Three Months Ended September | Six Months Ended September | |||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2024 | 2023 | % Change | % Change (constant currency) | 2024 | 2023 | % Change | % Change (constant currency) | ||||||||||||||||||||||||||||||||||||||||||
Brand: | ||||||||||||||||||||||||||||||||||||||||||||||||||
The North Face® | $ | 1,091.4 | $ | 1,128.8 | (3) | % | (4) | % | $ | 1,615.6 | $ | 1,667.0 | (3) | % | (3) | % | ||||||||||||||||||||||||||||||||||
Vans® | 667.4 | 748.8 | (11) | % | (11) | % | 1,249.3 | 1,486.3 | (16) | % | (16) | % | ||||||||||||||||||||||||||||||||||||||
Timberland® | 475.3 | 488.6 | (3) | % | (3) | % | 704.8 | 742.5 | (5) | % | (5) | % | ||||||||||||||||||||||||||||||||||||||
Dickies® | 152.4 | 171.4 | (11) | % | (11) | % | 269.2 | 308.1 | (13) | % | (12) | % | ||||||||||||||||||||||||||||||||||||||
Other Brands | 371.4 | 382.4 | (3) | % | (3) | % | 688.2 | 684.3 | 1 | % | 0 | % | ||||||||||||||||||||||||||||||||||||||
VF Revenue | $ | 2,757.9 | $ | 2,920.1 | (6) | % | (6) | % | $ | 4,527.0 | $ | 4,888.2 | (7) | % | (7) | % | ||||||||||||||||||||||||||||||||||
Region: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Americas | $ | 1,355.9 | $ | 1,506.1 | (10) | % | (9) | % | $ | 2,331.6 | $ | 2,624.9 | (11) | % | (11) | % | ||||||||||||||||||||||||||||||||||
EMEA | 1,009.6 | 1,042.8 | (3) | % | (5) | % | 1,541.9 | 1,607.1 | (4) | % | (5) | % | ||||||||||||||||||||||||||||||||||||||
APAC | 392.5 | 371.3 | 6 | % | 5 | % | 653.6 | 656.3 | 0 | % | 1 | % | ||||||||||||||||||||||||||||||||||||||
VF Revenue | $ | 2,757.9 | $ | 2,920.1 | (6) | % | (6) | % | $ | 4,527.0 | $ | 4,888.2 | (7) | % | (7) | % | ||||||||||||||||||||||||||||||||||
International | $ | 1,572.5 | $ | 1,605.0 | (2) | % | (3) | % | $ | 2,482.2 | $ | 2,578.4 | (4) | % | (4) | % | ||||||||||||||||||||||||||||||||||
Channel: | ||||||||||||||||||||||||||||||||||||||||||||||||||
DTC | $ | 914.9 | $ | 997.5 | (8) | % | (8) | % | $ | 1,655.9 | $ | 1,852.8 | (11) | % | (10) | % | ||||||||||||||||||||||||||||||||||
Wholesale (a) | 1,843.0 | 1,922.7 | (4) | % | (5) | % | 2,871.1 | 3,035.4 | (5) | % | (6) | % | ||||||||||||||||||||||||||||||||||||||
VF Revenue | $ | 2,757.9 | $ | 2,920.1 | (6) | % | (6) | % | $ | 4,527.0 | $ | 4,888.2 | (7) | % | (7) | % | ||||||||||||||||||||||||||||||||||
All references to the periods ended September 2024 relate to the 13-week and 26-week fiscal periods ended September 28, 2024 and all references to the periods ended September 2023 relate to the 13-week and 26-week fiscal periods ended September 30, 2023. | ||||||||||||||||||||||||||||||||||||||||||||||||||
Note: Amounts may not sum due to rounding | ||||||||||||||||||||||||||||||||||||||||||||||||||
(a) Royalty revenues are included in the wholesale channel for all periods. |
Three Months Ended September | Six Months Ended September | |||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
Net revenues | $ | 2,757,948 | $ | 2,920,123 | $ | 4,527,008 | $ | 4,888,186 | ||||||||||||||||||
Costs and operating expenses | ||||||||||||||||||||||||||
Cost of goods sold | 1,317,391 | 1,430,194 | 2,180,773 | 2,369,828 | ||||||||||||||||||||||
Selling, general and administrative expenses | 1,166,654 | 1,139,390 | 2,195,352 | 2,197,668 | ||||||||||||||||||||||
Total costs and operating expenses | 2,484,045 | 2,569,584 | 4,376,125 | 4,567,496 | ||||||||||||||||||||||
Operating income | 273,903 | 350,539 | 150,883 | 320,690 | ||||||||||||||||||||||
Interest expense, net | (42,688) | (41,111) | (83,635) | (76,687) | ||||||||||||||||||||||
Other income (expense), net | (660) | (2,183) | (2,146) | (5,826) | ||||||||||||||||||||||
Income from continuing operations before income taxes | 230,555 | 307,245 | 65,102 | 238,177 | ||||||||||||||||||||||
