Core Viewpoint - The performance of V.F. Corporation's international operations is critical for understanding its financial strength and growth potential, especially in the context of a global economy [1][5]. Group 1: International Revenue Performance - For the quarter ending March 2024, V.F. Corporation reported total revenue of $2.37 billion, a decline of 13.4% year over year [2]. - The Asia-Pacific (APAC) region generated $377.7 million in revenue, accounting for 15.9% of total revenue, which was a surprise of +0.69% compared to Wall Street's estimate of $375.1 million [3]. - The Europe, Middle East, and Africa (EMEA) region contributed $869.9 million, making up 36.7% of total revenue, exceeding the consensus estimate of $821.62 million by +5.88% [3]. Group 2: Future Revenue Projections - Analysts project V.F. Corporation to report total revenue of $1.88 billion in the current fiscal quarter, indicating a decline of 10% from the prior-year quarter [4]. - For the full fiscal year, total revenue is expected to reach $10.24 billion, reflecting a decrease of 2.1% from the previous year, with APAC and EMEA projected to contribute $1.62 billion (15.8%) and $3.35 billion (32.7%), respectively [4]. Group 3: Market Trends and Stock Performance - V.F. Corporation's stock has decreased by 2.4% over the past four weeks, while the Zacks S&P 500 composite increased by 4.8% [8]. - Over the last three months, the company's shares have declined by 24%, contrasting with a 4.6% increase in the S&P 500 [8].

Financial Performance - VF Corp reported a fiscal 2024 fourth-quarter adjusted loss of 32 cents per share, missing analysts' expectations of a small gain [1] - Revenue declined 13% year-over-year to $2.37 billion, falling short of forecasts [1] - Gross margin decreased by 120 basis points to 48.4%, impacted by inventory resets and ongoing promotions [2] Brand Performance - North Face sales dropped 5% year-over-year to $814.3 million, primarily due to weakness in U.S. wholesale [2] - Vans sales plunged 26% to $631.2 million, consistent with the previous quarter and influenced by inventory adjustments in the wholesale channel [2] - Timberland and Dickies sales declined 14% and 15% respectively [2] Leadership Changes - VF Corp appointed Paul Vogel, former CFO of Spotify, as its new CFO, effective July [3] - The company has been rebuilding its leadership team as part of its turnaround efforts [3] Market Reaction - VF shares fell to their lowest level in over 15 years, dropping 4.6% to $11.76 in Thursday trading [1][3] - The company's shares have lost more than a third of their value this year [3]

The apparel company disappointed again in its quarterly earnings report.Shares of VF Corp (VFC -3.49%) were heading lower today as the struggling apparel company posted yet another disappointing earnings report in its fiscal fourth quarter.As of 1:05 p.m. ET on Thursday, the stock was down 3.5% after trading as low as 11% earlier in the session. VF's troubles continueOverall revenue fell 13% in the quarter to $2.4 billion, continuing a pattern of falling sales at core brands like Vans and The North Face. Th ...

[Part I](index=4&type=section&id=PART%20I) [Item 1. Business](index=4&type=section&id=ITEM%201.%20Business) V.F. Corporation, a global apparel and footwear company, initiated the 'Reinvent' program in Fiscal 2024 to streamline operations and strengthen its balance sheet, operating across Outdoor, Active, and Work segments - The 'Reinvent' turnaround program was introduced in Fiscal 2024, focusing on cost streamlining, business model improvement, and balance sheet strengthening, establishing new global commercial and Americas regional platforms[21](index=21&type=chunk) Fiscal 2024 Revenue Distribution | Category | Percentage of Total Revenue | | :--- | :--- | | Direct-to-Consumer (DTC) | 47% | | E-commerce (as % of DTC) | 42% | | E-commerce (as % of Total VF) | 20% | | Americas Region | 52% | | Europe Region | 33% | | Asia-Pacific Region | 15% | - The company's business is structured into three reportable segments: Outdoor, Active, and Work, featuring major brands like The North Face®, Vans®, Timberland®, and Dickies®[22](index=22&type=chunk)[24](index=24&type=chunk) - VF's global supply chain sourced approximately **266 million units** from around **320 independent contractor facilities** in **35 countries** during Fiscal 2024, with no single supplier exceeding **6% of total cost of goods sold**[48](index=48&type=chunk)[52](index=52&type=chunk) - The company operates **1,185 owned retail stores** and utilizes approximately **2,400 independently-owned partnership stores**, primarily in Europe and Asia[39](index=39&type=chunk)[43](index=43&type=chunk) [Item 1A. Risk Factors](index=16&type=section&id=ITEM%201A.%20Risk%20Factors) The company faces significant economic, operational, regulatory, and financial risks, including consumer spending sensitivity, intense competition, supply chain disruptions, cybersecurity threats, and the success of its 'Reinvent' program - Economic risks include dependence on consumer spending, sensitive to global economic conditions, inflation, and geopolitical instability, alongside intense competition and pricing pressure in the apparel industry[105](index=105&type=chunk)[106](index=106&type=chunk)[115](index=115&type=chunk) - The success of the 'Reinvent' turnaround program is a key business risk, with no assurance its objectives of cost-saving, balance sheet strengthening, and growth reinvestment will be achieved[119](index=119&type=chunk)[121](index=121&type=chunk) - Significant operational risks exist related to information technology and cybersecurity, highlighted by a December 2023 data security breach involving system encryption and data theft, leading to business disruptions[124](index=124&type=chunk)[129](index=129&type=chunk)[133](index=133&type=chunk) - The company faces risks from Artificial Intelligence (AI) development and use, including potential biases, system failures, intellectual property challenges, and evolving legal regulations[134](index=134&type=chunk)[137](index=137&type=chunk)[141](index=141&type=chunk) - Financial risks include potential impairment charges on significant intangible assets and goodwill, with charges recorded in Fiscal 2024 for the Timberland®, Dickies®, and Icebreaker® reporting units[181](index=181&type=chunk)[185](index=185&type=chunk)[187](index=187&type=chunk) - As of March 30, 2024, VF had approximately **$6.0 billion** of debt outstanding, with recent credit rating downgrades and debt covenants limiting annual cash dividends and share repurchases to **$500.0 million**[198](index=198&type=chunk)[199](index=199&type=chunk)[200](index=200&type=chunk) [Item 1B. Unresolved Staff Comments](index=32&type=section&id=ITEM%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the Securities and Exchange Commission - No unresolved staff comments are reported[210](index=210&type=chunk) [Item 1C. Cybersecurity](index=33&type=section&id=ITEM%201C.%20Cybersecurity) VF Corporation outlines its cybersecurity risk management program, overseen by the Board and management, which includes threat identification, third-party assessments, and an incident response plan, with the December 2023 incident deemed not material - Cybersecurity oversight is shared by the Board of Directors, the Audit Committee, and management, including the CISO and General Counsel[214](index=214&type=chunk)[215](index=215&type=chunk) - The company maintains a program to protect information and systems, including a cyber incident response plan, and engages third-party assessors and consultants to augment capabilities[216](index=216&type=chunk)[217](index=217&type=chunk) - The December 2023 cybersecurity incident's impacts were deemed not material to VF's financial condition or results, with the company seeking reimbursement through its cybersecurity insurance[218](index=218&type=chunk) [Item 2. Properties](index=34&type=section&id=ITEM%202.