Core Insights - V.F. Corporation (VFC) reported a narrower-than-expected loss per share in Q1 fiscal 2026, with a sales beat and improved earnings year over year despite a dip in revenues [1][3][9] - The company is progressing with its Reinvent program, aiming for cost savings and improved operating profitability [1][13] Revenue Performance - VFC's net revenues for Q1 fiscal 2026 were $1.76 billion, surpassing the consensus estimate of $1.69 billion, with a year-over-year decline of approximately 2% in constant currency [3][4] - The North Face and Timberland brands continued to perform well, while Altra showed strong growth; however, Vans faced challenges due to channel rationalization [2][14] Segment Analysis - Revenues in the Outdoor segment increased by 8% year over year to $812.5 million, while the Active segment saw a decline of 10% to $699.7 million [7] - The All-Other segment reported a revenue increase of 4% year over year to $248.5 million [7] Financial Position - VFC ended Q1 with cash and cash equivalents of $642.4 million and long-term debt of $3.56 billion, with net debt down $1.4 billion from the previous year [8] - The company declared a quarterly dividend of 9 cents per share, payable on September 18, 2025 [8] Future Outlook - For Q2 fiscal 2026, VFC expects revenues to decline by 2% to 4% in constant currency, with adjusted operating income projected between $260 million and $290 million [12] - For the full fiscal 2026, VFC anticipates growth in adjusted operating income and cash flow, driven by strong performance from The North Face, Timberland, and Altra [13][14]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 28, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission file number: 1-5256 V. F. CORPORATION (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation ...

V.F. Corporation (VFC) Q1 2026 Earnings Call July 30, 2025 08:00 AM ET Speaker0Ladies 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 Versus Corporation First Quarter Fiscal Year twenty twenty six Earnings Conference Call. All 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 ...

Q1'26 EARNINGS JULY 30, 2025 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. This presenta ...

Market Overview - The S&P 500 and Nasdaq reached intra-day record highs but closed in the red, with the Dow down 204 points (-0.46%), S&P 500 down 18 points (-0.30%), Nasdaq down 80 points (-0.38%), and Russell 2000 down 13 points (-0.61%) [1] - Trade deals are progressing but lack the strength to drive the market higher, with Q2 earnings showing some weaknesses outside of Big Tech [2] Federal Reserve Policy - A new announcement on Fed policy is expected, with the current interest rate of 4.25-4.50% likely to remain unchanged for the fifth consecutive FOMC meeting [3] - Some analysts anticipate dissent among Fed members regarding the need for rate cuts despite current unemployment at +4.1% and inflation at +2.7% [3] Earnings Reports - **Starbucks (SBUX)**: Reported Q3 earnings of $0.50 per share, missing the consensus of $0.65, attributed to a one-time charge of $0.11. Revenues were $9.50 billion, exceeding expectations of $9.30 billion. Same-store sales fell -2% compared to a -1.3% consensus [4][5] - **Visa (V)**: Reported earnings of $2.98 per share, beating expectations of $2.86, with revenues of $10.2 billion surpassing the $9.87 billion forecast. Despite strong performance, shares fell -3% in after-hours trading [6] - **Booking Holdings (BKNG)**: Reported Q2 earnings of $55.40 per share, exceeding the $50.59 estimate, with revenues of $6.8 billion above the $6.56 billion consensus. Gross bookings reached $46.7 billion [7] - **Mondelez (MDLZ)**: Reported earnings of $0.73 per share, beating estimates by $0.05, with revenues of $8.98 billion exceeding the $8.88 billion expectation. The company faced challenges from rising cocoa prices and tariffs [8] Upcoming Market Events - The earnings season is expected to peak with reports from major companies like Microsoft and Meta Platforms, along with others such as Ford and Qualcomm [9] - Private-sector payroll data from ADP is anticipated, with a consensus of +64K jobs for July, following a previous decline of -33K [10] - Q2 GDP is projected to rebound to +2.3% from Q1's -0.5%, influenced by tariff policies and economic outlook improvements [10]

Key Takeaways VFC expects an 11.2% year-over-year revenue decline in Q1 fiscal 2026 to $1.7 billion.Brand resets at Vans and lower consumer traffic continue to pressure VFCs top-line results.Gross margin is set to benefit from lower input costs, cleaner inventory and reduced promotions.V.F. Corporation (VFC) is likely to register a year-over-year decline in its top and bottom lines when it posts first-quarter fiscal 2026 earnings on July 30, before the opening bell. The Zacks Consensus Estimate for quarterl ...

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Past performance is not an indicator of future performance. This post is illustrative and educational ...

Investment Rating - The industry rating is "Recommended" [4] Core Insights - The report highlights that Tmall and Taobao platforms experienced negative growth in various categories in April 2025, with the highest growth seen in Jin Hong Group [7] - Deckers reported a 16.3% revenue increase to $4.986 billion for FY2025, with operating profit rising by 27.1% to $1.179 billion, and a gross margin increase of 2.3 percentage points to 57.9% [15] - VF Corporation's revenue decreased by 4% to $9.504 billion for FY2025, with a net loss of $190 million, although the loss narrowed compared to the previous year [16] Summary by Sections Company Performance - Tmall and Taobao platforms saw negative growth across categories in April 2025, with Jin Hong Group showing the highest growth [7] - Deckers' FY2025 revenue grew by 16.3% to $4.986 billion, with operating profit increasing by 27.1% to $1.179 billion, and a gross margin of 57.9% [15] - VF Corporation's revenue fell by 4% to $9.504 billion, with a net loss of $190 million, but the loss was less than the previous year [16] - Amphenol's Q1 2025 revenue was $1.473 billion, with a net profit increase of 2539.22% [17] Market Trends - The textile and apparel industry saw a decline in stock performance, with the SW textile and apparel sector down 1.31% [20] - The cotton price index in China increased by 0.29% as of May 23, 2025, while the medium import cotton price index rose by 1.06% [30] - The USDA forecasts a 2.7% decrease in global cotton production for the 2025/2026 season [40] Investment Recommendations - The report suggests short-term recommendations for companies with high U.S. revenue exposure and significant prior declines, while mid-term recommendations focus on companies with high overseas exposure [18][19] - Long-term recommendations include companies with growth potential, such as Zhejiang Natural and Kai Run Co., which have favorable market positions [19]

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]