Core Insights - V.F. Corporation (VFC) reported a revenue of $2.14 billion for the quarter ended March 2025, reflecting a year-over-year decline of 9.7% and an EPS of -$0.13, an improvement from -$0.32 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $2.18 billion by 1.62%, while the EPS exceeded the consensus estimate of -$0.15 by 13.33% [1] Revenue Performance - Geographic Revenue: - Americas: $995.20 million, below the estimated $1.11 billion, a decline of 11.6% year-over-year [4] - Asia-Pacific: $336.20 million, below the estimated $355.65 million, a decline of 11% year-over-year [4] - Europe: $812.30 million, exceeding the estimated $744.21 million, a decline of 6.6% year-over-year [4] - Revenue by Segment: - Active: $645.32 million, below the estimated $753.22 million, a decline of 29.4% year-over-year [4] - Work: $222.17 million, slightly above the estimated $221.17 million, a decline of 7.6% year-over-year [4] - Outdoor: $1.28 billion, exceeding the estimated $1.22 billion, an increase of 4.7% year-over-year [4] - Revenue by Brand: - Dickies: $139.30 million, slightly above the estimated $138.68 million, a decline of 14.2% year-over-year [4] - Timberland: $376 million, exceeding the estimated $337.45 million, an increase of 10.1% year-over-year [4] - Vans: $492.60 million, below the estimated $571.91 million, a decline of 22% year-over-year [4] - The North Face: $834.50 million, exceeding the estimated $792.59 million, an increase of 2.5% year-over-year [4] - Revenue by Channel: - Direct-To-Consumer: $920.80 million, below the estimated $1 billion, a decline of 15.8% year-over-year [4] Stock Performance - V.F. shares have returned +32.3% over the past month, outperforming the Zacks S&P 500 composite's +12.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

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

Financial Data and Key Metrics Changes - In Q4 2025, revenue decreased by 3%, aligning with guidance of a decline between 2% to 4% [6][28] - Operating income increased by 400 basis points year-over-year to $22 million, exceeding guidance [6] - Gross margin improved by 560 basis points to 53.4%, driven by lower material costs and reduced discounting [6][30] - Net debt decreased by 26% year-over-year, with leverage reduced by one full turn to 4.1 times [7][32] - Adjusted loss per share improved to negative $0.13 from negative $0.30 in Q4 of the previous year [31] Business Line Data and Key Metrics Changes - Vans revenue declined by 20% in Q4, following an 8% decline in the prior quarter, with 60% of the decline attributed to strategic actions to eliminate unprofitable business [9][29] - The North Face brand saw a revenue increase of 4% in Q4, with direct-to-consumer (DTC) sales rising by 9% [17][28] - Timberland experienced a strong performance with a 13% revenue increase in Q4, driven by lower discounts and higher margins [17][28] Market Data and Key Metrics Changes - The APAC region grew by 2%, while The Americas and EMEA regions saw declines of 5% and 2% respectively due to reduced promotional activity [29] - DTC sales were down 3%, while wholesale sales decreased by 2% [29] Company Strategy and Development Direction - The company is focused on a transformation strategy called "Reinvent," aimed at improving operational profitability and simplifying the business structure [6][30] - Strategic actions include reducing storefronts and channel inventory in China to set up for long-term growth [11][19] - The company is pursuing brand elevation through channel cleanup and enhanced digital experiences [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the turnaround of Vans, indicating that progress is being made despite current numerical setbacks [9][14] - The company is well-positioned to manage tariff impacts through a diversified supply chain and proactive cost management strategies [19][26] - Management remains optimistic about returning to growth and delivering sustainable value creation despite macroeconomic uncertainties [21][22] Other Important Information - The company expects operating cash flow and free cash flow to increase year-over-year, although specific full-year guidance is not provided [34] - The company has strategically reduced its reliance on finished goods sourced from China to less than 2% [19][25] Q&A Session Summary Question: Thoughts on gross margin improvements and free cash flow - Management expects continued improvement in gross margins and free cash flow, with the $313 million free cash flow not including Supreme [40][43] Question: One-time strategic reset actions at Vans - The impact of strategic reset actions will continue into Q1 and Q2, with expectations of fading by Q3 and being gone by Q4 [50][55] Question: Free cash flow and debt management - The company plans to use free cash flow and a revolver to manage upcoming debt maturities, with confidence in improving cash flow [58][61] Question: Health of The North Face brand and DTC momentum - The North Face brand is performing well, with strong DTC sales and plans to increase product offerings [82][84] Question: Tariff impacts and pricing strategies - The company is confident in its ability to offset tariff impacts through strategic pricing and cost management [108][110]

