Financial Data and Key Metrics Changes - Q1 revenue was $1.8 billion, flat on a reported basis and down 2% year over year in constant dollars, which was better than the guidance of down 3% to down 5% [31][36] - Adjusted gross margin increased by 200 basis points to 54.1%, driven by higher quality inventory and lower discounts [34] - Adjusted loss per share was $0.24 compared to $0.35 in Q1 of the previous year [35] Business Line Data and Key Metrics Changes - Vans revenue decreased by 15%, with 40% of the decline attributed to channel rationalization actions [11][33] - The North Face grew by 5%, with strong performance in footwear and bags, aiming for higher growth in the future [13][32] - Timberland's revenue increased by 9%, reflecting growth across all channels [15][33] Market Data and Key Metrics Changes - APAC region grew by 4%, while the Americas and EMEA regions were down 3% and 2%, respectively [33] - Excluding Vans, the Americas region was up 3% year over year [33] Company Strategy and Development Direction - The company is focused on transforming into a growth-oriented organization, with significant cost reductions and improvements in operational efficiency [7][10] - Plans to enhance product and marketing strategies across brands globally, aiming for a unified approach [8][9] - The company is committed to reducing leverage to below 2.5 times by fiscal 2028 [9][42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the turnaround strategy, emphasizing the importance of growth and the potential for each brand [10][28] - The anticipated impact of tariffs is expected to negatively affect gross profit by $60 million to $70 million in fiscal 2026, but management believes they can mitigate this through pricing and sourcing actions [39][41] - The company expects operating income to be up year over year in fiscal 2026, despite tariff impacts [41] Other Important Information - The company has made changes to segment reporting to better reflect key areas of focus across brands [44] - The return of the Vans Warp Tour was highlighted as a significant marketing initiative, with strong ticket sales and brand engagement [25][26] Q&A Session Summary Question: What were the expectations for the Vans Warp Tour and its impact? - Management expected modest impact initially but saw enormous demand with sold-out events and significant merchandise sales [50][53] Question: Can you clarify the $60 million to $70 million gross profit impact from tariffs? - The impact is primarily in the back half of the year, and management is working on offsetting this through pricing and other actions [58][59] Question: What are the long-term views on gross margin improvement? - Management sees opportunities for gross margin improvement across all brands, particularly through premiumization strategies [67][70] Question: How will unit volumes be affected by price increases due to tariffs? - Management expects a one-to-one relationship between price increases and unit volume declines, but believes it could be slightly better due to industry-wide impacts [78][80] Question: What is the outlook for free cash flow and net debt? - Management expects free cash flow to be up year over year, with net debt anticipated to decline as they work towards their leverage targets [121][123]

Financial Performance - Revenue was $1.8 billion, flat compared to last year, or down 2% in constant dollars[15] - Net debt decreased by $1.4 billion, a 20% reduction compared to last year[16] - Excluding lease liabilities, net debt decreased by $1.4 billion, a 27% reduction compared to last year[16] - Adjusted operating loss significantly beat guidance[15] - Loss per share (EPS) was ($0.30), with an adjusted EPS of ($0.24)[15] Brand Performance - The North Face revenue increased by 6%, or 5% in constant dollars[25] - Vans revenue decreased by 14%, or 15% in constant dollars, impacted by channel rationalization actions[25] - Timberland revenue increased by 11%, or 9% in constant dollars[25] - Other Brands revenue increased by 4%, or 2% in constant dollars, with Altra growing over 20%[25, 41] Outlook - Q2'26 revenue is expected to decrease by 4% to 2% in constant dollars[18] - Q2'26 adjusted operating income is projected to be between $260 million and $290 million[18]

