

(2,571

)

 

 

32,929

 

Cash provided (used) by financing activities

 

 

418,719

 

 

 

(1,257,664

)

Effect of foreign currency rate changes on cash, cash equivalents and restricted cash

 

 

(82,512

)

 

 

(9,339

)

Net change in cash, cash equivalents and restricted cash

 

 

(704,098

)

 

 

483,788

 

Cash, cash equivalents and restricted cash – beginning of year

 

 

1,277,082

 

 

 

851,205

 

Cash, cash equivalents and restricted cash – end of period

 

$

572,984

 

 

$

1,334,993

 

VF CORPORATION

Supplemental Financial Information

Reportable Segment Information

(Unaudited)

(In thousands)

 

 

 

 

 

 

 

 

 

Three Months Ended December

 

% Change

 

% Change Constant Currency (a)

 

 

2022

 

2021

 

 

Segment revenues

 

 

 

 

 

 

 

 

Outdoor

 

$

2,003,045

 

 

$

1,928,427

 

 

4

%

 

10

%

Active

 

 

1,258,682

 

 

 

1,410,577

 

 

(11

)%

 

(6

)%

Work

 

 

268,940

 

 

 

285,101

 

 

(6

)%

 

(3

)%

Other (b)

 

 

 

 

 

279

 

 

*

 

*

Total segment revenues

 

$

3,530,667

 

 

$

3,624,384

 

 

(3

)%

 

3

%

Segment profit (loss)

 

 

 

 

 

 

 

 

Outdoor

 

$

457,027

 

 

$

450,432

 

 

 

 

 

Active

 

 

146,885

 

 

 

254,497

 

 

 

 

 

Work

 

 

18,487

 

 

 

47,672

 

 

 

 

 

Other (b)

 

 

(134

)

 

 

(44

)

 

 

 

 

Total segment profit

 

 

622,265

 

 

 

752,557

 

 

 

 

 

Corporate and other expenses

 

 

(116,133

)

 

 

(74,210

)

 

 

 

 

Interest expense, net

 

 

(50,230

)

 

 

(33,388

)

 

 

 

 

Loss on debt extinguishment

 

 

 

 

 

(3,645

)

 

 

 

 

Income from continuing operations before income taxes

 

$

455,902

 

 

$

641,314

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a) Refer to constant currency definition on the following pages.

(b) Other is included for purposes of reconciliation of revenues and profit, but it is not considered a reportable segment. Other primarily includes sourcing activities related to transition services.

* Calculation not meaningful

VF CORPORATION

Supplemental Financial Information

Reportable Segment Information

(Unaudited)

(In thousands)

 

 

 

 

 

 

 

 

 

Nine Months Ended December

 

% Change

 

% Change Constant Currency (a)

 

 

2022

 

2021

 

 

Segment revenues

 

 

 

 

 

 

 

 

Outdoor

 

$

4,326,997

 

 

$

4,052,802

 

 

7

%

 

13

%

Active

 

 

3,772,737

 

 

 

4,104,818

 

 

(8

)%

 

(3

)%

Work

 

 

772,980

 

 

 

858,999

 

 

(10

)%

 

(8

)%

Other (b)

 

 

148

 

 

 

557

 

 

*

 

*

Total segment revenues

 

$

8,872,862

 

 

$

9,017,176

 

 

(2

)%

 

4

%

Segment profit (loss)

 

 

 

 

 

 

 

 

Outdoor

 

$

670,615

 

 

$

662,761

 

 

 

 

 

Active

 

 

541,171

 

 

 

809,708

 

 

 

 

 

Work

 

 

92,989

 

 

 

150,649

 

 

 

 

 

Other (b)

 

 

(516

)

 

 

(696

)

 

 

 

 

Total segment profit

 

 

1,304,259

 

 

 

1,622,422

 

 

 

 

 

Impairment of goodwill and intangible assets

 

 

(421,922

)

 

 

 

 

 

 

 

Corporate and other expenses

 

 

(507,656

)

 

 

(166,115

)

 

 

 

 

Interest expense, net

 

 

(115,395

)

 

 

(100,533

)

 

 

 

 

Loss on debt extinguishment

 

 

 

 

 

(3,645

)

 

 

 

 

Income from continuing operations before income taxes

 

$

259,286

 

 

$

1,352,129

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a) Refer to constant currency definition on the following pages.