Income tax expense | 28,046 | 758,887 | 14,620 | 752,794 | ||||||||||||||||||||||
Income (loss) from continuing operations | 202,509 | (451,642) | 50,482 | (514,617) | ||||||||||||||||||||||
Income (loss) from discontinued operations, net of tax | (150,331) | 945 | (257,190) | 6,495 | ||||||||||||||||||||||
Net income (loss) | $ | 52,178 | $ | (450,697) | $ | (206,708) | $ | (508,122) | ||||||||||||||||||
Earnings (loss) per common share - basic (a) | ||||||||||||||||||||||||||
Continuing operations | $ | 0.52 | $ | (1.16) | $ | 0.13 | $ | (1.33) | ||||||||||||||||||
Discontinued operations | (0.39) | — | (0.66) | 0.02 | ||||||||||||||||||||||
Total earnings (loss) per common share - basic | $ | 0.13 | $ | (1.16) | $ | (0.53) | $ | (1.31) | ||||||||||||||||||
Earnings (loss) per common share - diluted (a) | ||||||||||||||||||||||||||
Continuing operations | $ | 0.52 | $ | (1.16) | $ | 0.13 | $ | (1.33) | ||||||||||||||||||
Discontinued operations | (0.38) | — | (0.66) | 0.02 | ||||||||||||||||||||||
Total earnings (loss) per common share - diluted | $ | 0.13 | $ | (1.16) | $ | (0.53) | $ | (1.31) | ||||||||||||||||||
Weighted average shares outstanding | ||||||||||||||||||||||||||
Basic | 389,044 | 388,338 | 388,892 | 388,249 | ||||||||||||||||||||||
Diluted | 390,945 | 388,338 | 390,198 | 388,249 | ||||||||||||||||||||||
Cash dividends per common share | $ | 0.09 | $ | 0.30 | $ | 0.18 | $ | 0.60 | ||||||||||||||||||
Basis of presentation of condensed consolidated financial statements: VF operates and reports using a 52/53 week fiscal year ending on the Saturday closest to March 31 of each year. For presentation purposes herein, all references to the periods ended September 2024 relate to the 13-week and 26-week fiscal periods ended September 28, 2024, and all references to periods ended September 2023 relate to the 13-week and 26-week fiscal periods ended September 30, 2023. References to March 2024 relate to information as of March 30, 2024. | ||||||||||||||||||||||||||
(a) Amounts have been calculated using unrounded numbers. |
September | March | September | ||||||||||||||||||
2024 | 2024 | 2023 | ||||||||||||||||||
ASSETS | ||||||||||||||||||||
Current assets | ||||||||||||||||||||
Cash and equivalents | $ | 492,164 | $ | 656,376 | $ | 484,825 | ||||||||||||||
Accounts receivable, net | 1,820,197 | 1,263,329 | 1,881,531 | |||||||||||||||||
Inventories | 2,082,918 | 1,697,823 | 2,405,291 | |||||||||||||||||
Other current assets | 472,595 | 493,194 | 358,124 | |||||||||||||||||
Current assets of discontinued operations | 1,590,984 | 116,225 | 113,791 | |||||||||||||||||
Total current assets | 6,458,858 | 4,226,947 | 5,243,562 | |||||||||||||||||
Property, plant and equipment, net | 755,802 | 788,992 | 885,882 | |||||||||||||||||
Goodwill and intangible assets, net | 2,426,628 | 2,421,838 | 2,924,664 | |||||||||||||||||
Operating lease right-of-use assets | 1,313,030 | 1,255,074 | 1,248,524 | |||||||||||||||||
Other assets | 1,265,320 | 1,210,470 | 1,143,728 | |||||||||||||||||
Other assets of discontinued operations | — | 1,709,642 | 1,695,992 | |||||||||||||||||
Total assets | $ | 12,219,638 | $ | 11,612,963 | $ | 13,142,352 | ||||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||
Current liabilities | ||||||||||||||||||||
Short-term borrowings | $ | 463,200 | $ | 263,938 | $ | 1,023,276 | ||||||||||||||
Current portion of long-term debt | 1,750,097 | 1,000,721 | 966 | |||||||||||||||||
Accounts payable | 1,134,637 | 788,477 | 961,667 | |||||||||||||||||
Accrued liabilities | 1,486,706 | 1,323,982 | 1,486,757 | |||||||||||||||||
Current liabilities of discontinued operations | 147,791 | 79,861 | 72,167 | |||||||||||||||||
Total current liabilities | 4,982,431 | 3,456,979 | 3,544,833 | |||||||||||||||||