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) This section provides an overview of VF Corporation's Q1 FY2026 performance, CEO commentary, and financial outlook for Q2 FY2026 and the full fiscal year [Q1 FY2026 Performance Overview](index=1&type=section&id=Q1%2726%20Performance%20Overview) VF Corporation exceeded Q1 FY2026 expectations with flat reported revenue, a 2% constant currency decline, and stronger profitability, driven by The North Face® and Timberland® while Vans® was impacted by channel rationalization Q1 FY2026 Key Financial Metrics | Metric | Amount/Percentage | | :-------------------------------- | :---------- | | Revenue | $1.8 billion | | Revenue YoY Change (Reported) | Flat | | Revenue YoY Change (Constant Currency) | (2%) | | Revenue (Excluding Vans®) YoY Change (Reported) | +6% | | Revenue (Excluding Vans®) YoY Change (Constant Currency) | +5% | | Vans® Revenue YoY Change (Reported) | (14%) | | Vans® Revenue YoY Change (Constant Currency) | (15%) | | Adjusted Operating Loss | ($56 million) | | Adjusted Operating Loss Guidance | ($125 million) to ($110 million) | | Adjusted Operating Margin | (3.2%) | | Adjusted Operating Margin YoY Change | +270bps | | Adjusted Gross Margin YoY Change | +290bps | | Adjusted Loss Per Share (EPS) | ($0.24) | | Prior Year Adjusted Loss Per Share (Q1 FY2025) | ($0.35) | | Net Debt YoY Decrease | $1.4 billion or (20%) | | Net Debt Excluding Lease Liabilities YoY Decrease | $1.4 billion or (27%) | - The North Face® and Timberland® demonstrated strong global performance, while Vans® was affected by channel rationalization measures[5](index=5&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Bracken Darrell highlighted that VF Corporation surpassed Q1 FY2026 expectations with improved revenue trends and significantly enhanced profitability, affirming the company's on-track transformation to drive long-term growth - The company exceeded Q1 FY2026 expectations and guidance, showing improved revenue trends and significantly enhanced profitability[2](index=2&type=chunk) - The North Face® and Timberland® maintained positive momentum, Altra® showed strong growth, and Vans® is strengthening its business through channel rationalization for healthy, sustainable growth[2](index=2&type=chunk) - The company is on track with its transformation, focusing on cost reduction, margin expansion, debt reduction, and organizational reshaping, confident in achieving long-term revenue and profit growth[3](index=3&type=chunk) [Q2 FY2026 and Full-Year Financial Outlook](index=1&type=section&id=Financial%20Outlook%20%28Q2%2726%20%26%20FY%2726%29) VF Corporation anticipates Q2 FY2026 revenue to decline by 4% to 2% (constant currency) with adjusted operating income between $260 million and $290 million, while expecting full-year increases in free cash flow, adjusted operating income, and operating cash flow Q2 FY2026 and Full-Year Financial Outlook | Metric | Q2 FY2026 Outlook | Full-Year FY2026 Outlook | | :-------------------------------- | :--------------------- | :----------------- | | Revenue YoY Change (Constant Currency) | (4%) to (2%) | - | | Adjusted Operating Income | $260 million to $290 million | Increase YoY | | Free Cash Flow | - | Increase YoY | | Operating Cash Flow | - | Increase YoY | [Corporate Information & Actions](index=2&type=section&id=Corporate%20Information%20%26%20Actions) This section details VF Corporation's dividend declaration, company overview, and webcast information [Dividend Declaration](index=2&type=section&id=Dividend%20Declaration) VF Corporation's Board of Directors authorized a quarterly dividend of $0.09 per share, payable on September 18, 2025, to shareholders of record as of September 10, 2025 - The Board of Directors authorized a quarterly dividend of **$0.09 per share**[1](index=1&type=chunk)[7](index=7&type=chunk) - The dividend is payable on September 18, 2025, with a record date of September 10, 2025[7](index=7&type=chunk) [About VF Corporation](index=2&type=section&id=About%20VF%20Corporation) VF Corporation is a portfolio of leading outdoor, active, and workwear brands, including The North Face®, Vans®, Timberland®, and Dickies®, committed to