(b) Other is included for purposes of reconciliation of revenues and profit, but it is not considered a reportable segment. Other primarily includes sourcing activities related to transition services.

* Calculation not meaningful

VF CORPORATION

Supplemental Financial Information

Reportable Segment Information – Constant Currency Basis

(Unaudited)

(In thousands)

 

 

 

Three Months Ended December 2022

 

 

As Reported

 

Adjust for Foreign

 

 

 

 

under GAAP

 

Currency Exchange

 

Constant Currency

Segment revenues

 

 

 

 

 

 

Outdoor

 

$

2,003,045

 

 

$

115,791

 

 

$

2,118,836

 

Active

 

 

1,258,682

 

 

 

63,161

 

 

 

1,321,843

 

Work

 

 

268,940

 

 

 

8,293

 

 

 

277,233

 

Other

 

 

 

 

 

 

 

 

 

Total segment revenues

 

$

3,530,667

 

 

$

187,245

 

 

$

3,717,912

 

Segment profit (loss)

 

 

 

 

 

 

Outdoor

 

$

457,027

 

 

$

32,608

 

 

$

489,635

 

Active

 

 

146,885

 

 

 

14,149

 

 

 

161,034

 

Work

 

 

18,487

 

 

 

676

 

 

 

19,163

 

Other

 

 

(134

)

 

 

(72

)

 

 

(206

)

Total segment profit

 

 

622,265

 

 

 

47,361

 

 

 

669,626

 

Corporate and other expenses

 

 

(116,133

)

 

 

(1,468

)

 

 

(117,601

)

Interest expense, net

 

 

(50,230

)

 

 

 

 

 

(50,230

)

Income from continuing operations before income taxes

 

$

455,902

 

 

$

45,893

 

 

$

501,795

 

Diluted earnings per share growth

 

 

(1

)%

 

 

8

%

 

 

7

%

 

 

 

 

 

 

 

Constant Currency Financial Information

VF is a global company that reports financial information in U.S. dollars in accordance with GAAP. Foreign currency exchange rate fluctuations affect the amounts reported by VF from translating its foreign revenues and expenses into U.S. dollars. These rate fluctuations can have a significant effect on reported operating results. As a supplement to our reported operating results, we present constant currency financial information, which is a non-GAAP financial measure that excludes the impact of translating foreign currencies into U.S. dollars. We use constant currency information to provide a framework to assess how our business performed excluding the effects of changes in the rates used to calculate foreign currency translation. Management believes this information is useful to investors to facilitate comparison of operating results and better identify trends in our businesses.

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 U.S. dollar are translated into U.S. dollars at the average exchange rates in effect during the comparable period of the prior year (rather than the actual exchange rates in effect during the current year period).

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.

VF CORPORATION

Supplemental Financial Information

Reportable Segment Information

(Unaudited)

(In thousands)

 

 

 

Nine Months Ended December 2022

 

 

As Reported

 

Adjust for Foreign

 

 

 

 

under GAAP

 

Currency Exchange

 

Constant Currency

Segment revenues

 

 

 

 

 

 

Outdoor

 

$

4,326,997

 

 

$

261,555

 

 

$

4,588,552

 

Active

 

 

3,772,737

 

 

 

195,178

 

 

 

3,967,915

 

Work

 

 

772,980

 

 

 

21,231

 

 

 

794,211

 

Other

 

 

148

 

 

 

 

 

 

148

 

Total segment revenues

 

$

8,872,862

 

 

$

477,964

 

 

$

9,350,826

 

Segment profit (loss)

 

 

 

 

 

 

Outdoor

 

$

670,615

 

 

$

51,644

 

 

$

722,259

 

Active

 

 

541,171

 

 

 

44,528

 

 

 

585,699

 

Work

 

 

92,989

 

 

 

2,412

 

 

 

95,401

 

Other

 

 

(516

)

 

 

(98

)

 

 

(614

)

Total segment profit

 

 

1,304,259

 

 

 

98,486

 

 

 

1,402,745

 

Impairment of goodwill and intangible assets

 

 

(421,922

)

 

 

 

 

 

(421,922

)

Corporate and other expenses

 

 

(507,656

)

 

 

(3,789

)

 

 

(511,445

)

Interest expense, net

 

 

(115,395

)

 

 

 

 

 

(115,395

)

