VF(VFC) - 2025 Q3 - Quarterly Report

Financial Performance - Net revenues for Q3 FY25 were $2,833,912, a 1.9% increase from $2,780,194 in Q3 FY24[12] - Operating income for Q3 FY25 was $225,777, compared to a loss of $91,242 in Q3 FY24, marking a significant turnaround[12] - The company reported a net income of $167,780 in Q3 FY25, compared to a net loss of $42,452 in Q3 FY24[12] - Earnings per share for continuing operations was $0.43 in Q3 FY25, a recovery from a loss of $0.24 in Q3 FY24[12] - Comprehensive income for Q3 FY25 was $286,875, compared to a loss of $82,120 in Q3 FY24, showing a significant improvement[15] - Income from continuing operations for the three months ended December 2024 was $169.1 million ($0.43 per diluted share), compared to a loss of $91.7 million ($(0.24) per diluted share) in the same period of 2023[145] Assets and Liabilities - The total assets decreased to $10,554,222 in December 2024 from $12,616,474 in December 2023, reflecting a decline of approximately 16.4%[9] - Total liabilities decreased to $8,873,992 in December 2024 from $10,507,281 in December 2023, a reduction of about 15.5%[9] - Cash and equivalents increased to $1,369,376 in December 2024 from $975,937 in December 2023, representing a growth of approximately 40.3%[9] - Total cash, cash equivalents, and restricted cash at the end of December 2024 was $1,371,309,000, up from $989,322,000 at the end of December 2023[22] - Working capital increased to $1.79 billion at December 2024, up from $733.6 million in March 2024[185] Cash Flow - Cash provided by operating activities for continuing operations was $609,545,000, down from $975,171,000 in the previous year[19] - Cash provided by investing activities for continuing operations was $1,450,486,000, a turnaround from cash used of $184,498,000 in the same period last year[19] - Cash dividends paid were $105,094,000, a decrease from $268,155,000 in the previous year[19] - The company experienced a net increase in cash of $694,352,000 for the nine months ended December 2024, compared to a net increase of $173,003,000 in the same period last year[19] Impairments and Charges - The company incurred an impairment of goodwill and intangible assets amounting to $51,000 in Q3 FY25, down from $257,096 in Q3 FY24[12] - The company reported an impairment of goodwill and intangible assets of $51,000,000 for the nine months ended December 2024, down from $257,096,000 in the prior year[19] - Impairment charges of $94.0 million and $51.0 million were recorded for Supreme's goodwill and indefinite-lived trademark intangible asset, respectively, during Q1 FY25[55] Segment Performance - VF's total segment revenues for the three months ended December 2024 were $2,833.9 million, an increase from $2,780.2 million in the same period of 2023, representing a growth of 1.9%[90] - The Outdoor segment generated revenues of $1,851.1 million in Q3 FY25, up from $1,738.6 million in Q3 FY24, reflecting a growth of 6.5%[90] - The Active segment reported revenues of $766.3 million in Q3 FY25, a decrease of 6.5% compared to $819.3 million in Q3 FY24[90] Debt and Financing - Payments on long-term debt amounted to $1,000,829,000, compared to $907,926,000 in the same period last year[19] - VF's total outstanding debt averaged $5.0 billion in the nine months ended December 2024, with a weighted average interest rate of 3.3%[142] - VF's long-term debt ratings were 'BB' by S&P and 'Ba1' by Moody's as of December 2024, with a stable outlook[202] Restructuring and Cost Management - The company initiated a large-scale cost reduction program expected to deliver $300 million in annual fixed cost savings[131] - VF recorded restructuring charges of $16.4 million and $41.8 million for the three and nine months ended December 2024, respectively, totaling $150.5 million since the program's inception[130] - The total restructuring accrual at December 2024 was $55.0 million, with $53.5 million expected to be paid within the next 12 months[120] Taxation - The effective income tax rate for the nine months ended December 2024 was 16.1%, a significant decrease from 578.0% in the same period of 2023[78] - The net discrete tax benefit for the nine months ended December 2024 was $1.9 million, primarily from unrecognized tax benefits and interest[78] Shareholder Returns - VF intends to continue paying quarterly dividends, subject to Board approval[204] - As of December 2024, VF had $2.5 billion remaining for future share repurchases under its authorization[196] Discontinued Operations - VF Corporation completed the sale of the Supreme brand to EssilorLuxottica S.A. for an aggregate base purchase price of $1.500 billion, receiving net proceeds of $1.486 billion[52] - The estimated after-tax loss on the sale of Supreme was $127.5 million, included in the income (loss) from discontinued operations for the nine months ended December 2024[52] - The company completed the sale of the Supreme brand business on October 1, 2024, reallocating related interest expenses to discontinued operations[127]