delivering innovative products and creating sustainable long-term value - VF Corporation owns leading brands such as The North Face®, Vans®, Timberland®, and Dickies®[8](index=8&type=chunk) - The company is dedicated to providing innovative products and creating sustainable long-term value for employees, communities, and shareholders[8](index=8&type=chunk) [Webcast Information](index=2&type=section&id=Webcast%20Information) VF management will host a Q1 FY2026 conference call at 8:00 a.m. ET, which will be webcast live and archived on ir.vfc.com - The Q1 FY2026 conference call will be held at 8:00 a.m. ET[6](index=6&type=chunk) - The call will be webcast live and an archived version will be available on ir.vfc.com[6](index=6&type=chunk) [Financial Reporting Disclosures & Definitions](index=2&type=section&id=Financial%20Reporting%20Disclosures%20%26%20Definitions) This section outlines VF Corporation's financial reporting policies, segment changes, and definitions for key GAAP and non-GAAP metrics [Financial Presentation Disclosures](index=2&type=section&id=Financial%20Presentation%20Disclosures) This section defines key financial reporting conventions, including diluted per share amounts, reported and constant currency amounts, the distinction between continuing and discontinued operations (Supreme), and adjusted amounts (excluding Reinvent), also defining "Free Cash Flow" and "Net Debt" - All per share amounts are presented on a diluted basis[9](index=9&type=chunk) - Definitions of "Reported Amounts" and "Constant Currency Amounts" or "Constant Currency," with the latter excluding the impact of foreign currency translation[9](index=9&type=chunk) - Definitions of "Continuing Operations" and "Discontinued Operations" (Supreme), with results based on continuing operations unless otherwise noted[9](index=9&type=chunk) - Definition of "Adjusted Amounts," which exclude costs related to the Reinvent transformation plan[9](index=9&type=chunk) - "Free Cash Flow" is defined as cash flow from continuing operations less capital expenditures and software purchases; "Net Debt" is defined as long-term debt, current portion of long-term debt, short-term borrowings, and operating lease liabilities less cash and cash equivalents[9](index=9&type=chunk) [Change in Reportable Segments](index=2&type=section&id=Change%20in%20Reportable%20Segments) Effective Q1 FY2026, VF Corporation realigned its reportable segments into "Outdoor" and "Active," establishing an "All Other" category for operating segments not meeting separate disclosure thresholds, with prior period segment data for FY2025 restated to reflect this change - Effective Q1 FY2026, reportable segments were realigned into "Outdoor" and "Active"[10](index=10&type=chunk) - An "All Other" category was established for operating segments not meeting separate disclosure quantitative thresholds[10](index=10&type=chunk) - Prior period segment data for each quarter of FY2025 has been restated to reflect this change[10](index=10&type=chunk) [Discontinued Operations - Supreme](index=2&type=section&id=Discontinued%20Operations%20-%20Supreme) VF Corporation completed the sale of its Supreme® brand business on October 1, 2024, with Supreme-related assets, liabilities, operating results, and cash flows presented as discontinued operations until the sale date - VF Corporation completed the sale of its Supreme® brand business on October 1, 2024[11](index=11&type=chunk) - Supreme's assets, liabilities, operating results, and cash flows are all presented as discontinued operations[11](index=11&type=chunk) [Constant Currency - Excluding the Impact of Foreign Currency](index=2&type=section&id=Constant%20Currency%20-%20Excluding%20the%20Impact%20of%20Foreign%20Currency) Constant currency amounts are non-GAAP financial measures that exclude the impact of foreign currency exchange on U.S. dollar translation, providing a framework to assess business performance without currency fluctuations, calculated by translating current period operating results reported in non-U.S. dollar currencies at comparable prior period average exchange rates - Constant currency amounts are non-GAAP measures that exclude the impact of foreign currency exchange on U.S. dollar