UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM 8-K
CURRENT
REPORT
PURSUANT
TO SECTION 13 OR 15(d) OF
THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event
reported):
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May 1, 2015
|
V.F.
Corporation
(Exact
Name of Registrant as Specified in Charter)
Pennsylvania
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1-5256
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23-1180120
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(State or Other Jurisdiction
of Incorporation)
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(Commission
File Number)
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(IRS Employer
Identification No.)
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105 Corporate Center Boulevard
Greensboro, North Carolina
|
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27408
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(Address
of Principal Executive
Offices)
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(Zip
Code)
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Registrant’s telephone number, including area code
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336-424-6000
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Check the
appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any
of the following provisions:
⃞
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
⃞
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
⃞
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
⃞
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Item 2.02.
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Results of Operations and Financial Condition.
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Item 7.01.
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Regulation FD Disclosure.
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The following information is furnished pursuant to Item 2.02, “Results
of Operations and Financial Condition,” and Item 7.01, “Regulation FD
Disclosure.”
On May 1, 2015, V.F. Corporation issued a press release setting forth
its first quarter 2015 earnings. A copy of the press release is
attached hereto as Exhibit 99 and hereby incorporated by reference.
In accordance with General Instruction B.2 of Form 8-K, the information
in this Current Report on Form 8-K, including Exhibit 99, shall not be
deemed to be “filed” for purposes of Section 18 of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise
subject to the liability of that section, and shall not be incorporated
by reference into any registration statement or other document filed
under the Securities Act of 1933, as amended, or the Exchange Act,
except as shall be expressly set forth by specific reference in such
filing.
Item 9.01.
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Financial Statements and Exhibits.
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(d)
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Exhibits.
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The following is furnished as an exhibit to this report:
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99
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V.F. Corporation press release dated May 1, 2015.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
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V.F. CORPORATION
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(Registrant)
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By:
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/s/ Scott A. Roe
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Scott A. Roe
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Vice President & Chief Financial Officer
(Chief Financial Officer)
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Date:
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May 1, 2015
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EXHIBIT INDEX
Exhibit No.
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Description
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99
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V.F. Corporation press release dated May 1, 2015.
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Exhibit 99
VF
Reports 2015 First Quarter Results
-
First
quarter revenues up 2 percent (up 8 percent currency neutral)
- Outdoor
& Action Sports revenues up 2 percent (up 10 percent currency neutral)
-
International revenues down 5 percent (up 9 percent currency neutral)
-
Direct-to-consumer revenues up 5 percent (up 11 percent currency neutral)
-
Jeanswear revenues up 1 percent (up 6 percent currency neutral)
-
Earnings
Per Share flat (up 13 percent currency neutral)
-
Full-year
currency neutral EPS now expected to increase 14 percent compared to
adjusted EPS of $3.08 in 2014 (up from previous 12 percent growth
expectation)
GREENSBORO, N.C.--(BUSINESS WIRE)--May 1, 2015--VF Corporation (NYSE:
VFC) today reported financial results for its first quarter ended April
4, 2015. All per share amounts are presented on a diluted basis. This
release refers to “currency neutral” and “reported” amounts, terms that
are described under the “Currency Neutral – Excluding the Impact of
Foreign Currency” paragraph. Reconciliations of GAAP measures to
currency neutral amounts are presented in the supplemental financial
information included with this release, which identifies and quantifies
all excluded items. Unless otherwise noted, currency neutral and
reported amounts are the same.
“We remain confident in the year ahead, the fundamental strength of our
business, and the significant momentum we see across our diverse
portfolio of brands,” said Eric Wiseman, VF Chairman, President and
Chief Executive Officer. “The proven strength of VF’s growth strategy,
driven by consistent execution and solid operational discipline, has led
us to increase our expectations for full-year currency neutral earnings
per share growth putting us on track to deliver another record year to
shareholders.”
First Quarter 2015 Highlights
-
Revenues rose 8 percent on a currency neutral basis including
growth in our Outdoor & Action Sports, Jeanswear, Imagewear and
Sportswear coalitions, and our international and direct-to-consumer
businesses. On a reported basis, revenues increased 2 percent over the
2014 quarter.
