VF(US:VFC)2025-07-30 15:48Part I Financial Statements (Unaudited) This section presents VF Corporation's unaudited consolidated financial statements for the quarter ended June 28, 2025, including balance sheets, statements of operations, cash flows, and notes Consolidated Balance Sheets As of June 28, 2025, total assets increased to $10.15 billion sequentially, while total liabilities rose to $8.86 billion, reflecting seasonal patterns and discontinued operations Consolidated Balance Sheet Summary (in thousands) | Account | June 2025 | March 2025 | June 2024 | | :--- | :--- | :--- | :--- | | Total Current Assets | $4,375,516 | $3,786,098 | $4,349,131 | | Inventories | $2,135,478 | $1,627,025 | $2,059,728 | | Total Assets | $10,150,497 | $9,377,536 | $11,541,363 | | Total Current Liabilities | $3,439,639 | $2,697,853 | $4,408,974 | | Long-term debt | $3,560,990 | $3,425,650 | $3,940,668 | | Total Liabilities | $8,858,214 | $7,890,177 | $10,153,458 | | Total Stockholders' Equity | $1,292,283 | $1,487,359 | $1,387,905 | Consolidated Statements of Operations For Q1 FY26, revenues were nearly flat at $1.76 billion, with a reduced operating loss of $86.6 million and a narrowed net loss per share of ($0.30) Q1 FY26 Statement of Operations Summary (in thousands, except per share amounts) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenues | $1,760,666 | $1,769,060 | | Operating Loss | ($86,609) | ($123,020) | | Loss from Continuing Operations | ($116,408) | ($152,027) | | Loss from Discontinued Operations | $— | ($106,859) | | Net Loss | ($116,408) | ($258,886) | | Net Loss Per Share - Diluted | ($0.30) | ($0.67) | Consolidated Statements of Cash Flows Cash used by operating activities increased to $145.5 million in Q1 FY26, while financing activities provided $339.0 million, primarily from short-term borrowings Q1 FY26 Cash Flow Summary (in thousands) | Activity | Three Months Ended June 2025 | Three Months Ended June 2024 | | :--- | :--- | :--- | | Cash used by operating activities | ($145,460) | ($30,714) | | Cash used by investing activities | ($49,013) | ($9,035) | | Cash provided (used) by financing activities | $338,955 | ($37,444) | | Net change in cash | $216,859 | ($37,015) | Notes to Consolidated Financial Statements Notes detail segment realignment, the Supreme brand sale as discontinued operations, and revenue disaggregation by channel and geography - In Q1 FY26, VF realigned its reportable segments. The 'Outdoor' segment now includes The North Face and Timberland. The 'Active' segment includes Vans, Kipling, Eastpak, and Jansport. Prior period results have been recast3075 - The Supreme brand business was sold on October 1, 2024, and its results are reported as discontinued operations. The sale resulted in a final after-tax loss of $126.6 million314546 Revenues by Channel (Q1 2025, in thousands) | Channel | Outdoor | Active | All Other | Total | | :--- | :--- | :--- | :--- | :--- | | Wholesale | $456,831 | $392,423 | $175,252 | $1,024,506 | | Direct-to-consumer | $352,210 | $301,029 | $67,424 | $720,663 | | Royalty | $3,425 | $6,235 | $5,837 | $15,497 | | Total | $812,466 | $699,687 | $248,513 | $1,760,666 | - The 'Reinvent' transformation program incurred restructuring charges of $17.5 million in Q1 2025, bringing cumulative charges to $207.6 million since inception. Actions were substantially complete at the end of the quarter104105117 Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses Q1 FY26 financial results, noting flat revenues, improved gross margin, and progress on the 'Reinvent' transformation program - Overall revenues remained flat at $1.8 billion, with a 2% favorable foreign currency impact. A decline in the Active segment was offset by growth in the Outdoor segment119121 - Gross margin increased by 270 basis points to 53.9%, primarily due to favorable foreign currency impacts, higher quality inventory, and lower discounts122123 - The 'Reinvent' transformation program aims to generate $500.0 million to $600.0 million in net operating income expansion by Fiscal 2028 compared to Fiscal 2024116 Information by Reportable Segment The Outdoor segment's revenue grew 8% to $812.5 million, while the Active segment's revenue declined 10% to $699.7 million, primarily due to Vans Segment Revenue Performance (Q1 2025 vs Q1 2024, in millions) | Segment | Revenues - 2025 | Revenues - 2024 | Change | | :--- | :--- | :--- | :--- | | Outdoor | $812.5 | $753.6 | +7.8% | | Active | $699.7 | $776.7 | -9.9% | Segment Profit (Loss) Performance (Q1 2025 vs Q1 2024, in millions) | Segment | Profit (Loss) - 2025 | Profit (Loss) - 2024 | | :--- | :--- | :--- | | Outdoor | ($42.3) | ($72.9) | | Active | $56.8 | $71.5 | - The North Face brand revenues grew 6%, driven by Europe and Asia-Pacific, while Timberland revenues grew 11% across all regions136137 - Vans brand global revenues decreased 14%, impacted by deliberate strategic actions including exiting value-channel wholesale customers and closing unprofitable retail stores in the Americas140141 Liquidity and Capital Resources Working capital decreased to $935.9 million, and the net debt to total capital ratio increased to 80.5%, with a focus on leverage reduction - Cash used by operating activities increased to $145.5 million from $30.7 million YoY, mainly due to increased net cash used for working capital to support inventory purchases158159 - As of June 2025, VF had $350.0 million in borrowings under its $2.25 billion Global Credit Facility, with approximately $1.9 billion remaining available167 - The company's capital deployment priorities are focused on reducing leverage and reinvesting cost savings to drive growth, with no share repurchases made during the quarter162163 Quantitative and Qualitative Disclosures about Market Risk The company reports no significant changes in market risk exposures compared to its Fiscal 2025 Form 10-K disclosures - There have been no significant changes in VF's market risk exposures from the disclosures in the Fiscal 2025 Form 10-K183 Controls and Procedures The CEO and CFO concluded that disclosure controls and procedures were effective, with no material changes to internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report184 - No changes in internal control over financial reporting occurred during the last fiscal quarter that have materially affected or are likely to materially affect such controls185 Part II Legal Proceedings The company reports no material changes to legal proceedings or environmental proceedings exceeding the $1 million reporting threshold - There have been no material changes to legal proceedings since the Fiscal 2025 Form 10-K187 Risk Factors The company states that no material changes have occurred regarding the risk factors previously disclosed in its Fiscal 2025 Form 10-K - No material changes have occurred regarding the risk factors previously disclosed in the Fiscal 2025 Form 10-K191 Unregistered Sales of Equity Securities and Use of Proceeds VF Corporation made no common stock repurchases during Q1 FY26, with $2.5 billion remaining under authorization, prioritizing leverage reduction - The company made no repurchases of its Common Stock during the first quarter of fiscal 2026192193 - Approximately $2.5 billion remains available for future repurchases under the authorized program163193 Other Information No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the three months ended June 28, 2025 - No director or officer adopted or terminated a Rule 10b5-1 trading plan during the quarter194 Exhibits This section lists filed exhibits, including an amendment to the Revolving Credit Agreement and CEO/CFO certifications - Key exhibits filed include Amendment No. 5 to the Revolving Credit Agreement and CEO/CFO certifications196