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Oct 01, 2022
VF Corp Q2 2023 Earnings Report
VF Corporation reported a balanced performance in Q2 with revenue declining 4% and adjusted EPS decreasing 34%.
Key Takeaways
VF Corporation's Q2 FY23 revenue reached $3.1 billion, a 4% decrease year-over-year, but up 2% in constant dollars. Adjusted EPS was $0.73, down 34%. The company is revising its full-year earnings outlook due to foreign currency fluctuations and increased promotional activity.
Revenue declined by 4% to $3.1 billion, but increased by 2% in constant dollars.
The North Face® revenue grew by 8% (14% in constant dollars), while Vans® revenue decreased by 13% (8% in constant dollars).
Adjusted EPS decreased by 34% to $0.73.
VF is revising its full-year earnings outlook to reflect increased negative impacts from foreign currency fluctuations as well as heightened inventory levels and increased promotional activity in the marketplace.
VF Corp
VF Corp
Forward Guidance
VF is maintaining its constant dollar revenue outlook but revising its earnings outlook to reflect increased negative impacts from foreign currency fluctuations as well as heightened inventory levels and increased promotional activity in the marketplace.
Positive Outlook
- Total VF revenue up 5% to 6% in constant dollars, unchanged from the previous outlook
Challenges Ahead
- Adjusted gross margin down 100 to 150 basis points, compared to the previous outlook of down 50 basis points
- Adjusted operating margin 11.0%, compared to the previous outlook of approximately 12.0%
- Adjusted EPS is now expected to be in the range of $2.40 to $2.50, versus $3.18 in the prior year and compared to the previous outlook of $2.60 to $2.70
- Adjusted cash flow from operations at least $0.9 billion, compared to the previous outlook of $1.0 billion
- Capital expenditures approximately $230 million versus the previous outlook of $240 million