VF Corporation Reports Solid Top-Line Performance in First Quarter and Revises Full Year Fiscal 2023 Outlook Due to Currency Impact

DENVER, July 28, 2022–(BUSINESS WIRE)–VF Corporation (NYSE: VFC) today announced financial results for its first quarter (Q1’FY23) ended July 2, 2022.

Q1’FY23 Financial Highlights

  • Revenue $2.3 billion, up 3% (up 7% in constant dollars) with big four brands up 2% (up 6% in constant dollars) and the balance of the portfolio up 9% (up 16% in constant dollars)

    • The North Face® revenue $0.5 billion, up 31% (up 37% in constant dollars)

    • Vans® revenue $0.9 billion, down 7% (down 4% in constant dollars)

  • Gross margin 53.9%, down 260 basis points; Adjusted gross margin 54.1%, down 260 basis points

  • Operating margin 2.8%, down 640 basis points; Adjusted operating margin 3.4%, down 340 basis points

  • Earnings (loss) per share (EPS) $(0.14), down 137%; Adjusted EPS $0.09, down 68%

  • Return of $194 million to shareholders through cash dividends

FY23 Financial Outlook

  • VF is maintaining its currency adjusted FY23 outlook while revising its earnings outlook on a reported dollar basis to reflect ongoing negative impacts from foreign currency fluctuations; we now expect adjusted EPS of $3.05 to $3.15, implying 4% to 7% growth versus the prior year on a constant dollar basis

  • Total VF revenue up at least 7% in constant dollars, unchanged from the previous outlook

  • Adjusted gross margin up slightly versus previous outlook of up approximately 50 basis points

  • Adjusted operating margin approximately 13.2% versus previous outlook of approximately 13.6%

  • Adjusted cash flow from operations approximately $1.2 billion; Capital expenditures approximately $250 million, both unchanged versus previous outlook

    • Excludes the impact of a payment VF anticipates making in FY23 of approximately $857 million plus additional accrued interest relating to an assessment from the Internal Revenue Service (IRS) for the dispute regarding the timing of income inclusion associated with VF’s acquisition of Timberland in 2011, as previously disclosed

  • VF’s

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