Income from continuing operations before income taxes

 

$

259,286

 

 

$

94,697

 

 

$

353,983

 

Diluted earnings per share growth

 

 

(70

)%

 

 

7

%

 

 

(63

)%

 

 

 

 

 

 

 

Constant Currency Financial Information

VF is a global company that reports financial information in U.S. dollars in accordance with GAAP. Foreign currency exchange rate fluctuations affect the amounts reported by VF from translating its foreign revenues and expenses into U.S. dollars. These rate fluctuations can have a significant effect on reported operating results. As a supplement to our reported operating results, we present constant currency financial information, which is a non-GAAP financial measure that excludes the impact of translating foreign currencies into U.S. dollars. We use constant currency information to provide a framework to assess how our business performed excluding the effects of changes in the rates used to calculate foreign currency translation. Management believes this information is useful to investors to facilitate comparison of operating results and better identify trends in our businesses.

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 U.S. dollar are translated into U.S. dollars at the average exchange rates in effect during the comparable period of the prior year (rather than the actual exchange rates in effect during the current year period).

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.

VF CORPORATION

Supplemental Financial Information

Reconciliation of Select GAAP Measures to Non-GAAP Measures - Three and Nine Months Ended December 2022

(Unaudited)

(In thousands, except per share amounts)

 

Three Months Ended December 2022

 

As Reported

under GAAP

 

Transaction and Deal Related Activities(a)

 

Specified Strategic Business Decisions(b)

 

Impairment and Pension Settlement Charge(c)

 

Tax Item(d)

 

Adjusted

Revenues

 

$

3,530,667

 

 

$

 

$

 

$

 

$

 

 

$

3,530,667

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

1,937,619

 

 

 

 

 

1,582

 

 

 

 

 

 

 

1,939,201

 

Percent

 

 

54.9

%

 

 

 

 

 

 

 

 

 

 

54.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

516,033

 

 

 

 

 

10,609

 

 

 

 

 

 

 

526,642

 

Percent

 

 

14.6

%

 

 

 

 

 

 

 

 

 

 

14.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share from continuing operations (e)

 

 

1.31

 

 

 

 

 

0.02

 

 

0.03

 

 

(0.24

)

 

 

1.12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended December 2022

 

As Reported

under GAAP

 

Transaction and Deal Related Activities(a)

 

Specified Strategic Business Decisions(b)

 

Impairment and Pension Settlement Charge(c)

 

Tax Item(d)

 

Adjusted

Revenues

 

$

8,872,862

 

 

$

 

$

 

$

 

$

 

 

$

8,872,862

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

4,738,655

 

 

 

 

 

9,946

 

 

 

 

 

 

 

4,748,601

 

Percent

 

 

53.4

%

 

 

 

 

 

 

 

 

 

 

53.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

488,576

 

 

 

331

 

 

72,031

 

 

421,922

 

 

 

 

 

982,860

 

Percent

 

 

5.5

%

 

 

 

 

 

 

 

 

 

 

11.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share from continuing operations (e)

 

 

0.86

 

 

 

 

 

0.15

 

 

1.17

 

 

(0.24

)

 

 

1.93

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a) Transaction and deal related activities reflect activities associated with the acquisition of Supreme Holdings, Inc. and include integration costs of $0.3 million for the nine months ended December 2022. The transaction and deal related activities resulted in a net tax benefit of $0.1 million in the nine months ended December 2022.

(b) Specified strategic business decisions include costs related to VF's business model transformation of $8.3 million and $59.5 million during the three and nine months ended December 2022, respectively, related primarily to Corporate actions and resulting restructuring costs. Specified strategic business decisions also include costs related to a transformation initiative for our Asia-Pacific regional operations of $2.3 million and $12.5 million in the three and nine months ended December 2022, respectively. The specified strategic business decisions resulted in a net tax benefit of $2.7 million and $15.0 million in the three and nine months ended December 2022, respectively.

(c) VF recognized noncash impairment charges related to the Supreme reporting unit goodwill and indefinite-lived trademark intangible asset of $421.9 million during the nine months ended December 2022. The impairment charges were driven by non-operating factors including higher interest rates and foreign currency fluctuations.

A noncash pension settlement charge of $91.8 million was recorded in the Other income (expense), net line item during the nine months ended December 2022. The pension settlement charge resulted from the purchase of a group annuity contract, which was an action taken to streamline administration, manage financial risk associated with pension plans, and to transfer a portion of the liability associated with VF's U.S. pension plan to an insurance company.