translation[12](index=12&type=chunk) - This aims to provide a framework for assessing business performance without considering the impact of exchange rate fluctuations[12](index=12&type=chunk) - The calculation involves translating current period operating results reported in non-U.S. dollar currencies at comparable prior period average exchange rates[31](index=31&type=chunk) [Adjusted Amounts - Excluding Reinvent Impact](index=3&type=section&id=Adjusted%20Amounts%20-%20Excluding%20Reinvent%20Impact) Adjusted amounts are non-GAAP measures that exclude costs related to the Reinvent (VF transformation plan), including restructuring and project-related expenses, providing investors with useful supplemental information on VF's underlying business trends and ongoing operating performance - Adjusted amounts exclude costs related to the Reinvent transformation plan, including restructuring expenses and project-related fees[13](index=13&type=chunk) - In Q1 FY2026, Reinvent-related costs were approximately **$31 million**, negatively impacting loss per share by **$0.06**[13](index=13&type=chunk) - Management believes these non-GAAP measures are useful for evaluating the business, providing supplemental information on underlying business trends and ongoing operating performance[14](index=14&type=chunk) [Supplemental Financial Information](index=5&type=section&id=Supplemental%20Financial%20Information) This section provides reconciliations of GAAP to non-GAAP financial measures for Q1 FY2026 and Q1 FY2025, along with reportable segment information on a constant currency basis [Reconciliation of GAAP to Non-GAAP Measures (Q1 FY2026)](index=5&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures%20%28Q1%2726%29) This section reconciles GAAP to adjusted non-GAAP measures for the three months ended June 2025, primarily excluding Reinvent transformation plan costs totaling $30.8 million, which impacted gross profit, operating loss, and diluted net loss per share from continuing operations Q1 FY2026 GAAP to Adjusted Financial Data (Three Months Ended June 2025) | Metric | GAAP Reported Amount (in thousands) | Reinvent Adjustment (in thousands) | Adjusted Amount (in thousands) | | :-------------------------------- | :----------- | :----------- | :----------- | | Revenue | $1,760,666 | $— | $1,760,666 | | Gross Profit | $949,002 | $4,282 | $953,284 | | Gross Margin | 53.9% | | 54.1% | | Operating Loss | ($86,609) | $30,782 | ($55,827) | | Operating Loss Margin | (4.9%) | | (3.2%) | | Diluted Net Loss Per Share from Continuing Operations | ($0.30) | $0.06 | ($0.24) | - Reinvent-related costs for Q1 FY2026 totaled **$30.8 million**, primarily comprising severance, employee benefits, and consulting firm fees[20](index=20&type=chunk) - Reinvent generated a net tax benefit of **$6.8 million** in Q1 FY2026[20](index=20&type=chunk) - Total Reinvent-related restructuring charges amounted to **$207.6 million**, with most restructuring actions completed by the end of Q1 FY2026[20](index=20&type=chunk) [Reconciliation of GAAP to Non-GAAP Measures (Q1 FY2025)](index=6&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures%20%28Q1%2725%29) This section reconciles GAAP to adjusted non-GAAP measures for the three months ended June 2024, excluding Reinvent plan costs of $17.8 million and transaction-related activities of $0.5 million Q1 FY2025 GAAP to Adjusted Financial Data (Three Months Ended June 2024) | Metric | GAAP Reported Amount (in thousands) | Reinvent Adjustment (in thousands) | Transaction and Transaction-Related Activities (in thousands) | Adjusted Amount (in thousands) | | :-------------------------------- | :----------- | :----------- | :----------------- | :----------- | | Revenue | $1,769,060 | $— | $— | $1,769,060 | | Gross Profit | $905,678 | $412 | $— | $906,090 | | Gross Margin | 51.2% | | | 51.2% | | Operating Loss | ($123,020) | $17,849 | $490 | ($104,681) | | Operating Loss Margin | (7.0%) | | | (5.9%) | | Diluted Net Loss Per Share from Continuing Operations | ($0.39) | $0.04 | $— | ($0.35) | - Reinvent-related costs for Q1 FY2025 totaled **$17.8 million**, primarily including severance and employee benefits[25](index=25&type=chunk) - Reinvent generated a net tax