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):
|
February 19, 2016
|
V.F.
Corporation
(Exact
Name of Registrant as Specified in Charter)
Pennsylvania
|
1-5256
|
23-1180120
|
(State or Other Jurisdiction
of Incorporation)
|
(Commission
File Number)
|
(IRS Employer
Identification No.)
|
105 Corporate Center Boulevard
Greensboro, North Carolina
|
|
27408
|
(Address
of Principal Executive
Offices)
|
|
(Zip
Code)
|
Registrant’s telephone number, including area code
|
336-424-6000
|
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 February 19, 2016, V.F. Corporation issued a press release setting
forth its fourth quarter and full year 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)
|
Exhibits.
|
|
|
|
|
|
The following is furnished as an exhibit to this report:
|
|
|
|
|
99
|
V.F. Corporation press release dated February 19, 2016.
|
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.
|
|
|
V.F. CORPORATION
|
|
|
|
|
(Registrant)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By:
|
/s/ Scott A. Roe
|
|
|
|
|
Scott A. Roe
|
|
|
|
|
Vice President & Chief Financial Officer (Chief Financial
Officer)
|
|
|
|
|
|
|
|
Date:
|
February 19, 2016
|
|
|
|
|
EXHIBIT INDEX
Exhibit No.
|
Description
|
|
|
99
|
V.F. Corporation press release dated February 19, 2016.
|
Exhibit 99
VF
Reports 2015 Fourth Quarter and Full Year Results; Announces Outlook for
2016
-
2015
revenue up 1 percent to $12.4 billion (up 6 percent currency neutral);
excluding changes in foreign currency and last year’s 53rd
week, 2015 revenue increased 7 percent;
-
2015
EPS was up 20 percent to $2.85 from $2.38 per share in 2014; adjusted
EPS, which excludes noncash impairment charges in both 2015 and 2014,
was flat at $3.08 (up 12 percent currency neutral);
-
2016
revenue expected to increase at a mid single-digit percentage rate;
-
2016
gross margin expected to approximate 48.8 percent, net of an
anticipated 70 basis points of negative impact from changes in foreign
currency;
-
2016
currency neutral EPS expected to increase 11 percent (up 5 percent
reported) compared to adjusted EPS of $3.08 in 2015;
and,
-
Expected
to return $1.5 billion to shareholders in 2016 through share
repurchases and dividends.
GREENSBORO, N.C.--(BUSINESS WIRE)--February 19, 2016--VF Corporation
(NYSE: VFC) today reported financial results for its fourth quarter and
full year ended January 2, 2016. All per share amounts are on a diluted
basis. This release refers to amounts as “reported”, “currency neutral”
and “adjusted.” Currency neutral and adjusted amounts are non-GAAP
financial measures described below under the “Currency Neutral –
Excluding the Impact of Foreign Currency” and “Adjusted Amounts –
Excluding Noncash Impairment Charges” paragraphs, respectively. Unless
otherwise noted, currency neutral and reported amounts are the same.
This release also refers to the impact of the 53rd week of
2014, as described under the “52/53 Week Fiscal Year” paragraph.
“The final quarter of 2015 challenged many companies to leverage core
strengths and adapt quickly to a changing landscape,” said Eric Wiseman,
VF Chairman and Chief Executive Officer. “Our focus, discipline and
agility amid a softer consumer environment, record warm weather and a
strengthening U.S. dollar have us well positioned to navigate what we
believe to be a relatively short-term challenge. Going forward, I remain
confident in VF’s ability to deliver continued long-term profitable
growth and value creation for our shareholders.”
“Our full year 2015 was also affected by many of the same challenges we
saw in the fourth quarter, including a tough comparison against 2014’s 53rd
week,” continued Wiseman. “In fact, when normalized over 2014 and 2015,
currency neutral revenue grew 7 percent and earnings grew 13 percent
annually over this period, in line with our long-term earnings growth
target.”
Fourth Quarter 2015 Review
-
Revenue was down 5 percent (down 1 percent currency neutral).
Excluding the impact of changes in foreign currency and the 53rd
week, fourth quarter revenue increased 3 percent.
-
Gross margin was 49.0 percent on a currency neutral basis, in
line with last year. Reported gross margin was down 70 basis points to
48.3 percent as benefits from more favorable product costs and
continued mix shift to higher margin businesses were offset by foreign
currency headwinds and aggressive efforts to manage inventory.
-
A $144 million pre-tax, noncash impairment charge ($0.23 per share
after tax) was recorded to reduce the carrying value of intangible
assets related to our 7 For All Mankind®, Ella
Moss® and Splendid® brands.
-
Operating income, on an adjusted basis, declined 6 percent to
$541 million in the fourth quarter. On a GAAP basis, fourth quarter
operating income was $397 million. Adjusted operating margin reached
15.8 percent, net of 70 basis points of foreign currency headwinds,
compared with 16.2 percent in the fourth quarter of 2014. On a GAAP
basis, fourth quarter operating margin was 11.6 percent compared with
5.1 percent in last year’s same period.
-
Adjusted earnings per share was $0.95 per share compared with
$0.98 per share during the same period last year. Excluding the
negative impact of foreign currency, fourth quarter adjusted earnings
per share was up 5 percent. On a GAAP basis, earnings per share was up
157 percent to $0.72.
The following table provides comparisons of changes in reported,
currency neutral, and currency neutral excluding the 53rd
week revenue growth rates for the fourth quarter of 2015.
