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]

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]

Financial Performance - VF's Q4'25 revenue was $2.1 billion, a decrease of 5% compared to last year (LY), or a 3% decrease in constant dollars (C$)[15] - The company reported an operating loss of $73 million, but an adjusted operating income of $22 million[15] - Adjusted gross margin was 53.4%, an increase of 560 basis points compared to LY[15] - Net debt decreased by $1.8 billion compared to LY, resulting in a leverage ratio of 4.1x, down one full turn[15] - FY'25 free cash flow was $313 million, with an additional $88 million from proceeds from non-core physical asset sales, totaling $401 million[15, 16] Brand Performance - The North Face® revenue increased by 2% (4% C$) compared to LY[19, 35] - Timberland® revenue increased by 10% (13% C$) compared to LY[19, 35] - Vans® revenue decreased by 22% (20% C$) compared to LY[19, 35] - Dickies® revenue decreased by 14% (13% C$) compared to LY[19, 35] Regional Performance - APAC region revenue increased by 0% (2% C$) compared to LY[15, 22] - Americas region revenue decreased by 6% (5% C$) compared to LY[15, 22] - EMEA region revenue decreased by 4% (2% C$) compared to LY[15, 22] Strategic Initiatives - The company achieved its initial target of $300 million in gross cost savings through the Reinvent transformation program[14, 18] - VF is on track towards its medium-term target of $500 to $600 million in net operating income expansion[14, 18]

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]