- Full year fiscal 2020 revenue from continuing operations
increased 2 percent (up 4 percent in constant dollars) to $10.5
billion; excluding acquisitions and divestitures, adjusted revenue
increased 3 percent (up 4 percent in constant dollars);
- Full year fiscal 2020 Active segment revenue increased 4
percent (up 6 percent in constant dollars) including a 10 percent
(11 percent in constant dollars) increase in Vans® brand
revenue; Outdoor segment revenue was flat (up 1 percent in constant
dollars) including a 3 percent (5 percent in constant dollars)
increase in The North Face® brand revenue; Work segment
revenue was flat (up 1 percent in constant dollars) including a 3
percent (4 percent in constant dollars) increase in Dickies®
brand revenue;
- Full year fiscal 2020 International revenue increased 1
percent (up 4 percent in constant dollars); China revenue increased
10 percent (up 14 percent in constant dollars);
- Full year fiscal 2020 Direct-to-Consumer revenue increased 5
percent (up 6 percent in constant dollars); Digital revenue
increased 15 percent (up 17 percent in constant dollars);
- Full year fiscal 2020 gross margin from continuing
operations increased 70 basis points to 55.3 percent; on an
adjusted basis, gross margin increased 70 basis points to 55.5
percent;
- Full year fiscal 2020 operating income from continuing
operations decreased 22 percent; adjusted operating income from
continuing operations increased 4 percent (6 percent in constant
dollars);
- Full year fiscal 2020 earnings per share from continuing
operations was $1.57. Adjusted earnings per share from continuing
operations increased 5 percent (up 7 percent in constant dollars)
to $2.68; and,
- Full year fiscal 2020 cash flow from continuing operations
was approximately $800 million; on an adjusted basis, cash flow
from continuing operations was approximately $900 million; In
fiscal 2020 the company returned approximately $1.7 billion to
shareholders through share repurchases and dividends.
VF Corporation (NYSE: VFC) today reported financial results for
its fourth quarter and full year ended March 28, 2020. All per
share amounts are presented on a diluted basis. This release refers
to “reported” and “constant dollar” amounts, terms that are
described under the heading “Constant Currency - Excluding the
Impact of Foreign Currency.” Unless otherwise noted, “reported” and
“constant dollar” amounts are the same. This release also refers to
“continuing” and “discontinued” operations amounts, which are
concepts described under the heading “Discontinued Operations -
Occupational Workwear Business and Kontoor Brands Business.” Unless
otherwise noted, results presented are based on continuing
operations. This release also refers to “adjusted” amounts, a term
that is described under the heading “Adjusted Amounts - Excluding
Transaction and Deal Related Expenses, Costs Related to Office
Relocations and Specified Strategic Business Decisions, Noncash
Impairment Charge, Pension Settlement Charge, the Impact of Debt
Extinguishment and the Impact of Tax Legislation.” Unless otherwise
noted, “reported” and “adjusted” amounts are the same.
“Through the first ten months of fiscal 2020 our business
delivered results above our stated long-term growth objectives.
Then the world changed for all of us as a result of COVID-19," said
Steve Rendle, Chairman, President and Chief Executive Officer.
"From the early days of the outbreak VF has taken a people-first
approach in our COVID-19 response, prioritizing the health and
safety of our people, while also protecting their financial
well-being. As we've implemented measures to care for and protect
our people, we've also taken several key actions to advance our
Enterprise Protection Strategy," Rendle continued. "These prudent
actions, most of which have been precautionary, have helped us
preserve liquidity and given us more flexibility to manage our
global business operations through the prolonged crisis. Moving
forward we're committed to using this moment to set VF and our
brands up for the next successful chapter in our 121-year
history."
Constant Currency - Excluding the Impact of Foreign
Currency
This release 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. This release also refers to “constant dollar”
amounts, which exclude the impact of translating foreign currencies
into U.S. dollars. The “constant dollar” amounts also exclude the
impact of foreign currency-denominated transactions in countries
with highly inflationary economies. Reconciliations of GAAP
measures to constant currency amounts are presented in the
supplemental financial information included with this release,
which identifies and quantifies all excluded items, and provides
management’s view of why this information is useful to
investors.
Discontinued Operations - Occupational Workwear Business and
Kontoor Brands Business
On January 21, 2020, VF announced its decision to explore the
divestiture of its Occupational Workwear business. The Occupational
Workwear business is comprised primarily of the following brands
and businesses: Red Kap®, VF Solutions®, Bulwark®, Workrite®,
Walls®, Terra®, Kodiak®, Work Authority® and Horace Small®. The
business also includes certain Dickies® occupational workwear
products that have historically been sold through the
business-to-business channel.
During the three months ended March 2020, the company determined
that the Occupational Workwear business met the held-for-sale and
discontinued operations accounting criteria. Accordingly, the
company has reported the related held-for-sale assets and
liabilities as assets and liabilities of discontinued operations
and included the operating results and cash flows of the business
in discontinued operations for all periods presented.
On May 22, 2019, VF completed the spin-off of its Jeans
business, which included the Wrangler®, Lee® and Rock &
Republic® brands, as well as the VF OutletTM business, into an
independent, publicly traded company under the name Kontoor Brands,
Inc. (“Kontoor Brands”). Accordingly, the company has removed the
assets and liabilities of the Jeans business as of this date and
included the operating results and cash flows of the business in
discontinued operations for all periods presented.
Adjusted Amounts - Excluding Transaction and Deal Related
Expenses, Costs Related to Office Relocations and Specified
Strategic Business Decisions, Noncash Impairment Charge, Pension
Settlement Charge, the Impact of Debt Extinguishment and the Impact
of Tax Legislation
The adjusted amounts in this release exclude transaction and
deal related expenses associated with the acquisitions and
integration of the Icebreaker® and Altra® brands. The adjusted
amounts in this release also exclude transaction expenses
associated with the completed spin-off of the Jeans business that
did not meet the criteria for discontinued operations. Total
transaction and deal related expenses were approximately $22
million in fiscal 2020. The fiscal 2020 amounts also exclude an
adjustment to tax expense in the third quarter of fiscal 2020 of
approximately $10 million associated with the loss on sale for the
Reef® divestiture.