Q4 2015
|
|
|
|
|
|
|
% Change
Reported
|
|
% Change
Currency
Neutral
|
|
% Change Currency
Neutral & Excluding
53rd Week
|
Coalition Revenue
|
|
|
|
|
|
Outdoor & Action Sports
|
(3
|
%)
|
|
1
|
%
|
|
5
|
%
|
Jeanswear
|
(2
|
%)
|
|
1
|
%
|
|
6
|
%
|
Imagewear
|
(13
|
%)
|
|
(12
|
%)
|
|
(7
|
%)
|
Sportswear
|
(9
|
%)
|
|
(9
|
%)
|
|
(6
|
%)
|
Contemporary Brands
|
(19
|
%)
|
|
(17
|
%)
|
|
(10
|
%)
|
Total Coalition Revenue
|
(5
|
%)
|
|
(1
|
%)
|
|
3
|
%
|
Full Year 2015 Review
-
Revenue increased 1 percent (up 6 percent currency neutral) to
$12.4 billion driven by strength in our Outdoor & Action Sports
coalition, and our international and direct-to-consumer platforms. For
comparison purposes, excluding the impact of changes in foreign
currency and the 53rd week, full year revenue increased 7
percent.
-
Gross margin on a currency neutral basis improved 30 basis
points to 49.1 percent. Reported gross margin was 48.3 percent,
compared with 48.8 percent in 2014. For the full year, a continued
shift in our revenue mix toward higher-margin businesses and more
favorable product costs was more than offset by an 80 basis point
negative impact from changes in foreign currency and aggressive
efforts to manage inventory.
-
Operating income on an adjusted basis was $1.8 billion, in line
with 2014. On a GAAP basis, full year operating income was $1.7
billion. Adjusted operating margin was 14.6 percent in 2015,
net of 70 basis points of foreign currency headwinds, compared with
14.9 percent in 2014. On a GAAP basis, operating margin was 13.4
percent in 2015 compared with 11.7 percent in 2014.
-
Adjusted earnings per share was in line with 2014 adjusted EPS
of $3.08 per share (up 12 percent currency neutral). On a GAAP basis,
full year earnings per share was $2.85, an increase of 20 percent
compared with 2014.
The following table provides comparisons of changes in reported,
currency neutral, and currency neutral excluding the 53rd
week revenue growth rates for the full year 2015.
2015
|
|
|
|
|
|
|
% Change
Reported
|
|
% Change
Currency
Neutral
|
|
% Change Currency
Neutral & Excluding
53rd Week
|
Coalition Revenue
|
|
|
|
|
|
Outdoor & Action Sports
|
3
|
%
|
|
9
|
%
|
|
11
|
%
|
Jeanswear
|
0
|
%
|
|
4
|
%
|
|
5
|
%
|
Imagewear
|
(2
|
%)
|
|
(1
|
%)
|
|
0
|
%
|
Sportswear
|
(2
|
%)
|
|
(2
|
%)
|
|
(1
|
%)
|
Contemporary Brands
|
(14
|
%)
|
|
(11
|
%)
|
|
(9
|
%)
|
Total Coalition Revenue
|
1
|
%
|
|
6
|
%
|
|
7
|
%
|
Coalition Review
Fourth quarter revenue for the Outdoor & Action Sports
coalition was down 3 percent (up 1 percent currency neutral) to $2.1
billion. Full year Outdoor & Action Sports revenue increased 3 percent
in 2015 (up 9 percent currency neutral) to $7.4 billion. Excluding the
negative impact of foreign currency and the 53rd week, fourth
quarter and full year revenue increased 5 percent and 11 percent,
respectively.
Fourth quarter revenue for The North Face® brand
was down 4 percent (down 2 percent currency neutral) impacted
significantly by record warm weather. Excluding the negative impact of
foreign currency and the 53rd week, fourth quarter revenue
for The North Face® brand was up 1 percent. By
region, The North Face® brand’s revenue was down
at a low-single digit percentage rate in the Americas, down at a
low-teen percentage rate in Europe (down mid single-digit currency
neutral), and down at a low-single digit percentage rate in Asia Pacific
(up low single-digit currency neutral). For the full year, revenue for The
North Face® brand grew 1 percent (up 5 percent
currency neutral) to $2.3 billion. Excluding the negative impact of
foreign currency and the 53rd week, 2015 revenue for The
North Face® brand grew 6 percent.
Revenue for the Vans® brand in the fourth quarter
was up 3 percent (up 8 percent currency neutral). Excluding the negative
impact of foreign currency and the 53rd week, fourth quarter
revenue for the Vans® brand increased 13 percent.
Revenue in the Americas region was up at a low single-digit percentage
rate in the quarter (up mid single-digit currency neutral), up more than
20 percent in the Asia Pacific region and down at a mid single-digit
rate (up high single-digit currency neutral) in Europe. Revenue for the Vans®
brand for the full year was up 7 percent (up 14 percent currency
neutral) to reach $2.2 billion. Excluding the negative impact of foreign
currency and the 53rd week, 2015 revenue for the Vans®
brand was up 16 percent.
Timberland® brand revenue was down 4 percent (up
1 percent currency neutral) in the fourth quarter impacted significantly
by record warm weather. Excluding the negative impact of foreign
currency and the 53rd week, fourth quarter revenue for the Timberland®
brand grew 5 percent. In the Americas region, revenue was down at a low
single-digit rate and in Europe, the Timberland® brand
was down at a high single-digit rate (up at a mid single-digit rate
currency neutral). In Asia Pacific, fourth quarter revenue was down at a
mid single-digit percentage rate (down low single-digit currency
neutral). Full year Timberland® brand revenue was
up 2 percent to $1.8 billion, or an increase of 10 percent on a currency
neutral basis. Excluding the negative impact of foreign currency and the
53rd week, 2015 revenue for the Timberland®
brand increased 12 percent.
Fourth quarter operating income for Outdoor & Action Sports declined 11
percent to $386 million (down 5 percent currency neutral). Operating
margin was 18.4 percent in the quarter and 17.1 percent for the full
year.
Jeanswear fourth quarter revenue was down 2 percent (up 1 percent
currency neutral) to $737 million. Excluding the negative impact of
foreign currency and the 53rd week, fourth quarter revenue
for Jeanswear was up 6 percent. Revenue for the Americas region was down
at a low single-digit rate (flat currency neutral). In Europe, revenue
was down at a low double-digit percentage rate (up low single-digit
currency neutral) and in Asia, revenue was up at a mid single-digit rate
(up low double-digit currency neutral). In 2015, global Jeanswear
revenue was flat at $2.8 billion (up 4 percent currency neutral).