Long-term debt | 4,028,549 | 4,702,284 | 5,656,725 | |||||||||||||||||
Operating lease liabilities | 1,136,605 | 1,087,304 | 1,066,933 | |||||||||||||||||
Other liabilities | 665,686 | 636,090 | 598,409 | |||||||||||||||||
Other liabilities of discontinued operations | — | 71,941 | 65,407 | |||||||||||||||||
Total liabilities | 10,813,271 | 9,954,598 | 10,932,307 | |||||||||||||||||
Stockholders' equity | 1,406,367 | 1,658,365 | 2,210,045 | |||||||||||||||||
Total liabilities and stockholders' equity | $ | 12,219,638 | $ | 11,612,963 | $ | 13,142,352 |
Six Months Ended September | ||||||||||||||
2024 | 2023 | |||||||||||||
Operating activities | ||||||||||||||
Net loss | $ | (206,708) | $ | (508,122) | ||||||||||
Income (loss) from discontinued operations, net of tax | (257,190) | 6,495 | ||||||||||||
Income (loss) from continuing operations, net of tax | 50,482 | (514,617) | ||||||||||||
Depreciation and amortization | 126,396 | 136,936 | ||||||||||||
Reduction in the carrying amount of right-of-use assets | 179,206 | 183,335 | ||||||||||||
Write-off of income tax receivables and interest | — | 921,409 | ||||||||||||
Other adjustments, including changes in operating assets and liabilities | (657,907) | (787,783) | ||||||||||||
Cash used by operating activities - continuing operations | (301,823) | (60,720) | ||||||||||||
Cash provided by operating activities - discontinued operations | 20,052 | 41,459 | ||||||||||||
Cash used by operating activities | (281,771) | (19,261) | ||||||||||||
Investing activities | ||||||||||||||
Proceeds from sale of assets | 76,683 | 281 | ||||||||||||
Capital expenditures | (45,953) | (93,833) | ||||||||||||
Software purchases | (25,727) | (41,150) | ||||||||||||
Other, net | (21,424) | (11,026) | ||||||||||||
Cash used by investing activities - continuing operations | (16,421) | (145,728) | ||||||||||||
Cash used by investing activities - discontinued operations | (4,413) | (4,003) | ||||||||||||
Cash used by investing activities | (20,834) | (149,731) | ||||||||||||
Financing activities | ||||||||||||||
Net increase from short-term borrowings and long-term debt | 198,711 | 109,663 | ||||||||||||
Cash dividends paid | (70,048) | (233,172) | ||||||||||||
Proceeds from issuance of Common Stock, net of payments for tax withholdings | (2,689) | (2,392) | ||||||||||||
Cash provided (used) by financing activities | 125,974 | (125,901) | ||||||||||||
Effect of foreign currency rate changes on cash, cash equivalents and restricted cash | 14,304 | (21,190) | ||||||||||||
Net change in cash, cash equivalents and restricted cash | (162,327) | (316,083) | ||||||||||||
Cash, cash equivalents and restricted cash – beginning of year | 676,957 | 816,319 | ||||||||||||
Cash, cash equivalents and restricted cash – end of period | $ | 514,630 | $ | 500,236 |
Three Months Ended September | % Change | % Change Constant Currency (a) | ||||||||||||||||||||||||
2024 | 2023 | |||||||||||||||||||||||||
Segment revenues | ||||||||||||||||||||||||||
Outdoor | $ | 1,658,672 | $ | 1,713,679 | (3)% | (4)% | ||||||||||||||||||||
Active | 879,767 | 968,171 | (9)% | (9)% | ||||||||||||||||||||||
Work | 219,509 | 238,273 | (8)% | (8)% | ||||||||||||||||||||||
Total segment revenues | $ | 2,757,948 | $ | 2,920,123 | (6)% | (6)% | ||||||||||||||||||||
Segment profit | ||||||||||||||||||||||||||
Outdoor | $ | 287,414 | $ | 296,750 | ||||||||||||||||||||||
Active | 103,659 | 121,189 | ||||||||||||||||||||||||
Work | 20,408 | 8,515 | ||||||||||||||||||||||||
Total segment profit | 411,481 | 426,454 | ||||||||||||||||||||||||
Corporate and other expenses | (138,238) | (78,098) | ||||||||||||||||||||||||
Interest expense, net | (42,688) | (41,111) | ||||||||||||||||||||||||
Income from continuing operations before income taxes | $ | 230,555 | $ | 307,245 | ||||||||||||||||||||||