benefit of **$4.1 million** in Q1 FY2025[25](index=25&type=chunk) - Transaction and transaction-related activity costs for Q1 FY2025 were **$0.5 million**, associated with the strategic alternatives review for the Global Packs business (Kipling®, Eastpak®, and JanSport® brands)[25](index=25&type=chunk) [Reportable Segment Information (Constant Currency)](index=7&type=section&id=Reportable%20Segment%20Information%20%28Constant%20Currency%29) This section presents Q1 FY2026 segment financial information on a constant currency basis, adjusting for foreign currency exchange impacts, with the Outdoor segment reporting $800.4 million in constant currency revenue and a $41.541 million constant currency profit loss, and the Active segment reporting $692.4 million in constant currency revenue and a $55.282 million constant currency profit Q1 FY2026 Segment Revenue (Constant Currency, Three Months Ended June 2025) | Segment | GAAP Reported Amount (in thousands) | Foreign Currency Exchange Adjustment (in thousands) | Constant Currency Amount (in thousands) | | :-------------- | :----------- | :----------- | :----------- | | Outdoor Segment | $812,466 | ($12,025) | $800,441 | | Active Segment | $699,687 | ($7,269) | $692,418 | | All Other | $248,513 | ($3,587) | $244,926 | | Total Revenue | $1,760,666 | ($22,881) | $1,737,785 | Q1 FY2026 Segment Profit (Constant Currency, Three Months Ended June 2025) | Segment | GAAP Reported Amount (in thousands) | Foreign Currency Exchange Adjustment (in thousands) | Constant Currency Amount (in thousands) | | :-------------- | :----------- | :----------- | :----------- | | Outdoor Segment | ($42,270) | $729 | ($41,541) | | Active Segment | $56,838 | ($1,556) | $55,282 | | Total Segment Profit | $14,568 | ($827) | $13,741 | - Under constant currency, the pre-tax loss from continuing operations was **($127.834 million)**; diluted net loss per share from continuing operations changed by **23%**[29](index=29&type=chunk) [Forward-Looking Statements & Risks](index=3&type=section&id=Forward-Looking%20Statements%20%26%20Risks) This section addresses forward-looking statements, outlining various risks and uncertainties that could cause actual results to differ materially from expectations [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section contains forward-looking statements based on VF's expectations and beliefs, involving numerous risks and uncertainties, including consumer demand, global economic conditions, supply chain stability, and geopolitical risks, which could cause actual results to differ materially - Forward-looking statements involve numerous risks and uncertainties, and actual results may differ materially from expectations[15](index=15&type=chunk) - Key risks include consumer demand, global economic conditions, raw material prices, fashion trends, competition, execution of the Reinvent transformation plan, IT system security, data privacy, adoption of new technologies (including AI), foreign currency fluctuations, supply chain stability, labor costs, intellectual property protection, acquisitions and dispositions, business resilience, changes in tax laws, debt levels, ability to pay dividends, climate change, public health crises, and geopolitical risks (such as conflicts in Europe, the Middle East, Asia, and U.S.-China tensions)[15](index=15&type=chunk)[16](index=16&type=chunk) - VF assumes no obligation to publicly update or revise any forward-looking statements, except as required by law[15](index=15&type=chunk) [Contact Information](index=4&type=section&id=Contact%20Information) This section provides contact details for VF Corporation's investor relations and media inquiries [Investor and Media Contacts](index=4&type=section&id=Investor%20and%20Media%20Contacts) This section provides contact information for VF Corporation's investor relations and media inquiries - Investor contact: Allegra Perry, email: ir@vfc.com[17](index=17&type=chunk) - Media contact: Colin Wheeler, email: corporate_communications@vfc.com[17](index=17&type=chunk)

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]