%20Properties) VF Corporation's principal properties include global and regional headquarters, 21 distribution centers, and 1,185 generally leased retail stores worldwide - Global headquarters are leased in Denver, Colorado, with European and Asia-Pacific headquarters in Stabio, Switzerland, and Shanghai, China, respectively[219](index=219&type=chunk) - The company operates **21 owned or leased distribution centers**, with major facilities in Ontario, California; Prague, Czech Republic; and Kunshan, China[221](index=221&type=chunk) - As of March 30, 2024, VF operates **1,185 generally leased retail stores** across the Americas, Europe, and Asia-Pacific[222](index=222&type=chunk) [Item 3. Legal Proceedings](index=34&type=section&id=ITEM%203.%20Legal%20Proceedings) The company reports no pending material legal proceedings beyond ordinary, routine litigation incidental to its business - There are no pending material legal proceedings to which VF or its subsidiaries are a party[223](index=223&type=chunk) [Item 4. Mine Safety Disclosures](index=34&type=section&id=ITEM%204.%20Mine%20Safety%20Disclosures) This section is not applicable to the company - Not applicable[225](index=225&type=chunk) [Part II](index=35&type=section&id=PART%20II) [Item 5. Market for VF's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=35&type=section&id=ITEM%205.%20Market%20for%20VF's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) VF's Common Stock trades on the NYSE, with its five-year cumulative total shareholder return significantly underperforming market indices, and no shares repurchased in Q4 Fiscal 2024 - VF Common Stock (VFC) is listed on the New York Stock Exchange, with **2,607 shareholders of record** as of April 27, 2024[228](index=228&type=chunk) Five-Year Cumulative Total Return Comparison | Company / Index | 3/30/19 | 3/30/24 | | :--- | :--- | :--- | | VF Corporation | $100.00 | $22.28 | | S&P 500 Index | $100.00 | $201.57 | | S&P 1500 Apparel, Accessories & Luxury Goods | $100.00 | $67.69 | - No shares of VF's Common Stock were repurchased during the fiscal quarter ended March 30, 2024, with approximately **$2.49 billion** remaining under the share repurchase program authorization[230](index=230&type=chunk)[231](index=231&type=chunk) [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=ITEM%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In Fiscal 2024, VF's revenue decreased 10% to $10.5 billion, resulting in a significant net loss of $(968.9) million due to impairment charges and tax expenses, prompting a 70% dividend reduction and the 'Reinvent' program Fiscal 2024 vs. Fiscal 2023 Key Financials | Metric | Fiscal 2024 | Fiscal 2023 | % Change | | :--- | :--- | :--- | :--- | | Net Revenues | $10,454.7M | $11,612.5M | -10% | | Gross Margin | 52.0% | 52.5% | -50 bps | | Operating Margin | (0.3)% | 2.8% | -310 bps | | Net Income (Loss) | $(968.9)M | $118.6M | N/A | | Diluted EPS | $(2.49) | $0.31 | N/A | - The 'Reinvent' transformation program was introduced, resulting in **$105.4 million** in Fiscal 2024 charges, primarily for severance and asset write-downs[243](index=243&type=chunk)[244](index=244&type=chunk) - The quarterly dividend was reduced by **70%** from **$0.30 to $0.09 per share** to reduce debt and strengthen the company's financial position[245](index=245&type=chunk) FY2024 Goodwill & Intangible Asset Impairment Charges | Reporting Unit | Impairment Charge (Goodwill) | | :--- | :--- | | Timberland | $407.0M ($195.3M + $211.7M) | | Dickies | $61.8M | | Icebreaker | $38.8M | | **Total** | **$507.6M** | - A net discrete tax expense of **$704.6 million** was recorded, primarily due to an unfavorable court decision in the Timberland tax case, resulting in a write-off of a related tax receivable[261](index=261&type=chunk)[319](index=319&type=chunk) - Cash from operations improved significantly to **$1,014.6 million** from a use of **$(655.8) million** in the prior year, mainly due to a decrease in working capital, particularly lower inventory levels[300](index=300&type=chunk)[301](index=301&type=chunk) [Information by Reportable Segment](index=39&type=section&id=Information%20by%20Reportable%20Segment) In Fiscal 2024, all three segments experienced revenue declines, with Outdoor down 3%, Active down 17% (Vans® -24%), and Work down 16% (Dickies® -15%), leading to contracted operating margins Segment Revenue Performance (FY2024 vs. FY2023) | Segment | FY2024 Revenue (M) | FY2023 Revenue (M) | % Change | | :--- | :--- | :--- | :--- | | Outdoor | $5,501.4 | $5,647.5 | -3% | | Active | $4,061.7 | $4,904.6 | -17% | | Work | $891.5 | $1,060.2 | -16% | Segment Profit Performance (FY2024 vs. FY2023) | Segment | FY2024 Profit (M) | FY2023 Profit (M) | % Change | | :--- | :--- | :--- | :--- | | Outdoor | $602.7 | $785.4 | -23% | | Active | $352.2 | $654.7 | -46% | | Work | $17.6 | $121.2 | -85% | - **Outdoor Segment:** Revenue decreased **3%**, with The North Face® growing **2%** offset by an **11% decline** in Timberland®, including a **32% decrease** in the Americas[270](index=270&type=chunk)[271](index=271&type=chunk)[272](index=272&type=chunk) - **Active Segment:** Revenue decreased **17%**, with Vans® global revenues down **24%**, including a **28% drop** in the Americas, reflecting strategic wholesale channel resets[274](index=274&type=chunk)[275](index=275&type=chunk) - **Work Segment:** Revenue decreased **16%**, with Dickies® global revenues down **15%**, primarily due to a **15% decrease** in the Americas and a **35% decrease** in Asia-Pacific[279](index=279&type=chunk)[280](index=280&type=chunk) [Critical Accounting Policies and Estimates](index=49&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) The company highlights critical accounting policies requiring significant judgment, including business combinations, impairment testing of assets and goodwill, and income taxes, with Fiscal 2024 seeing impairment charges for Timberland®, Dickies®, and Icebreaker®, and a narrow margin for Supreme® - Significant management estimates are required for valuing assets in business combinations, assessing impairment of long-lived assets and goodwill, and determining income tax liabilities[336](index=336&type=chunk)[342](index=342&type=chunk) - **Goodwill Impairment Testing (FY2024):** Triggering events led to quantitative tests and subsequent impairment charges for Timberland® (**$407.0 million** total), Dickies® (**$61.8 million**), and Icebreaker® (**$38.8 million**)[361](index=361&type=chunk)[363](index=363&type=chunk)[364](index=364&type=chunk)[365](index=365&type=chunk) - **Supreme® Impairment Test (FY2024):** The annual quantitative test for the Supreme® reporting unit resulted in no impairment, but its estimated fair value exceeded carrying value by a narrow margin of **8% for goodwill** and **3% for the indefinite-lived trademark**[364](index=364&type=chunk)[705](index=705&type=chunk) - **Income Taxes:** The company highlights uncertainties in applying complex tax laws; in FY2024, an unfavorable court ruling on the Timberland acquisition tax dispute led to a **$690.0 million income tax expense**, and an EU ruling on Belgium's excess profit tax regime resulted in a **$26.1 million net income expense**[374](index=374&type=chunk)[375](index=375&type=chunk)[377](index=377&type=chunk) [Item 7A. Quantitative and Qualitative Disclosures about Market Risk](index=54&type=section&id=ITEM%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section details the company's exposure to market risks, including interest rate risk on variable-rate debt, foreign currency exchange rate risk from significant international operations, and commodity price risk - The company is exposed to interest rate risk, primarily on variable-rate borrowings, where a hypothetical **1% change** in interest rates would impact net income by approximately **$6.9 million**[329](index=329&type=chunk) - Foreign currency exchange rate risk is significant, as **54% of Fiscal 2024 revenues** were generated internationally, with the company using derivative contracts to hedge a portion of this exposure[330](index=330&type=chunk)[332](index=332&type=chunk) - VF is exposed to commodity price risks for materials like cotton, leather, and rubber, managed by negotiating prices in advance rather than using derivative instruments[339](index=339&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=54&type=section&id=ITEM%208.