Fourth quarter revenue for the Wrangler® brand
was down 4 percent (down 1 percent currency neutral) with mid
single-digit growth in the U.S. mass channel offset by weakness in the
western specialty business. Wrangler® brand
revenue in Europe was down at a low-teen percentage rate (down low
single-digit currency neutral) and up at a high single-digit rate (up
low double-digit currency neutral) in Asia Pacific. Full year revenue
for the Wrangler® brand was unchanged on a
reported basis, or up 4 percent currency neutral to reach $1.7 billion.
Revenue for the Lee® brand in the
fourth quarter was in line with last year’s same period (up 5 percent
currency neutral) including low single-digit growth in the Americas
region, a mid single-digit percentage increase in Asia Pacific (up low
double-digit currency neutral) and a high single-digit decline in Europe
(up mid single-digit currency neutral). For the full year, reported
revenue for the Lee® brand was
consistent with 2014, or up 5 percent on a currency neutral basis.
Operating income for Jeanswear in the fourth quarter was down 1 percent
to $141 million (up 9 percent currency neutral). Operating margin
increased 40 basis points to 19.1 percent in the quarter, and was up 40
basis points for the full year to 19.2 percent.
Imagewear revenue was down 13 percent (down 12 percent currency
neutral) in the fourth quarter to $259 million with low single-digit
growth in the Licensed Sports Group business offset by more than 20
percent lower revenue in the workwear business due primarily to the
impact of considerably lower oil and gas exploration. Excluding the
negative impact of foreign currency and the 53rd week, fourth
quarter revenue for Imagewear was down 7 percent. For the full year,
revenue for the Imagewear coalition was down 2 percent (down 1 percent
currency neutral) to $1.1 billion.
Fourth quarter operating income for Imagewear was down 19 percent to $39
million, with a 100 basis point decline in operating margin to 15.2
percent. For the full year, Imagewear operating margin was 14.6 percent,
a 30 basis point decline over 2014.
Sportswear fourth quarter revenue decreased 9 percent to $196
million. Nautica® brand revenue was down at a low
double-digit percentage rate and the Kipling®
brand’s U.S. business was up at a low single-digit percentage rate
compared with the same period last year. Excluding the negative impact
of foreign currency and the 53rd week, fourth quarter revenue
for Sportswear was down 6 percent. For the year, Sportswear coalition
revenue was down 2 percent to $635 million.
In the fourth quarter, operating income decreased 12 percent to $28
million with a 50 basis point decrease in operating margin to 14.5
percent. 2015 operating margin for the Sportswear coalition improved 40
basis points to 12.4 percent, reflecting ongoing efforts to elevate the
Nautica® brand’s business model.
Contemporary Brands coalition fourth quarter revenue was down 19
percent (down 17 percent currency neutral) to $86 million. Excluding the
negative impact of foreign currency and the 53rd week, fourth
quarter revenue for Contemporary Brands was down 10 percent. For the
full year, Contemporary Brands coalition revenue was down 14 percent
(down 11 percent currency neutral) to $344 million.
International Review
International revenue in the fourth quarter was down 6 percent (up 4
percent currency neutral). Excluding the negative impact of foreign
currency and the 53rd week, fourth quarter international
revenue was up 7 percent. Revenue in Europe was down 9 percent (up 2
percent currency neutral) and in the Asia Pacific region was up 3
percent (up 8 percent currency neutral). Revenue in the Americas
(non-U.S.) region was down 8 percent (up 7 percent currency neutral).
International revenue was 33 percent of total VF fourth quarter sales,
the same ratio as 2014. For the full year, international revenue
represented 36 percent of total VF sales, compared with 38 percent in
2014.
Direct-to-Consumer Review
Direct-to-consumer revenue was down 1 percent (up 3 percent currency
neutral) in the fourth quarter, a result negatively impacted by record
warm weather and a sluggish economic environment. Excluding the negative
impact of foreign currency and the 53rd week, fourth quarter
direct-to-consumer revenue was up 11 percent. There were 1,520 VF owned
retail stores at the end of 2015. Direct-to-consumer revenue reached 34
percent of total revenue in the fourth quarter compared with 32 percent
in the 2014 period. For the full year, direct-to-consumer revenue was 27
percent of total VF revenue compared with 26 percent in 2014.
Balance Sheet Review
Inventories were up 9 percent compared with December 2014 levels with
more than half of the increase directly attributable to cold weather
products. In 2015, VF’s cash generation from operations reached $1.1
billion and the company returned nearly $1.3 billion to shareholders
through dividends and share repurchases.
Adjusted Amounts – Excluding Noncash Impairment Charges
As a result of our annual review of intangible assets, we recorded a
$144 million pre-tax, noncash impairment charge in the fourth quarter of
2015 to reduce the carrying value of intangible assets related to our 7
For All Mankind®, Ella Moss® and
Splendid® brands. On an after-tax basis, the
charge totaled $97 million, which decreased fourth quarter and full year
2015 earnings per share by $0.23.
In 2014, we recorded a $396 million pre-tax, noncash impairment charge
in the fourth quarter to reduce the carrying value of goodwill and
intangible assets related to our 7 For All Mankind®,
Ella Moss® and Splendid®
brands. On an after-tax basis, the charge totaled $307 million, which
decreased fourth quarter and full year 2014 earnings per share by $0.70.
All “adjusted amounts” referenced herein exclude the effects of these
noncash impairment charges. Reconciliations of measures in accordance
with U.S. generally accepted accounting principles (“GAAP”) to adjusted
amounts are presented in the supplemental financial information included
with this release, which identify and quantify all excluded items.
