It has been about a month since the last earnings report for V.F. (VFC) . Shares have added about 16.2% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is V.F. due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. V.F. Corporation Posts Q4 Loss, Revenue Miss EstimatesV.F. Co ...

V.F. (VFC) closed at $13.67 in the latest trading session, marking a -1.01% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.25%. Elsewhere, the Dow saw an upswing of 0.15%, while the tech-heavy Nasdaq appreciated by 0.03%.Shares of the maker of brands such as Vans, North Face and Timberland have appreciated by 12.09% over the course of the past month, outperforming the Consumer Discretionary sector's gain of 0.82% and the S&P 500's gain of 3.34%.The investment comm ...

V.F. (VFC) closed the latest trading day at $13.80, indicating a +1.92% change from the previous session's end. The stock exceeded the S&P 500, which registered a gain of 0.85% for the day. Elsewhere, the Dow saw a downswing of 0.09%, while the tech-heavy Nasdaq appreciated by 1.53%.Shares of the maker of brands such as Vans, North Face and Timberland have appreciated by 5.29% over the course of the past month, outperforming the Consumer Discretionary sector's gain of 0.59% and the S&P 500's gain of 3.11%.T ...

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 ...