- Third quarter revenue up 3 percent
(up 8 percent currency neutral)
- Outdoor & Action Sports revenue
up 5 percent (up 13 percent currency neutral)
- International revenue down 5 percent
(up 9 percent currency neutral)
- Direct-to-consumer revenue up 3
percent (up 8 percent currency neutral)
- Earnings per share down 1 percent
(up 14 percent currency neutral)
- Quarterly dividend increased by 16
percent to $0.37 per share
VF Corporation (NYSE:VFC) today reported financial results for
its third quarter ended Oct. 3, 2015. All per share amounts are
presented on a diluted basis. This release refers to amounts as
“reported” and “currency neutral” (a non-GAAP financial measure),
terms that are described below under the “Currency Neutral –
Excluding the Impact of Foreign Currency” paragraph. Unless
otherwise noted, currency neutral and reported amounts are the
same.
“On a currency neutral basis, our year-to-date revenue is up 9
percent and our earnings per share are up 15 percent – a
performance that affirms our ability to leverage our diverse,
competitive assets to fuel consistent, long-term growth,” said Eric
Wiseman, VF Chairman and Chief Executive Officer. “Today’s results
speak to the power of VF’s brands and platforms to perform well in
what is proving to be a mixed retail environment. We delivered
excellent operating results by staying focused on what we do best –
bringing relevant, innovative product to the marketplace,
amplifying our relationships with consumers and driving operational
excellence into every area of our business.”
Third Quarter 2015 Highlights
- Revenue increased 8 percent on a
currency neutral basis driven by double-digit growth in our Outdoor
& Action Sports coalition and strength in our Jeanswear
coalition, and our international and direct-to-consumer businesses.
On a reported basis, revenue increased 3 percent over the 2014
quarter.
- Gross margin was 48.9 percent on
a currency neutral basis, representing a 60 basis point improvement
over the same period last year. Reported gross margin was down 40
basis points to 47.9 percent as benefits from more favorable
product costs and continued mix shift to higher margin businesses
were offset by foreign currency headwinds in the quarter –
especially movements in the euro, Chinese renminbi, British pound
sterling, Canadian dollar and Mexican peso.
- Currency neutral operating
income was up 14 percent (up 2 percent reported to $643
million) compared with the same period in 2014. Currency neutral
operating margin was 19.0 percent, a 100 basis point
improvement over the same period last year. Reported operating
margin declined 20 basis points to 17.8 percent due to the negative
impact from changes in foreign currency.
- Earnings per share rose 14
percent on a currency neutral basis compared with last year’s same
period. On a reported basis, earnings per share were down 1 percent
to $1.07.
- Inventories were up 12 percent
compared to the 2014 quarter reflecting order book timing. This
increase was in line with expectations.
Coalition Review
Third quarter revenue for the Outdoor & Action Sports
coalition was up 13 percent on a currency neutral basis (up 5
percent reported to $2.3 billion) driven by similar growth rates in
both its wholesale and direct-to-consumer businesses.
Third quarter currency neutral revenue for The North Face® brand
rose 11 percent (up 6 percent reported), driven by balanced growth
in its wholesale and direct-to-consumer businesses. By region, The
North Face® brand’s revenue was up at a low double-digit percentage
rate in the Americas, up at a low single-digit rate (down
low-double reported) in Europe and up at a high-teen percentage
rate (up mid-teen reported) 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 revenue for the Vans® brand in the third
quarter was up 10 percent (up 2 percent reported) including a
high-teen percentage rate increase (up low-teen reported) in
direct-to-consumer sales and mid single-digit growth (down
mid-single reported) in wholesale sales. Revenue in the Americas
region was up at a low double-digit percentage rate (up high-single
reported), up at a high-teen rate in the Asia-Pacific region (up
low-teen reported), and up at a mid single-digit percentage rate
(down low-teen reported) in Europe. In 2015, the company continues
to expect a mid-teen currency neutral percentage rate increase in
revenue for the Vans® brand.