%20Financial%20Statements%20and%20Supplementary%20Data) This item directs the reader to the full consolidated financial statements and supplementary data, beginning on page F-1 of the report - Refers to the Index to Consolidated Financial Statements and Financial Statement Schedule on page F-1[381](index=381&type=chunk) [Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosures](index=55&type=section&id=ITEM%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosures) This section is not applicable as there were no changes in or disagreements with accountants - Not applicable[382](index=382&type=chunk) [Item 9A. Controls and Procedures](index=55&type=section&id=ITEM%209A.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded the company's disclosure controls and procedures were effective as of March 30, 2024, with no material changes to internal control over financial reporting during the last fiscal quarter - The CEO and CFO concluded that VF's disclosure controls and procedures were effective as of the fiscal year-end, March 30, 2024[383](index=383&type=chunk) - No material changes in internal control over financial reporting occurred during the fourth fiscal quarter[384](index=384&type=chunk) [Item 9B. Other Information](index=55&type=section&id=ITEM%209B.%20Other%20Information) The company reports no director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the fourth quarter of Fiscal 2024 - No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the three months ended March 30, 2024[385](index=385&type=chunk) [Part III](index=56&type=section&id=PART%20III) [Item 10. Directors, Executive Officers and Corporate Governance](index=56&type=section&id=ITEM%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information regarding executive officers, directors, corporate governance, and audit committee is incorporated by reference from the company's definitive 2024 Proxy Statement - Information required by this item is incorporated by reference from the forthcoming 2024 Proxy Statement[389](index=389&type=chunk)[390](index=390&type=chunk)[391](index=391&type=chunk) [Item 11. Executive Compensation](index=56&type=section&id=ITEM%2011.%20Executive%20Compensation) Information regarding executive compensation is incorporated by reference from the company's definitive 2024 Proxy Statement - Information required by this item is incorporated by reference from the forthcoming 2024 Proxy Statement[394](index=394&type=chunk) [Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholders Matters](index=56&type=section&id=ITEM%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholders%20Matters) Information regarding security ownership is incorporated by reference from the company's definitive 2024 Proxy Statement - Information required by this item is incorporated by reference from the forthcoming 2024 Proxy Statement[395](index=395&type=chunk) [Item 13. Certain Relationships and Related Transactions, and Director Independence](index=56&type=section&id=ITEM%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information regarding related transactions and director independence is incorporated by reference from the company's definitive 2024 Proxy Statement - Information required by this item is incorporated by reference from the forthcoming 2024 Proxy Statement[396](index=396&type=chunk) [Item 14. Principal Accounting Fees and Services](index=56&type=section&id=ITEM%2014.%20Principal%20Accounting%20Fees%20and%20Services) Information regarding principal accounting fees and services is incorporated by reference from the company's definitive 2024 Proxy Statement - Information required by this item is incorporated by reference from the forthcoming 2024 Proxy Statement[397](index=397&type=chunk) [Part IV](index=57&type=section&id=PART%20IV) [Item 15. Exhibits and Financial Statement Schedules](index=57&type=section&id=ITEM%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists the financial statements, schedules, and exhibits filed as part of the Form 10-K report, including the independent auditor's report and various corporate agreements - Lists all financial statements, schedules, and exhibits filed with the report, including the Report of Independent Registered Public Accounting Firm and various indentures and credit agreements[399](index=399&type=chunk)[400](index=400&type=chunk) [Item 16. 10-K Summary](index=60&type=section&id=ITEM%2016.%2010-K%20Summary) The company indicates that no Form 10-K summary is provided - None[403](index=403&type=chunk)

Core Insights - V.F. Corporation reported fourth-quarter fiscal 2024 results that missed both top and bottom line estimates, with revenues declining 13% year over year to $2.37 billion and an adjusted loss per share of 32 cents compared to earnings of 17 cents in the prior-year quarter [1][2] Financial Performance - The company experienced an operating loss of $355.8 million, worsening from a loss of $160.9 million in the same period last year [2] - Adjusted gross margin contracted by 120 basis points to 48.4%, influenced by a 300-bps adverse rate impact and negative foreign currency effects, partially offset by a favorable mix contributing 180 bps [1] - Cash and cash equivalents at the end of fiscal 2024 were $674.6 million, with long-term debt at $4.7 billion and shareholders' equity at $1.7 billion [6] Revenue Breakdown - Revenues in the Americas fell 22% year over year, while EMEA and APAC regions saw declines of 3% and 3% respectively [4] - Wholesale and direct-to-consumer revenues decreased by 20% and 4% year over year [4] - By segment, Outdoor revenues dipped 8% to $1.2 billion, Active segment revenues fell 19% to $914 million, and Work segment revenues dropped 16% to $240.3 million [5] Strategic Initiatives - The company is advancing its Reinvent transformation program aimed at brand-building and operational improvements, achieving gross cost savings of $80 million in fiscal 2024 [7] - An in-depth strategic review of brand assets is underway to maximize long-term value [7] Shareholder Returns - V.F. Corp returned $35 million to shareholders through dividends in the fourth quarter and $303 million for the entire fiscal year [6]

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V.F. Corporation (NYSE:VFC) Q4 2024 Results Conference Call May 22, 2024 4:30 PM ET Company Participants Allegra Perry - Vice President, Investor Relations Bracken Darrell - President and Chief Executive Officer Martino Scabbia Guerrini - Chief Commercial Officer Matt Puckett - EVP and Chief Financial Officer Conference Call Participants Michael Bennett - Evercore ISI Laurent Vasilescu - BNP Paribas Simeon Siegel - BMO Capital Markets Brooke Roach - Goldman Sachs Matthew Boss - JPMorgan Dana Telsey - Telsey ...