Currency Neutral – Excluding the Impact of Foreign Currency
This release refers to “currency neutral” amounts for the fourth quarter
and full year 2015, and 2016 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 GAAP, which include translation and transactional
impacts from foreign currency exchange rates. Reconciliations of GAAP
measures to currency neutral amounts for the fourth quarter and full
year 2015 are presented in the attached supplemental financial
information, which identify and quantify all excluded items.
52/53 Week Fiscal Year
VF operates and reports using a 52/53 week fiscal year ending on the
Saturday closest to December 31 of each year, and as a result, a 53rd
week is added every five or six years. VF’s 2014 fiscal year included a
53rd week, which was the week ended January 3, 2015.
Similarly, while fiscal quarters normally consist of 13-week periods,
the fourth quarter of 2014 included a 14th week. For
comparability between 2015 and 2014 financial results, certain estimates
referenced herein exclude the impact of the 53rd week of
2014, which added approximately 1 percent of revenue growth.
2016 Outlook
“Going forward, we believe the current environment provides a
significant opportunity for VF. With history as our teacher, we know
that powerful brands and companies with strong balance sheets can
capitalize on environments like this. That is exactly our intention,”
continued Wiseman. “By focusing on our strengths – driving innovation
into the marketplace, telling great stories to connect with consumers
and operating with financial discipline – we will seize this opportunity
to complete 2016 better positioned than we ever have been.”
Key points related to VF’s full year 2016 outlook include:
-
Revenue is expected to increase at a mid single-digit
percentage rate, including about one percentage point of negative
impact from changes in foreign currency. By coalition, revenue for Outdoor
& Action Sports is expected to increase at a high single-digit
percentage rate; mid single-digit growth for Jeanswear; low
single-digit growth for Imagewear; a slight decline in Sportswear;
and, a mid single-digit decline in the Contemporary Brands
business.
-
International revenue is expected to increase at a high
single-digit rate on a currency neutral basis (up mid single-digit
reported). European revenue is expected to be up at a mid single-digit
rate currency neutral (up low single-digit rate reported). In the Asia
Pacific region, full year currency neutral revenue is expected to
increase at a low double-digit percentage rate (up high single-digit
reported). And in the Americas (non-U.S.) region, revenue is expected
to be up at a low-teen percentage rate currency neutral (up low
single-digit reported).
-
Direct-to-consumer revenue is expected to grow at a low
double-digit percentage rate, including about a point of negative
impact from changes in foreign currency. Direct-to-consumer growth in
2016 will be driven by an increase of approximately 80 stores and
comparable sales growth including an expected increase of more than 20
percent in e-commerce revenue.
-
Gross margin is expected to improve by about 50 basis points to
48.8 percent, which includes about 70 basis points of headwind from
changes in foreign currency.
-
Operating margin is expected to reach 14.4 percent, including
about 70 basis points from the anticipated negative impact of changes
in foreign currency.
-
Earnings per share, on a currency neutral basis, is expected to
increase 11 percent (up 5 percent reported) compared to an adjusted
EPS of $3.08 in 2015.
-
Cash flow from operations is expected to reach $1.3 billion.
-
VF expects to spend approximately $1 billion under the company’s share
repurchase program. This represents a more than 35 percent
increase over repurchases made in 2015, and when combined with the annual
dividend, should return $1.5 billion to shareholders in 2016.
-
Other full year assumptions include an approximate 23 percent effective
tax rate and capital expenditures of approximately $300
million.
In the first quarter of 2016, we expect currency neutral revenue and
earnings per share to be about flat. On a reported basis, revenue in the
first quarter is expected to be about flat and earnings per share is
expected to be down at a low double-digit percentage rate. In the second
quarter of 2016, revenue should increase at a low single-digit
percentage rate with a low single-digit decline in currency neutral
earnings per share, or down high single-digit as reported. The second
quarter of 2015 benefitted from a lower tax rate related to the
settlement of prior years’ tax audits. Currency neutral revenue growth
in the second half of 2016 should increase at a high single-digit
percentage rate, with the strongest performance coming in the fourth
quarter. We expect second half earnings per share to increase at a mid
to high-teen percentage rate.
Dividend Declared
VF’s Board of Directors declared a quarterly dividend of $0.37 per
share, payable on March 18, 2016 to shareholders of record on March 8,
2016.
Webcast Information
VF will hold its 2015 fourth quarter conference call and webcast today
at approximately 8:30 a.m. Eastern Time. Interested parties should call
(888) 820-9418 (U.S.) or (913) 312-9323 (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 Feb. 26, 2016
at the same location or via telephone at 877-870-5176 (access code:
1884533).