-
Gross margin was 49.0 percent on a reported basis, down 40
basis points compared with the same quarter last year and in line with
our expectations. Continued benefit from the shift of our revenue mix
toward higher margin businesses was more than offset by the impact of
foreign currency. The company continues to expect a 70 basis point
improvement for the full year to reach 49.5 percent on a currency
neutral basis (49.2 percent reported).
-
Operating income on a reported basis was down 1 percent to $398
million compared with the same period of 2014. Operating margin on a
reported basis declined 50 basis points to 14.0 percent, which
includes a 70 basis point headwind from changes in foreign currency
rates.
-
Earnings per share were up 13 percent on a currency neutral
basis and were flat on a reported basis compared with last year’s same
period.
Coalition Review
First quarter revenues for the Outdoor & Action Sports
coalition were up 10 percent on a currency neutral basis (up 2 percent
reported to $1.6 billion).
In line with our expectations, first quarter currency neutral revenues
for The North Face® brand rose 7 percent (up 1
percent reported), including a 20 percent increase (up 13 percent
reported) in direct-to-consumer business. By region, The North Face®
brand’s revenues were up at a mid single-digit percentage rate in the
Americas, up at a high single-digit rate (down low double-digit
reported) in Europe and up at a low double-digit percentage rate in the
Asia Pacific region. For the full year, the company’s expectation for
low double-digit currency neutral revenue growth for The North Face®
brand remains unchanged.
Currency neutral revenues for the Vans® brand in
the first quarter were up 16 percent (up 8 percent reported) including
balanced growth in its direct-to-consumer and wholesale businesses.
Revenues in the Americas region were up at a high-teen percentage rate
(up mid-teen reported), up more than 45 percent in the Asia Pacific
region and up at a mid single-digit rate (down low double-digit
reported) in Europe. In 2015, the company continues to expect a mid-teen
currency neutral percentage rate increase in revenues for the Vans®
brand.
First quarter revenues for the Timberland® brand
were up 10 percent on a currency neutral basis (flat reported) including
a 16 percent increase (up 6 percent reported) in its wholesale business.
In the Americas region, revenues were up at a high-teen percentage rate
driven by significant wholesale growth. In Asia Pacific, revenues in the
first quarter were up at a high single-digit rate (up low single-digit
reported) and in Europe, the Timberland® brand
was up at a low single-digit rate (down mid-teen reported). There is no
change to the company’s expectation for the Timberland®
brand revenues to increase at a low-teen percentage rate on a
currency neutral basis in 2015.
First quarter operating income for Outdoor & Action Sports was down 5
percent to $261 million (as reported) and operating margin declined 120
basis points to 16.2 percent (as reported), primarily due to changes in
foreign currency rates and increased investments in the
direct-to-consumer business, including the addition of 116 retail stores
on a year-over-year basis.
Jeanswear first quarter revenues were up 6 percent (up 1 percent
reported, to $700 million). Revenues for the Americas region improved at
a mid single-digit percentage rate. In Europe, revenues were up at a mid
single-digit percentage (down mid-teen reported) and in Asia, revenues
were up at a high single-digit rate.
Revenues for the Wrangler® brand in the first
quarter were up 9 percent (up 5 percent reported) driven by strength in
the Americas region, which realized low double-digit growth in the U.S.
mass channel and a mid single-digit increase in its western specialty
business. Wrangler® brand revenues in Europe were
down at a mid single-digit percentage rate (down more than 20 percent
reported) due to weakness in Eastern Europe and up at a low double-digit
percentage rate (high single-digit reported) in the Asia Pacific region.
Global revenues, on a currency neutral basis, for the Lee®
brand in the first quarter were up 4 percent (down 1 percent
reported) including a high single-digit percentage rate increase (up mid
single reported) in Asia Pacific and a mid-teen percentage increase
(down mid single-digit reported) in Europe. The Americas region, which
saw a low single-digit percentage decline in revenues, continues to work
through ongoing challenges in the U.S. mid-tier channel.
Operating income for Jeanswear in the first quarter rose 2 percent to
$132 million (as reported). Operating margin increased 20 basis points
to 18.9 percent (as reported) in the quarter, driven by increased volume.