Third quarter revenue for the Timberland® brand was up 21
percent on a currency neutral basis (up 11 percent reported)
including more than 25 percent growth (up mid-teen reported) in its
wholesale business and a low single-digit increase (down mid-single
reported) in direct-to-consumer sales. In the Americas region,
revenue was up more than 40 percent due to a combination of strong
performance and lower third quarter revenue in 2014 due to phasing
of orders. This growth should normalize to a full-year high-teen
percentage rate increase, placing the Timberland® brand’s Americas
business in line with expectations. In Europe, revenue was up at a
high single-digit percentage rate (down high-single reported) and
in the Asia-Pacific region, revenue in the third quarter was up at
a low single-digit percentage rate (down low-single reported).
There is no change in the company’s expectation that Timberland®
brand global revenue will increase at a low-teen percentage rate on
a currency neutral basis in 2015.
Third quarter operating income for Outdoor & Action Sports
was up 3 percent to $488 million (as reported) and operating margin
declined 60 basis points to 21.2 percent (as reported), due to the
continued strengthening of the U.S. dollar against most foreign
currencies. Excluding the negative impact of foreign currency,
operating income was up 16 percent in the quarter.
Jeanswear’s third quarter currency neutral revenue was up
4 percent (flat reported, at $748 million). Revenue for the
Americas region improved at a mid single-digit percentage rate (up
low-single reported). In Europe, revenue increased at a mid
single-digit percentage rate (down mid-teen reported) and in the
Asia-Pacific region, revenue increased at a high single-digit
percentage rate (up low-single reported).
Currency neutral revenue for the Wrangler® brand in the third
quarter was up 3 percent (down 1 percent reported) driven by
strength in the Americas region, which realized a low single-digit
increase. Revenue in Europe was up at a low single-digit percentage
rate (down mid-teen reported) and down at a mid single-digit
percentage rate (down low-double reported) in the Asia-Pacific
region.
Global revenue, on a currency neutral basis, for the Lee® brand
in the third quarter was up 8 percent (up 2 percent reported)
including a high single-digit percentage rate increase (up
mid-single reported) in the Americas region and a high single-digit
increase (down low-double reported) in Europe. Revenue in the
Asia-Pacific region was up at a high single-digit percentage rate
(up mid-single reported).
Operating income for Jeanswear in the third quarter was up 1
percent to $159 million (as reported) and operating margin
increased 30 basis points to 21.2 percent (as reported). Excluding
the negative impact of foreign currency, operating income was up 8
percent in the quarter.
Imagewear’s currency neutral revenue was up 1 percent
(flat reported, at $292 million) in the third quarter, driven by 10
percent growth (up high-single reported) in the Licensed Sports
Group business offset by a high single-digit percentage rate
decline in the workwear business due primarily to slower oil
exploration. Third quarter operating income for Imagewear was down
2 percent to $42 million (as reported), with a 30 basis point
decrease in operating margin to 14.3 percent (as reported).
Third quarter Sportswear coalition revenue was down 1
percent to $162 million based on a low single-digit percentage
decline in Nautica® brand revenue compared with the same period
last year. In the third quarter, operating income was flat at $23
million while operating margin improved 20 basis points to 14.3
percent (as reported).
Contemporary Brands’ third quarter currency neutral
revenue for the coalition was down 13 percent (down 16 percent
reported to $83 million).
International Review
In its largest quarter of the year, currency neutral
international revenue was up 9 percent (down 5 percent reported).
Revenue in Europe was up 5 percent (down 11 percent reported) and
up 12 percent (up 7 percent reported) in the Asia-Pacific region,
driven by strength in China. Revenue in the Americas (non-U.S.)
region was up 19 percent (up 1 percent reported). On a reported
basis, the international business was 38 percent of total VF third
quarter revenue compared with 41 percent in the same period of
2014.
Direct-to-Consumer Review
Direct-to-consumer revenue, on a currency neutral basis, grew 8
percent (up 3 percent reported) in the third quarter. Sixty stores
were opened during the third quarter bringing the total number of
VF-owned retail stores around the world to 1,480. On a reported
basis, direct-to-consumer revenue was 22 percent of total revenue
in the third quarter, the same percentage as last year’s third
quarter.
2015 Outlook
“2015 is on track to be another solid year for VF, driven by
strong performances in our Outdoor & Action Sports and
Jeanswear brands and our International and Direct-to-Consumer
platforms,” Wiseman continued. “And while we see some softness in
certain areas of our business and have elected to true up our full
year outlook, our fundamentals remain solid and we have great
confidence in our ability to provide sustainable, long-term returns
for our shareholders.”