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, 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 business 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;
volatile and unpredictable weather patterns; continued use by VF's
suppliers of ethical business practices; VF's ability to protect
trademarks and other intellectual property rights; possible goodwill and
other asset impairment; foreign currency fluctuations; changes in tax
liabilities, and legal, regulatory, political and economic risks. 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 December
|
%
|
|
Twelve Months Ended December
|
%
|
|
|
2015
|
|
2014
|
|
Change
|
|
2015
|
|
2014
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
3,380,160
|
|
|
$
|
3,544,263
|
|
|
(5
|
%)
|
|
|
|
$
|
12,250,678
|
|
|
$
|
12,154,784
|
|
|
1
|
%
|
Royalty income
|
|
|
32,603
|
|
|
|
34,597
|
|
|
(6
|
%)
|
|
|
|
|
126,066
|
|
|
|
127,377
|
|
|
(1
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues
|
|
|
3,412,763
|
|
|
|
3,578,860
|
|
|
(5
|
%)
|
|
|
|
|
12,376,744
|
|
|
|
12,282,161
|
|
|
1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
|
1,763,297
|
|
|
|
1,823,625
|
|
|
(3
|
%)
|
|
|
|
|
6,393,800
|
|
|
|
6,288,190
|
|
|
2
|
%
|
Selling, general and administrative expenses
|
|
1,108,698
|
|
|
|
1,177,229
|
|
|
(6
|
%)
|
|
|
|
|
4,178,386
|
|
|
|
4,159,885
|
|
|
-
|
|
Impairment of goodwill and intangible assets
|
|
143,562
|
|
|
|
396,362
|
|
|
(64
|
%)
|
|
|
|
|
143,562
|
|
|
|
396,362
|
|
|
(64
|
%)
|
|
|
|
3,015,557
|
|
|
|
3,397,216
|
|
|
(11
|
%)
|
|
|
|
|
10,715,748
|
|
|
|
10,844,437
|
|
|
(1
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
397,206
|
|
|
|
181,644
|
|
|
119
|
%
|
|
|
|
|
1,660,996
|
|
|
|
1,437,724
|
|
|
16
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest, net
|
|
|
(20,565
|
)
|
|
|
(19,986
|
)
|
|
3
|
%
|
|
|
|
|
(82,262
|
)
|
|
|
(79,814
|
)
|
|
3
|
%
|
Other income (expense), net
|
|
1,437
|
|
|
|
(1,335
|
)
|
|
208
|
%
|
|
|
|
|
1,655
|
|
|
|
(5,544
|
)
|
|
130
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
378,078
|
|
|
|
160,323
|
|
|
136
|
%
|
|
|
|
|
1,580,389
|
|
|
|
1,352,366
|
|
|
17
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
|
65,869
|
|
|
|
38,222
|
|
|
72
|
%
|
|
|
|
|
348,796
|
|
|
|
304,861
|
|
|
14
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
312,209
|
|
|
$
|
122,101
|
|
|
156
|
%
|
|
|
|
$
|
1,231,593
|
|
|
$
|
1,047,505
|
|
|
18
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.73
|
|
|
$
|
0.28
|
|
|
161
|
%
|
|
|
|
$
|
2.90
|
|
|
$
|
2.42
|
|
|
20
|
%
|
Diluted
|
|
$
|
0.72
|
|
|
$
|
0.28
|
|
|
157
|
%
|
|
|
|
$
|
2.85
|
|
|
$
|
2.38
|
|
|
20
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
425,814
|
|
|
|
431,645
|
|
|
|
|
|
|
|
425,408
|
|
|
|
432,611
|
|
|
|
Diluted
|
|
|
432,036
|
|
|
|
439,695
|
|
|
|
|
|
|
|
432,079
|
|
|
|
440,153
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends per common share
|
$
|
0.3700
|
|
|
$
|
0.3200
|
|
|
16
|
%
|
|
|
|
$
|
1.3300
|
|
|
$
|
1.1075
|
|
|
20
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 the period ended
December 2015 relate to the 13-week and 52-week fiscal periods ended
January 2, 2016, and all references to the period ended December
2014 relate to the 14-week and 53-week fiscal periods ended January
3, 2015.
|
|
VF CORPORATION
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)
|
|
|
|
|
|
|
|
|
|
December
|
|
December
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
Cash and equivalents
|
|
|
$
|
945,605
|
|
|
$
|
971,895
|
Accounts receivable, net
|
|
|
|
1,319,558
|
|
|
|
1,276,224
|
Inventories
|
|
|
|
1,611,994
|
|
|
|
1,482,804
|
Other current assets
|
|
|
|
285,979
|
|
|
|
300,646
|
Total current assets
|
|
|
|
4,163,136
|
|
|
|
4,031,569
|
|
|
|
|
|
|
|
Property, plant and equipment
|
|
|
988,159
|
|
|
|
942,181
|
Intangible assets
|
|
|
|
2,112,619
|
|
|
|
2,433,552
|
Goodwill
|
|
|
|
1,788,407
|
|
|
|
1,824,956
|
Other assets
|
|
|
|
587,221
|
|
|
|
613,042
|
Total assets
|
|
|
$
|
9,639,542
|
|
|
$
|
9,845,300
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
Current liabilities
|
|
|
|
|
|
|
Short-term borrowings
|
|
|
$
|
449,590
|
|
|
$
|
21,822
|
Current portion of long-term debt
|
|
|
13,279
|
|
|
|
3,975
|
Accounts payable
|
|
|
|
689,594
|
|
|
|
690,842
|
Accrued liabilities
|
|
|
|
789,250
|
|
|
|
897,426
|
Total current liabilities
|
|
|
|
1,941,713
|
|
|
|