The impairment and pension settlement charges resulted in a net tax expense of $12.2 million and net tax benefit of $60.2 million in the three and nine months ended December 2022, respectively.

(d) Tax item includes a $94.9 million discrete tax benefit recognized during the three and nine months ended December 2022 related to the Internal Revenue Service examinations for tax year 2017 and short-tax year 2018 resulting in a favorable adjustment to VF's transition tax liability under the Tax Cuts and Jobs Act.

(e) Amounts shown in the table have been calculated using unrounded numbers. The diluted earnings per share was calculated using 388,192,000 and 388,357,000 weighted average common shares for the three and nine months ended December 2022, respectively.

 

 

 

 

 

 

 

 

 

 

 

 

 

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, activity related to specified strategic business decisions, impairment, a pension settlement charge and a tax item. 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.

VF CORPORATION

Supplemental Financial Information

Reconciliation of Select GAAP Measures to Non-GAAP Measures - Three and Nine Months Ended December 2021

(Unaudited)

(In thousands, except per share amounts)

 

Three Months Ended December 2021

 

As Reported

under GAAP

 

Transaction and Deal Related Activities(a)

 

Specified Strategic Business Decisions(b)

 

Tax Items(c)

 

Adjusted

Revenues

 

$

3,624,384

 

 

$

 

 

$

 

$

 

$

3,624,384

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

2,031,780

 

 

 

 

 

 

9,875

 

 

 

 

2,041,655

 

Percent

 

 

56.1

%

 

 

 

 

 

 

 

 

56.3

%

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

678,442

 

 

 

(49,398

)

 

 

13,809

 

 

 

 

642,853

 

Percent

 

 

18.7

%

 

 

 

 

 

 

 

 

17.7

%

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share from continuing operations (d)

 

 

1.32

 

 

 

(0.13

)

 

 

0.03

 

 

0.13

 

 

1.35

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended December 2021

 

As Reported

under GAAP

 

Transaction and Deal Related Activities(a)

 

Specified Strategic Business Decisions(b)

 

Tax Items(c)

 

Adjusted

Revenues

 

$

9,017,176

 

 

$

 

 

$

 

$

 

$

9,017,176

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

4,989,575

 

 

 

 

 

 

21,944

 

 

 

 

5,011,519

 

Percent

 

 

55.3

%

 

 

 

 

 

 

 

 

55.6

%

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

1,439,812

 

 

 

(151,880

)

 

 

37,671

 

 

 

 

1,325,603

 

Percent

 

 

16.0

%

 

 

 

 

 

 

 

 

14.7

%

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share from continuing operations (d)

 

 

2.89

 

 

 

(0.37

)

 

 

0.08

 

 

0.13

 

 

2.72

 

 

 

 

 

 

 

 

 

 

 

 

(a) Transaction and deal related activities include activities associated with the acquisition of Supreme Holdings, Inc. ("Supreme") for the three and nine months ended December 2021. Transaction and deal related activities include a decrease in the estimated fair value of the contingent consideration liability of $50.0 million and $158.0 million for the three and nine months ended December 2021, respectively, and integration costs of $0.6 million and $6.1 million for the three and nine months ended December 2021, respectively. The transaction and deal related activities resulted in a net tax benefit of $3.2 million and net tax expense of $5.1 million in the three and nine months ended December 2021, respectively, primarily related to the impact of the decreases in the estimated fair value of the contingent consideration liability on the interim tax rate calculations.

(b) Specified strategic business decisions for the three and nine months ended December 2021 include costs related to VF's business model transformation of $0.5 million and $2.2 million in the three and nine months ended December 2021, respectively, related primarily to restructuring and other costs. Specified strategic business decisions also include costs related to a transformation initiative for our Asia-Pacific regional operations of $13.7 million and $35.5 million in the three and nine months ended December 2021, respectively. Specified strategic business decisions also include cost optimization charges and other activities, including the sale of certain assets, indirectly related to the divestiture of the Occupational Workwear business, which totaled income of $0.4 million during the three months ended December 2021. The specified strategic business decisions also include non-operating expense of $0.2 million and income of $1.5 million during the three and nine months ended December 2021, respectively, associated with VF's transformation initiatives. The specified strategic business decisions resulted in a net tax benefit of $2.0 million and $5.2 million in the three and nine months ended December 2021, respectively.