Key points related to VF’s full year 2015 outlook include:
- Revenue, on a currency neutral
basis, is expected to be up 7.5 percent (up about 3 percent
reported). By coalition and business:
- Outdoor & Action Sports: no change
to expectation of a low double-digit currency neutral percentage
rate increase in revenues (up mid-single reported).
- Jeanswear: no change to expectation of
a mid single-digit currency neutral percentage rate increase in
revenues (up low-single reported).
- Imagewear: due to weakness in the
workwear business which has been impacted by slower oil
exploration, full year revenue is now expected to be flat compared
with the previous outlook of a mid single-digit percentage rate
increase.
- Sportswear: revenue is expected to be
up at a low single-digit rate for the full year, compared with the
previous outlook of a mid single-digit percentage rate increase,
due to ongoing softness in the direct-to-consumer business.
- Contemporary Brands: due to weakness in
both wholesale and direct-to-consumer channels, full year revenue
is now expected to be down at a high single-digit currency neutral
percentage rate (down low-double reported) compared with the
previous expectation of a mid single-digit currency neutral rate
decline (down high-single reported).
- Direct-to-Consumer: revenue is now
expected to increase at a low double-digit percentage rate (up
high-single reported) versus the previous expectation of a mid-teen
currency neutral rate increase (up low-double reported).
- There is no change to the company’s
expectation that currency neutral gross margin should
improve by 70 basis points to reach about 49.5 percent for the full
year. Based on expected changes in foreign currency for the balance
of the year, reported gross margin is now expected to be flat with
2014.
- There is no change to the expectation
that currency neutral earnings per share will increase by 15
percent compared to an adjusted EPS of $3.08 in 2014. Due to
approximately $0.04 per share of greater than expected negative
changes in foreign currency during the third quarter, reported
earnings for the full year are now anticipated to increase by
approximately 3 percent to $3.18 compared to an adjusted EPS 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 was $2.38.
Dividend Declared
On Oct. 20, 2015, reflecting their confidence in VF’s future,
the Board of Directors declared a quarterly dividend of $0.37 per
share, reflecting a 16 percent increase over the previous quarter’s
dividend. This represents the company’s 43rd consecutive year in
which the annual dividend has increased. This dividend will be
payable on Dec. 18, 2015 to shareholders of record at the close of
business on Dec. 8, 2015.
Currency Neutral – Excluding the Impact of Foreign
Currency
This release refers to “currency neutral” amounts for the third
quarter and first nine months 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. generally accepted accounting principles
(“GAAP”), which include translation
and transactional impacts from foreign currency exchange rates.
Reconciliations of GAAP measures to currency neutral amounts for
the third quarter and first nine months of 2015 are presented in
the attached supplemental financial information, which identify and
quantify all excluded items.
Webcast Information
VF will hold its 2015 third quarter conference call and webcast
today at approximately 8:30 a.m. Eastern Time. Interested parties
should call (888) 208-1386 (U.S.) or (913) 312-0940 (international)
to access the call. The conference call will be broadcast live and
accessible at www.vfc.com. A replay of the conference call will be
available through Oct. 30, 2015 at the same location or via
telephone at 877-870-5176 (access code: 984432).
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)
Three
Months Ended September % Nine Months Ended
September % 2015 2014 Change
2015 2014 Change Net sales $
3,583,027 $ 3,486,998 3% $ 8,870,518 $ 8,610,521 3%
Royalty
income 29,793 33,449 (11%) 93,463
92,780 1%
Total revenues 3,612,820
3,520,447 3% 8,963,981 8,703,301 3%
Costs
and operating expenses Cost of goods sold 1,883,610 1,818,655
4% 4,630,503 4,464,565 4% Selling, general and administrative
expenses 1,086,282 1,068,710 2% 3,069,688
2,982,656 3% 2,969,892 2,887,365 3%
7,700,191 7,447,221 3%
Operating income
642,928 633,082 2% 1,263,790 1,256,080 1% Interest, net
(20,818) (20,703) (1%) (61,697) (59,828) (3%) Other income
(expense), net (1,280) (1,609) 20% 218
(4,209) 105%
Income before income taxes 620,830
610,770 2% 1,202,311 1,192,043 1%
Income taxes
160,966 140,241 15% 282,927 266,639 6%
Net income $ 459,864 $ 470,529 (2%) $ 919,384 $ 925,404 (1%)
Earnings per common share Basic $ 1.08 $ 1.09 (1%) $
2.16 $ 2.14 1% Diluted $ 1.07 $ 1.08 (1%) $ 2.13 $ 2.10 1%
Weighted average shares outstanding Basic 425,208 430,638
425,273 432,956 Diluted 431,460 437,587 432,091 440,328
Cash dividends per common share $ 0.3200 $ 0.2625 22% $
0.9600 $ 0.7875 22%
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 December 31 of each year.