Imagewear revenues were up 8 percent (up 7 percent reported to
$283 million) in the first quarter driven by a mid-teen percentage rate
increase in the workwear business with continued strong demand for the Red
Kap® brand. First quarter operating income for
Imagewear was up 9 percent to $41 million (as reported), with a 30 basis
point improvement in operating margin to 14.6 percent (as reported).
Sportswear first quarter revenues increased 3 percent to $136
million. Nautica® brand revenues were up at a low
single-digit percentage rate driven by strength in wholesale sales. The Kipling®
brand’s revenues in the U.S. were up 9 percent compared with the same
period last year. In the first quarter, operating income was up 2
percent to $13 million while operating margin was flat at 9.5 percent.
Contemporary Brands coalition first quarter revenues were down 7
percent (down 11 percent reported to $88 million), reflecting ongoing
challenges in demand for the sector.
International Review
International revenues, on a currency neutral basis, were up 9 percent
(down 5 percent reported) in the first quarter. Revenues in Europe were
up 4 percent (down 14 percent reported) and in the Asia Pacific region
were up 17 percent (up 13 percent reported). Revenues in the Americas
(non-U.S.) region were up 16 percent (up 4 percent reported). On a
reported basis, international revenues were 40 percent of total VF first
quarter sales compared with 43 percent in the same period of 2014.
Direct-to-Consumer Review
Direct-to-consumer revenues, on a currency neutral basis, grew 11
percent (up 5 percent reported) in the first quarter with positive
comparable sales growth in all regions and particular strength in
Europe. Twenty-three stores were opened during the first quarter
bringing the total number of VF-owned retail stores to 1,395. On a
reported basis, direct-to-consumer revenues reached 24 percent of total
revenues in the first quarter compared with 23 percent in the same
period of 2014.
Balance Sheet Highlights
In line with expectations, inventories were up 7 percent compared with
the same period of 2014. During the first quarter, VF purchased a total
of 10 million common shares for approximately $730 million under its
Board of Directors share repurchase authorization. No additional share
repurchases in 2015 are anticipated. Additionally, VF made a
discretionary contribution of $250 million to its U.S. qualified pension
plan, which is now fully funded.
2015 Currency Neutral Earnings Outlook Raised
Earnings per share, on a currency neutral basis, are now expected
to increase by 14 percent compared to adjusted earnings per share of
$3.08 in 2014. This is an increase from the previous expectation of 12
percent per share growth provided on February 13, 2015. Earnings per
share, on a reported basis, are still anticipated to increase by 4
percent to $3.20 compared to adjusted earnings per share of $3.08 in
2014. As a reminder, 2014 adjusted earnings per share excluded the
negative impact of a $0.70 noncash impairment charge recorded in the
fourth quarter of 2014 to reduce the carrying value of the goodwill and
intangible assets related to the 7 For All Mankind®,
Ella Moss® and Splendid®
brands. On a reported basis, 2014 earnings per share were $2.38.
Dividend Declared
VF’s Board of Directors declared a quarterly dividend of $0.32 per
share, payable on June 19, 2015, to shareholders of record on June 9,
2015.
Currency Neutral – Excluding the Impact of Foreign Currency
This release refers to “currency neutral”’ amounts for the first quarter
of 2015 and full-year outlook. Currency neutral amounts exclude
both the impact of translating foreign currencies into U.S. dollars and
the impact of currency rate changes on foreign currency denominated
transactions. This release also refers to “reported” amounts in
accordance with U.S. GAAP, which include translation and
transactional impacts from foreign currency exchange rates.
Reconciliations of GAAP measures to currency neutral amounts for the
first quarter of 2015 are presented in the supplemental financial
information included with this release, which identify and quantify all
excluded items.
Webcast Information
VF will hold its 2015 first quarter conference call and webcast today at
8:30 a.m. Eastern Time. Interested parties should call (800) 334-8065
(U.S.) or (913) 312-1422 (international) to access the call. The
conference call will be broadcast live and is accessible at www.vfc.com.
A replay of the conference call will be available from May 1 through May
8, 2015, via telephone at 877-870-5176 (access code: 5507207) or at www.vfc.com.