Core Insights - V.F. (VFC) reported a revenue of $2.37 billion for the quarter ended March 2024, reflecting a 13.4% decline year-over-year, with an EPS of -$0.32 compared to $0.17 in the same quarter last year [1] - The revenue fell short of the Zacks Consensus Estimate of $2.4 billion, resulting in a surprise of -1.26%, while the EPS surprise was -3300.00% against a consensus estimate of $0.01 [1] Revenue Performance by Geography - Americas: Revenue was $1.13 billion, down 22.3% year-over-year, and below the average estimate of $1.23 billion [2] - EMEA: Revenue reached $869.90 million, a decrease of 3.5% year-over-year, exceeding the average estimate of $821.62 million [2] - APAC: Revenue was $377.70 million, down 2.8% year-over-year, slightly above the average estimate of $375.10 million [2] Revenue Performance by Segment - Active: Revenue was $914.04 million, down 19.3% year-over-year, and close to the average estimate of $914.74 million [2] - Outdoor: Revenue reached $1.22 billion, a decline of 7.7% year-over-year, slightly below the average estimate of $1.24 billion [2] - Work: Revenue was $240.33 million, down 16.3% year-over-year, and below the average estimate of $247.57 million [2] Revenue Performance by Brand - Dickies: Revenue was $162.40 million, down 15.2% year-over-year, slightly above the average estimate of $160.22 million [2] - The North Face: Revenue reached $814.30 million, a decrease of 5.3% year-over-year, slightly above the average estimate of $811.27 million [2] - Vans: Revenue was $631.20 million, down 26.4% year-over-year, below the average estimate of $666.16 million [2] - Timberland: Revenue reached $341.50 million, down 13.7% year-over-year, below the average estimate of $351.47 million [2] Revenue Performance by Channel - Direct-To-Consumer: Revenue was $1.09 billion, exceeding the average estimate of $1.03 billion [2] - Wholesale: Revenue reached $1.28 billion, below the average estimate of $1.42 billion [2] Stock Performance - V.F. shares have returned -3.8% over the past month, contrasting with the Zacks S&P 500 composite's +7.3% change, and the stock currently holds a Zacks Rank 3 (Hold) [3]

V.F. (VFC) came out with a quarterly loss of $0.32 per share versus the Zacks Consensus Estimate of $0.01. This compares to earnings of $0.17 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -3,300%. A quarter ago, it was expected that this maker of brands such as Vans, North Face and Timberland would post earnings of $0.79 per share when it actually produced earnings of $0.57, delivering a surprise of -27.85%.Over the last fou ...

[Executive Summary & Business Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Business%20Highlights) VF Corporation made progress on its transformation program, exceeding cash flow guidance, and outlined key priorities for sustainable growth [CEO Statement & Strategic Priorities](index=1&type=section&id=CEO%20Statement%20%26%20Strategic%20Priorities) CEO Bracken Darrell highlighted progress in the Reinvent transformation program, exceeding FY24 cash flow guidance, and outlined key priorities for FY25 including fixing the Americas, turning around Vans, reducing costs, and paying down debt - Progress made on Reinvent transformation program in Q4'FY24[2](index=2&type=chunk) - Exceeded FY24 cash flow expectations with **$1 billion in operating cash flow** and over **$800 million in free cash flow**[2](index=2&type=chunk) - FY25 strategic priorities include fixing the Americas, turning around Vans, reducing costs, and paying down debt[2](index=2&type=chunk) - Rebuilding leadership team, including CFO appointment, to position VF for sustainable and profitable growth[2](index=2&type=chunk) [Key Financial Highlights (Q4 & FY24)](index=1&type=section&id=Key%20Financial%20Highlights%20(Q4%20%26%20FY24)) VF Corporation reported a 13% revenue decrease in Q4'FY24 and a 10% decrease for the full FY24, with significant declines in adjusted EPS for both periods, despite achieving substantial inventory reductions and strong operating and free cash flow Q4'FY24 Key Financial Highlights ($) | Metric | Q4'FY24 | Q4'FY23 | Change | | :----- | :------ | :------ | :----- | | Revenue | $2.4 billion | $2.74 billion | Down 13% | | Reported Gross Margin | 48.4% | 49.6% | Down 120 bps | | Adjusted Gross Margin | 48.4% | 49.6% | Down 120 bps | | Reported Operating Margin | (15.0)% | (5.9)% | Down 910 bps | | Adjusted Operating Margin | (2.1)% | 5.6% | Down 770 bps | | Reported EPS | $(1.08) | $(0.55) | Down 96.4% | | Adjusted EPS | $(0.32) | $0.17 | Down 288.2% | FY24 Key Financial Highlights ($) | Metric | FY24 | FY23 | Change | | :----- | :--- | :--- | :----- | | Revenue | $10.5 billion | $11.61 billion | Down 10% | | Reported Gross Margin | 52.0% | 52.5% | Down 50 bps | | Adjusted Gross Margin | 52.1% | 52.6% | Down 50 bps | | Reported Operating Margin | (0.3)% | 2.8% | Down 310 bps | | Adjusted Operating Margin | 5.6% | 9.8% | Down 420 bps | | Reported EPS | $(2.49) | $0.31 | Down 903.2% | | Adjusted EPS | $0.74 | $2.10 | Down 64.8% | - Generated **$1.015 billion in operating cash flow** and **$804 million in free cash flow** for FY24, exceeding guidance[5](index=5&type=chunk) - Inventories decreased by **$382 million (23%)** in Q4'FY24 compared to the prior year[5](index=5&type=chunk) [Financial Performance Review](index=1&type=section&id=Financial%20Performance%20Review) VF Corporation experienced significant revenue declines in both Q4 and FY24, driven by brand and regional weaknesses, alongside reduced profitability due to unfavorable rates and non-cash charges [Fourth Quarter Fiscal Year 2024 (Q4'FY24) Performance](index=1&type=section&id=Q4'FY24%20Financial%20Review) VF Corporation's Q4'FY24 saw a 13% revenue decline, primarily driven by weakness in Vans and the Americas region, with gross margin decreasing due to unfavorable rates and promotional activity, leading to a significant drop in operating margin and adjusted EPS [Revenue Performance (Q4'FY24)](index=1&type=section&id=Q4'FY24%20Revenue%20Performance) Q4'FY24 revenue decreased by 13% to $2.37 billion, with Vans experiencing a significant 26% decline, The North Face down 5% (despite DTC growth), the Americas region seeing a 22% drop, and wholesale revenue falling by 20% Q4'FY24 Revenue by Brand ($M) | Brand | Q4'FY24 Revenue ($M) | % Change (Reported) | % Change (Constant Currency) | | :---- | :------------------- | :------------------ | :--------------------------- | | The North Face | 814.3 | (5)% | (5)% | | Vans | 631.2 | (26)% | (27)% | | Timberland | 341.5 | (14)% | (14)% | | Dickies | 162.4 | (15)% | (15)% | | Other Brands | 424.4 | (3)% | (2)% | | **Total VF Revenue** | **2,373.8** | **(13)%** | **(13)%** | Q4'FY24 Revenue by Region ($M) | Region | Q4'FY24 Revenue ($M) | % Change (Reported) | % Change (Constant Currency) | | :----- | :------------------- | :------------------ | :--------------------------- | | Americas | 1,126.2 | (22)% | (23)% | | EMEA | 869.9 | (3)% | (5)% | | APAC | 377.7 | (3)% | 2% | | **Total VF