1,614,065
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
|
1,401,820
|
|
|
|
1,413,847
|
Other liabilities
|
|
|
|
911,171
|
|
|
|
1,186,506
|
|
|
|
|
|
|
|
Stockholders' equity
|
|
|
|
5,384,838
|
|
|
|
5,630,882
|
Total liabilities and stockholders' equity
|
|
$
|
9,639,542
|
|
|
$
|
9,845,300
|
|
|
|
|
|
|
|
|
VF CORPORATION
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
|
|
|
|
|
Twelve Months Ended December
|
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating activities
|
|
|
|
|
|
|
Net income
|
|
|
|
$
|
1,231,593
|
|
|
$
|
1,047,505
|
|
Impairment of goodwill and intangible assets
|
|
|
143,562
|
|
|
|
396,362
|
|
Depreciation and amortization
|
|
|
|
|
272,075
|
|
|
|
274,883
|
|
Other noncash adjustments to net income
|
|
|
(150,979
|
)
|
|
|
18,299
|
|
Changes in operating assets and liabilities
|
|
|
(349,741
|
)
|
|
|
(39,420
|
)
|
Cash provided by operating activities
|
|
|
|
|
1,146,510
|
|
|
|
1,697,629
|
|
|
|
|
|
|
|
|
Investing activities
|
|
|
|
|
|
|
Capital expenditures
|
|
|
|
|
(254,501
|
)
|
|
|
(234,077
|
)
|
Software purchases
|
|
|
|
|
(63,283
|
)
|
|
|
(67,943
|
)
|
Other, net
|
|
|
|
|
(5,038
|
)
|
|
|
(27,235
|
)
|
Cash used by investing activities
|
|
|
|
|
(322,822
|
)
|
|
|
(329,255
|
)
|
|
|
|
|
|
|
|
Financing activities
|
|
|
|
|
|
|
Net increase in short-term borrowings
|
|
|
|
|
432,262
|
|
|
|
4,761
|
|
Payments on long-term debt
|
|
|
|
|
(3,975
|
)
|
|
|
(4,760
|
)
|
Payments of debt issuance costs
|
|
|
|
|
(1,475
|
)
|
|
|
-
|
|
Purchases of treasury stock
|
|
|
|
|
(732,623
|
)
|
|
|
(727,795
|
)
|
Cash dividends paid
|
|
|
|
|
(565,275
|
)
|
|
|
(478,933
|
)
|
Net impact of stock issuance
|
|
|
|
|
87,791
|
|
|
|
99,306
|
|
Cash used by financing activities
|
|
|
|
|
(783,295
|
)
|
|
|
(1,107,421
|
)
|
|
|
|
|
|
|
|
Effect of foreign currency rate changes on cash and equivalents
|
|
|
(66,683
|
)
|
|
|
(65,461
|
)
|
|
|
|
|
|
|
|
Net change in cash and equivalents
|
|
|
|
|
(26,290
|
)
|
|
|
195,492
|
|
|
|
|
|
|
|
|
Cash and equivalents - beginning of year
|
|
|
|
|
971,895
|
|
|
|
776,403
|
|
|
|
|
|
|
|
|
Cash and equivalents - end of year
|
|
|
|
$
|
945,605
|
|
|
$
|
971,895
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VF CORPORATION
Supplemental Financial Information
Business Segment Information
(Unaudited)
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change
Currency
Neutral**
|
|
|
|
|
|
|
|
|
|
|
|
% Change
Currency
Neutral**
|
|
|
|
Three Months Ended December
|
|
|
%
|
|
|
|
|
Twelve Months Ended December
|
|
|
%
|
|
|
|
|
|
|
2015
|
|
|
|
|
2014
|
|
|
|
Change
|
|
|
|
|
|
2015
|
|
|
|
|
2014
|
|
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coalition revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outdoor & Action Sports
|
|
|
$
|
2,100,662
|
|
|
|
$
|
2,164,324
|
|
|
|
(3
|
%)
|
|
|
1
|
%
|
|
|
$
|
7,400,446
|
|
|
|
$
|
7,198,994
|
|
|
|
3
|
%
|
|
|
9
|
%
|
Jeanswear
|
|
|
|
736,519
|
|
|
|
|
755,140
|
|
|
|
(2
|
%)
|
|
|
1
|
%
|
|
|
|
2,792,244
|
|
|
|
|
2,801,754
|
|
|
|
-
|
|
|
|
4
|
%
|
Imagewear
|
|
|
|
259,341
|
|
|
|
|
298,305
|
|
|
|
(13
|
%)
|
|
|
(12
|
%)
|
|
|
|
1,082,565
|
|
|
|
|
1,104,038
|
|
|
|
(2
|
%)
|
|
|
(1
|
%)
|
Sportswear
|
|
|
|
195,511
|
|
|
|
|
215,154
|
|
|
|
(9
|
%)
|
|
|
(9
|
%)
|
|
|
|
635,056
|
|
|
|
|
650,203
|
|
|
|
(2
|
%)
|
|
|
(2
|
%)
|
Contemporary Brands
|
|
|
|
86,484
|
|
|
|
|
106,694
|
|
|
|
(19
|
%)
|
|
|
(17
|
%)
|
|
|
|
344,089
|
|
|
|
|
400,431
|
|
|
|
(14
|
%)
|
|
|
(11
|
%)
|
Other
|
|
|
|
34,246
|
|
|
|
|
39,243
|
|
|
|
(13
|
%)
|
|
|
(13
|
%)
|
|
|
|
122,344
|
|
|
|
|
126,741
|
|
|
|
(3
|
%)
|
|
|
(3
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total coalition revenues
|
|
|
$
|
3,412,763
|
|
|
|
$
|
3,578,860
|
|
|
|
(5
|
%)
|
|
|
(1
|
%)
|
|
|
$
|
12,376,744
|
|
|
|
$
|
12,282,161
|
|
|
|
1
|
%
|
|
|
6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coalition profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outdoor & Action Sports
|
|
|
$
|
385,723
|
|
|
|
$
|
432,345
|
|
|
|
(11
|
%)
|
|
|
(5
|
%)
|
|
|
$
|
1,266,763
|
|
|
|
$
|
1,312,963
|
|
|
|
(4
|
%)
|
|
|
7
|
%
|
Jeanswear
|
|
|
|
140,641
|
|
|
|
|
141,571
|
|
|
|
(1
|
%)
|
|
|
9
|
%
|
|
|
|
535,385
|
|
|
|
|
527,972
|
|
|
|
1
|
%
|
|
|
7
|
%
|
Imagewear
|
|
|
|
39,332
|
|
|
|
|
48,408
|
|
|
|
(19
|
%)
|
|
|
(15
|
%)
|
|
|
|
157,959
|
|
|
|
|
164,352
|
|
|
|
(4
|
%)
|
|
|
-
|
|
Sportswear