The adjusted amounts in this release exclude costs associated
with the previously announced relocation of VF’s global
headquarters and certain brands to Denver, Colorado. The adjusted
amounts in this release also exclude costs related to strategic
business decisions in South America and the operating results of
jeanswear wind down activities in South America following the
spin-off of Kontoor Brands. The adjusted amounts also exclude
certain cost optimization activities indirectly related to the
strategic review of the Occupational Workwear business. Total costs
were approximately $21 million in the fourth quarter of fiscal 2020
and $72 million in fiscal 2020. In addition, the fourth quarter and
full year fiscal 2020 exclude approximately $48 million of noncash
non-operating expenses related to the release of certain currency
translation amounts associated with the wind down activities in
South America.
The adjusted amounts in this release exclude a noncash goodwill
impairment charge related to the Timberland® reporting unit of
approximately $323 million in the fourth quarter and full year
fiscal 2020.
The adjusted amounts in this release exclude a noncash pension
settlement charge. The pension settlement charge was a result of
actions taken to reduce risk, volatility and the liability
associated with VF's U.S. pension plan. Total expense was
approximately $23 million in fiscal 2020.
The adjusted amounts in this release exclude the impact of debt
extinguishment that resulted from the premiums, amortization and
fees associated with cash tender offers for VF's outstanding 2033
6.00% and 2037 6.45% notes, and the full redemption of VF's
outstanding 2021 3.50% notes. The total impact of debt
extinguishment was approximately $68 million in the fourth quarter
and full year fiscal 2020.
The adjusted amounts in this release exclude the impact of
recent Swiss tax legislation. On May 19, 2019, Switzerland voted to
approve the Federal Act on Tax Reform and AHV Financing ("Swiss Tax
Act"). The Swiss Tax Act was enacted during fiscal 2020, the
transitional impact of which resulted in a net tax expense of
approximately $71 million in the fourth quarter of fiscal 2020 and
a net tax benefit of approximately $94 million in fiscal 2020.
Additionally, the fiscal 2020 amounts also exclude an adjustment to
tax expense in the fourth quarter of fiscal 2020 of approximately
$3 million associated with the transitional impact of the Tax Cuts
and Jobs Act ("U.S. Tax Act").
Combined, the above items negatively impacted earnings per share
by $1.32 during the fourth quarter of fiscal 2020 and $1.11 during
fiscal 2020. All adjusted amounts referenced herein exclude the
effects of these amounts.
Adjusted cash flow from continuing operations reflects the
impact of the cash-related acquisition, integration, divestiture,
separation, relocation and other strategic business decision costs
paid in fiscal 2020. Free cash flow represents adjusted cash flow
from operating activities, less capital expenditures.
Reconciliations of measures calculated in accordance with GAAP
to adjusted amounts are presented in the supplemental financial
information included with this release, which identifies and
quantifies all excluded items, and provides management’s view of
why this information is useful to investors.
COVID-19 Outbreak Update and Response Summary
As the global spread of COVID-19 continues, VF remains first and
foremost focused on a people-first approach that prioritizes the
health and well-being of its employees, customers, trade partners
and consumers around the world. To help mitigate the spread of
COVID-19 and in response to health advisories and governmental
actions and regulations, VF has modified its business practices,
including the temporary closing of offices and retail stores,
instituting travel bans and restrictions, implementing health and
safety measures including social distancing and quarantines.
VF has taken several proactive actions to advance its Enterprise
Protection Strategy in response to the COVID-19 outbreak. These
actions have included: temporarily reducing the CEO's base salary
by 50 percent and the VF Executive Leadership Team's base salaries
by 25 percent; temporarily forgoing the cash retainer paid to VF's
Board of Directors; completing a $3 billion bond offering to
establish a significant cash buffer to ensure near-term liquidity;
temporarily suspending its share repurchase plan; and proceeding
with the previously announced divestiture of VF's Occupational
Workwear business as an additional source of cash. As of the date
of this release, VF has approximately $3 billion of cash on hand in
addition to approximately $2.2 billion available under its
revolving credit facility.
Currently, all of VF's retail stores in the APAC region,
including Mainland China, have re-opened. While retail store
traffic has improved recently, it remains down significantly
compared with the prior year. VF has started a phased reopening of
its retail stores in the EMEA region, in accordance with guidance
from government entities and healthcare authorities. In North
America, VF is prepared to begin a phased reopening of its retail
stores also subject to guidance from government entities and
healthcare authorities to allow proper training and preparation of
the retail environment. VF currently expects most of its retail
stores to be open by mid-calendar year 2020. While most of VF's
wholesale customers in North America and EMEA remain closed, many
have announced reopening plans in the coming weeks.
Consistent with VF's long-term strategy, the company's digital
platform remains a high priority through which its brands stay
connected with consumer communities while providing experiential
content. VF continues to operate its global network of distribution
centers with enhanced health and safety protocols to serve the
company's consumers and customers.
COVID-19 has also impacted some of VF's suppliers, including
third-party manufacturers, logistics providers and other vendors.
At this time, many of VF's facilities continue to manufacture and
distribute products globally in a reduced capacity. VF is actively
monitoring its supply chain and implementing mitigation plans.
VF believes it has sufficient liquidity and flexibility to
operate during the disruptions caused by COVID-19 and related
governmental actions and regulations and health authority
advisories. However, due to the uncertainty of the duration and
severity of COVID-19, governmental actions in response to the
pandemic and the speed with which this pandemic is developing and
impacting VF, its consumers, customers and suppliers, it is not
possible to reasonably estimate the extent of the impact on VF's
financial condition or results of operations at this time.
Fourth Quarter Fiscal 2020 Income Statement Review
- Revenue decreased 11 percent (down 10 percent in
constant dollars) to $2.1 billion driven by lower consumer demand
as a result of the COVID-19 outbreak and related government actions
and regulations.
- Gross margin decreased 150 basis points to 53.1 percent,
primarily driven by elevated promotional activity to clear excess
inventory, partially offset by favorable mix shift toward higher
margin businesses. On an adjusted basis, gross margin decreased 100
basis points to 53.9 percent.
- Operating loss on a reported basis was $(257) million.
On an adjusted basis, operating income decreased 51 percent to $87
million. Operating margin on a reported basis decreased to
(12.2) percent. Adjusted operating margin decreased 350 basis
points to 4.1 percent.
- Earnings (loss) per share was $(1.22) on a reported
basis. On an adjusted basis, earnings per share decreased 70
percent (down 69 percent in constant dollars) to $0.10.