(a) Refer to constant currency definition on the following pages. | ||||||||||||||||||||||||||
Six Months Ended September | % Change | % Change Constant Currency (a) | ||||||||||||||||||||||||
2024 | 2023 | |||||||||||||||||||||||||
Segment revenues | ||||||||||||||||||||||||||
Outdoor | $ | 2,448,871 | $ | 2,543,376 | (4)% | (4)% | ||||||||||||||||||||
Active | 1,683,665 | 1,915,907 | (12)% | (12)% | ||||||||||||||||||||||
Work | 394,472 | 428,903 | (8)% | (8)% | ||||||||||||||||||||||
Total segment revenues | $ | 4,527,008 | $ | 4,888,186 | (7)% | (7)% | ||||||||||||||||||||
Segment profit | ||||||||||||||||||||||||||
Outdoor | $ | 203,999 | $ | 253,089 | ||||||||||||||||||||||
Active | 172,759 | 222,324 | ||||||||||||||||||||||||
Work | 25,736 | 15,346 | ||||||||||||||||||||||||
Total segment profit | 402,494 | 490,759 | ||||||||||||||||||||||||
Corporate and other expenses | (253,757) | (175,895) | ||||||||||||||||||||||||
Interest expense, net | (83,635) | (76,687) | ||||||||||||||||||||||||
Income from continuing operations before income taxes | $ | 65,102 | $ | 238,177 | ||||||||||||||||||||||
(a) Refer to constant currency definition on the following pages. | ||||||||||||||||||||||||||
Three Months Ended September 2024 | ||||||||||||||||||||
As Reported | Adjust for Foreign | |||||||||||||||||||
under GAAP | Currency Exchange | Constant Currency | ||||||||||||||||||
Segment revenues | ||||||||||||||||||||
Outdoor | $ | 1,658,672 | $ | (10,924) | $ | 1,647,748 | ||||||||||||||
Active | 879,767 | (576) | 879,191 | |||||||||||||||||
Work | 219,509 | (44) | 219,465 | |||||||||||||||||
Total segment revenues | $ | 2,757,948 | $ | (11,544) | $ | 2,746,404 | ||||||||||||||
Segment profit | ||||||||||||||||||||
Outdoor | $ | 287,414 | $ | (4,332) | $ | 283,082 | ||||||||||||||
Active | 103,659 | (681) | 102,978 | |||||||||||||||||
Work | 20,408 | (51) | 20,357 | |||||||||||||||||
Total segment profit | 411,481 | (5,064) | 406,417 | |||||||||||||||||
Corporate and other expenses | (138,238) | (103) | (138,341) | |||||||||||||||||
Interest expense, net | (42,688) | — | (42,688) | |||||||||||||||||
Income from continuing operations before income taxes | $ | 230,555 | $ | (5,167) | $ | 225,388 | ||||||||||||||
Diluted earnings per share growth from continuing operations | 145 | % | (1) | % | 144 | % | ||||||||||||||
Constant Currency Financial Information | ||||||||||||||||||||
VF is a global company that reports financial information in U.S. dollars in accordance with GAAP. Foreign currency exchange rate fluctuations affect the amounts reported by VF from translating its foreign revenues and expenses into U.S. dollars. These rate fluctuations can have a significant effect on reported operating results. As a supplement to our reported operating results, we present constant currency financial information, which is a non-GAAP financial measure that excludes the impact of translating foreign currencies into U.S. dollars. We use constant currency information to provide a framework to assess how our business performed excluding the effects of changes in the rates used to calculate foreign currency translation. Management believes this information is useful to investors to facilitate comparison of operating results and better identify trends in our businesses. | ||||||||||||||||||||
To calculate foreign currency translation on a constant currency basis, operating results for the current year period for entities reporting in currencies other than the U.S. dollar are translated into U.S. dollars at the average exchange rates in effect during the comparable period of the prior year (rather than the actual exchange rates in effect during the current year period). | ||||||||||||||||||||
