VF(VFC) - 2024 Q4 - Annual Results

Executive Summary & Business Highlights VF Corporation made progress on its transformation program, exceeding cash flow guidance, and outlined key priorities for sustainable growth CEO Statement & Strategic Priorities CEO Bracken Darrell highlighted progress in the Reinvent transformation program, exceeding FY24 cash flow guidance, and outlined key priorities for FY25 including fixing the Americas, turning around Vans, reducing costs, and paying down debt - Progress made on Reinvent transformation program in Q4'FY24[2] - Exceeded FY24 cash flow expectations with $1 billion in operating cash flow and over $800 million in free cash flow[2] - FY25 strategic priorities include fixing the Americas, turning around Vans, reducing costs, and paying down debt[2] - Rebuilding leadership team, including CFO appointment, to position VF for sustainable and profitable growth[2] Key Financial Highlights (Q4 & FY24) VF Corporation reported a 13% revenue decrease in Q4'FY24 and a 10% decrease for the full FY24, with significant declines in adjusted EPS for both periods, despite achieving substantial inventory reductions and strong operating and free cash flow Q4'FY24 Key Financial Highlights ($) | Metric | Q4'FY24 | Q4'FY23 | Change | | :----- | :------ | :------ | :----- | | Revenue | $2.4 billion | $2.74 billion | Down 13% | | Reported Gross Margin | 48.4% | 49.6% | Down 120 bps | | Adjusted Gross Margin | 48.4% | 49.6% | Down 120 bps | | Reported Operating Margin | (15.0)% | (5.9)% | Down 910 bps | | Adjusted Operating Margin | (2.1)% | 5.6% | Down 770 bps | | Reported EPS | $(1.08) | $(0.55) | Down 96.4% | | Adjusted EPS | $(0.32) | $0.17 | Down 288.2% | FY24 Key Financial Highlights ($) | Metric | FY24 | FY23 | Change | | :----- | :--- | :--- | :----- | | Revenue | $10.5 billion | $11.61 billion | Down 10% | | Reported Gross Margin | 52.0% | 52.5% | Down 50 bps | | Adjusted Gross Margin | 52.1% | 52.6% | Down 50 bps | | Reported Operating Margin | (0.3)% | 2.8% | Down 310 bps | | Adjusted Operating Margin | 5.6% | 9.8% | Down 420 bps | | Reported EPS | $(2.49) | $0.31 | Down 903.2% | | Adjusted EPS | $0.74 | $2.10 | Down 64.8% | - Generated $1.015 billion in operating cash flow and $804 million in free cash flow for FY24, exceeding guidance[5] - Inventories decreased by $382 million (23%) in Q4'FY24 compared to the prior year[5] Financial Performance Review VF Corporation experienced significant revenue declines in both Q4 and FY24, driven by brand and regional weaknesses, alongside reduced profitability due to unfavorable rates and non-cash charges Fourth Quarter Fiscal Year 2024 (Q4'FY24) Performance VF Corporation's Q4'FY24 saw a 13% revenue decline, primarily driven by weakness in Vans and the Americas region, with gross margin decreasing due to unfavorable rates and promotional activity, leading to a significant drop in operating margin and adjusted EPS Revenue Performance (Q4'FY24) Q4'FY24 revenue decreased by 13% to $2.37 billion, with Vans experiencing a significant 26% decline, The North Face down 5% (despite DTC growth), the Americas region seeing a 22% drop, and wholesale revenue falling by 20% Q4'FY24 Revenue by Brand ($M) | Brand | Q4'FY24 Revenue ($M) | % Change (Reported) | % Change (Constant Currency) | | :---- | :------------------- | :------------------ | :--------------------------- | | The North Face | 814.3 | (5)% | (5)% | | Vans | 631.2 | (26)% | (27)% | | Timberland | 341.5 | (14)% | (14)% | | Dickies | 162.4 | (15)% | (15)% | | Other Brands | 424.4 | (3)% | (2)% | | Total VF Revenue | 2,373.8 | (13)% | (13)% | Q4'FY24 Revenue by Region ($M) | Region | Q4'FY24 Revenue ($M) | % Change (Reported) | % Change (Constant Currency) | | :----- | :------------------- | :------------------ | :--------------------------- | | Americas | 1,126.2 | (22)% | (23)% | | EMEA | 869.9 | (3)% | (5)% | | APAC | 377.7 | (3)% | 2% | | Total VF Revenue | 2,373.8 | (13)% | (13)% | Q4'FY24 Revenue by Channel ($M) | Channel | Q4'FY24 Revenue ($M) | % Change (Reported) | % Change (Constant Currency) | | :------ | :------------------- | :------------------ | :--------------------------- | | DTC | 1,093.8 | (5)% | (4)% | | Wholesale | 1,280.1 | (20)% | (20)% | | Total VF Revenue | 2,373.8 | (13)% | (13)% | - The North Face DTC revenue was up 6% (7% in constant dollars) despite overall brand decline, indicating US wholesale weakness[5] - Vans decline includes impact from deliberate actions to right-size inventories in the wholesale channel[5] Profitability (Q4'FY24) Q4'FY24 reported and adjusted gross margin decreased by 120 basis points to 48.4%, with favorable mix benefits offset by unfavorable rates from reset actions, promotional activity, and negative transactional foreign currency impacts, leading to a significant decline in operating margin - Adjusted gross margin benefits of 180 basis points from favorable mix were more than offset by 300 basis points of unfavorable rate[5] - Unfavorable rate largely from impact of reset actions, ongoing promotional activity, and negative transactional foreign currency impacts[5] - Adjusted operating margin reflects 650 basis points of deleverage and 120 basis points of unfavorable adjusted gross margin[5] Earnings Per Share (Q4'FY24) Reported EPS for Q4'FY24 was $(1.08), down from $(0.55) in Q4'FY23, while adjusted EPS was $(0.32), a significant decrease from $0.17 in the prior year, impacted by Reinvent costs and goodwill impairment charges - Reinvent costs of approximately $55 million and noncash goodwill impairment charges of approximately $250 million negatively impacted Q4'FY24 EPS[5][12][13] - Gross cost savings of approximately $40 million generated through the Reinvent program in Q4'FY24, with $55 million in related charges[5] Full Fiscal Year 2024 (FY24) Performance For FY24, VF Corporation's revenue decreased by 10% to $10.5 billion, with gross margin seeing a slight decline, while operating margin and EPS experienced substantial drops, primarily due to deleverage and significant non-cash charges Revenue Performance (FY24) FY24 revenue decreased by 10% (11% in constant dollars) to $10.45 billion, with Vans revenue declining by 24%, The North Face seeing a modest 2% increase, the Americas region down 18%, and wholesale revenue decreasing by 14% FY24 Revenue by Brand ($M) | Brand | FY24 Revenue ($M) | % Change (Reported) | % Change (Constant Currency) | | :---- | :---------------- | :------------------ | :--------------------------- | | The North Face | 3,673.3 | 2% | 1% | | Vans | 2,785.7 | (24)% | (25)% | | Timberland | 1,556.9 | (13)% | (14)% | | Dickies | 618.4 | (15)% | (15)% | | Other Brands | 1,820.3 | 1% | 0% | | Total VF Revenue | 10,454.7 | (10)% | (11)% | FY24 Revenue by Region ($M) | Region | FY24 Revenue ($M) | % Change (Reported) | % Change (Constant Currency) | | :----- | :---------------- | :------------------ | :--------------------------- | | Americas | 5,464.9 | (18)% | (19)% | | EMEA | 3,428.6 | 0% | (4)% | | APAC | 1,561.2 | 3% | 7% | | Total VF Revenue | 10,454.7 | (10)% | (11)% | FY24 Revenue by Channel ($M) | Channel | FY24 Revenue ($M) | % Change (Reported) | % Change (Constant Currency) | | :------ | :---------------- | :------------------ | :--------------------------- | | DTC | 4,965.1 | (5)% | (6)% | | Wholesale | 5,489.5 | (14)% | (15)% | | Total VF Revenue | 10,454.7 | (10)% | (11)% | Profitability (FY24) FY24 gross margin was 52.0% (adjusted 52.1%), down 50 basis points, primarily due to 140 basis points of unfavorable rate, including 100 basis points from negative transactional foreign currency impacts, with operating margin at (0.3)% reported and 5.6% adjusted, reflecting 370 basis points of deleverage - Adjusted gross margin benefits of 90 basis points from favorable mix were more than offset by 140 basis points of unfavorable rate[5] - Unfavorable rate included 100 basis points of negative transactional foreign currency impacts[5] - Adjusted operating margin reflects 370 basis points of deleverage and 50 basis points of unfavorable adjusted gross margin[5] Earnings Per Share (FY24) Reported EPS for FY24 was $(2.49), a significant decline from $0.31 in FY23, while adjusted EPS was $0.74, down from $2.10 in FY23, heavily