For presentation purposes herein, all references to periods ended
September 2015, December 2014 and September 2014 relate to the
13-week and 39-week fiscal periods ended October 3, 2015, the
53-week fiscal period ended January 3, 2015 and the 13-week and
39-week fiscal periods ended September 27, 2014, respectively.
VF CORPORATION
Condensed Consolidated Balance
Sheets
(Unaudited)
(In thousands)
September December
September 2015 2014 2014
ASSETS Current assets Cash and equivalents $ 566,599
$ 971,895 $ 496,500 Accounts receivable, net 1,870,530 1,276,224
1,764,636 Inventories 2,038,126 1,482,804 1,822,162 Other current
assets 460,562 454,931 440,915 Total current
assets 4,935,817 4,185,854 4,524,213
Property, plant and
equipment 981,558 942,181 940,193
Intangible assets
2,309,481 2,433,552 2,785,651
Goodwill 1,800,008 1,824,956
1,989,871
Other assets 625,058 593,597
575,948 Total assets $ 10,651,922 $ 9,980,140 $ 10,815,876
LIABILITIES AND STOCKHOLDERS' EQUITY Current
liabilities Short-term borrowings $ 1,285,388 $ 21,822 $
654,839 Current portion of long-term debt 13,197 3,975 4,374
Accounts payable 580,368 690,842 674,950 Accrued liabilities
904,667 903,602 932,315 Total current liabilities
2,783,620 1,620,241 2,266,478
Long-term debt
1,411,446 1,423,581 1,424,311
Other liabilities 1,095,659
1,305,436 1,262,727
Stockholders' equity
5,361,197 5,630,882 5,862,360 Total liabilities and
stockholders' equity $ 10,651,922 $ 9,980,140 $ 10,815,876
VF CORPORATION
Condensed Consolidated Statements of
Cash Flows
(Unaudited)
(In thousands)
Nine Months Ended September 2015
2014 Operating activities Net income $ 919,384
$ 925,404 Depreciation and amortization 198,304 200,519 Other
noncash adjustments to net income (138,723 ) 198,667 Changes in
operating assets and liabilities (1,309,926 )
(957,744 ) Cash (used) provided by operating activities (330,961 )
366,846
Investing activities Capital expenditures
(187,281 ) (171,606 ) Software purchases (53,053 ) (66,815 ) Other,
net 3,150 (16,612 ) Cash used by investing
activities (237,184 ) (255,033 )
Financing activities
Net increase in short-term borrowings 1,268,146 637,786 Payments on
long-term debt (3,163 ) (3,549 ) Payments of debt issuance costs
(1,475 ) - Purchases of treasury stock (731,936 ) (727,536 ) Cash
dividends paid (407,684 ) (340,690 ) Net impact of stock issuance
73,918 57,219 Cash provided (used) by
financing activities 197,806 (376,770 )
Effect of foreign
currency rate changes on cash and equivalents (34,957 )
(14,946 )
Net change in cash and equivalents
(405,296 ) (279,903 )
Cash and equivalents - beginning of
year 971,895 776,403
Cash
and equivalents - end of period $ 566,599 $ 496,500
VF CORPORATION
Supplemental Financial
Information
Business Segment Information
(Unaudited)
(In thousands)
% Change
% Change
Three Months Ended September
% Currency
Nine Months Ended September
%
Currency 2015 2014 Change
Neutral** 2015 2014 Change
Neutral** Coalition revenues Outdoor &
Action Sports $ 2,296,551 $ 2,180,879 5% 13% $ 5,299,784 $
5,034,670 5% 13% Jeanswear 747,869 750,446 0% 4% 2,055,725
2,046,614 0% 5% Imagewear 291,540 292,531 0% 1% 823,224 805,733 2%
3% Sportswear 161,697 163,442 (1%) (1%) 439,545 435,049 1% 1%
Contemporary Brands 83,194 99,382 (16%) (13%) 257,605 293,737 (12%)