These constant currency performance measures should be viewed in addition to, and not in lieu of or superior to, our operating performance measures calculated in accordance with GAAP. The constant currency information presented may not be comparable to similarly titled measures reported by other companies. |
Six Months Ended September 2024 | ||||||||||||||||||||
As Reported | Adjust for Foreign | |||||||||||||||||||
under GAAP | Currency Exchange | Constant Currency | ||||||||||||||||||
Segment revenues | ||||||||||||||||||||
Outdoor | $ | 2,448,871 | $ | (4,236) | $ | 2,444,635 | ||||||||||||||
Active | 1,683,665 | 2,966 | 1,686,631 | |||||||||||||||||
Work | 394,472 | 839 | 395,311 | |||||||||||||||||
Total segment revenues | $ | 4,527,008 | $ | (431) | $ | 4,526,577 | ||||||||||||||
Segment profit | ||||||||||||||||||||
Outdoor | $ | 203,999 | $ | (3,544) | $ | 200,455 | ||||||||||||||
Active | 172,759 | (462) | 172,297 | |||||||||||||||||
Work | 25,736 | (81) | 25,655 | |||||||||||||||||
Total segment profit | 402,494 | (4,087) | 398,407 | |||||||||||||||||
Corporate and other expenses | (253,757) | (814) | (254,571) | |||||||||||||||||
Interest expense, net | (83,635) | — | (83,635) | |||||||||||||||||
Income from continuing operations before income taxes | $ | 65,102 | $ | (4,901) | $ | 60,201 | ||||||||||||||
Diluted earnings per share growth from continuing operations | 110 | % | (1) | % | 109 | % | ||||||||||||||
Constant Currency Financial Information | ||||||||||||||||||||
VF is a global company that reports financial information in U.S. dollars in accordance with GAAP. Foreign currency exchange rate fluctuations affect the amounts reported by VF from translating its foreign revenues and expenses into U.S. dollars. These rate fluctuations can have a significant effect on reported operating results. As a supplement to our reported operating results, we present constant currency financial information, which is a non-GAAP financial measure that excludes the impact of translating foreign currencies into U.S. dollars. We use constant currency information to provide a framework to assess how our business performed excluding the effects of changes in the rates used to calculate foreign currency translation. Management believes this information is useful to investors to facilitate comparison of operating results and better identify trends in our businesses. | ||||||||||||||||||||
To calculate foreign currency translation on a constant currency basis, operating results for the current year period for entities reporting in currencies other than the U.S. dollar are translated into U.S. dollars at the average exchange rates in effect during the comparable period of the prior year (rather than the actual exchange rates in effect during the current year period). | ||||||||||||||||||||
These constant currency performance measures should be viewed in addition to, and not in lieu of or superior to, our operating performance measures calculated in accordance with GAAP. The constant currency information presented may not be comparable to similarly titled measures reported by other companies. |
Three Months Ended September 2024 | As Reported under GAAP | Reinvent (a) | Transaction and Deal Related Activities (b) | Adjusted | |||||||||||||||||||||||||
Revenues | $ | 2,757,948 | $ | — | $ | — | $ | 2,757,948 | |||||||||||||||||||||
Gross profit | 1,440,557 | — | — | 1,440,557 | |||||||||||||||||||||||||
Percent | 52.2 | % | 52.2 | % | |||||||||||||||||||||||||
Operating income | 273,903 | 41,279 | — | 315,182 | |||||||||||||||||||||||||
Percent | 9.9 | % | 11.4 | % | |||||||||||||||||||||||||
Diluted earnings per share from continuing operations (c) | 0.52 | 0.08 | — | 0.60 | |||||||||||||||||||||||||
