•
Sep 26, 2020

VF Corp Q2 2021 Earnings Report

VF Corp reported a decline in revenue due to COVID-19 impacts but saw growth in digital and China.

Key Takeaways

VF Corporation reported an 18% decrease in revenue to $2.6 billion, driven by store closures and reduced consumer demand due to COVID-19. Despite these challenges, the company saw strong growth in its digital and China businesses and raised its dividend by 2 percent.

Revenue decreased 18 percent to $2.6 billion due to COVID-19 impacts.

Digital revenue increased 44 percent.

Greater China revenue increased 16 percent.

Adjusted earnings per share was $0.67.

Total Revenue
$2.61B
Previous year: $3.39B
-23.1%
EPS
$0.67
Previous year: $1.26
-46.8%
Digital Revenue Growth
44%
Gross Profit
$1.33B
Previous year: $1.8B
-26.2%
Cash and Equivalents
$1.88B
Previous year: $470M
+299.5%
Total Assets
$12.9B
Previous year: $11.3B
+14.8%

VF Corp

VF Corp

VF Corp Revenue by Segment

Forward Guidance

Full year fiscal 2021 revenue is expected to be at least $9.0 billion, reflecting a decrease of approximately 14 percent on an adjusted basis. Adjusted earnings per share is expected to be at least $1.20, reflecting a decrease of approximately 55 percent.

Positive Outlook

  • Revenue expected to be at least $9.0 billion.
  • Low single-digit growth in the second half.
  • Return to growth in the fourth quarter.
  • Adjusted earnings per share is expected to be at least $1.20.
  • Adjusted free cash flow is still expected to exceed $600 million.

Challenges Ahead

  • Revenue decrease of approximately 14 percent on an adjusted basis.
  • Adjusted earnings per share reflecting a decrease of approximately 55 percent.
  • COVID-19 related business disruptions.
  • Store closures.
  • Lower consumer demand.

Revenue & Expenses

Visualization of income flow from segment revenue to net income