About VF
VF Corporation (NYSE: VFC) is a global leader in the design,
manufacture, marketing and distribution of branded lifestyle apparel,
footwear and accessories. The company’s highly diversified portfolio of
30 powerful brands spans numerous geographies, product categories,
consumer demographics and sales channels, giving VF a unique industry
position and the ability to create sustainable, long-term growth for our
customers and shareholders. The company’s largest brands are The
North Face®, Vans®,
Timberland®, Wrangler®, Lee®
and Nautica®. For more information, visit www.vfc.com.
Forward Looking Statements
Certain statements included in this release and the attachments are
"forward-looking statements" within the meaning of the federal
securities laws. Forward-looking statements are made based on our
expectations and beliefs concerning future events impacting VF and
therefore involve a number of risks and uncertainties. You can identify
these statements by the fact that they use words such as “will,”
“anticipate,” “estimate,” “expect,” “should,” and “may” and other words
and terms of similar meaning or use of future dates. We caution that
forward-looking statements are not guarantees and that actual results
could differ materially from those expressed or implied in the
forward-looking statements. Potential risks and uncertainties that could
cause the actual results of operations or financial condition of VF to
differ materially from those expressed or implied by forward-looking
statements in this release include, but are not limited to: foreign
currency fluctuations; the level of consumer demand for apparel,
footwear and accessories; disruption to VF’s distribution system; VF's
reliance on a small number of large customers; the financial strength of
VF's customers; VF's ability to implement its growth strategy; VF's
ability to grow its international and direct-to-consumer businesses; VF
and its customers’ ability to maintain the strength and security of
information technology systems; stability of VF's manufacturing
facilities and foreign suppliers; continued use by VF's suppliers of
ethical business practices; VF’s ability to accurately forecast demand
for products; VF's ability to protect trademarks and other intellectual
property rights; possible goodwill and other asset impairment; changes
in tax liabilities; and legal, regulatory, political and economic risks
in international markets. More information on potential factors that
could affect VF's financial results is included from time to time in
VF's public reports filed with the Securities and Exchange Commission,
including VF's Annual Report on Form 10-K and Quarterly Reports on Form
10-Q.
VF CORPORATION
Condensed Consolidated Statements of Income
(Unaudited)
(In thousands, except per share amounts)
|
|
|
|
|
|
|
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Three Months Ended March
|
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%
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2015
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2014
|
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Change
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|
|
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Net sales
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|
$
|
2,803,302
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|
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$
|
2,750,115
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|
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2
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%
|
Royalty income
|
|
|
33,999
|
|
|
|
30,663
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|
|
11
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%
|
|
|
|
|
|
|
|
Total revenues
|
|
|
2,837,301
|
|
|
|
2,780,778
|
|
|
2
|
%
|
|
|
|
|
|
|
|
Costs and operating expenses
|
|
|
|
|
|
|
Cost of goods sold
|
|
|
1,446,547
|
|
|
|
1,406,566
|
|
|
3
|
%
|
Selling, general and administrative expenses
|
|
|
992,919
|
|
|
|
971,022
|
|
|
2
|
%
|
|
|
|
2,439,466
|
|
|
|
2,377,588
|
|
|
3
|
%
|
|
|
|
|
|
|
|
Operating income
|
|
|
397,835
|
|
|
|
403,190
|
|
|
(1
|
%)
|
|
|
|
|
|
|
|
Interest, net
|
|
|
(19,751
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)
|
|
|
(19,306
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)
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|
(2
|
%)
|
Other income (expense), net
|
|
|
828
|
|
|
|
(2,092
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)
|
|
140
|
%
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
378,912
|
|
|
|
381,792
|
|
|
(1
|
%)
|
|
|
|
|
|
|
|
Income taxes
|
|
|
90,203
|
|
|
|
84,599
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|
|
7
|
%
|
|
|
|
|
|
|
|
Net income
|
|
$
|
288,709
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|
|
$
|
297,193
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|
|
(3
|
%)
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|
|
|
|
|
|
|
Earnings per common share
|
|
|
|
|
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|
Basic
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|
$
|
0.68
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|
|
$
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0.68
|
|
|
0
|
%
|
Diluted
|
|
$
|
0.67
|
|
|
$
|
0.67
|
|
|
0
|
%
|
|
|
|
|
|
|
|
Weighted average shares outstanding
|
|
|
|
|
|
|
Basic
|
|
|
426,255
|
|
|
|
438,290
|
|
|
|
Diluted
|
|
|
434,103
|
|
|
|
446,266
|
|
|
|
|
|
|
|
|
|
|
Cash dividends per common share
|
|
$
|
0.3200
|
|
|
$
|
0.2625
|
|
|
22
|
%
|
Basis of presentation: VF operates and reports using a 52/53 week
fiscal year ending on the Saturday closest to December 31 of each year.