(9%) Other 31,969 33,767 (5%) (5%) 88,098
87,498 1% 1% Total coalition revenues $ 3,612,820 $
3,520,447 3% 8% $ 8,963,981 $ 8,703,301 3% 9%
Coalition profit Outdoor & Action Sports $ 487,929 $
475,444 3% 16% $ 883,674 $ 880,618 0% 14% Jeanswear 158,603 156,998
1% 8% 395,103 386,401 2% 7% Imagewear 41,830 42,855 (2%) 2% 118,627
115,944 2% 6% Sportswear 23,194 22,979 1% 1% 50,468 45,801 10% 10%
Contemporary Brands 585 4,869 (88%) (71%) 5,265 21,611 (76%) (68%)
Other 354 1,193 * * 15,478 (1,997) * *
Total coalition profit 712,495 704,338 1% 12% 1,468,615
1,448,378 1% 11%
Corporate and other expenses
(70,847) (72,865) 3% 4% (204,607) (196,507) (4%) (4%)
Interest,
net (20,818) (20,703) (1%) (1%) (61,697)
(59,828) (3%) (3%)
Income before income taxes
$ 620,830 $ 610,770 2% 15% $ 1,202,311 $ 1,192,043 1% 13%
* 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 September 2015
As Reported
Adjust for Foreign
Under GAAP Currency Exchange Currency Neutral
Coalition revenues Outdoor & Action Sports $
2,296,551
$ 160,762 $ 2,457,313 Jeanswear 747,869 34,128 781,997 Imagewear
291,540 3,017 294,557 Sportswear 161,697 - 161,697 Contemporary
Brands 83,194 3,074 86,268 Other 31,969 -
31,969 Total coalition revenues $
3,612,820 $ 200,981 $ 3,813,801
Coalition profit Outdoor & Action Sports $ 487,929 $
65,882 $ 553,811 Jeanswear 158,603 11,049 169,652 Imagewear 41,830
1,682 43,512 Sportswear 23,194 - 23,194 Contemporary Brands 585 834
1,419 Other 354 - 354
Total coalition profit 712,495 79,447 791,942
Corporate and other expenses (70,847 ) 924 (69,923 )
Interest, net (20,818 ) -
(20,818 )
Income before income taxes $ 620,830
$ 80,371 $ 701,201
Diluted earnings per
share growth (1 %) 15 % 14 %
Currency Neutral 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,
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.
VF CORPORATION
Supplemental Financial
Information
Business Segment Information – Currency
Neutral Basis
(Unaudited)
(In thousands)
Nine Months Ended September 2015
As Reported Adjust for Foreign Under
GAAP Currency Exchange Currency Neutral
Coalition revenues Outdoor & Action Sports $ 5,299,784 $
382,614 $ 5,682,398 Jeanswear 2,055,725 87,108 2,142,833 Imagewear
823,224 7,000 830,224 Sportswear 439,545 - 439,545 Contemporary
Brands 257,605 11,044 268,649 Other 88,098 -
88,098 Total coalition revenues $
8,963,981 $ 487,766 $ 9,451,747
Coalition profit Outdoor & Action Sports $ 883,674 $
119,177 $ 1,002,851 Jeanswear 395,103 18,195 413,298 Imagewear
118,627 3,998 122,625 Sportswear 50,468 - 50,468 Contemporary
Brands 5,265 1,688 6,953 Other 15,478 -
15,478 Total coalition profit 1,468,615
143,058 1,611,673
Corporate and other expenses
(204,607 ) 904 (203,703 )
Interest, net (61,697 )
- (61,697 )
Income before income
taxes $ 1,202,311 $ 143,962 $ 1,346,273
Diluted earnings per share growth 1 % 14 %
15 %
Currency Neutral 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,
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.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20151023005067/en/
VF Corporation
Contacts:Lance AllegaVice President, Investor
Relations336-424-6082orCraig HodgesDirector, Corporate
Communications336-424-5636
VF (NYSE:VFC)
Historical Stock Chart
From Jun 2024 to Jul 2024
VF (NYSE:VFC)
Historical Stock Chart
From Jul 2023 to Jul 2024