Revenue** | **2,373.8** | **(13)%** | **(13)%** | Q4'FY24 Revenue by Channel ($M) | Channel | Q4'FY24 Revenue ($M) | % Change (Reported) | % Change (Constant Currency) | | :------ | :------------------- | :------------------ | :--------------------------- | | DTC | 1,093.8 | (5)% | (4)% | | Wholesale | 1,280.1 | (20)% | (20)% | | **Total VF Revenue** | **2,373.8** | **(13)%** | **(13)%** | - The North Face DTC revenue was up **6% (7% in constant dollars)** despite overall brand decline, indicating US wholesale weakness[5](index=5&type=chunk) - Vans decline includes impact from deliberate actions to right-size inventories in the wholesale channel[5](index=5&type=chunk) [Profitability (Q4'FY24)](index=1&type=section&id=Q4'FY24%20Profitability) Q4'FY24 reported and adjusted gross margin decreased by 120 basis points to 48.4%, with favorable mix benefits offset by unfavorable rates from reset actions, promotional activity, and negative transactional foreign currency impacts, leading to a significant decline in operating margin - Adjusted gross margin benefits of **180 basis points from favorable mix** were more than offset by **300 basis points of unfavorable rate**[5](index=5&type=chunk) - Unfavorable rate largely from impact of reset actions, ongoing promotional activity, and negative transactional foreign currency impacts[5](index=5&type=chunk) - Adjusted operating margin reflects **650 basis points of deleverage** and **120 basis points of unfavorable adjusted gross margin**[5](index=5&type=chunk) [Earnings Per Share (Q4'FY24)](index=1&type=section&id=Q4'FY24%20Earnings%20Per%20Share) Reported EPS for Q4'FY24 was $(1.08), down from $(0.55) in Q4'FY23, while adjusted EPS was $(0.32), a significant decrease from $0.17 in the prior year, impacted by Reinvent costs and goodwill impairment charges - Reinvent costs of approximately **$55 million** and noncash goodwill impairment charges of approximately **$250 million** negatively impacted Q4'FY24 EPS[5](index=5&type=chunk)[12](index=12&type=chunk)[13](index=13&type=chunk) - Gross cost savings of approximately **$40 million** generated through the Reinvent program in Q4'FY24, with **$55 million** in related charges[5](index=5&type=chunk) [Full Fiscal Year 2024 (FY24) Performance](index=1&type=section&id=FY24%20Financial%20Review) For FY24, VF Corporation's revenue decreased by 10% to $10.5 billion, with gross margin seeing a slight decline, while operating margin and EPS experienced substantial drops, primarily due to deleverage and significant non-cash charges [Revenue Performance (FY24)](index=1&type=section&id=FY24%20Revenue%20Performance) FY24 revenue decreased by 10% (11% in constant dollars) to $10.45 billion, with Vans revenue declining by 24%, The North Face seeing a modest 2% increase, the Americas region down 18%, and wholesale revenue decreasing by 14% FY24 Revenue by Brand ($M) | Brand | FY24 Revenue ($M) | % Change (Reported) | % Change (Constant Currency) | | :---- | :---------------- | :------------------ | :--------------------------- | | The North Face | 3,673.3 | 2% | 1% | | Vans | 2,785.7 | (24)% | (25)% | | Timberland | 1,556.9 | (13)% | (14)% | | Dickies | 618.4 | (15)% | (15)% | | Other Brands | 1,820.3 | 1% | 0% | | **Total VF Revenue** | **10,454.7** | **(10)%** | **(11)%** | FY24 Revenue by Region ($M) | Region | FY24 Revenue ($M) | % Change (Reported) | % Change (Constant Currency) | | :----- | :---------------- | :------------------ | :--------------------------- | | Americas | 5,464.9 | (18)% | (19)% | | EMEA | 3,428.6 | 0% | (4)% | | APAC | 1,561.2 | 3% | 7% | | **Total VF Revenue** | **10,454.7** | **(10)%** | **(11)%** | FY24 Revenue by Channel ($M) | Channel | FY24 Revenue ($M) | % Change (Reported) | % Change (Constant Currency) | | :------ | :---------------- | :------------------ | :--------------------------- | | DTC | 4,965.1 | (5)% | (6)% | | Wholesale | 5,489.5 | (14)% | (15)% | | **Total VF Revenue** | **10,454.7** | **(10)%** | **(11)%** | [Profitability (FY24)](index=1&type=section&id=FY24%20Profitability) FY24 gross margin was 52.0% (adjusted 52.1%), down 50 basis points, primarily due to 140 basis points of unfavorable rate, including 100 basis points from negative transactional foreign currency impacts, with operating margin at (0.3)% reported and 5.6% adjusted, reflecting 370 basis points of deleverage - Adjusted gross margin benefits of **90 basis points from favorable mix** were more than offset by **140 basis points of unfavorable rate**[5](index=5&type=chunk) - Unfavorable rate included **100 basis points of negative transactional foreign currency impacts**[5](index=5&type=chunk) - Adjusted operating margin reflects **370 basis points of deleverage** and **50 basis points of unfavorable adjusted gross margin**[5](index=5&type=chunk) [Earnings Per Share (FY24)](index=1&type=section&id=FY24%20Earnings%20Per%20Share) Reported EPS for FY24 was $(2.49), a significant decline from $0.31 in FY23, while adjusted EPS was $0.74, down from $2.10 in FY23, heavily impacted by Reinvent costs, goodwill impairment charges, and tax/legal items - Reinvent costs of approximately **$105 million**, goodwill impairment charges of approximately **$508 million**, and a net increase of approximately **$696 million in tax expense** from two rulings negatively impacted FY24 EPS[5](index=5&type=chunk)[12](index=12&type=chunk)[13](index=13&type=chunk) - Legal settlement gains of approximately **$29 million** were recorded in FY24[14](index=14&type=chunk) - Generated gross cost savings of approximately **$80 million** through the Reinvent program in FY24, with **$105 million** of related charges[5](index=5&type=chunk) [Balance Sheet and Cash Flow](index=1&type=section&id=Balance%20Sheet%20and%20Cash%20Flow%20Review) VF Corporation significantly improved its cash flow in FY24, exceeding guidance, while reducing total assets, inventories, and net debt, reflecting efforts to strengthen the balance sheet [Balance Sheet Overview](index=1&type=section&id=Balance%20Sheet%20Overview) As of March 30, 2024, total assets decreased to $11.61 billion from $13.99 billion in the prior year, primarily due to significant reductions in inventories, accounts receivable, and goodwill/intangible assets Key Balance Sheet Items (March 30, 2024 vs. March 31, 2023) ($M) | Metric | March 2024 ($M) | March 2023 ($M) | Change ($M) | Change (%) | | :----- | :-------------- | :-------------- | :---------- | :--------- | | Total Assets | 11,612,963 | 13,990,488 | (2,377,525) | (17.0)% | | Cash and equivalents | 674,605 | 814,887 | (140,282) | (17.2)% | | Accounts receivable, net | 1,273,965 | 1,610,295 | (336,330) | (20.9)% | | Inventories | 1,766,366 | 2,292,790 | (526,424) | (23.0)% | | Goodwill and intangible assets, net | 4,088,896 | 4,621,234 | (532,338) | (11.5)% | | Total Liabilities | 9,954,598 | 11,079,775 | (1,125,177) | (10.2)% | | Stockholders' Equity | 1,658,365 | 2,910,713 | (1,252,348) | (43.0)% | - Inventories decreased by **$382 million** during Q4'FY24, down **23%** versus the prior year[5](index=5&type=chunk) [Cash