For presentation purposes herein, all references to periods ended March
2015 and March 2014 relate to the 13 week fiscal periods ended April 4,
2015 and March 29, 2014, respectively.
VF CORPORATION
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March
|
|
December
|
|
March
|
|
|
2015
|
|
2014
|
|
2014
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
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Current assets
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|
|
|
|
|
|
Cash and equivalents
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|
$
|
655,483
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|
$
|
971,895
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|
$
|
321,672
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Accounts receivable, net
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|
|
1,283,216
|
|
|
1,276,224
|
|
|
1,310,468
|
Inventories
|
|
|
1,624,234
|
|
|
1,482,804
|
|
|
1,512,459
|
Other current assets
|
|
|
518,593
|
|
|
454,931
|
|
|
389,922
|
Total current assets
|
|
|
4,081,526
|
|
|
4,185,854
|
|
|
3,534,521
|
|
|
|
|
|
|
|
Property, plant and equipment
|
|
|
911,478
|
|
|
942,181
|
|
|
921,970
|
Intangible assets
|
|
|
2,291,505
|
|
|
2,433,552
|
|
|
2,946,959
|
Goodwill
|
|
|
1,795,359
|
|
|
1,824,956
|
|
|
2,022,086
|
Other assets
|
|
|
652,996
|
|
|
593,597
|
|
|
559,616
|
Total assets
|
|
$
|
9,732,864
|
|
$
|
9,980,140
|
|
$
|
9,985,152
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
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|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
Short-term borrowings
|
|
$
|
1,067,961
|
|
$
|
21,822
|
|
$
|
261,105
|
Current portion of long-term debt
|
|
|
3,384
|
|
|
3,975
|
|
|
5,142
|
Accounts payable
|
|
|
457,744
|
|
|
690,842
|
|
|
467,578
|
Accrued liabilities
|
|
|
749,237
|
|
|
903,602
|
|
|
807,708
|
Total current liabilities
|
|
|
2,278,326
|
|
|
1,620,241
|
|
|
1,541,533
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
1,422,840
|
|
|
1,423,581
|
|
|
1,425,833
|
Other liabilities
|
|
|
1,127,433
|
|
|
1,305,436
|
|
|
1,262,957
|
|
|
|
|
|
|
|
Stockholders' equity
|
|
|
4,904,265
|
|
|
5,630,882
|
|
|
5,754,829
|
Total liabilities and stockholders' equity
|
|
$
|
9,732,864
|
|
$
|
9,980,140
|
|
$
|
9,985,152
|
|
|
|
|
|
|
|
|
|
|
VF CORPORATION
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
|
|
|
|
|
|
|
|
Three Months Ended March
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating activities
|
|
|
|
|
Net income
|
|
$
|
288,709
|
|
|
$
|
297,193
|
|
Depreciation and amortization
|
|
|
65,880
|
|
|
|
64,017
|
|
Other noncash adjustments to net income
|
|
|
(217,814
|
)
|
|
|
62,796
|
|
Changes in operating assets and liabilities
|
|
|
(567,399
|
)
|
|
|
(410,352
|
)
|
Cash (used) provided by operating activities
|
|
|
(430,624
|
)
|
|
|
13,654
|
|
|
|
|
|
|
Investing activities
|
|
|
|
|
Capital expenditures
|
|
|
(33,028
|