Full Year Fiscal 2020 Income Statement Review
- Revenue increased 2 percent (up 4 percent in constant
dollars) to $10.5 billion. Excluding the impact of acquisitions and
divestitures and on an adjusted basis, revenue increased 3 percent
(up 4 percent in constant dollars), driven by VF's two largest
brands, and our International and Direct-to-Consumer
platforms.
- Gross margin increased 70 basis points to 55.3 percent,
including favorable mix shift toward higher margin businesses. On
an adjusted basis, gross margin increased 70 basis points to 55.5
percent.
- Operating income on a reported basis was $928 million.
On an adjusted basis, operating income increased 4 percent (up 6
percent in constant dollars) to $1.345 billion. Operating
margin on a reported basis decreased 280 basis points to 8.8
percent. Adjusted operating margin increased 30 basis points to
12.8% percent.
- Earnings per share was $1.57 on a reported basis. On an
adjusted basis, earnings per share increased 5 percent (up 7
percent in constant dollars) to $2.68.
Balance Sheet Highlights
Inventories were up 10 percent compared with the same period
last year. In fiscal 2020, VF returned approximately $750 million
of cash to shareholders through dividends. The company also
repurchased approximately $1 billion of shares and has $2.8 billion
remaining under its current share repurchase authorization. As part
of the company's liquidity preservation actions during the ongoing
COVID-19 outbreak, the company has suspended its share repurchase
program.
Full Year Fiscal 2021 Outlook
Due to the uncertainty of the duration and severity of COVID-19,
governmental actions and regulations in response to the pandemic
and the speed with which the pandemic is developing and impacting
VF, its consumers, customers and suppliers, it is not possible to
provide a financial outlook for full-year fiscal 2021 at this time.
First quarter fiscal 2021 revenues are expected to be down slightly
more than 50%. Full-year fiscal 2021 free cash flow is expected to
exceed $600 million.
Dividend Declared
On May 12, 2020, VF’s Board of Directors declared a quarterly
dividend of $0.48 per share. This dividend will be payable on June
22, 2020, to shareholders of record on June 10, 2020. Subject to
approval by its Board of Directors, VF intends to continue to pay
its regularly scheduled dividend and is currently not contemplating
the suspension of its dividend program.
Webcast Information
VF will host its fourth quarter fiscal 2020 conference call
beginning at 8:30 a.m. Eastern Time today. The conference call will
be broadcast live via the Internet, accessible at ir.vfc.com. For
those unable to listen to the live broadcast, an archived version
will be available at the same location.
Presentation
A presentation on fourth quarter fiscal 2020 results will be
available at ir.vfc.com beginning at approximately 7:30 a.m.
Eastern Time today and will be archived at the same location.
About VF
Founded in 1899, VF Corporation is one of the world’s largest
apparel, footwear and accessories companies connecting people to
the lifestyles, activities and experiences they cherish most
through a family of iconic outdoor, active and workwear brands
including Vans®, The North Face®, Timberland® and Dickies®. Our
purpose is to power movements of sustainable and active lifestyles
for the betterment of people and our planet. We connect this
purpose with a relentless drive to succeed to create value for all
stakeholders and use our company as a force for good. For more
information, please visit vfc.com.
Forward-looking Statements
Certain statements included in this release 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
several 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, however, the absence of
these words or similar expressions does not mean that a statement
is not forward-looking. All statements regarding VF’s plans,
objectives, projections and expectations relating to VF’s
operations or financial performance, and assumptions related
thereto are forward-looking statements. 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. VF undertakes no obligation to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise, except
as required by law. 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 include, but are not limited to: risks
arising from the widespread outbreak of an illness or any other
communicable disease, or any other public health crisis, including
the coronavirus (COVID-19) global pandemic; the level of consumer
demand for apparel, footwear and accessories; disruption to VF’s
distribution system; the financial strength of VF’s customers;
fluctuations in the price, availability and quality of raw
materials and contracted products; disruption and volatility in the
global capital and credit markets; VF’s response to changing
fashion trends, evolving consumer preferences and changing patterns
of consumer behavior; intense competition from online retailers;
manufacturing and product innovation; increasing pressure on
margins; VF’s ability to implement its business strategy; VF’s
ability to grow its international and direct-to-consumer
businesses; retail industry changes and challenges; VF’s and its
vendors’ ability to maintain the strength and security of
information technology systems; the risk that VF’s facilities and
systems and those of our third-party service providers may be
vulnerable to and unable to anticipate or detect data security
breaches and data or financial loss; VF’s ability to properly
collect, use, manage and secure consumer and employee data; foreign
currency fluctuations; 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; continuity of members of VF’s management; VF’s ability to
protect trademarks and other intellectual property rights; possible
goodwill and other asset impairment; maintenance by VF’s licensees
and distributors of the value of VF’s brands; VF’s ability to
execute and integrate acquisitions; changes in tax laws and
liabilities; legal, regulatory, political and economic risks; the
risk of economic uncertainty associated with the exit of the United
Kingdom from the European Union (“Brexit”) or any other similar
referendums that may be held; adverse or unexpected weather
conditions; VF's indebtedness and its ability to obtain financing
on financing on favorable terms, if needed, could prevent VF from
fulfilling its financial obligations; climate change and increased
focus on sustainability issues; and risks associated with the
spin-off of our Jeanswear business completed on May 22, 2019,
including the risk that VF will not realize all of the expected
benefits of the spin-off; the risk that the spin-off will not be
tax-free for U.S. federal income tax purposes; and the risk that
there will be a loss of synergies from separating the businesses
that could negatively impact the balance sheet, profit margins or
earnings of VF. 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 SEC, including VF’s Annual Report on
Form 10-K, and Quarterly Reports on Form 10-Q, and Forms 8-K filed
or furnished with the SEC.