impacted by Reinvent costs, goodwill impairment charges, and tax/legal items - Reinvent costs of approximately $105 million, goodwill impairment charges of approximately $508 million, and a net increase of approximately $696 million in tax expense from two rulings negatively impacted FY24 EPS[5][12][13] - Legal settlement gains of approximately $29 million were recorded in FY24[14] - Generated gross cost savings of approximately $80 million through the Reinvent program in FY24, with $105 million of related charges[5] Balance Sheet and Cash Flow VF Corporation significantly improved its cash flow in FY24, exceeding guidance, while reducing total assets, inventories, and net debt, reflecting efforts to strengthen the balance sheet Balance Sheet Overview As of March 30, 2024, total assets decreased to $11.61 billion from $13.99 billion in the prior year, primarily due to significant reductions in inventories, accounts receivable, and goodwill/intangible assets Key Balance Sheet Items (March 30, 2024 vs. March 31, 2023) ($M) | Metric | March 2024 ($M) | March 2023 ($M) | Change ($M) | Change (%) | | :----- | :-------------- | :-------------- | :---------- | :--------- | | Total Assets | 11,612,963 | 13,990,488 | (2,377,525) | (17.0)% | | Cash and equivalents | 674,605 | 814,887 | (140,282) | (17.2)% | | Accounts receivable, net | 1,273,965 | 1,610,295 | (336,330) | (20.9)% | | Inventories | 1,766,366 | 2,292,790 | (526,424) | (23.0)% | | Goodwill and intangible assets, net | 4,088,896 | 4,621,234 | (532,338) | (11.5)% | | Total Liabilities | 9,954,598 | 11,079,775 | (1,125,177) | (10.2)% | | Stockholders' Equity | 1,658,365 | 2,910,713 | (1,252,348) | (43.0)% | - Inventories decreased by $382 million during Q4'FY24, down 23% versus the prior year[5] Cash Flow Performance VF Corporation generated strong operating cash flow of $1.015 billion and free cash flow of $804 million for FY24, significantly exceeding guidance, marking a substantial improvement from negative operating cash flow in FY23 FY24 Cash Flow Highlights ($M) | Metric | FY24 ($M) | FY23 ($M) | Change ($M) | | :----- | :-------- | :-------- | :---------- | | Operating cash flow | 1,014,581 | (655,795) | 1,670,376 | | Free cash flow | 804,000 | (261,251) | 1,065,251 | - Free cash flow is defined as cash flow from operations less capital expenditures and software purchases[15] Debt and Liquidity Net debt at the end of Q4'FY24 was $5.3 billion, a reduction of approximately $540 million compared to the previous year, reflecting efforts to strengthen the balance sheet - Net debt at the end of Q4'FY24 was $5.3 billion, down by approximately $540 million relative to last year[5] - Net debt is defined as short and long-term borrowings less cash and cash equivalents[15] Shareholder Returns VF Corporation returned $35 million to shareholders through cash dividends in Q4'FY24 and $303 million for the full FY24, with the Board of Directors declaring a quarterly dividend of $0.09 per share and intending to continue quarterly dividends Cash Dividends Paid ($M) | Period | Amount ($M) | | :----- | :---------- | | Q4'FY24 | 35 | | FY24 | 303 | - Quarterly dividend declared of $0.09 per share, payable June 20, 2024, to shareholders of record on June 10, 2024[9] - VF intends to continue to pay quarterly dividends, subject to Board approval[9] Fiscal Year 2025 Outlook For fiscal year 2025, VF Corporation expects to generate approximately $600 million in free cash flow, including the benefit of non-core asset sales - Free cash flow plus the benefit of non-core asset sales is expected to generate approximately $600 million in FY25[5] Company Overview Founded in 1899, VF Corporation is a global apparel, footwear, and accessories company with iconic outdoor, active, and workwear brands like Vans, The North Face, Timberland, and Dickies, aiming to promote sustainable and active lifestyles and create value for stakeholders - VF Corporation is one of the world's largest apparel, footwear and accessories companies[9] - Portfolio includes iconic brands such as Vans, The North Face, Timberland, and Dickies[9] - Company's purpose is