)
|
|
|
(49,309
|
)
|
Software purchases
|
|
|
(36,708
|
)
|
|
|
(44,654
|
)
|
Other, net
|
|
|
10,617
|
|
|
|
(5,170
|
)
|
Cash used by investing activities
|
|
|
(59,119
|
)
|
|
|
(99,133
|
)
|
|
|
|
|
|
Financing activities
|
|
|
|
|
Net increase in short-term borrowings
|
|
|
1,047,660
|
|
|
|
242,586
|
|
Payments on long-term debt
|
|
|
(1,414
|
)
|
|
|
(1,099
|
)
|
Purchases of treasury stock
|
|
|
(730,811
|
)
|
|
|
(513,778
|
)
|
Cash dividends paid
|
|
|
(135,912
|
)
|
|
|
(114,776
|
)
|
Net impact of stock issuance
|
|
|
25,571
|
|
|
|
20,807
|
|
Cash provided (used) by financing activities
|
|
|
205,094
|
|
|
|
(366,260
|
)
|
|
|
|
|
|
Effect of foreign currency rate changes on cash and equivalents
|
|
|
(31,763
|
)
|
|
|
(2,992
|
)
|
|
|
|
|
|
Net change in cash and equivalents
|
|
|
(316,412
|
)
|
|
|
(454,731
|
)
|
|
|
|
|
|
Cash and equivalents - beginning of year
|
|
|
971,895
|
|
|
|
776,403
|
|
|
|
|
|
|
Cash and equivalents - end of period
|
|
$
|
655,483
|
|
|
$
|
321,672
|
|
|
|
|
|
|
|
|
|
|
VF CORPORATION
Supplemental Financial Information
Business Segment Information
(Unaudited)
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change
Currency
Neutral **
|
|
|
Three Months Ended March
|
|
%
|
|
|
|
2015
|
|
2014
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
Coalition revenues
|
|
|
|
|
|
|
|
|
Outdoor & Action Sports
|
|
$
|
1,606,889
|
|
|
$
|
1,574,647
|
|
|
2
|
%
|
|
10
|
%
|
Jeanswear
|
|
|
699,655
|
|
|
|
690,330
|
|
|
1
|
%
|
|
6
|
%
|
Imagewear
|
|
|
282,896
|
|
|
|
263,239
|
|
|
7
|
%
|
|
8
|
%
|
Sportswear
|
|
|
135,657
|
|
|
|
131,505
|
|
|
3
|
%
|
|
3
|
%
|
Contemporary Brands
|
|
|
87,537
|
|
|
|
98,169
|
|
|
(11
|
%)
|
|
(7
|
%)
|
Other
|
|
|
24,667
|
|
|
|
22,888
|
|
|
8
|
%
|
|
8
|
%
|
|
|
|
|
|
|
|
|
|
Total coalition revenues
|
|
$
|
2,837,301
|
|
|
$
|
2,780,778
|
|
|
2
|
%
|
|
8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coalition profit
|
|
|
|
|
|
|
|
|
Outdoor & Action Sports
|
|
$
|
260,820
|
|
|
$
|
274,490
|
|
|
(5
|
%)
|
|
7
|
%
|
Jeanswear
|
|
|
131,932
|
|
|
|
129,266
|
|
|
2
|
%
|
|
7
|
%
|
Imagewear
|
|
|
41,347
|
|
|
|
37,772
|
|
|
9
|
%
|
|
13
|
%
|
Sportswear
|
|
|
12,841
|
|
|
|
12,555
|
|
|
2
|
%
|
|
2
|
%
|
Contemporary Brands
|
|
|
3,540
|
|
|
|
7,902
|
|
|
(55
|
%)
|
|
(48
|
%)
|
Other
|
|
|
14,527
|
|
|
|
(3,116
|
)
|
|
*
|
|
*
|
|
|
|
|
|
|
|
|
|
Total coalition profit
|
|
|
465,007
|
|
|
|
458,869
|
|
|
1
|
%
|
|
10
|
%
|
|
|
|
|
|
|
|
|
|
Corporate and other expenses
|
|
|
(66,344
|
)
|
|
|
(57,771
|
)
|
|
(15
|
%)
|
|
(15
|
%)
|
Interest, net
|
|
|
(19,751
|
)
|
|
|
(19,306
|
)
|
|
(2
|
%)
|
|
(2
|
%)
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
$
|
378,912
|
|
|
$
|
381,792
|
|
|
(1
|
%)
|
|
10
|
%
|
|
|
|
|
|
|
|
|
|
* Calculation not meaningful
|
|
|
|
|
|
|
|
|
** Refer to currency neutral definition on following page
|
|
|
|
|
|
|
VF CORPORATION
Supplemental Financial Information
