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Jun 27, 2020

VF Corp Q1 2021 Earnings Report

VF Corporation reported a significant decrease in revenue and earnings per share due to COVID-19 impacts.

Key Takeaways

VF Corporation's revenue decreased by 48% to $1.1 billion due to store closures and lower consumer demand caused by the COVID-19 pandemic. The company reported a loss per share of $(0.71) and an adjusted loss per share of $(0.57).

Revenue decreased 48% due to COVID-19 impacts.

Loss per share was $(0.71), and adjusted loss per share was $(0.57).

Digital revenue increased 78%.

VF ended the quarter with approximately $2.8 billion of cash and short-term investments.

Total Revenue
$1.08B
Previous year: $2.27B
-52.5%
EPS
-$0.57
Previous year: $0.3
-290.0%
Gross Margin
52.9%
Digital Revenue Growth
78%
Gross Profit
$569M
Previous year: $1.24B
-53.9%
Cash and Equivalents
$2.15B
Previous year: $561M
+282.5%
Total Assets
$12.5B
Previous year: $10.4B
+20.0%

VF Corp

VF Corp

VF Corp Revenue by Segment

Forward Guidance

Due to the uncertainty of the duration and severity of COVID-19, governmental actions and regulations in response to the pandemic, it is not possible to provide a financial outlook for full-year fiscal 2021 at this time. However, second quarter fiscal 2021 revenues are expected to be down less than 25% and full-year fiscal 2021 free cash flow is still expected to exceed $600 million.

Positive Outlook

  • Second quarter fiscal 2021 revenues are expected to be down less than 25%.
  • Full-year fiscal 2021 free cash flow is still expected to exceed $600 million.

Challenges Ahead

  • Uncertainty of the duration and severity of COVID-19.
  • Governmental actions and regulations in response to the pandemic.
  • Speed with which the pandemic is developing and impacting VF.
  • Impact on consumers.
  • Impact on customers and suppliers.

Revenue & Expenses

Visualization of income flow from segment revenue to net income