(c) Tax items include $51.9 million net tax expense associated with certain discrete tax activities recognized during the three and nine months ended December 2021. This is comprised of $87.1 million tax expense for unrecognized tax benefits resulting from updated estimates related to intellectual property transfers completed in a prior period, and $35.2 million tax benefit related to the reorganization of certain foreign operations.

(d) Amounts shown in the table have been calculated using unrounded numbers. The diluted earnings per share impacts were calculated using 392,495,000 and 393,547,000 weighted average common shares for the three and nine months ended December 2021, respectively.

 

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, activity related to specified strategic business decisions 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.

VF CORPORATION

Supplemental Financial Information

Top 4 Brand Revenue Information

(Unaudited)

 

 

 

Three Months Ended December 2022

 

Nine Months Ended December 2022

Top 4 Brand Revenue Growth

 

Americas

 

EMEA

 

APAC

 

Global

 

Americas

 

EMEA

 

APAC

 

Global

Vans®

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% change

 

(13

)%

 

(5

)%

 

(22

)%

 

(13

)%

 

(7

)%

 

(9

)%

 

(27

)%

 

(11

)%

% change constant currency*

 

(13

)%

 

7

%

 

(14

)%

 

(9

)%

 

(7

)%

 

3

%

 

(22

)%

 

(7

)%

The North Face®

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% change

 

8

%

 

1

%

 

17

%

 

7

%

 

13

%

 

3

%

 

21

%

 

11

%

% change constant currency*

 

9

%

 

13

%

 

29

%

 

13

%

 

14

%

 

17

%

 

30

%

 

17

%

Timberland®

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% change

 

9

%

 

(5

)%

 

(17

)%

 

0

%

 

0

%

 

3

%

 

(9

)%

 

0

%

% change constant currency*

 

9

%

 

7

%

 

(7

)%

 

6

%

 

1

%

 

18

%

 

(1

)%

 

7

%

Dickies®

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% change

 

(19

)%

 

44

%

 

(34

)%

 

(16

)%

 

(18

)%

 

17

%

 

(29

)%

 

(17

)%

% change constant currency*

 

(19

)%

 

63

%

 

(25

)%

 

(13

)%

 

(18

)%

 

34

%

 

(22

)%

 

(14

)%

*Refer to constant currency definition on previous pages.

 

 

 

 

 

 

 

 

VF CORPORATION

Supplemental Financial Information

Geographic and Channel Revenue Information

(Unaudited)

 

 

 

Three Months Ended December 2022

 

 

% Change

 

% Change Constant Currency*

Geographic Revenue Growth

 

 

 

 

Americas

 

(2)%

 

(1)%

EMEA

 

(2)%

 

10%

APAC

 

(7)%

 

4%

Greater China

 

(11)%

 

(1)%

International

 

(3)%

 

8%

Global

 

(3)%

 

3%

 

 

 

 

 

 

 

Nine Months Ended December 2022

 

 

% Change

 

% Change Constant Currency*

Geographic Revenue Growth

 

 

 

 

Americas

 

0%

 

0%

EMEA

 

0%

 

14%

APAC

 

(10)%

 

(2)%

Greater China

 

(18)%

 

(12)%

International

 

(3)%

 

8%

Global

 

(2)%

 

4%

 

 

 

 

 

 

 

Three Months Ended December 2022

 

 

% Change

 

% Change Constant Currency*

Channel Revenue Growth

 

 

 

 

Wholesale (a)

 

(3)%

 

2%

Direct-to-consumer

 

(2)%

 

3%

Digital

 

0%

 

6%

 

 

 

 

 

 

 

Nine Months Ended December 2022

 

 

% Change

 

% Change Constant Currency*

Channel Revenue Growth

 

 

 

 

Wholesale (a)

 

0%

 

6%

Direct-to-consumer

 

(4)%

 

1%

Digital

 

(6)%

 

(1)%

 

 

 

 

 

 

 

As of December

 

 

2022

 

2021

DTC Store Count

 

 

 

 

Total

 

1,282

 

1,354

 

 

 

 

 

*Refer to constant currency definition on previous pages.

(a) Royalty revenues are included in the wholesale channel for all periods.

 

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