VF CORPORATION Condensed
Consolidated Statements of Income (Unaudited) (In thousands, except
per share amounts)
Three Months Ended
March
Twelve Months Ended
March
%
2020
2019
2020
2019
Change
Net revenues
$
2,102,421
$
2,357,409
$
10,488,556
$
10,266,887
2
%
Costs and operating expenses
Cost of goods sold
986,266
1,070,556
4,690,520
4,656,326
1
%
Selling, general and administrative
expenses
1,049,693
1,160,493
4,547,008
4,420,379
3
%
Impairment of goodwill
323,223
—
323,223
—
*
Total costs and operating expenses
2,359,182
2,231,049
9,560,751
9,076,705
5
%
Operating income (loss)
(256,761
)
126,360
927,805
1,190,182
(22
)%
Interest, net
(22,869
)
(14,209
)
(72,175
)
(92,730
)
(22
)%
Loss on debt extinguishment
(59,772
)
—
(59,772
)
—
*
Other income (expense), net
(50,289
)
(6,796
)
(68,650
)
(59,139
)
16
%
Income (loss) from continuing
operations before income taxes
(389,691
)
105,355
727,208
1,038,313
(30
)%
Income tax expense
93,395
29,734
98,062
167,887
(42
)%
Income (loss) from continuing
operations
(483,086
)
75,621
629,146
870,426
(28
)%
Income (loss) from discontinued
operations, net of tax
(690
)
53,183
50,303
389,366
*
Net income (loss)
$
(483,776
)
$
128,804
$
679,449
$
1,259,792
(46
)%
Earnings (loss) per common share -
basic (a)
Continuing operations
$
(1.23
)
$
0.19
$
1.59
$
2.20
(28
)%
Discontinued operations
—
0.13
0.13
0.99
*
Total earnings (loss) per common share
- basic
$
(1.24
)
$
0.33
$
1.72
$
3.19
(46
)%
Earnings (loss) per common share -
diluted (a)
Continuing operations
$
(1.22
)
$
0.19
$
1.57
$
2.17
(28
)%
Discontinued operations
—
0.13
0.13
0.97
*
Total earnings (loss) per common share
- diluted
$
(1.22
)
$
0.32
$
1.70
$
3.15
(46
)%
Weighted average shares
outstanding
Basic
391,227
395,405
395,411
395,189
Diluted
395,248
400,731
399,936
400,496
Cash dividends per common share
$
0.48
$
0.51
$
1.90
$
1.94
(2
)%
* Calculation not meaningful
Basis of presentation of condensed
consolidated financial statements: VF operates and reports
using a 52/53 week fiscal year ending on the Saturday closest to
March 31 of each year. For presentation purposes herein, all
references to periods ended March 2020 relate to the 13-week and
52-week fiscal periods ended March 28, 2020 and all references to
periods ended March 2019 relate to the 13-week and 52-week fiscal
periods ended March 30, 2019.
(a) Amounts have been calculated using
unrounded numbers.
VF CORPORATION Condensed
Consolidated Balance Sheets (Unaudited) (In thousands)
March
March
2020
2019
ASSETS
Current assets
Cash and equivalents
$
1,369,028
$
402,226
Accounts receivable, net
1,308,051
1,372,625
Inventories
1,293,912
1,173,102
Other current assets
444,886
425,612
Current assets of discontinued
operations
611,139
1,299,892
Total current assets
5,027,016
4,673,457
Property, plant and equipment
954,406
876,093
Goodwill and intangible assets
3,010,564
3,399,141
Operating lease right-of-use
asset
1,273,514
—
Other assets
867,751
768,482
Other assets of discontinued
operations
—
639,612
Total assets
$
11,133,251
$
10,356,785
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities
Short-term borrowings
$
1,228,812
$
659,060
Current portion of long-term debt
1,018
5,263
Accounts payable
407,021
489,600
Accrued liabilities
1,260,252
1,125,242
Current liabilities of discontinued
operations
126,781
382,439
Total current liabilities
3,023,884
2,661,604
Long-term debt
2,608,269
2,115,884
Operating lease liabilities
1,020,651
—
Other liabilities
1,123,113
1,234,881
Other liabilities of discontinued
operations
—
45,900
Total liabilities
7,775,917
6,058,269
Stockholders' equity
3,357,334
4,298,516
Total liabilities and stockholders'
equity
$
11,133,251
$
10,356,785
VF CORPORATION Condensed
Consolidated Statements of Cash Flows (Unaudited) (In
thousands)
Twelve Months Ended
March
2020
2019
Operating activities
Net income
$
679,449
$
1,259,792
Income from discontinued operations, net
of tax
50,303
389,366
Income from continuing operations, net of
tax
629,146
870,426
Impairment of goodwill
323,223
—
Depreciation and amortization
267,619
255,729
Reduction in the carrying amount of
right-of-use assets
392,707
—
Other adjustments
(812,249
)
113,890
Cash provided by operating activities -
continuing operations
800,446
1,240,045
Cash provided by operating activities -
discontinued operations
74,081
424,178
Cash provided by operating activities
874,527
1,664,223
Investing activities
Business acquisitions, net of cash
received
—
(320,405
)
Proceeds from sale of businesses, net of
cash sold
—
430,286
Capital expenditures
(288,189
)
(215,776
)
Software purchases
(45,647
)
(53,226
)
Other, net
48,529
(18,245
)
Cash used by investing activities -
continuing operations
(285,307
)
(177,366
)
Cash used by investing activities -
discontinued operations
(16,740
)
(43,266
)
Cash used by investing activities
(302,047
)
(220,632
)
Financing activities
Net increase (decrease) from short-term
borrowings and long-term debt
996,864
(872,564
)
Purchases of treasury stock
(1,000,007
)
(150,676
)
Cash dividends paid
(748,663
)
(767,061
)
Cash received from Kontoor Brands, net of
cash transferred of $126.8 million
906,148
—
Proceeds from issuance of Common Stock,
net of shares withheld for taxes
155,390
199,296
Cash provided (used) by financing
activities
309,732
(1,591,005
)
Effect of foreign currency rate changes
on cash, cash equivalents and restricted cash
(27,476
)
14,811
Net change in cash, cash equivalents
and restricted cash
854,736
(132,603
)
Cash, cash equivalents and restricted
cash – beginning of year
556,587
689,190
Cash, cash equivalents and restricted
cash – end of period
$
1,411,323
$
556,587
VF CORPORATION Supplemental
Financial Information Reportable Segment Information (Unaudited)
(In thousands)
Three Months Ended
March
% Change
% Change Constant Currency
(a)
2020
2019
Segment revenues
Outdoor
$
848,291
$
1,001,316
(15
)%
(14
)%
Active
1,034,205
1,142,314
(9
)%
(8
)%
Work
211,593
213,678
(1
)%
0
%
Other (b)
8,332
101
*
*
Total segment revenues
$
2,102,421
$
2,357,409
(11
)%
(10
)%
Segment profit (loss)
Outdoor
$
(9,018
)
$
31,790
Active
154,581
232,599
Work
(1,746
)
12,579
Other (b)
(4,450
)
(226
)
Total segment profit
139,367
276,742
Impairment of goodwill
(323,223
)
—
Corporate and other expenses
(123,194
)
(157,178
)
Interest, net
(22,869
)
(14,209
)
Loss on debt extinguishment
(59,772
)
—
Income (loss) from continuing
operations before income taxes
$
(389,691
)
$
105,355
(a) Refer to constant currency definition
on the following pages.