Flow Performance](index=1&type=section&id=Cash%20Flow%20Performance) VF Corporation generated strong operating cash flow of $1.015 billion and free cash flow of $804 million for FY24, significantly exceeding guidance, marking a substantial improvement from negative operating cash flow in FY23 FY24 Cash Flow Highlights ($M) | Metric | FY24 ($M) | FY23 ($M) | Change ($M) | | :----- | :-------- | :-------- | :---------- | | Operating cash flow | 1,014,581 | (655,795) | 1,670,376 | | Free cash flow | 804,000 | (261,251) | 1,065,251 | - Free cash flow is defined as cash flow from operations less capital expenditures and software purchases[15](index=15&type=chunk) [Debt and Liquidity](index=1&type=section&id=Debt%20and%20Liquidity) Net debt at the end of Q4'FY24 was $5.3 billion, a reduction of approximately $540 million compared to the previous year, reflecting efforts to strengthen the balance sheet - Net debt at the end of Q4'FY24 was **$5.3 billion**, down by approximately **$540 million** relative to last year[5](index=5&type=chunk) - Net debt is defined as short and long-term borrowings less cash and cash equivalents[15](index=15&type=chunk) [Shareholder Returns](index=2&type=section&id=Shareholder%20Returns) VF Corporation returned $35 million to shareholders through cash dividends in Q4'FY24 and $303 million for the full FY24, with the Board of Directors declaring a quarterly dividend of $0.09 per share and intending to continue quarterly dividends Cash Dividends Paid ($M) | Period | Amount ($M) | | :----- | :---------- | | Q4'FY24 | 35 | | FY24 | 303 | - Quarterly dividend declared of **$0.09 per share**, payable June 20, 2024, to shareholders of record on June 10, 2024[9](index=9&type=chunk) - VF intends to continue to pay quarterly dividends, subject to Board approval[9](index=9&type=chunk) [Fiscal Year 2025 Outlook](index=1&type=section&id=FY25%20Outlook) For fiscal year 2025, VF Corporation expects to generate approximately $600 million in free cash flow, including the benefit of non-core asset sales - Free cash flow plus the benefit of non-core asset sales is expected to generate approximately **$600 million** in FY25[5](index=5&type=chunk) [Company Overview](index=2&type=section&id=About%20VF) Founded in 1899, VF Corporation is a global apparel, footwear, and accessories company with iconic outdoor, active, and workwear brands like Vans, The North Face, Timberland, and Dickies, aiming to promote sustainable and active lifestyles and create value for stakeholders - VF Corporation is one of the world's largest apparel, footwear and accessories companies[9](index=9&type=chunk) - Portfolio includes iconic brands such as Vans, The North Face, Timberland, and Dickies[9](index=9&type=chunk) - Company's purpose is to power movements of sustainable and active lifestyles for the betterment of people and the planet[9](index=9&type=chunk) [Financial Disclosures and Non-GAAP Reconciliations](index=3&type=section&id=Financial%20Presentation%20Disclosure) This section provides essential financial disclosures, including definitions for constant currency and adjusted non-GAAP measures, outlines forward-looking statements and risk factors, and presents detailed reconciliations of GAAP to non-GAAP financial results [Constant Currency Definition](index=3&type=section&id=Constant%20Currency%20-%20Excluding%20the%20Impact%20of%20Foreign%20Currency) Constant currency amounts are non-GAAP measures that exclude the impact of translating foreign currencies into U.S. dollars, providing a framework to assess business performance without exchange rate fluctuations - Constant currency amounts exclude the impact of translating foreign currencies into U.S. dollars[11](index=11&type=chunk)[31](index=31&type=chunk)[36](index=36&type=chunk) - Calculated by translating current year operating results at prior year's average exchange rates[32](index=32&type=chunk)[37](index=37&type=chunk) - Management believes this information is useful for investors to compare operating results and identify trends[11](index=11&type=chunk)[31](index=31&type=chunk)[36](index=36&type=chunk) [Adjusted Amounts Definition](index=3&type=section&id=Adjusted%20Amounts%20-%20Excluding%20Reinvent%2C%20Noncash%20Impairment%20Charges%2C%20Tax%20and%20Legal%20Items%2C%20Transaction%20and%20Deal%20Related%20Activities%20and%20Other) Adjusted amounts are non-GAAP measures that exclude specific items such as costs related to the Reinvent transformation program, noncash goodwill impairment charges, certain tax and legal items, and transaction/deal-related activities, to provide a clearer view of underlying business trends - Adjusted amounts exclude costs related to Reinvent transformation program (**$55 million in Q4'FY24, $105 million in FY24**)[12](index=12&type=chunk) - Exclude noncash goodwill impairment charges (**$250 million in Q4'FY24** for Timberland and Icebreaker; **$508 million in FY24** for Timberland, Dickies, and Icebreaker)[13](index=13&type=chunk) - Exclude impact to tax expense from U.S. Court of Appeals and European Union rulings (net increase of approx. **$696 million in FY24**)[13](index=13&type=chunk) - Exclude legal settlement gains (**$29 million in FY24**) and transaction/deal-related activities (**$2 million in FY24**, primarily Global Packs strategic review)[14](index=14&type=chunk) - Combined, these items negatively impacted EPS by **$0.76 in Q4'FY24** and **$3.23 in FY24**[14](index=14&type=chunk) [Forward-Looking Statements & Risk Factors](index=3&type=section&id=Forward-looking%20Statements) The report contains forward-looking statements subject to various risks and uncertainties, including consumer demand, economic conditions, supply chain disruptions, competition, ability to execute transformation programs, cybersecurity, and legal/regulatory changes, with VF not undertaking to update these statements unless required by law - Forward-looking statements involve risks and uncertainties, and actual results could differ materially[16](index=16&type=chunk) - Key risks include consumer demand, global economic conditions, supply chain disruptions, competition, execution of Reinvent program, cybersecurity threats, and legal/regulatory changes[17](index=17&type=chunk) - VF undertakes no obligation to publicly update or revise any forward-looking statements, except as required by law[17](index=17&type=chunk) [Reconciliation of GAAP to Non-GAAP Measures (Q4'FY24 & FY24)](index=13&type=section&id=Reconciliation%20of%20Select%20GAAP%20Measures%20to%20Non-GAAP%20Measures%20-%20Three%20and%20Twelve%20Months%20Ended%20March%202024) This section provides a reconciliation of GAAP financial measures to adjusted non-GAAP measures for Q4'FY24 and FY24, detailing the impact of Reinvent costs, impairment charges, tax & legal items, and transaction/deal-related activities on gross profit, operating income/loss, and diluted EPS Q4'FY24 GAAP to Adjusted Reconciliation (in thousands) | Metric | As Reported under GAAP | Reinvent | Impairment Charges | Tax & Legal Items | Transaction and Deal Related