VF Corp

Latest Results (21.12.2024):

Revenue Performance

In the second quarter of fiscal 2025, VF Corp reported a revenue of $2.8 billion, marking a 6% decline compared to the same period last year. This performance, however, showed an improvement from the first quarter of fiscal 2025, which experienced a 10% year-over-year decline. The North Face brand saw a 3% decrease in revenue, while Vans experienced an 11% drop compared to the previous year.

Profitability Metrics

VF Corp's gross margin for Q2'FY25 was 52.2%, an increase of 120 basis points from the previous year. However, the operating margin decreased by 210 basis points to 9.9%. On an adjusted basis, the operating margin was 11.4%, down 60 basis points from the prior year. Earnings per share (EPS) were reported at $0.52, a significant improvement from a loss of $1.16 per share in Q2'FY24.

Balance Sheet Highlights

At the end of Q2'FY25, VF Corp's inventories were down 13% compared to the previous year. The company's net debt stood at $5.7 billion, reflecting a reduction of approximately $446 million year-over-year. Following the sale of the Supreme brand, VF Corp received $1.475 billion in net proceeds, which contributed to further debt reduction.

Dividend Announcement

VF Corp's Board of Directors declared a quarterly dividend of $0.09 per share, payable on December 18, 2024, to shareholders of record as of December 10, 2024. The company intends to continue paying quarterly dividends, subject to Board approval.

Financial Outlook

For the third quarter of fiscal 2025, VF Corp expects revenue to range between $2.7 billion and $2.75 billion, representing a year-over-year decline of 1% to 3%. The company anticipates adjusted operating income to be between $170 million and $200 million. For the full fiscal year 2025, VF Corp projects free cash flow from continuing operations, plus proceeds from non-core asset sales, to be approximately $425 million.