Business Segment Information – Currency Neutral Basis
(Unaudited)
(In thousands)
|
|
|
|
|
|
|
|
Three Months Ended March 2015
|
|
|
|
|
|
|
|
As Reported Under GAAP
|
|
Adjust for Foreign
Currency Exchange
|
|
|
|
|
|
Currency Neutral
|
|
|
|
|
|
|
Coalition revenues
|
|
|
|
|
|
Outdoor & Action Sports
|
$
|
1,606,889
|
|
|
$
|
(130,699
|
)
|
|
$
|
1,737,588
|
|
Jeanswear
|
|
699,655
|
|
|
|
(30,578
|
)
|
|
|
730,233
|
|
Imagewear
|
|
282,896
|
|
|
|
(1,939
|
)
|
|
|
284,835
|
|
Sportswear
|
|
135,657
|
|
|
|
-
|
|
|
|
135,657
|
|
Contemporary Brands
|
|
87,537
|
|
|
|
(3,710
|
)
|
|
|
91,247
|
|
Other
|
|
24,667
|
|
|
|
|
|
24,667
|
|
|
|
|
|
|
|
Total coalition revenues
|
$
|
2,837,301
|
|
|
$
|
(166,926
|
)
|
|
$
|
3,004,227
|
|
|
|
|
|
|
|
Coalition profit
|
|
|
|
|
|
Outdoor & Action Sports
|
$
|
260,820
|
|
|
$
|
(33,759
|
)
|
|
$
|
294,579
|
|
Jeanswear
|
|
131,932
|
|
|
|
(5,965
|
)
|
|
|
137,897
|
|
Imagewear
|
|
41,347
|
|
|
|
(1,362
|
)
|
|
|
42,709
|
|
Sportswear
|
|
12,841
|
|
|
|
-
|
|
|
|
12,841
|
|
Contemporary Brands
|
|
3,540
|
|
|
|
(540
|
)
|
|
|
4,080
|
|
Other
|
|
14,527
|
|
|
|
-
|
|
|
|
14,527
|
|
|
|
|
|
|
|
Total coalition profit
|
|
465,007
|
|
|
|
(41,626
|
)
|
|
|
506,633
|
|
|
|
|
|
|
|
Corporate and other expenses
|
|
(66,344
|
)
|
|
|
-
|
|
|
|
(66,344
|
)
|
Interest, net
|
|
(19,751
|
)
|
|
|
-
|
|
|
|
(19,751
|
)
|
|
|
|
|
|
|
Income before income taxes
|
$
|
378,912
|
|
|
$
|
(41,626
|
)
|
|
$
|
420,538
|
|
Currency Neutral Financial Information
VF is a global company that reports financial information in U.S.
dollars in accordance with generally accepted accounting principles.
Foreign currency exchange rate fluctuations affect the amounts reported
by VF from translating its foreign revenues and expenses into U.S.
dollars, and from entering foreign currency transactions. These rate
fluctuations can have a significant effect on reported operating
results. As a supplement to our reported operating results, we present
currency neutral financial information, which is a non-GAAP financial
measure that excludes the incremental current year impact of foreign
currency exchange. We use currency neutral 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 and
transaction gains and losses. 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 currency neutral 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). Similarly, transaction gains and losses on a
currency neutral basis are calculated using exchange rates from the
comparable period of the prior year.
These currency neutral 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 currency neutral
information presented may not be comparable to similarly titled measures
reported by other companies.
CONTACT:
VF Corporation
Lance Allega
Vice
President, Investor Relations
336-424-6082
or
Craig Hodges
Director,
Corporate Communications
336-424-5636
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