to power movements of sustainable and active lifestyles for the betterment of people and the planet[9] Financial Disclosures and Non-GAAP Reconciliations This section provides essential financial disclosures, including definitions for constant currency and adjusted non-GAAP measures, outlines forward-looking statements and risk factors, and presents detailed reconciliations of GAAP to non-GAAP financial results Constant Currency Definition Constant currency amounts are non-GAAP measures that exclude the impact of translating foreign currencies into U.S. dollars, providing a framework to assess business performance without exchange rate fluctuations - Constant currency amounts exclude the impact of translating foreign currencies into U.S. dollars[11][31][36] - Calculated by translating current year operating results at prior year's average exchange rates[32][37] - Management believes this information is useful for investors to compare operating results and identify trends[11][31][36] Adjusted Amounts Definition Adjusted amounts are non-GAAP measures that exclude specific items such as costs related to the Reinvent transformation program, noncash goodwill impairment charges, certain tax and legal items, and transaction/deal-related activities, to provide a clearer view of underlying business trends - Adjusted amounts exclude costs related to Reinvent transformation program ($55 million in Q4'FY24, $105 million in FY24)[12] - Exclude noncash goodwill impairment charges ($250 million in Q4'FY24 for Timberland and Icebreaker; $508 million in FY24 for Timberland, Dickies, and Icebreaker)[13] - Exclude impact to tax expense from U.S. Court of Appeals and European Union rulings (net increase of approx. $696 million in FY24)[13] - Exclude legal settlement gains ($29 million in FY24) and transaction/deal-related activities ($2 million in FY24, primarily Global Packs strategic review)[14] - Combined, these items negatively impacted EPS by $0.76 in Q4'FY24 and $3.23 in FY24[14] Forward-Looking Statements & Risk Factors The report contains forward-looking statements subject to various risks and uncertainties, including consumer demand, economic conditions, supply chain disruptions, competition, ability to execute transformation programs, cybersecurity, and legal/regulatory changes, with VF not undertaking to update these statements unless required by law - Forward-looking statements involve risks and uncertainties, and actual results could differ materially[16] - Key risks include consumer demand, global economic conditions, supply chain disruptions, competition, execution of Reinvent program, cybersecurity threats, and legal/regulatory changes[17] - VF undertakes no obligation to publicly update or revise any forward-looking statements, except as required by law[17] Reconciliation of GAAP to Non-GAAP Measures (Q4'FY24 & FY24) This section provides a reconciliation of GAAP financial measures to adjusted non-GAAP measures for Q4'FY24 and FY24, detailing the impact of Reinvent costs, impairment charges, tax & legal items, and transaction/deal-related activities on gross profit, operating income/loss, and diluted EPS Q4'FY24 GAAP to Adjusted Reconciliation (in thousands) | Metric | As Reported under GAAP | Reinvent | Impairment Charges | Tax & Legal Items | Transaction and Deal Related Activities and Other | Adjusted | | :----- | :--------------------- | :------- | :----------------- | :---------------- | :------------------------------------------------ | :------- | | Revenues | $2,373,809 | — | — | — | — | $2,373,809 | | Gross profit | $1,148,532 | $347 | — | — | — | $1,148,879 | | Gross profit % | 48.4% | | | | | 48.4% | | Operating loss | $(355,765) | $54,517 | $250,470 | — | $22 | $(50,756) | | Operating loss % | (15.0)% | | | | | (2.1)% | | Diluted loss per share | $(1.08) | $0.12 | $0.64 | — | — | $(0.32) | FY24 GAAP to Adjusted Reconciliation (in thousands) | Metric | As Reported under GAAP | Reinvent | Impairment Charges | Tax & Legal Items | Transaction and Deal Related Activities and Other | Adjusted | | :----- | :--------------------- | :------- | :----------------- | :---------------- | :------------------------------------------------ | :------- | | Revenues | $10,454,667 | — | — | — | — | $10,454,667 | | Gross profit | $5,437,222 | $4,591 | — | — | — | $5,441,813 | | Gross profit % | 52.0% | | | | | 52.1% | | Operating income (loss) | $(34,062) | $105,386 | $507,566 | — | $2,471 | $581,361 | | Operating income (loss) % | (0.3)% | | | | | 5.6% | | Diluted earnings (loss) per share | $(2.49) | $0.21 | $1.28 | $1.74 | — | $0.74 | Reconciliation of GAAP to Non-GAAP Measures (Q4'FY23 & FY23) This section provides a reconciliation of GAAP financial measures to adjusted non-GAAP measures for Q4'FY23 and FY23, detailing the impact of transaction and deal-related activities, strategic business decisions, impairments, and a pension settlement charge on gross profit, operating income/loss, and diluted EPS Q4'FY23 GAAP to Adjusted Reconciliation (in thousands) | Metric | As Reported under GAAP | Transaction and Deal Related Activities | Specified Strategic Business Decisions | Impairments and Pension Settlement Charge | Tax Item | Adjusted | | :----- | :--------------------- | :-------------------------------------- | :------------------------------------- | :---------------------------------------- | :------- | :------- | | Revenues | $2,739,613 | — | — | — | — | $2,739,613 | | Gross profit | $1,358,024 | — | — | — | — | $1,358,024 | | Gross profit % | 49.6% | | | | | 49.6% | | Operating income (loss) | $(160,883) | — | — | $313,087 | — | $152,204 | | Operating income (loss) % | (5.9)% | | | | | 5.6% | | Diluted earnings (loss) per share | $(0.55) | — | — | $0.72 | — | $0.17 | FY23 GAAP to Adjusted Reconciliation (in thousands) | Metric | As Reported under GAAP | Transaction and Deal Related Activities | Specified Strategic Business Decisions | Impairments and Pension Settlement Charge | Tax Item | Adjusted | | :----- | :--------------------- | :-------------------------------------- | :------------------------------------- | :---------------------------------------- | :------- | :------- | | Revenues | $11,612,475 | — | — | — | — | $11,612,475 | | Gross profit | $6,096,679 | — | $9,946 | — | — | $6,106,625 | | Gross profit % | 52.5% | | | | | 52.6% | | Operating income | $327,693 | $331 | $72,031 | $735,009 | — | $1,135,064 | | Operating income % | 2.8% | | | | | 9.8% | | Diluted earnings per share | $0.31 | — | $0.15 | $1.89 | $(0.24) | $2.10 | Condensed Consolidated Financial Statements This section presents VF Corporation's condensed consolidated statements of operations, balance sheets, and cash flows, providing a comprehensive overview of the company's financial position and performance for the reported periods Statements of Operations The condensed consolidated statements of operations show a net loss of $(418.3) million in Q4'FY24 and $(968.9) million for FY24, a significant decline from prior year's net income, driven by lower revenues, increased operating expenses, and substantial impairment charges and tax expenses Condensed Consolidated Statements of Operations (in thousands) | Metric (in thousands) | Q4'FY24 | Q4'FY23 | FY24 | FY23 | | :-------------------- | :------ | :------ | :--- | :--- | | Net revenues | $2,373,809 | $2,739,613 | $10,454,667 | $11,612,475 | | Cost of goods sold | $1,225,277 | $1,381,589 | $5,017,445 | $5,515,796 | | SG&A expenses | $1,253,827 | $1,205,820 | $4,963,718 | $5,033,977 | | Impairment of goodwill and intangible assets | $250,470 | $313,087 | $507,566 | $735,009 | | Operating income (loss) | $(355,765) | $(160,883) | $(34,062) | $327,693 | | Interest expense, net | $(54,707) | $(49,237) | $(223,408) | $(164,632) | | Income (loss) before income taxes | $(409,639) | $(215,999) | $(233,685) | $43,287 | | Income tax expense (benefit) | $8,669 | $(1,107) | $735,197 | $(75,297) | | Net income (loss) | $(418,308) | $(214,892) | $(968,882) | $118,584 | | Diluted EPS | $(1.08) | $(0.55) | $(2.49) | $0.31 | | Cash dividends per common share | $0.09 | $0.30 | $0.78 | $1.81 | Balance Sheets The consolidated balance sheet shows a decrease in total assets from $13.99 billion in March 2023 to $11.61 