Activities and Other | Adjusted | | :----- | :--------------------- | :------- | :----------------- | :---------------- | :------------------------------------------------ | :------- | | Revenues | $2,373,809 | — | — | — | — | $2,373,809 | | Gross profit | $1,148,532 | $347 | — | — | — | $1,148,879 | | Gross profit % | 48.4% | | | | | 48.4% | | Operating loss | $(355,765) | $54,517 | $250,470 | — | $22 | $(50,756) | | Operating loss % | (15.0)% | | | | | (2.1)% | | Diluted loss per share | $(1.08) | $0.12 | $0.64 | — | — | $(0.32) | FY24 GAAP to Adjusted Reconciliation (in thousands) | Metric | As Reported under GAAP | Reinvent | Impairment Charges | Tax & Legal Items | Transaction and Deal Related Activities and Other | Adjusted | | :----- | :--------------------- | :------- | :----------------- | :---------------- | :------------------------------------------------ | :------- | | Revenues | $10,454,667 | — | — | — | — | $10,454,667 | | Gross profit | $5,437,222 | $4,591 | — | — | — | $5,441,813 | | Gross profit % | 52.0% | | | | | 52.1% | | Operating income (loss) | $(34,062) | $105,386 | $507,566 | — | $2,471 | $581,361 | | Operating income (loss) % | (0.3)% | | | | | 5.6% | | Diluted earnings (loss) per share | $(2.49) | $0.21 | $1.28 | $1.74 | — | $0.74 | [Reconciliation of GAAP to Non-GAAP Measures (Q4'FY23 & FY23)](index=14&type=section&id=Reconciliation%20of%20Select%20GAAP%20Measures%20to%20Non-GAAP%20Measures%20-%20Three%20and%20Twelve%20Months%20Ended%20March%202023) This section provides a reconciliation of GAAP financial measures to adjusted non-GAAP measures for Q4'FY23 and FY23, detailing the impact of transaction and deal-related activities, strategic business decisions, impairments, and a pension settlement charge on gross profit, operating income/loss, and diluted EPS Q4'FY23 GAAP to Adjusted Reconciliation (in thousands) | Metric | As Reported under GAAP | Transaction and Deal Related Activities | Specified Strategic Business Decisions | Impairments and Pension Settlement Charge | Tax Item | Adjusted | | :----- | :--------------------- | :-------------------------------------- | :------------------------------------- | :---------------------------------------- | :------- | :------- | | Revenues | $2,739,613 | — | — | — | — | $2,739,613 | | Gross profit | $1,358,024 | — | — | — | — | $1,358,024 | | Gross profit % | 49.6% | | | | | 49.6% | | Operating income (loss) | $(160,883) | — | — | $313,087 | — | $152,204 | | Operating income (loss) % | (5.9)% | | | | | 5.6% | | Diluted earnings (loss) per share | $(0.55) | — | — | $0.72 | — | $0.17 | FY23 GAAP to Adjusted Reconciliation (in thousands) | Metric | As Reported under GAAP | Transaction and Deal Related Activities | Specified Strategic Business Decisions | Impairments and Pension Settlement Charge | Tax Item | Adjusted | | :----- | :--------------------- | :-------------------------------------- | :------------------------------------- | :---------------------------------------- | :------- | :------- | | Revenues | $11,612,475 | — | — | — | — | $11,612,475 | | Gross profit | $6,096,679 | — | $9,946 | — | — | $6,106,625 | | Gross profit % | 52.5% | | | | | 52.6% | | Operating income | $327,693 | $331 | $72,031 | $735,009 | — | $1,135,064 | | Operating income % | 2.8% | | | | | 9.8% | | Diluted earnings per share | $0.31 | — | $0.15 | $1.89 | $(0.24) | $2.10 | [Condensed Consolidated Financial Statements](index=6&type=section&id=VF%20CORPORATION%20Condensed%20Consolidated%20Statements) This section presents VF Corporation's condensed consolidated statements of operations, balance sheets, and cash flows, providing a comprehensive overview of the company's financial position and performance for the reported periods [Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The condensed consolidated statements of operations show a net loss of $(418.3) million in Q4'FY24 and $(968.9) million for FY24, a significant decline from prior year's net income, driven by lower revenues, increased operating expenses, and substantial impairment charges and tax expenses Condensed Consolidated Statements of Operations (in thousands) | Metric (in thousands) | Q4'FY24 | Q4'FY23 | FY24 | FY23 | | :-------------------- | :------ | :------ | :--- | :--- | | Net revenues | $2,373,809 | $2,739,613 | $10,454,667 | $11,612,475 | | Cost of goods sold | $1,225,277 | $1,381,589 | $5,017,445 | $5,515,796 | | SG&A expenses | $1,253,827 | $1,205,820 | $4,963,718 | $5,033,977 | | Impairment of goodwill and intangible assets | $250,470 | $313,087 | $507,566 | $735,009 | | Operating income (loss) | $(355,765) | $(160,883) | $(34,062) | $327,693 | | Interest expense, net | $(54,707) | $(49,237) | $(223,408) | $(164,632) | | Income (loss) before income taxes | $(409,639) | $(215,999) | $(233,685) | $43,287 | | Income tax expense (benefit) | $8,669 | $(1,107) | $735,197 | $(75,297) | | Net income (loss) | $(418,308) | $(214,892) | $(968,882) | $118,584 | | Diluted EPS | $(1.08) | $(0.55) | $(2.49) | $0.31 | | Cash dividends per common share | $0.09 | $0.30 | $0.78 | $1.81 | [Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The consolidated balance sheet shows a decrease in total assets from $13.99 billion in March 2023 to $11.61 billion in March 2024, primarily due to reductions in accounts receivable, inventories, and goodwill/intangible assets, with total liabilities also decreasing but stockholders' equity seeing a significant decline Condensed Consolidated Balance Sheets (in thousands) | Asset/Liability (in thousands) | March 2024 | March 2023 | | :----------------------------- | :--------- | :--------- | | Cash and equivalents | $674,605 | $814,887 | | Accounts receivable, net | $1,273,965 | $1,610,295 | | Inventories | $1,766,366 | $2,292,790 | | Total current assets | $4,226,947 | $5,152,709 | | Goodwill and intangible assets, net | $4,088,896 | $4,621,234 | | Total assets | $11,612,963 | $13,990,488 | | Short-term borrowings | $263,938 | $11,491 | | Current portion of long-term debt | $1,000,721 | $924,305 | | Long-term debt | $4,702,284 | $5,711,014 | | Total liabilities | $9,954,598 | $11,079,775 | | Stockholders' equity | $1,658,365 | $2,910,713 | [Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For FY24, cash provided by operating activities significantly improved to $1.015 billion from a negative $655.8 million in FY23, with cash used by investing activities remaining relatively stable, while cash used by financing activities increased due to net decrease from borrowings and lower cash dividends paid Condensed Consolidated Statements of Cash Flows (in thousands) | Activity (in thousands) | FY24 | FY23 | | :---------------------- | :--- | :--- | | Net income (loss) | $(968,882) | $118,584 | | Impairment of goodwill and intangible assets | $507,566 | $735,009 | | Write-off of income tax receivables and interest | $921,409 | — | | Cash provided (used) by operating activities | $1,014,581 | $(655,795) | | Cash used by investing activities | $(172,258) | $(188,053) | | Net increase (decrease) from short-term