|
|
|
|
28,411
|
|
|
|
|
32,171
|
|
|
|
(12
|
%)
|
|
|
(12
|
%)
|
|
|
|
78,879
|
|
|
|
|
77,972
|
|
|
|
1
|
%
|
|
|
1
|
%
|
Contemporary Brands
|
|
|
|
901
|
|
|
|
|
1,809
|
|
|
|
(50
|
%)
|
|
|
(1
|
%)
|
|
|
|
5,845
|
|
|
|
|
23,420
|
|
|
|
(75
|
%)
|
|
|
(64
|
%)
|
Other
|
|
|
|
(343
|
)
|
|
|
|
(603
|
)
|
|
|
*
|
|
|
*
|
|
|
|
15,135
|
|
|
|
|
(2,600
|
)
|
|
|
*
|
|
|
*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total coalition profit
|
|
|
|
594,665
|
|
|
|
|
655,701
|
|
|
|
(9
|
%)
|
|
|
(3
|
%)
|
|
|
|
2,059,966
|
|
|
|
|
2,104,079
|
|
|
|
(2
|
%)
|
|
|
7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment of goodwill and intangible assets
|
|
|
|
(143,562
|
)
|
|
|
|
(396,362
|
)
|
|
|
(64
|
%)
|
|
|
(64
|
%)
|
|
|
|
(143,562
|
)
|
|
|
|
(396,362
|
)
|
|
|
(64
|
%)
|
|
|
(64
|
%)
|
Corporate and other expenses
|
|
|
|
(52,460
|
)
|
|
|
|
(79,030
|
)
|
|
|
(34
|
%)
|
|
|
(34
|
%)
|
|
|
|
(253,753
|
)
|
|
|
|
(275,537
|
)
|
|
|
(8
|
%)
|
|
|
(8
|
%)
|
Interest, net
|
|
|
|
(20,565
|
)
|
|
|
|
(19,986
|
)
|
|
|
3
|
%
|
|
|
3
|
%
|
|
|
|
(82,262
|
)
|
|
|
|
(79,814
|
)
|
|
|
3
|
%
|
|
|
3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
$
|
378,078
|
|
|
|
$
|
160,323
|
|
|
|
136
|
%
|
|
|
163
|
%
|
|
|
$
|
1,580,389
|
|
|
|
$
|
1,352,366
|
|
|
|
17
|
%
|
|
|
31
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* 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 December 2015
|
|
|
|
|
|
|
|
|
|
As Reported
|
|
Adjust for Foreign
|
|
|
|
under GAAP
|
|
Currency Exchange
|
|
|
Currency Neutral
|
|
|
|
|
|
|
|
|
Coalition revenues
|
|
|
|
|
|
|
|
Outdoor & Action Sports
|
$
|
2,100,662
|
|
|
|
$
|
88,721
|
|
|
|
$
|
2,189,383
|
|
Jeanswear
|
|
736,519
|
|
|
|
|
23,764
|
|
|
|
|
760,283
|
|
Imagewear
|
|
259,341
|
|
|
|
|
2,797
|
|
|
|
|
262,138
|
|
Sportswear
|
|
195,511
|
|
|
|
|
-
|
|
|
|
|
195,511
|
|
Contemporary Brands
|
|
86,484
|
|
|
|
|
2,354
|
|
|
|
|
88,838
|
|
Other
|
|
34,246
|
|
|
|
|
-
|
|
|
|
|
34,246
|
|
|
|
|
|
|
|
|
|
Total coalition revenues
|
$
|
3,412,763
|
|
|
|
$
|
117,636
|
|
|
|
$
|
3,530,399
|
|
|
|
|
|
|
|
|
|
Coalition profit
|
|
|
|
|
|
|
|
Outdoor & Action Sports
|
$
|
385,723
|
|
|
|
$
|
26,070
|
|
|
|
$
|
411,793
|
|
Jeanswear
|
|
140,641
|
|
|
|
|
14,079
|
|
|
|
|
154,720
|
|
Imagewear
|
|
39,332
|
|
|
|
|
1,820
|
|
|
|
|
41,152
|
|
Sportswear
|
|
28,411
|
|
|
|
|
-
|
|
|
|
|
28,411
|
|
Contemporary Brands
|
|
901
|
|
|
|
|
892
|
|
|
|
|
1,793
|
|
Other
|
|
(343
|
)
|
|
|
|
-
|
|
|
|
|
(343
|
)
|
|
|
|
|
|
|
|
|
Total coalition profit
|
|
594,665
|
|
|
|
|
42,861
|
|
|
|
|
637,526
|
|
|
|
|
|
|
|
|
|
Impairment of goodwill and intangible assets
|
|
(143,562
|
)
|
|
|
|
-
|
|
|
|
|
(143,562
|
)
|
Corporate and other expenses
|
|
(52,460
|
)
|
|
|
|
(23
|
)
|
|
|
|
(52,483
|
)
|
Interest, net
|
|
(20,565
|
)
|
|
|
|
-
|
|
|
|
|
(20,565
|
)
|
|
|
|
|
|
|
|
|
Income before income taxes
|
$
|
378,078
|
|
|
|
$
|
42,838
|
|
|
|
$
|
420,916
|
|
Diluted earnings per share growth
|
|
157%
|
|
|
|
|
29%
|
|
|
|
|
186%
|
|
|
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
Reconciliation of Select GAAP Measures to Non-GAAP Measures
(Unaudited)
(In thousands, except per share amounts)
|
|
|
|
|
Twelve Months Ended December 2015
|
|
|
|
|
|
|
|
|
|
As Reported
|
|
Adjust for Foreign
|
|
|
|
under GAAP
|
|
Currency Exchange
|
|
|
Currency Neutral
|
|
|
|
|
|
|
|
|
Coalition revenues
|
|
|
|
|
|
|
|
Outdoor & Action Sports
|
$
|
7,400,446
|
|
|
|
$
|
470,565
|
|
|
|
$
|
7,871,011
|
|
Jeanswear
|
|
2,792,244
|
|
|
|
|
111,336
|
|
|
|
|
2,903,580
|
|
Imagewear
|
|
1,082,565
|
|
|
|
|
9,797
|
|
|
|
|
1,092,362
|
|
Sportswear
|
|
635,056
|
|
|
|
|
-
|
|
|
|
|
635,056
|
|
Contemporary Brands
|
|
344,089
|
|
|
|
|
13,398
|
|
|
|
|
357,487
|
|
Other
|
|
122,344
|
|
|
|
|
-
|
|
|
|
|
122,344
|
|
|
|
|
|
|
|
|
|
Total coalition revenues
|
$
|
12,376,744
|
|
|
|
$
|
605,096
|
|
|
|
$
|
12,981,840
|
|
|
|
|
|
|
|
|
|
Coalition profit
|
|
|
|
|
|
|
|
Outdoor & Action Sports
|
$
|
1,266,763
|
|
|
|
$
|
143,604
|
|
|
|
$
|
1,410,367
|
|
Jeanswear
|
|
535,385
|
|
|
|
|
32,118
|
|
|
|
|
567,503
|
|
Imagewear
|
|
157,959
|
|
|
|
|
5,818
|
|
|
|
|
163,777
|
|
Sportswear
|
|
78,879
|
|
|
|
|
-
|
|
|
|
|
78,879
|
|
Contemporary Brands
|
|
5,845
|
|
|
|
|
2,494
|
|
|
|
|
8,339
|
|
Other
|
|
15,135
|
|
|
|
|
-
|
|
|
|
|
15,135
|
|
|
|
|
|
|
|
|
|
Total coalition profit
|
|
2,059,966
|
|
|
|
|
184,034