Core Insights - V.F. Corporation (VFC) is expected to report a year-over-year decline in both revenue and earnings for the first quarter of fiscal 2026, with revenues estimated at $1.7 billion, reflecting an 11.2% decrease from the previous year [1][9] Revenue Performance - The consensus estimate for VFC's loss is set at 34 cents per share, slightly wider than the 33 cents reported in the same quarter last year [2] - Management anticipates a revenue decline of 3-5% on a constant currency basis, primarily due to brand-specific challenges and reduced consumer traffic [3] - Vans brand performance is expected to mirror a 20% decline seen in the previous quarter, significantly impacting overall revenue [4] Operational Challenges - The fiscal first quarter is typically the smallest for VFC and is heavily influenced by Vans' performance, with ongoing strategic resets and store closures affecting results [3][4] - Foreign exchange fluctuations are also expected to negatively impact revenue, adding further pressure [5] Margin and Cost Structure - Despite revenue challenges, gross margin is projected to remain strong due to lower input costs, fewer promotions, and an improved inventory mix, which previously led to a 560 basis-point improvement in gross margin [6][9] - Operating loss is expected to be between $110 million and $125 million for the first quarter, with SG&A expenses forecasted to be flat or slightly down year-over-year due to cost-saving measures [6] Stock Valuation - VFC's stock is currently trading at a forward price-to-earnings ratio of 13.87, which is higher than the industry average of 11.49 [10] - Over the past three months, VFC's shares have increased by 8.2%, outperforming the industry growth of 1.1% [11]

Core Points - The article emphasizes that past performance does not guarantee future results, highlighting the inherent uncertainty in investment outcomes [2][3] - It clarifies that the information presented is not a specific offer for buying or selling securities, and it is intended for educational purposes [2][3] Group 1 - The article expresses that the views and opinions may not reflect those of the entire platform, indicating a diversity of perspectives among analysts [3] - It notes that the authors may not be licensed or certified by any regulatory body, which could impact the credibility of the analysis [3] Group 2 - The article mentions that the authors have no current positions in the companies discussed, which may reduce potential conflicts of interest [1] - It states that the information is believed to be factual and up-to-date, but does not guarantee its accuracy, suggesting a need for independent verification [2]

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]

Market Overview - U.S. futures are down across the board, with the Dow down 345 points (-0.81%), S&P 500 down 38 points (-0.64%), Nasdaq down 146 points (-0.68%), and Russell 2000 down 21 points (-1.02%) [2] - Major indexes have been flat over the past five trading days, with the Dow showing a slight increase of 1% over the past month, while all indexes are up double-digits [2] Q1 Earnings Reports - Target's Q1 earnings were disappointing, with earnings of $1.30 per share missing the Zacks consensus of $1.65 by 19.75%. Revenues of $23.85 billion were 1.58% short of expectations. The company has cut its growth forecast to negative from slightly positive [3] - Lowe's reported better-than-expected Q1 results, with earnings of $2.92 per share beating the Zacks consensus by 4 cents, and revenues of $20.93 billion slightly exceeding the anticipated $20.92 billion. Shares are up 1.75% in early trading [4] - The TJX Companies modestly beat expectations with earnings of 92 cents per share, 2 cents above estimates, and revenues of $13.11 billion, surpassing the anticipated $13.0 billion. Comparable sales grew by 3% year over year [5] - VF Corp. reported mixed results, with a narrower-than-expected loss of 13 cents per share compared to the estimated 15 cents, but revenues of $2.14 billion fell short of the $2.18 billion consensus. Shares are down 14% due to a challenging macro environment [6] Upcoming Earnings - Urban Outfitters is expected to report solid growth in both top and bottom lines year over year. Additionally, Snowflake and Zoom Communications will also release their quarterly results later today [7]