VF(US:VFC)2025-01-29 11:55Revenue Performance - Revenue for Q3'25 was $2.8 billion, up 2% year-over-year, with all regions showing growth, particularly The North Face® and Timberland[12] - VF's total revenue for Q3 2025 was $2,833.9 million, representing a 2% increase compared to $2,780.2 million in Q3 2024[33] - The North Face brand revenue increased by 5% to $1,253.3 million, while Vans brand revenue decreased by 9% to $607.6 million[33] - The Americas region generated $1,506.7 million in revenue, a 1% increase from $1,486.0 million in Q3 2024[33] - Total segment revenues for Q3 2024 were $2,833,912, representing a 2% increase from $2,780,194 in Q3 2023[41] - Outdoor segment revenue increased by 6% to $1,851,146, while Active segment revenue decreased by 6% to $766,307[41] Profitability and Earnings - Operating income was $226 million, with an operating margin of 8.0%, an increase of 1,130 basis points year-over-year[12] - Earnings per share (EPS) improved to $0.43 compared to a loss of $(0.24) in Q3'24[12] - Net income for Q3 2025 was $167.8 million, compared to a net loss of $42.5 million in the same quarter last year[36] - Earnings per share for continuing operations was $0.43, a recovery from a loss of $0.24 per share in Q3 2024[36] - The diluted earnings per share from continuing operations for the nine months ended December 2024 was $0.56, compared to a loss of $1.56 for the same period in 2023[70] Financial Guidance and Projections - The company is establishing Q4'25 guidance with expected revenue decline of 4% to 6% year-over-year[12] - Adjusted operating loss for Q4'25 is projected to be between $(30) million to $0 million[12] - Free cash flow guidance for FY'25 has been increased to $440 million, up from the previous guidance of $425 million[12] Cost Management and Savings - The company is on track to deliver $300 million in gross savings from its Reinvent program, with $55 million generated in Q3'25[16] - VF's total costs and operating expenses for Q3 2025 were $2,608.1 million, a decrease from $2,871.4 million in Q3 2024[36] - Restructuring charges related to the Reinvent transformation program are estimated to be approximately $190.0 million, with cumulative charges through Q3 of Fiscal 2025 at $150.5 million[62] Debt and Cash Flow - Net debt decreased by $1.9 billion year-over-year, with net inventories down 14%[12] - Cash provided by operating activities for continuing operations was $609,545, a decrease from $975,171 in the previous year[39] - Total liabilities decreased to $8,873,992 from $9,954,598 in March 2024, a reduction of 10.9%[38] - Cash, cash equivalents, and restricted cash at the end of the period were $1,371,309, up from $676,957 at the beginning of the year[39] Impairments and Charges - The company reported a goodwill impairment of $51 million in Q3 2025, down from $257.1 million in the previous year[36] - The company incurred an impairment of goodwill and intangible assets amounting to $51,000 for the nine months ended December 2024[44] - The company recognized a noncash impairment charge of $51.0 million related to the Dickies trademark intangible asset during the nine months ended December 2024[63] Brand and Market Insights - Vans® revenue declined by 9% year-over-year, while Timberland saw an increase of 11%[18] - The company plans to share more on its iconic brands at the upcoming Investor Day in March[12] - The North Face brand experienced a global revenue growth of 5% for the three months ended December 2024, while Vans saw a decline of 8%[81] - Direct-to-consumer (DTC) sales decreased by 3% to $1,565.6 million, while wholesale sales increased by 8% to $1,268.3 million[33] - Geographic revenue growth for the Americas was 1% for the three months ended December 2024, with a decline of 7% for the nine months[83] - Direct-to-consumer channel revenue decreased by 3% for the three months ended December 2024, with a decline of 7% for the nine months[83] User Data and Customer Base - The company reported a significant increase in user data, with a focus on expanding its customer base across various brands including Vans and Timberland[86]