VF Corp Q3 2023 Earnings Report
Key Takeaways
VF Corporation's Q3'FY23 revenue decreased by 3% to $3.5 billion, but increased by 3% in constant dollars. Earnings per share (EPS) decreased by 1% to $1.31, while adjusted EPS decreased by 17% to $1.12. The company is taking actions to improve execution, focus on consumer opportunities, and enhance operational performance.
Revenue decreased by 3% (increased by 3% in constant dollars) to $3.5 billion.
Earnings per share (EPS) decreased by 1% to $1.31; Adjusted EPS decreased by 17% to $1.12.
The North FaceĀ® experienced a 7% increase (13% in constant dollars).
VF is commencing a review of strategic alternatives for its Global Packs business, consisting of the KiplingĀ®, EastpakĀ®, and JanSportĀ® brands.
VF Corp
VF Corp
VF Corp Revenue by Geographic Location
Forward Guidance
VF Corporation provided FY23 outlook, expecting total revenue up approximately 3% in constant dollars, VansĀ® revenue to decline by high single digits %, The North FaceĀ® to be up by at least 14%, adjusted gross margin down approximately 200 basis points, adjusted operating margin approximately 9.5%, and adjusted EPS $2.05 to $2.15.
Positive Outlook
- Total VF revenue up approximately 3% in constant dollars, within the previous outlook range
- The North FaceĀ® is expected to be up by at least 14% in constant dollars, compared to the previous outlook of up at least 12%
- Completing the previously announced actions which will deliver approximately $225 million in annualized savings once complete in FY24
- Clear plans in place to address the ongoing challenging macro-economic environment in the near term
- Actions are expected to lead to improved operating performance and will strengthen the Company's financial position
Challenges Ahead
- VansĀ® revenue is expected to decline by high single digits % in constant dollars, compared to the previous outlook of down mid-single digits %
- Adjusted gross margin down approximately 200 basis points, compared to the previous outlook of down 100 to 150 basis points
- Adjusted operating margin approximately 9.5%, compared to the previous outlook of approximately 11.0%
- Adjusted EPS $2.05 to $2.15, within the previous outlook of $2.00 to $2.20
- Adjusted cash flow from operations approximately $0.7 billion, compared to the previous outlook of at least $0.9 billion
Revenue & Expenses
Visualization of income flow from segment revenue to net income