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]

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]

Core Viewpoint - V.F. Corporation (VFC) has experienced a significant stock increase of 24.8% over the past three months, driven by strong financial performance and growth initiatives, raising questions about the potential for further growth or the need to lock in gains [1]. Financial Performance - VFC reported robust demand for its brands in the third quarter of fiscal 2025, achieving its fourth consecutive quarter of revenue growth, significantly outperforming the Zacks Textile - Apparel industry's growth of 3.7% [1]. - The company's stock closed at $25.51, which is 12.1% below its 52-week high of $29.02, indicating potential for recovery [3]. - VFC's stock is currently trading above its 50-day and 200-day simple moving averages of $23.55 and $18.43, respectively, suggesting positive market sentiment and investor confidence [3]. Strategic Initiatives - VFC's direct-to-consumer (DTC) and wholesale channels showed strong performance, particularly benefiting from holiday season demand for brands like The North Face and Timberland [6]. - The company is actively pursuing its Reinvent transformation program, focusing on brand-building and operational performance improvements, with strategies aimed at cost reduction, balance sheet strengthening, and revitalizing brands like Vans [7]. - VFC has set medium-term financial goals, including an adjusted operating margin of at least 10% and an adjusted gross margin of a minimum of 55% [8]. Cost Management and Growth - VFC is targeting a $300 million run rate in initial gross reinvest cost savings by fiscal 2025, having generated $55 million in savings in the third quarter alone [9]. - The company aims for $500-$600 million in operating income expansion, with a significant portion expected from SG&A expense reductions, aligning with its long-term goal of achieving at least a 10% operating margin by fiscal 2028 [9][10]. Earnings Estimates - The Zacks Consensus Estimate for VFC's earnings per share has seen significant upward revisions, with current quarter estimates increasing by 68.8% to 73 cents and fiscal year estimates rising by 18.9% to $1.07 per share [11]. Investment Outlook - VFC is positioned as a compelling buy opportunity, supported by strong momentum, operational improvements, and a clear path to long-term profitability through its strategic initiatives [13].