billion in March 2024, primarily due to reductions in accounts receivable, inventories, and goodwill/intangible assets, with total liabilities also decreasing but stockholders' equity seeing a significant decline Condensed Consolidated Balance Sheets (in thousands) | Asset/Liability (in thousands) | March 2024 | March 2023 | | :----------------------------- | :--------- | :--------- | | Cash and equivalents | $674,605 | $814,887 | | Accounts receivable, net | $1,273,965 | $1,610,295 | | Inventories | $1,766,366 | $2,292,790 | | Total current assets | $4,226,947 | $5,152,709 | | Goodwill and intangible assets, net | $4,088,896 | $4,621,234 | | Total assets | $11,612,963 | $13,990,488 | | Short-term borrowings | $263,938 | $11,491 | | Current portion of long-term debt | $1,000,721 | $924,305 | | Long-term debt | $4,702,284 | $5,711,014 | | Total liabilities | $9,954,598 | $11,079,775 | | Stockholders' equity | $1,658,365 | $2,910,713 | Statements of Cash Flows For FY24, cash provided by operating activities significantly improved to $1.015 billion from a negative $655.8 million in FY23, with cash used by investing activities remaining relatively stable, while cash used by financing activities increased due to net decrease from borrowings and lower cash dividends paid Condensed Consolidated Statements of Cash Flows (in thousands) | Activity (in thousands) | FY24 | FY23 | | :---------------------- | :--- | :--- | | Net income (loss) | $(968,882) | $118,584 | | Impairment of goodwill and intangible assets | $507,566 | $735,009 | | Write-off of income tax receivables and interest | $921,409 | — | | Cash provided (used) by operating activities | $1,014,581 | $(655,795) | | Cash used by investing activities | $(172,258) | $(188,053) | | Net increase (decrease) from short-term borrowings and long-term debt | $(653,629) | $1,226,522 | | Cash dividends paid | $(303,140) | $(702,846) | | Cash provided (used) by financing activities | $(959,615) | $463,906 | | Net change in cash, cash equivalents and restricted cash | $(139,361) | $(460,764) | | Cash, cash equivalents and restricted cash – end of year | $676,957 | $816,318 | Supplemental Financial Information This section provides detailed supplemental financial information, including reportable segment performance, brand-specific revenue growth, and geographic and channel revenue breakdowns, offering deeper insights into VF Corporation's operational results Reportable Segment Information (Q4'FY24 & FY24) This section details revenue and profit performance across VF's Outdoor, Active, and Work segments for Q4'FY24 and FY24, with all segments experiencing revenue declines in Q4, Active being the most impacted, and the full year also showing significant revenue and profit decreases for Active and Work segments Q4'FY24 Segment Revenues and Profit ($M) | Segment | Q4'FY24 Revenues ($M) | % Change (Reported) | Q4'FY24 Profit ($M) | | :------ | :-------------------- | :------------------ | :------------------ | | Outdoor | $1,219,444 | (8)% | $44,878 | | Active | $914,037 | (19)% | $476 | | Work | $240,328 | (16)% | $4,165 | | Total Segment Revenues | $2,373,809 | (13)% | $49,519 | FY24 Segment Revenues and Profit ($M) | Segment | FY24 Revenues ($M) | % Change (Reported) | FY24 Profit ($M) | | :------ | :----------------- | :------------------ | :--------------- | | Outdoor | $5,501,399 | (3)% | $602,708 | | Active | $4,061,729 | (17)% | $352,248 | | Work | $891,539 | (16)% | $17,647 | | Total Segment Revenues | $10,454,667 | (10)% | $972,603 | - Active segment profit significantly decreased from $113.5 million in Q4'FY23 to $0.476 million in Q4'FY24[26] - FY24 Active segment profit includes legal settlement gains of $29.1 million[28] Reportable Segment Information – Constant Currency Basis (Q4'FY24 & FY24) This section presents segment revenues and profits adjusted for foreign currency impacts, showing that in constant currency, Q4'FY24 total segment revenues still declined by 13% and FY24 total segment revenues declined by 11%, indicating that underlying business performance, not just currency fluctuations, drove the decreases