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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October 23, 2015
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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. Results of Operations and Financial Condition.
Item 7.01. Regulation FD Disclosure.
The following information is furnished pursuant to Item 2.02, “Results
of Operations and Financial Condition,” and Item 7.01, “Regulation FD
Disclosure.”
On October 23, 2015, V.F. Corporation issued a press release setting
forth its third 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. Financial Statements and Exhibits.
(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 October 23, 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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October 23, 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 October 23, 2015.
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Exhibit 99
VF
Reports 2015 Third Quarter Results
-
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
GREENSBORO, N.C.--(BUSINESS WIRE)--October 23, 2015--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)
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Three Months Ended September
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%
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Nine Months Ended September
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%
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2015
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2014
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Change
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2015
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2014
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Change
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Net sales
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$
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3,583,027
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$
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3,486,998
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3%
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$
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8,870,518
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$
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8,610,521
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3%
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Royalty income
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29,793
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33,449
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(11%)
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93,463
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92,780
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1%
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Total revenues
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3,612,820
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3,520,447
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3%
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8,963,981
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8,703,301
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3%
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Costs and operating expenses
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Cost of goods sold
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1,883,610
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1,818,655
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4%
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4,630,503
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4,464,565
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4%
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Selling, general and administrative expenses
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1,086,282
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1,068,710
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2%
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3,069,688
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2,982,656
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3%
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2,969,892
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2,887,365
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3%
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7,700,191
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7,447,221
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3%
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Operating income
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642,928
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633,082
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2%
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1,263,790
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1,256,080
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1%
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Interest, net
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(20,818)
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(20,703)
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(1%)
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(61,697)
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(59,828)
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(3%)
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Other income (expense), net
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(1,280)
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(1,609)
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20%
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218
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(4,209)
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105%
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Income before income taxes
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620,830
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610,770
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2%
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1,202,311
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1,192,043
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1%
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Income taxes
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160,966
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140,241
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15%
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282,927
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266,639
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6%
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Net income
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$
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459,864
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$
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470,529
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(2%)
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$
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919,384
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$
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925,404
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(1%)
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Earnings per common share
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Basic
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$
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1.08
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$
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1.09
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(1%)
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$
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2.16
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$
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2.14
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1%
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Diluted
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$
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1.07
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$
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1.08
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(1%)
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$
|
2.13
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$
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2.10
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1%
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Weighted average shares outstanding
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Basic
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425,208
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|
|
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430,638
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|
|
|
|
|
|
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425,273
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|
|
|
432,956
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Diluted
|
|
431,460
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|
|
|
437,587
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|
|
|
|
|
|
|
432,091
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|
|
|
440,328
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|
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Cash dividends per common share
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$
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0.3200
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$
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0.2625
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22%
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$
|
0.9600
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$
|
0.7875
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22%
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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)
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September
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|
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December
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|
|
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.
CONTACT:
VF Corporation Contacts:
Lance Allega
Vice
President, Investor Relations
336-424-6082
or
Craig Hodges
Director,
Corporate Communications
336-424-5636
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