(b) Other is included for purposes of
reconciliation of revenues and profit, but it is not considered a
reportable segment. Includes results related to the sale of non-VF
products and transition services primarily related to the sale of
the Nautica® brand business.
* Calculation not meaningful
VF CORPORATIONSupplemental Financial InformationReportable
Segment Information(Unaudited)(In thousands)
Twelve Months Ended
March
% Change
% Change Constant Currency
(a)
% Change Adjusted (b)
% Change Constant Currency and
Adjusted (a) (b)
% Change Adjusted Organic (b)
(c)
% Change Constant Currency and
Adjusted Organic (a) (b) (c)
2020
2019
Segment revenues
Outdoor
$
4,643,956
$
4,649,024
0%
1%
0%
1%
0%
1%
Active
4,919,427
4,721,792
4%
6%
4%
6%
6%
7%
Work
886,419
885,748
0%
1%
0%
1%
3%
4%
Other (d)
38,754
10,323
*
*
*
*
*
*
Total segment revenues
$
10,488,556
$
10,266,887
2%
4%
2%
3%
3%
4%
Segment profit (loss)
Outdoor
$
516,089
$
544,425
(5)%
(4)%
Active
1,136,821
1,125,709
1%
3%
Work
50,383
67,379
(25)%
(25)%
Other (d)
(6,485
)
3,244
*
*
Total segment profit
1,696,808
1,740,757
(3)%
(1)%
Impairment of goodwill
(323,223
)
—
*
*
Corporate and other expenses
(514,430
)
(609,714
)
(16)%
(16)%
Interest, net
(72,175
)
(92,730
)
(22)%
(22)%
Loss on debt extinguishment
(59,772
)
—
*
*
Income from continuing operations
before income taxes
$
727,208
$
1,038,313
(30)%
(28)%
(a) Refer to constant currency
definition on the following pages.
(b) Excludes the operating
results of jeanswear wind down activities in South America post the
separation of Kontoor Brands for the twelve months ended March
2020. Refer to Non-GAAP financial information on "Reconciliation of
Select GAAP Measures to Non-GAAP Measures - Three and Twelve Months
Ended March 2020" page for additional information.
(c) Excludes the operating
results of Altra® for the two months ended May 2019, which reflects
the one-year anniversary of the acquisition. The change also
excludes divestitures representing the operating results of Reef®
and the Van Moer business, through the respective dates of sale for
the twelve months ended March 2019. Refer to Non-GAAP financial
information on "Reconciliation of Select GAAP Measures to Non-GAAP
Measures - Three and Twelve Months Ended March 2020" and
"Reconciliation of Select GAAP Measures to Non-GAAP Measures -
Three and Twelve Months Ended March 2019" pages for additional
information.
(d) Other is included for
purposes of reconciliation of revenues and profit, but it is not
considered a reportable segment. Includes results related to the
sale of non-VF products and transition services primarily related
to the sale of the Nautica® brand business.
* Calculation not meaningful
VF CORPORATION Supplemental
Financial Information Reportable Segment Information - Constant
Currency Basis (Unaudited) (In thousands)
Three Months Ended March
2020
As Reported
Adjust for Foreign
under GAAP
Currency Exchange
Constant Currency
Segment revenues
Outdoor
$
848,291
$
10,401
$
858,692
Active
1,034,205
14,235
1,048,440
Work
211,593
1,144
212,737
Other
8,332
(254
)
8,078
Total segment revenues
$
2,102,421
$
25,526
$
2,127,947
Segment profit (loss)
Outdoor
$
(9,018
)
$
(738
)
$
(9,756
)
Active
154,581
1,292
155,873
Work
(1,746
)
(124
)
(1,870
)
Other
(4,450
)
(1,194
)
(5,644
)
Total segment profit
139,367
(764
)
138,603
Impairment of goodwill
(323,223
)
—
(323,223
)
Corporate and other expenses
(123,194
)
(116
)
(123,310
)
Interest, net
(22,869
)
—
(22,869
)
Loss on debt extinguishment
(59,772
)
—
(59,772
)
Income (loss) from continuing
operations before income taxes
$
(389,691
)
$
(880
)
$
(390,571
)
Constant Currency Financial
Information
VF is a global company that reports
financial information in U.S. dollars in accordance with GAAP.
Foreign currency exchange rate fluctuations affect the amounts
reported by VF from translating its foreign revenues and expenses
into U.S. dollars. These rate fluctuations can have a significant
effect on reported operating results. As a supplement to our
reported operating results, we present constant currency financial
information, which is a non-GAAP financial measure that excludes
the impact of translating foreign currencies into U.S. dollars. The
constant currency financial information also excludes the impact of
foreign currency-denominated transactions in countries with highly
inflationary economies. We use constant currency information to
provide a framework to assess how our business performed excluding
the effects of changes in the rates used to calculate foreign
currency translation, and measuring foreign currency transactions
in highly inflationary economies. Management believes this
information is useful to investors to facilitate comparison of
operating results and better identify trends in our businesses.
To calculate foreign currency translation
on a constant currency basis, operating results for the current
year period for entities reporting in currencies other than the
U.S. dollar are translated into U.S. dollars at the average
exchange rates in effect during the comparable period of the prior
year (rather than the actual exchange rates in effect during the
current year period). Similarly, foreign currency transactions in
highly inflationary economies, on a constant currency basis, are
calculated using exchange rates from the comparable period of the
prior year.
These constant currency performance
measures should be viewed in addition to, and not in lieu of or
superior to, our operating performance measures calculated in
accordance with GAAP. The constant currency information presented
may not be comparable to similarly titled measures reported by
other companies.