Six Months Ended September 2024 | As Reported under GAAP | Reinvent (a) | Transaction and Deal Related Activities (b) | Adjusted | |||||||||||||||||||||||||
Revenues | $ | 4,527,008 | $ | — | $ | — | $ | 4,527,008 | |||||||||||||||||||||
Gross profit | 2,346,235 | 412 | — | 2,346,647 | |||||||||||||||||||||||||
Percent | 51.8 | % | 51.8 | % | |||||||||||||||||||||||||
Operating income | 150,883 | 59,128 | 490 | 210,501 | |||||||||||||||||||||||||
Percent | 3.3 | % | 4.6 | % | |||||||||||||||||||||||||
Diluted earnings per share from continuing operations (c) | 0.13 | 0.11 | — | 0.24 | |||||||||||||||||||||||||
(a) Costs related to Reinvent, VF's transformation program, including restructuring charges and project-related costs, were $41.3 million and $59.1 million in the three and six months ended September 2024, respectively. These costs related primarily to severance and employee-related benefits and expenses related to the engagement of a consulting firm to support VF's transformation journey. VF entered into a contract with a consulting firm during the three months ended September 2024, with services under the contract expected to be substantially complete by the third quarter of Fiscal 2026. In addition to payment for services, the contract includes contingent fees tied to increases in VF's stock price through June 2027. Expenses related to the contract, including contingent fees, were $28.1 million and $31.1 million in the three and six months ended September 2024, respectively. Reinvent resulted in a net tax benefit of $10.5 million and $14.7 million in the three and six months ended September 2024, respectively. The Company currently estimates that it will incur approximately $190.0 million to $210.0 million in restructuring charges in connection with Reinvent, and that substantially all actions will be completed by the end of Fiscal 2025. Cumulative restructuring charges incurred through Q2 of Fiscal 2025 were approximately $134.1 million. Total fees associated with the contract with the consulting firm could be up to $135.0 million, with $75.0 million of the fees contingent on increases to VF’s stock price through June 2027. | |||||||||||||||||||||||||||||
(b) Transaction and deal related activities reflect activities associated with the review of strategic alternatives for the Global Packs business, consisting of the Kipling®, Eastpak® and JanSport® brands, which totaled $0.5 million for the six months ended September 2024. The transaction and deal related activities resulted in a net tax benefit of $0.1 million in the six months ended September 2024. | |||||||||||||||||||||||||||||
(c) Amounts shown in the table have been calculated using unrounded numbers. The diluted earnings per share impacts were calculated using 390,945,000 and 390,198,000 weighted average common shares for the three and six months ended September 2024, respectively. | |||||||||||||||||||||||||||||
Non-GAAP Financial Information | |||||||||||||||||||||||||||||
The financial information above has been presented on a GAAP basis and on an adjusted basis, which excludes the impact of Reinvent and transaction and deal related activities. The adjusted presentation provides non-GAAP measures. Management believes these measures provide investors with useful supplemental information regarding VF's underlying business trends and the performance of VF's ongoing operations and are useful for period-over-period comparisons of such operations. | |||||||||||||||||||||||||||||
Management uses the above financial measures internally in its budgeting and review process and, in some cases, as a factor in determining compensation. While management believes that these non-GAAP financial measures are useful in evaluating the business, this information should be considered as supplemental in nature and should be viewed in addition to, and not in lieu of or superior to, VF's operating performance measures calculated in accordance with GAAP. In addition, these non-GAAP financial measures may not be the same as similarly titled measures presented by other companies. |