borrowings and long-term debt | $(653,629) | $1,226,522 | | Cash dividends paid | $(303,140) | $(702,846) | | Cash provided (used) by financing activities | $(959,615) | $463,906 | | Net change in cash, cash equivalents and restricted cash | $(139,361) | $(460,764) | | Cash, cash equivalents and restricted cash – end of year | $676,957 | $816,318 | [Supplemental Financial Information](index=9&type=section&id=VF%20CORPORATION%20Supplemental%20Financial%20Information) This section provides detailed supplemental financial information, including reportable segment performance, brand-specific revenue growth, and geographic and channel revenue breakdowns, offering deeper insights into VF Corporation's operational results [Reportable Segment Information (Q4'FY24 & FY24)](index=9&type=section&id=Reportable%20Segment%20Information) This section details revenue and profit performance across VF's Outdoor, Active, and Work segments for Q4'FY24 and FY24, with all segments experiencing revenue declines in Q4, Active being the most impacted, and the full year also showing significant revenue and profit decreases for Active and Work segments Q4'FY24 Segment Revenues and Profit ($M) | Segment | Q4'FY24 Revenues ($M) | % Change (Reported) | Q4'FY24 Profit ($M) | | :------ | :-------------------- | :------------------ | :------------------ | | Outdoor | $1,219,444 | (8)% | $44,878 | | Active | $914,037 | (19)% | $476 | | Work | $240,328 | (16)% | $4,165 | | **Total Segment Revenues** | **$2,373,809** | **(13)%** | **$49,519** | FY24 Segment Revenues and Profit ($M) | Segment | FY24 Revenues ($M) | % Change (Reported) | FY24 Profit ($M) | | :------ | :----------------- | :------------------ | :--------------- | | Outdoor | $5,501,399 | (3)% | $602,708 | | Active | $4,061,729 | (17)% | $352,248 | | Work | $891,539 | (16)% | $17,647 | | **Total Segment Revenues** | **$10,454,667** | **(10)%** | **$972,603** | - Active segment profit significantly decreased from **$113.5 million** in Q4'FY23 to **$0.476 million** in Q4'FY24[26](index=26&type=chunk) - FY24 Active segment profit includes legal settlement gains of **$29.1 million**[28](index=28&type=chunk) [Reportable Segment Information – Constant Currency Basis (Q4'FY24 & FY24)](index=11&type=section&id=Reportable%20Segment%20Information%20%E2%80%93%20Constant%20Currency%20Basis) This section presents segment revenues and profits adjusted for foreign currency impacts, showing that in constant currency, Q4'FY24 total segment revenues still declined by 13% and FY24 total segment revenues declined by 11%, indicating that underlying business performance, not just currency fluctuations, drove the decreases Q4'FY24 Segment Revenues and Profit (Constant Currency) ($M) | Segment | As Reported under GAAP ($M) | Adjust for Foreign Currency Exchange ($M) | Constant Currency ($M) | | :------ | :-------------------------- | :---------------------------------------- | :--------------------- | | Outdoor | $1,219,444 | $(634) | $1,218,810 | | Active | $914,037 | $(1,381) | $912,656 | | Work | $240,328 | $156 | $240,484 | | **Total Segment Revenues** | **$2,373,809** | **$(1,859)** | **$2,371,950** | | Outdoor Profit | $44,878 | $33 | $44,911 | | Active Profit | $476 | $(1,098) | $(622) | | Work Profit | $4,165 | $(701) | $3,464 | FY24 Segment Revenues and Profit (Constant Currency) ($M) | Segment | As Reported under GAAP ($M) | Adjust for Foreign Currency Exchange ($M) | Constant Currency ($M) | | :------ | :-------------------------- | :---------------------------------------- | :--------------------- | | Outdoor | $5,501,399 | $(62,600) | $5,438,799 | | Active | $4,061,729 | $(43,697) | $4,018,032 | | Work | $891,539 | $(1,220) | $890,319 | | **Total Segment Revenues** | **$10,454,667** | **$(107,517)** | **$10,347,150** | | Outdoor Profit | $602,708 | $(12,949) | $589,759 | | Active Profit | $352,248 | $(8,725) | $343,523 | | Work Profit | $17,647 | $(1,474) | $16,173 | [Top 4 Brand Revenue Information (Q4'FY24 & FY24)](index=15&type=section&id=Top%204%20Brand%20Revenue%20Information) This section provides detailed revenue growth rates for VF's top four brands (The North Face, Vans, Timberland, Dickies) across Americas, EMEA, and APAC regions for Q4'FY24 and FY24, both reported and in constant currency, showing Vans with significant declines across all regions, while The North Face had strong APAC growth Q4'FY24 Top 4 Brand Revenue Growth by Region | Brand | Americas (% Change) | EMEA (% Change) | APAC (% Change) | Global (% Change) | | :---- | :------------------ | :-------------- | :-------------- | :---------------- | | The North Face | (15)% | (1)% | 10% | (5)% | | Vans | (31)% | (13)% | (31)% | (26)% | | Timberland | (32)% | 4% | 7% | (14)% | | Dickies | (17)% | (4)% | (26)% | (15)% | FY24 Top 4 Brand Revenue Growth by Region | Brand | Americas (% Change) | EMEA (% Change) | APAC (% Change) | Global (% Change) | | :---- | :------------------ | :-------------- | :-------------- | :---------------- | | The North Face | (10)% | 9% | 27% | 2% | | Vans | (28)% | (13)% | (24)% | (24)% | | Timberland | (27)% | 1% | 7% | (13)% | | Dickies | (15)% | 6% | (35)% | (15)% | - The North Face APAC revenue grew **10% in Q4'FY24 (15% constant currency)** and **27% in FY24 (31% constant currency)**[50](index=50&type=chunk) - Vans experienced **double-digit declines across all regions** in both Q4'FY24 and FY24[50](index=50&type=chunk) [Geographic and Channel Revenue Information (Q4'FY24 & FY24)](index=16&type=section&id=Geographic%20and%20Channel%20Revenue%20Information) This section provides a breakdown of revenue growth by geographic region and sales channel, showing the Americas region with the steepest declines, while APAC demonstrated growth, particularly in Greater China, and the wholesale channel continued to underperform compared to Direct-to-Consumer Q4'FY24 Geographic Revenue Growth | Region | % Change (Reported) | % Change (Constant Currency) | | :----- | :------------------ | :--------------------------- | | Americas | (22)% | (23)% | | EMEA | (3)% | (5)% | | APAC | (3)% | 2% | | Greater China | 5% | 10% | | International | (4)% | (4)% | | Global | (13)% | (13)% | FY24 Geographic Revenue Growth | Region | % Change (Reported) | % Change (Constant Currency) | | :----- | :------------------ | :--------------------------- | | Americas | (18)% | (19)% | | EMEA | 0% | (4)% | | APAC | 3% | 7% | | Greater China | 9% | 13% | | International | 1% | (1)% | | Global | (10)% | (11)% | Q4'FY24 & FY24 Channel Revenue Growth | Channel | Q4'FY24 % Change (Reported) | Q4'FY24 % Change (Constant Currency) | FY24 % Change (Reported) | FY24 % Change (Constant Currency) | | :------ | :-------------------------- | :----------------------------------- | :----------------------- | :-------------------------------- | | Wholesale | (20)% | (20)% | (14)% | (15)% | | Direct-to-consumer | (5)% | (4)% | (5)% | (6)% | | Digital | (4)% | (4)% | (8)% | (8)% | - DTC store count decreased from **1,265 in March 2023 to 1,185 in March 2024**[52](index=52&type=chunk)