VF CORPORATION Supplemental
Financial Information Reportable Segment Information - Constant
Currency Basis (Unaudited) (In thousands)
Twelve Months Ended March
2020
As Reported
Adjust for Foreign
under GAAP
Currency Exchange
Constant Currency
Segment revenues
Outdoor
$
4,643,956
$
69,754
$
4,713,710
Active
4,919,427
76,235
4,995,662
Work
886,419
6,535
892,954
Other
38,754
3,720
42,474
Total segment revenues
$
10,488,556
$
156,244
$
10,644,800
Segment profit (loss)
Outdoor
$
516,089
$
5,853
$
521,942
Active
1,136,821
17,463
1,154,284
Work
50,383
268
50,651
Other
(6,485
)
(3,861
)
(10,346
)
Total segment profit
1,696,808
19,723
1,716,531
Impairment of goodwill
(323,223
)
—
(323,223
)
Corporate and other expenses
(514,430
)
(324
)
(514,754
)
Interest, net
(72,175
)
—
(72,175
)
Loss on debt extinguishment
(59,772
)
—
(59,772
)
Income from continuing operations
before income taxes
$
727,208
$
19,399
$
746,607
Diluted earnings per share
growth
(28
)%
3
%
(25
)%
Constant Currency Financial
Information
VF is a global company that reports
financial information in U.S. dollars in accordance with GAAP.
Foreign currency exchange rate fluctuations affect the amounts
reported by VF from translating its foreign revenues and expenses
into U.S. dollars. These rate fluctuations can have a significant
effect on reported operating results. As a supplement to our
reported operating results, we present constant currency financial
information, which is a non-GAAP financial measure that excludes
the impact of translating foreign currencies into U.S. dollars. The
constant currency financial information also excludes the impact of
foreign currency-denominated transactions in countries with highly
inflationary economies. We use constant currency information to
provide a framework to assess how our business performed excluding
the effects of changes in the rates used to calculate foreign
currency translation, and measuring foreign currency transactions
in highly inflationary economies. Management believes this
information is useful to investors to facilitate comparison of
operating results and better identify trends in our businesses.
To calculate foreign currency translation
on a constant currency basis, operating results for the current
year period for entities reporting in currencies other than the
U.S. dollar are translated into U.S. dollars at the average
exchange rates in effect during the comparable period of the prior
year (rather than the actual exchange rates in effect during the
current year period). Similarly, foreign currency transactions in
highly inflationary economies, on a constant currency basis, are
calculated using exchange rates from the comparable period of the
prior year.
These constant currency performance
measures should be viewed in addition to, and not in lieu of or
superior to, our operating performance measures calculated in
accordance with GAAP. The constant currency information presented
may not be comparable to similarly titled measures reported by
other companies.
VF CORPORATION Supplemental
Financial Information Reconciliation of Select GAAP Measures to
Non-GAAP Measures - Three and Twelve Months Ended March 2020
(Unaudited) (In thousands, except per share amounts)
Three Months Ended March 2020
As Reported under GAAP
Transaction and Deal Related
Costs (a)
Relocation and Specified
Strategic Business Decisions (b)
Goodwill Impairment Charge
(c)
Pension Settlement Charge,
Impact of Debt Extinguishment and Impact of Tax Acts (d)
Adjusted
Contribution from Acquisition
(e)
Adjusted Organic
Revenues
$
2,102,421
$
—
$
—
$
—
$
—
$
2,102,421
$
—
$
2,102,421
Gross profit
1,116,155
—
17,375
—
—
1,133,530
—
1,133,530
Percent
53.1
%
53.9
%
53.9
%
Operating income (loss)
(256,761
)
86
20,608
323,223
—
87,156
—
87,156
Percent
(12.2
)%
4.1
%
4.1
%
Diluted earnings (loss) per share from
continuing operations (f)
(1.22
)
—
0.17
0.82
0.33
0.10
—
0.10
Twelve Months Ended March 2020
As Reported under GAAP
Transaction and Deal Related
Costs (a)
Relocation and Specified
Strategic Business Decisions (b)
Goodwill Impairment Charge
(c)
Pension Settlement Charge,
Impact of Debt Extinguishment and Impact of Tax Acts (d)
Adjusted
Contribution from Acquisition
(e)
Adjusted Organic
Revenues
$
10,488,556
$
—
$
(14,252
)
$
—
$
—
$
10,474,304
$
(11,764
)
$
10,462,540
Gross profit
5,798,036
(630
)
15,593
—
—
5,812,999
(4,485
)
5,808,514
Percent
55.3
%
55.5
%
55.5
%
Operating income
927,805
22,403
71,701
323,223
—
1,345,132
37
1,345,169
Percent
8.8
%
12.8
%
12.9
%
Diluted earnings per share from
continuing operations (f)
1.57
0.07
0.27
0.81
(0.04
)
2.68
—
2.68
(a) Transaction and deal related costs
include acquisition, integration and other costs related to the
acquisitions of the Icebreaker® and Altra® brands, which totaled
$12.8 million for the twelve months ended March 2020. The costs
also include separation and related expenses associated with the
spin-off of the Jeans business of $9.5 million, that did not meet
the criteria for discontinued operations, for the twelve months
ended March 2020. The transaction and deal related costs also
include separation and related expenses associated with the
anticipated sale of the Occupational Workwear business of $0.1
million, that did not meet the criteria for discontinued
operations, for the three and twelve months ended March 2020. The
transaction and deal related costs resulted in a net tax benefit of
$5.8 million in the twelve months ended March 2020. Additionally,
the twelve months ended March 2020 include an adjustment to tax
expense of $10.2 million associated with the loss on sale for the
divestiture of the Reef® brand.
(b) Relocation and specified strategic
business decisions include costs associated with the relocation of
VF’s global headquarters and certain brands to Denver, Colorado,
which totaled $41.5 million for the twelve months ended March 2020.