Three Months Ended September 2023 | As Reported under GAAP | Transaction and Deal Related Activities (a) | Tax Items (b) | Adjusted | |||||||||||||||||||||||||
Revenues | $ | 2,920,123 | $ | — | $ | — | $ | 2,920,123 | |||||||||||||||||||||
Gross profit | 1,489,929 | — | — | 1,489,929 | |||||||||||||||||||||||||
Percent | 51.0 | % | 51.0 | % | |||||||||||||||||||||||||
Operating income | 350,539 | 328 | — | 350,867 | |||||||||||||||||||||||||
Percent | 12.0 | % | 12.0 | % | |||||||||||||||||||||||||
Diluted earnings (loss) per share from continuing operations (c) | (1.16) | — | 1.79 | 0.63 | |||||||||||||||||||||||||
Six Months Ended September 2023 | As Reported under GAAP | Transaction and Deal Related Activities (a) | Tax Items (b) | Adjusted | |||||||||||||||||||||||||
Revenues | $ | 4,888,186 | $ | — | $ | — | $ | 4,888,186 | |||||||||||||||||||||
Gross profit | 2,518,358 | — | — | 2,518,358 | |||||||||||||||||||||||||
Percent | 51.5 | % | 51.5 | % | |||||||||||||||||||||||||
Operating income | 320,690 | 1,446 | — | 322,136 | |||||||||||||||||||||||||
Percent | 6.6 | % | 6.6 | % | |||||||||||||||||||||||||
Diluted earnings (loss) per share from continuing operations (c) | (1.33) | — | 1.79 | 0.47 | |||||||||||||||||||||||||
(a) Transaction and deal related activities reflect activities associated with the review of strategic alternatives for the Global Packs business, consisting of the Kipling®, Eastpak® and JanSport® brands, which totaled $0.3 million and $1.4 million for the three and six months ended September 2023, respectively. The transaction and deal related activities resulted in a net tax benefit of $0.1 million and $0.4 million in the three and six months ended September 2023, respectively. | |||||||||||||||||||||||||||||
(b) Tax items include the impact to tax expense resulting from the decision by the U.S. Court of Appeals for the First Circuit on September 8, 2023 that upheld the U.S. Tax Court’s decision in favor of the Internal Revenue Service regarding the timing of income inclusion associated with VF’s acquisition of The Timberland Company in September 2011. The net impact to tax expense was an increase of approximately $670.3 million in the three and six months ended September 2023, excluding the reversal of accrued interest income, as a result of this decision. Tax items also include the impact to tax expense resulting from the decision by the General Court on September 20, 2023 that confirmed the decision of the European Union that Belgium’s excess profit tax regime amounted to illegal State aid. The net impact to tax expense was an increase of approximately $26.1 million in the three and six months ended September 2023, as a result of this ruling. | |||||||||||||||||||||||||||||
(c) Amounts shown in the table have been calculated using unrounded numbers. The GAAP diluted loss per share was calculated using 388,338,000 and 388,249,000 weighted average common shares for the three and six months ended September 2023, respectively. The adjusted diluted earnings per share impacts were calculated using 389,487,000 and 389,181,000 weighted average common shares for the three and six months ended September 2023, respectively. | |||||||||||||||||||||||||||||
Non-GAAP Financial Information | |||||||||||||||||||||||||||||
The financial information above has been presented on a GAAP basis and on an adjusted basis, which excludes the impact of transaction and deal related activities and certain tax items. The adjusted presentation provides non-GAAP measures. Management believes these measures provide investors with useful supplemental information regarding VF's underlying business trends and the performance of VF's ongoing operations and are useful for period-over-period comparisons of such operations. | |||||||||||||||||||||||||||||