Q4'25 Earnings May 21, 2025 Q4'25 EARNINGS Financial Presentation Disclosure All per share amounts are presented on a diluted basis. This presentation refers to "reported" (R$) and "constant dollar" (C$) or "constant currency" amounts, terms that are described under the heading below "Constant Currency - Excluding the Impact of Foreign Currency." Unless otherwise noted, "reported" and "constant dollar" or "constant currency" amounts are the same, and amounts will be as "reported" unless otherwise specified. ...

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

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

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

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

Core Viewpoint - V.F. Corporation (VFC) is expected to report a year-over-year decline in revenues for the fourth quarter of fiscal 2025, with a projected revenue of $2.2 billion, reflecting a 7.7% decrease from the previous year [1][3]. Revenue and Earnings Estimates - The consensus estimate for VFC's loss is 15 cents per share, an improvement from the 32 cents reported in the same quarter last year [2]. - Management anticipates a revenue decline of 4-6% year-over-year on a reported basis and 2-4% in constant currency for the fourth quarter [5]. Brand Performance and Challenges - VFC is facing challenges with brand performance, particularly with Vans, which is experiencing weak sales and struggles to connect with its core customer base [4]. - Sales for Vans and The North Face brands are expected to decline by 8.3% and 4.5%, respectively, in the upcoming quarter [4]. Cost Management and Transformation Efforts - The company is on track to achieve $300 million in annual fixed cost savings by the end of fiscal 2025, with an additional $40 million in reductions expected in the fourth quarter [7]. - VFC's transformation program, "Reinvent," aims to enhance brand focus and improve operating performance, with specific objectives including improving North America performance and reducing costs [6]. Valuation and Market Performance - VFC stock is currently trading at a forward price/earnings ratio of 13.85X, which is higher than the industry average of 12.59X [10]. - Over the past year, VFC shares have gained 12.4%, contrasting with a 1.9% decline in the industry [10].

Core Insights - The sports footwear and apparel industry demonstrates resilience amid a sluggish global economic recovery and differentiated consumer demand, outperforming other sectors [1][2] - The analysis includes 19 brands/groups, primarily publicly listed companies, with revenue data for the 2024 calendar year, adjusted for fiscal year discrepancies and currency fluctuations [1][2] Global Market Overview - Total global revenue for the 18 brands/groups in 2024 is approximately $183.61 billion, reflecting a 3.78% increase from 2023 [8] - Nike and Adidas remain the dominant players, while Lululemon has surged to third place, surpassing Puma and VF Corporation [6][7] - The industry structure remains stable, with a leading tier of Nike and Adidas, followed by a growing middle tier including Decathlon, Anta, VF, and Lululemon [7][8] Chinese Market Insights - The total revenue for the Chinese market is estimated at around $37 billion for 2024, with an 8.8% year-over-year growth, outpacing global growth [14] - Anta Group leads the Chinese market, with significant contributions from its multi-brand strategy, while Nike retains the top position for single-brand revenue [14][15] - The competitive landscape in China features intense rivalry among brands like Anta, Li Ning, Adidas, and FILA, with Puma also showing growth [14][15] Growth Drivers - Running remains the highest growth segment in the sports footwear and apparel industry, with brands like HOKA and On experiencing significant revenue increases [15][16] - Outdoor brands, particularly those appealing to the middle class, are also thriving, driven by a shift in consumer identity and preferences [16] Future Considerations - The industry faces challenges related to brand positioning in either stock or incremental competition, necessitating strategic decisions on growth potential and market dynamics [17] - Established brands are undergoing transformations while new entrants must navigate consumer expectations and market integration [17]