This activity includes a gain of approximately $11 million on the
sale of certain office real estate and related assets in connection
with the relocation, which was recorded in the three months ended
June 2019. The activity also includes the operating results of
jeanswear wind down activities in South America post the separation
of Kontoor Brands and costs related to specified strategic business
decisions to cease operations in Argentina and planned business
model changes in certain other countries in South America, which
totaled $3.3 million and $12.9 million for the three and twelve
months ended March 2020, respectively. The costs also include $17.3
million during the three and twelve months ended March 2020 for
cost optimization activity indirectly related to the strategic
review of the Occupational Workwear business. The three and twelve
months ended March 2020 also included a $48.3 million noncash
charge recorded in the 'Other income (expense), net' line related
to the release of certain currency translation amounts associated
with the wind down activities in South America. The relocation and
specified strategic business decisions costs resulted in a net tax
expense of $0.2 million and a net tax benefit of $11.1 million for
the three and twelve months ended March 2020, respectively.
(c) VF recognized a noncash goodwill
impairment charge related to the Timberland reporting unit of
$323.2 million during the three and twelve months ended March 2020.
The impairment charge resulted in a net tax benefit of $0.3 million
for the three and twelve months ended March 2020.
(d) A pension settlement charge of $22.9
million was recorded in the 'Other income (expense), net' line item
as a result of actions taken to reduce risk, volatility and the
liability associated with VF's U.S. pension plan. The pension
settlement charge resulted in a net tax benefit of $5.8 million in
the twelve months ended March 2020 and negatively impacted diluted
earnings per share by $0.04 in the twelve months ended March
2020.
VF recognized a total impact of debt
extinguishment of $68.2 million, $59.8 million of which was
recorded in the 'Loss on debt extinguishment' line item and $8.4
million was recorded in the 'Interest, net' line item in the three
and twelve months ended March 2020. The $68.2 million was a result
of the premiums, amortization and fees associated with cash tender
offers for VF's outstanding 2033 and 2037 notes and the full
redemption of VF's outstanding 2021 notes. The total impact of debt
extinguishment resulted in a net tax benefit of $11.2 million in
the three and twelve months ended March 2020 and negatively
impacted diluted earnings per share by $0.14 in the three and
twelve months ended March 2020.
On May 19, 2019, Switzerland voted to
approve the Federal Act on Tax Reform and AHV Financing ("Swiss Tax
Act"). The Swiss Tax Act was enacted during the twelve months ended
March 2020, the transitional impact of which resulted in a net tax
expense of $70.8 million and a net tax benefit of $93.6 million for
the three and twelve months ended March 2020, respectively. The
Swiss Tax Act negatively impacted diluted earnings per share by
$0.18 in the three months ended March 2020 and positively impacted
diluted earnings per share by $0.23 in the twelve months ended
March 2020.
On December 22, 2017, the U.S. government
enacted comprehensive tax legislation commonly referred to as the
Tax Cuts and Jobs Act ("U.S. Tax Act"). Transitional impacts were
recorded during the three and twelve months ended March 2020,
resulting in a net tax expense of $3.3 million. The U.S. Tax Act
negatively impacted diluted earnings per share by $0.01 in the
three and twelve months ended March 2020.
(e) The contribution from acquisition
represents the operating results of Altra® for the two months ended
May 2019, which reflects the one-year anniversary of the
acquisition. The results exclude transaction and deal related
costs.
(f) Amounts shown in the table have been
calculated using unrounded numbers. The diluted earnings per share
impacts were calculated using 395,248,000 and 399,936,000 weighted
average common shares for the three and twelve months ended March
2020, respectively.
Non-GAAP Financial Information
The financial information above has been
presented on a GAAP basis, on an adjusted basis, which excludes the
impact of transaction and deal related costs, activity related to
relocation and specified strategic business decisions, the goodwill
impairment charge, the pension settlement charges, the impact of
debt extinguishment and the transitional impacts of Tax Acts, and
on an adjusted organic basis, which excludes the operating results
of Altra® (for the two months ended May 2019). Contribution from
acquisition also excludes transaction and deal related costs. 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.
VF CORPORATION Supplemental
Financial Information Reconciliation of Select GAAP Measures to
Non-GAAP Measures - Three and Twelve Months Ended March 2019
(Unaudited) (In thousands, except per share amounts)
Three Months Ended March 2019
As Reported under GAAP
Transaction and Deal Related
Costs (a)
Relocation and Other Strategic
Business Costs (b)
Impact of U.S. Tax Act
(c)
Adjusted
Contribution from Divestitures
(d)
Adjusted Organic
Revenues
$
2,357,409
$
—
$
—
$
—
$
2,357,409
$
—
$
2,357,409
Gross profit
1,286,853
1,646
6,296
—
1,294,795
—
1,294,795
Percent
54.6
%
54.9
%
54.9
%
Operating income
126,360
10,993
42,097
—
179,450
—
179,450
Percent
5.4
%
7.6
%
7.6
%
Diluted earnings per share from
continuing operations (e)
0.19
0.02
0.09
0.03
0.33
—
0.33
Twelve Months Ended March 2019
As Reported under GAAP
Transaction and Deal Related
Costs (a)
Relocation and Other Strategic
Business Costs (b)
Impact of U.S. Tax Act
(c)
Adjusted
Contribution from Divestitures
(d)
Adjusted Organic
Revenues
$
10,266,887
$
—
$
—
$
—
$
10,266,887
$
(96,192
)
$
10,170,695
Gross profit
5,610,561
7,198
9,808
—
5,627,567
(37,417
)
5,590,150
Percent
54.6
%
54.8
%
55.0
%
Operating income
1,190,182
39,209
58,796
—
1,288,187
(7,499
)
1,280,688
Percent
11.6
%
12.5
%
12.6
%
Diluted earnings per share from
continuing operations (e)
2.17
0.16
0.12
0.09
2.54
(0.01
)
2.53
(a) Transaction and deal related costs
include acquisition and integration costs related to the
acquisitions of Williamson-Dickie and the Icebreaker® and Altra®
brands, and divestiture costs related to the sale of the Reef®
brand, which totaled $7.6 million and $33.4 million for the three
and twelve months ended March 2019, respectively. The costs also
include separation and related expenses associated with the
spin-off of the Jeans business of $3.4 million and $5.8 million,
that did not meet the criteria for discontinued operations, for the
three and twelve months ended March 2019, respectively.
Additionally, the costs included non-operating losses on sale
primarily related to the divestitures of the Reef® brand and Van
Moer business, totaling $37.3 million in the twelve months ended
March 2019. The transaction and deal related costs resulted in a
net tax benefit of $2.5 million and $12.0 million in the three and
twelve months ended March 2019, respectively.