Q4'FY24 Segment Revenues and Profit (Constant Currency) ($M) | Segment | As Reported under GAAP ($M) | Adjust for Foreign Currency Exchange ($M) | Constant Currency ($M) | | :------ | :-------------------------- | :---------------------------------------- | :--------------------- | | Outdoor | $1,219,444 | $(634) | $1,218,810 | | Active | $914,037 | $(1,381) | $912,656 | | Work | $240,328 | $156 | $240,484 | | Total Segment Revenues | $2,373,809 | $(1,859) | $2,371,950 | | Outdoor Profit | $44,878 | $33 | $44,911 | | Active Profit | $476 | $(1,098) | $(622) | | Work Profit | $4,165 | $(701) | $3,464 | FY24 Segment Revenues and Profit (Constant Currency) ($M) | Segment | As Reported under GAAP ($M) | Adjust for Foreign Currency Exchange ($M) | Constant Currency ($M) | | :------ | :-------------------------- | :---------------------------------------- | :--------------------- | | Outdoor | $5,501,399 | $(62,600) | $5,438,799 | | Active | $4,061,729 | $(43,697) | $4,018,032 | | Work | $891,539 | $(1,220) | $890,319 | | Total Segment Revenues | $10,454,667 | $(107,517) | $10,347,150 | | Outdoor Profit | $602,708 | $(12,949) | $589,759 | | Active Profit | $352,248 | $(8,725) | $343,523 | | Work Profit | $17,647 | $(1,474) | $16,173 | Top 4 Brand Revenue Information (Q4'FY24 & FY24) This section provides detailed revenue growth rates for VF's top four brands (The North Face, Vans, Timberland, Dickies) across Americas, EMEA, and APAC regions for Q4'FY24 and FY24, both reported and in constant currency, showing Vans with significant declines across all regions, while The North Face had strong APAC growth Q4'FY24 Top 4 Brand Revenue Growth by Region | Brand | Americas (% Change) | EMEA (% Change) | APAC (% Change) | Global (% Change) | | :---- | :------------------ | :-------------- | :-------------- | :---------------- | | The North Face | (15)% | (1)% | 10% | (5)% | | Vans | (31)% | (13)% | (31)% | (26)% | | Timberland | (32)% | 4% | 7% | (14)% | | Dickies | (17)% | (4)% | (26)% | (15)% | FY24 Top 4 Brand Revenue Growth by Region | Brand | Americas (% Change) | EMEA (% Change) | APAC (% Change) | Global (% Change) | | :---- | :------------------ | :-------------- | :-------------- | :---------------- | | The North Face | (10)% | 9% | 27% | 2% | | Vans | (28)% | (13)% | (24)% | (24)% | | Timberland | (27)% | 1% | 7% | (13)% | | Dickies | (15)% | 6% | (35)% | (15)% | - The North Face APAC revenue grew 10% in Q4'FY24 (15% constant currency) and 27% in FY24 (31% constant currency)[50] - Vans experienced double-digit declines across all regions in both Q4'FY24 and FY24[50] Geographic and Channel Revenue Information (Q4'FY24 & FY24) This section provides a breakdown of revenue growth by geographic region and sales channel, showing the Americas region with the steepest declines, while APAC demonstrated growth, particularly in Greater China, and the wholesale channel continued to underperform compared to Direct-to-Consumer Q4'FY24 Geographic Revenue Growth | Region | % Change (Reported) | % Change (Constant Currency) | | :----- | :------------------ | :--------------------------- | | Americas | (22)% | (23)% | | EMEA | (3)% | (5)% | | APAC | (3)% | 2% | | Greater China | 5% | 10% | | International | (4)% | (4)% | | Global | (13)% | (13)% | FY24 Geographic Revenue Growth | Region | % Change (Reported) | % Change (Constant Currency) | | :----- | :------------------ | :--------------------------- | | Americas | (18)% | (19)% | | EMEA | 0% | (4)% | | APAC | 3% | 7% | | Greater China | 9% | 13% | | International | 1% | (1)% | | Global | (10)% | (11)% | Q4'FY24 & FY24 Channel Revenue Growth | Channel | Q4'FY24 % Change (Reported) | Q4'FY24 % Change (Constant Currency) | FY24 % Change (Reported) | FY24 % Change (Constant Currency) | | :------ | :-------------------------- | :----------------------------------- | :----------------------- | :-------------------------------- | | Wholesale | (20)% | (20)% | (14)% | (15)% | | Direct-to-consumer | (5)% | (4)% | (5)% | (6)% | | Digital | (4)% | (4)% | (8)% | (8)% | - DTC store count decreased from 1,265 in March 2023 to 1,185 in March 2024[52]