Management uses the above financial measures internally in its budgeting and review process and, in some cases, as a factor in determining compensation. While management believes that these non-GAAP financial measures are useful in evaluating the business, this information should be considered as supplemental in nature and should be viewed in addition to, and not in lieu of or superior to, VF's operating performance measures calculated in accordance with GAAP. In addition, these non-GAAP financial measures may not be the same as similarly titled measures presented by other companies. |
Three Months Ended September 2024 | Six Months Ended September 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||
Top 4 Brand Revenue Growth | Americas | EMEA | APAC | Global | Americas | EMEA | APAC | Global | ||||||||||||||||||||||||||||||||||||||||||
The North Face® | ||||||||||||||||||||||||||||||||||||||||||||||||||
% change | (14)% | 0% | 20% | (3)% | (13)% | (2)% | 23% | (3)% | ||||||||||||||||||||||||||||||||||||||||||
% change constant currency* | (13)% | (2)% | 19% | (4)% | (12)% | (4)% | 24% | (3)% | ||||||||||||||||||||||||||||||||||||||||||
Vans® | ||||||||||||||||||||||||||||||||||||||||||||||||||
% change | (10)% | (7)% | (27)% | (11)% | (18)% | (5)% | (28)% | (16)% | ||||||||||||||||||||||||||||||||||||||||||
% change constant currency* | (9)% | (8)% | (26)% | (11)% | (17)% | (6)% | (27)% | (16)% | ||||||||||||||||||||||||||||||||||||||||||
Timberland® | ||||||||||||||||||||||||||||||||||||||||||||||||||
% change | (4)% | (3)% | 3% | (3)% | (2)% | (7)% | (8)% | (5)% | ||||||||||||||||||||||||||||||||||||||||||
% change constant currency* | (3)% | (5)% | 3% | (3)% | (1)% | (8)% | (7)% | (5)% | ||||||||||||||||||||||||||||||||||||||||||
Dickies® | ||||||||||||||||||||||||||||||||||||||||||||||||||
% change | (14)% | 2% | (16)% | (11)% | (14)% | 0% | (25)% | (13)% | ||||||||||||||||||||||||||||||||||||||||||
% change constant currency* | (14)% | 1% | (15)% | (11)% | (14)% | 0% | (23)% | (12)% | ||||||||||||||||||||||||||||||||||||||||||
*Refer to constant currency definition on previous pages. |
Three Months Ended September 2024 | Six Months Ended September 2024 | |||||||||||||||||||||||||
% Change | % Change Constant Currency* | % Change | % Change Constant Currency* | |||||||||||||||||||||||
Geographic Revenue Growth | ||||||||||||||||||||||||||
Americas | (10)% | (9)% | (11)% | (11)% | ||||||||||||||||||||||
EMEA | (3)% | (5)% | (4)% | (5)% | ||||||||||||||||||||||
APAC | 6% | 5% | 0% | 1% | ||||||||||||||||||||||
Greater China | 10% | 9% | 5% | 6% | ||||||||||||||||||||||
International | (2)% | (3)% | (4)% | (4)% | ||||||||||||||||||||||
Global | (6)% | (6)% | (7)% | (7)% | ||||||||||||||||||||||
Three Months Ended September 2024 | Six Months Ended September 2024 | |||||||||||||||||||||||||
% Change | % Change Constant Currency* | % Change | % Change Constant Currency* | |||||||||||||||||||||||
Channel Revenue Growth | ||||||||||||||||||||||||||
Wholesale (a) | (4)% | (5)% | (5)% | (6)% | ||||||||||||||||||||||
Direct-to-consumer | (8)% | (8)% | (11)% | (10)% | ||||||||||||||||||||||
Digital | (5)% | (5)% | (7)% | (7)% | ||||||||||||||||||||||
As of September | ||||||||||||||||||||||||||
2024 | 2023 | |||||||||||||||||||||||||
DTC Store Count | ||||||||||||||||||||||||||
Total | 1,160 | 1,235 | ||||||||||||||||||||||||
*Refer to constant currency definition on previous pages. | ||||||||||||||||||||||||||
(a) Royalty revenues are included in the wholesale channel for all periods. |