(b) Relocation and other strategic
business costs for the three and twelve months ended March 2019
include costs associated with the relocation of VF's global
headquarters and certain brands to Denver, Colorado, which totaled
$30.7 million and $47.4 million for the three and twelve months
ended March 2019, respectively. The costs also include those
related to strategic business decisions to cease operations in
Argentina and planned business model changes in certain other
countries in South America, which totaled $11.4 million for the
three and twelve months ended March 2019. The relocation and other
strategic business costs resulted in a net tax benefit of $7.9
million and $12.1 million for the three and twelve months ended
March 2019, respectively.
(c) On December 22, 2017, the U.S.
government enacted comprehensive tax legislation commonly referred
to as the Tax Cuts and Jobs Act ("U.S. Tax Act"). Measurement
period adjustments related to the provisional net charge and
subsequent adjustments related to published U.S. Tax Act
regulations were recorded during the three and twelve months ended
March 2019, resulting in a net tax expense of $13.9 million and
$37.2 million, respectively.
(d) The contribution from divestitures
represents the operating results of the Reef® brand and Van Moer
business, through the respective dates of sale for the twelve
months ended March 2019. The contribution from divestitures
resulted in a net tax expense of $1.6 million for the twelve months
ended March 2019.
(e) Amounts shown in the table have been
calculated using unrounded numbers. The diluted earnings per share
impact was calculated using 400,731,000 and 400,496,000 weighted
average common shares for the three and twelve months ended March
2019, respectively.
Non-GAAP Financial Information
The financial information above has been
presented on a GAAP basis, on an adjusted basis, which excludes
transaction and deal related expenses, relocation and other
strategic business costs and the impact of the U.S. Tax Act, and on
an adjusted organic basis, which excludes the operating results of
Reef® and the Van Moer business. Contribution from divestitures
also excludes transaction and deal related costs. 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.
VF CORPORATION Supplemental
Financial Information Top 4 Brand Revenue Information
(Unaudited)
Three Months Ended March
2020
Twelve Months Ended March
2020
Top 4 Brand Revenue Growth
Americas
EMEA
APAC
Global
Americas
EMEA
APAC
Global
Vans®
% change
(8
)%
(5
)%
(8
)%
(7
)%
10
%
5
%
17
%
10
%
% change constant currency*
(7
)%
(2
)%
(5
)%
(6
)%
10
%
8
%
21
%
11
%
The North Face®
% change
(21
)%
1
%
(26
)%
(14
)%
2
%
7
%
3
%
3
%
% change constant currency*
(21
)%
4
%
(26
)%
(13
)%
2
%
11
%
5
%
5
%
Timberland®
% change
(10
)%
(20
)%
(34
)%
(19
)%
0
%
(12
)%
(8
)%
(6
)%
% change constant currency*
(10
)%
(18
)%
(34
)%
(18
)%
0
%
(9
)%
(7
)%
(5
)%
Dickies®
% change
6
%
0
%
(35
)%
(3
)%
3
%
(2
)%
7
%
3
%
% change constant currency*
7
%
2
%
(35
)%
(2
)%
3
%
1
%
10
%
4
%
*Refer to constant currency definition on
previous pages.
VF CORPORATIONSupplemental Financial InformationGeographic and
Channel Revenue Information(Unaudited)
Three Months Ended March
2020
% Change
% Change Constant
Currency*
Geographic
Revenue Growth
U.S.
(10)%
(10)%
EMEA
(7)%
(5)%
APAC
(23)%
(22)%
China
(33)%
(31)%
Americas (non-U.S.)
(8)%
(6)%
International
(11)%
(9)%
Global
(11)%
(10)%
Twelve Months Ended March
2020
% Change
% Change Constant
Currency*
% Change Adjusted (a)
% Change Constant Currency and
Adjusted*(a)
% Change Adjusted Organic (a)
(b)
% Change Constant Currency and
Adjusted Organic*(a) (b)
Geographic
Revenue Growth
U.S.
3%
3%
3%
3%
4%
4%
EMEA
(2)%
2%
(2)%
2%
0%
3%
APAC
4%
7%
4%
7%
4%
7%
China
10%
14%
10%
14%
10%
14%
Americas (non-U.S.)
6%
8%
4%
6%
4%
6%
International
1%
4%
1%
4%
1%
5%
Global
2%
4%
2%
3%
3%
4%
Three Months Ended March
2020
% Change
% Change Constant
Currency*
Channel Revenue
Growth
Wholesale (c)
(11)%
(9)%
Direct-to-consumer
(11)%
(10)%
Digital
8%
9%
Twelve Months Ended March
2020
% Change
% Change Constant
Currency*
% Change Adjusted (a)
% Change Constant Currency and
Adjusted*(a)
% Change Adjusted Organic (a)
(b)
% Change Constant Currency and
Adjusted Organic*(a) (b)
Channel Revenue
Growth
Wholesale (c)
0%
2%
0%
2%
1%
3%
Direct-to-consumer
5%
6%
5%
6%
5%
6%
Digital
15%
17%
15%
17%
16%
17%
As of March
2020
2019
DTC Store
Count
Total
1,379
1,382
*Refer to constant currency
definition on previous pages.
(a) Excludes the operating
results of jeanswear wind down activities in South America post the
separation of Kontoor Brands for the twelve months ended March
2020. Refer to Non-GAAP financial information on "Reconciliation of
Select GAAP Measures to Non-GAAP Measures - Three and Twelve Months
Ended March 2020" page for additional information.
(b) Excludes the operating
results of Altra® for the two months ended May 2019, which reflects
the one-year anniversary of the acquisition. The change also
excludes divestitures representing the operating results of Reef®
and the Van Moer business, through the respective dates of sale for
the twelve months ended March 2019. Refer to Non-GAAP financial
information on "Reconciliation of Select GAAP Measures to Non-GAAP
Measures - Three and Twelve Months Ended March 2020" and
"Reconciliation of Select GAAP Measures to Non-GAAP Measures -
Three and Twelve Months Ended March 2019" pages for additional
information.
(c) Royalty revenues are included
in the wholesale channel for all periods.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200515005094/en/
VF Corporation Joe Alkire,
720-778-4051 Vice President, Corporate Development, Investor
Relations and Treasury or Craig Hodges, 720-778-4116 Vice
President, Corporate Affairs
VF (NYSE:VFC)
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