|
|
|
|
|
2,244,000
|
|
|
|
|
|
|
|
|
|
Impairment of goodwill and intangible assets
|
|
(143,562
|
)
|
|
|
|
-
|
|
|
|
|
(143,562
|
)
|
Corporate and other expenses
|
|
(253,753
|
)
|
|
|
|
881
|
|
|
|
|
(252,872
|
)
|
Interest, net
|
|
(82,262
|
)
|
|
|
|
-
|
|
|
|
|
(82,262
|
)
|
|
|
|
|
|
|
|
|
Income before income taxes
|
$
|
1,580,389
|
|
|
|
$
|
184,915
|
|
|
|
$
|
1,765,304
|
|
Diluted earnings per share growth
|
|
20%
|
|
|
|
|
15%
|
|
|
|
|
35%
|
|
|
|
|
|
|
|
|
|
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
Reconciliation of Select GAAP Measures to Non-GAAP Measures
(Unaudited)
(In thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
Three Months
|
|
|
|
Three Months
|
|
|
Ended
|
|
Operating
|
Ended
|
Operating
|
|
December 2015
|
|
Margin
|
|
December 2014
|
Margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income, as reported under GAAP
|
$
|
397,206
|
|
|
11.6
|
%
|
|
$
|
181,644
|
|
5.1
|
%
|
|
|
|
|
|
|
|
|
|
Impairment of goodwill and intangible assets
|
|
143,562
|
|
|
|
|
|
396,362
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income, as adjusted
|
$
|
540,768
|
|
|
15.8
|
%
|
|
$
|
578,006
|
|
16.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income, as reported under GAAP
|
$
|
312,209
|
|
|
|
|
$
|
122,101
|
|
|
|
|
|
|
|
|
|
|
|
Impairment of goodwill and intangible assets
|
|
97,110
|
|
|
|
|
|
306,831
|
|
|
|
|
|
|
|
|
|
|
|
Net Income, as adjusted
|
$
|
409,319
|
|
|
|
|
$
|
428,932
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share, as reported under GAAP
|
$
|
0.72
|
|
|
|
|
$
|
0.28
|
|
|
|
|
|
|
|
|
|
|
|
Impairment of goodwill and intangible assets
|
|
0.23
|
|
|
|
|
|
0.70
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share, as adjusted
|
$
|
0.95
|
|
|
|
|
$
|
0.98
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
|
|
|
|
Twelve Months
|
|
|
Ended
|
|
Operating
|
Ended
|
Operating
|
|
December 2015
|
|
Margin
|
|
December 2014
|
Margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income, as reported under GAAP
|
$
|
1,660,996
|
|
|
13.4
|
%
|
|
$
|
1,437,724
|
|
11.7
|
%
|
|
|
|
|
|
|
|
|
|
Impairment of goodwill and intangible assets
|
|
143,562
|
|
|
|
|
|
396,362
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income, as adjusted
|
$
|
1,804,558
|
|
|
14.6
|
%
|
|
$
|
1,834,086
|
|
14.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income, as reported under GAAP
|
$
|
1,231,593
|
|
|
|
|
$
|
1,047,505
|
|
|
|
|
|
|
|
|
|
|
|
Impairment of goodwill and intangible assets
|
|
97,110
|
|
|
|
|
|
306,831
|
|
|
|
|
|
|
|
|
|
|
|
Net Income, as adjusted
|
$
|
1,328,703
|
|
|
|
|
$
|
1,354,336
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share, as reported under GAAP
|
$
|
2.85
|
|
|
|
|
$
|
2.38
|
|
|
|
|
|
|
|
|
|
|
|
Impairment of goodwill and intangible assets
|
|
0.23
|
|
|
|
|
|
0.70
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share, as adjusted
|
$
|
3.08
|
|
|
|
|
$
|
3.08
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Financial Information
|
|
|
|
|
|
|
|
|
The financial information above has been presented on a GAAP basis
and on an adjusted basis which excludes the impact of impairment
charges for goodwill and intangible assets. These adjusted
presentations are non-GAAP measures. Management believes these
measures provide investors with useful supplemental information
regarding VF's underlying business trends and the performance of
VF's ongoing operations and are useful for period-over-period
comparisons of such operations.
|
|
|
|
|
|
|
|
|
|
Management uses the above financial measures internally in its
budgeting and review process and, in some cases, as a factor in
determining compensation. While management believes that these
non-GAAP financial measures are useful in evaluating the business,
this information should be considered as supplemental in nature and
should be viewed in addition to, and not in lieu of or superior to,
VF's operating performance measures calculated in accordance with
GAAP. In addition, these non-GAAP financial measures may not be the
same as similarly titled measures presented by other companies.
|
CONTACT:
VF Corporation
Lance Allega
V.P., Investor
Relations & Strategic Accounts
336-424-6082
or
Craig Hodges
Director,
Public Relations
336-424-5636
VF (NYSE:VFC)
Historical Stock Chart
From Jun 2024 to Jul 2024
VF (NYSE:VFC)
Historical Stock Chart
From Jul 2023 to Jul 2024