V.F. Corporation (VFC) Bundle
A Brief History of VF Corporation
Company Overview
VF Corporation, a global leader in branded lifestyle apparel, operates a diverse portfolio of brands including The North Face, Vans, Timberland, and Dickies. As of September 2024, VF Corporation has focused on transforming its business model to adapt to changing consumer preferences and market challenges.
Recent Performance
For the three months ended September 2024, VF Corporation reported revenues of $2.76 billion, a decrease of 6% compared to the same period in 2023. This decline was attributed to lower sales across all segments, particularly in the Americas and Europe regions.
| Segment | Q2 2024 Revenue (in millions) | Q2 2023 Revenue (in millions) | Change (%) |
|---|---|---|---|
| Outdoor | $1,658.7 | $1,713.7 | (3.1) |
| Active | $879.8 | $968.2 | (9.1) |
| Work | $219.5 | $238.3 | (7.9) |
| Total | $2,757.9 | $2,920.1 | (5.6) |
Financial Highlights
In the six months ended September 2024, VF Corporation reported a net loss of $206.7 million, compared to a net loss of $508.1 million in the same period of the prior year. This improvement was primarily due to a reduction in losses from continuing operations.
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Net Income (Loss) (in millions) | $(206.7) | $(508.1) |
| Earnings (Loss) per Share - Diluted | $(0.53) | $(1.31) |
| Gross Margin (%) | 51.8% | 51.5% |
| Operating Margin (%) | 3.3% | 6.6% |
Debt and Liquidity
As of September 2024, VF Corporation reported a total outstanding debt of $5.78 billion. The company’s net debt to total capital ratio stood at 83.6%, indicating a significant reliance on debt financing. The current ratio was 1.0, reflecting a tighter liquidity position compared to previous periods.
| Liquidity Metrics | September 2024 | March 2024 | September 2023 |
|---|---|---|---|
| Working Capital (in millions) | $33.2 | $733.6 | $1,657.1 |
| Current Ratio | 1.0 | 1.2 | 1.5 |
| Net Debt to Total Capital (%) | 83.6% | 80.1% | 77.4% |
Strategic Initiatives
VF Corporation has embarked on a transformation program known as "Reinvent," aimed at enhancing operational efficiency and driving sustainable growth. The company is also focused on reducing its debt levels and reinvesting in core brands to improve profitability.
Recent Developments
On October 1, 2024, VF Corporation completed the sale of its Supreme brand to EssilorLuxottica S.A. for $1.5 billion, a strategic move to streamline its portfolio and leverage cash for debt repayment.
| Recent Transactions | Details |
|---|---|
| Sale of Supreme | $1.5 billion to EssilorLuxottica |
| Debt Repayment | $1.0 billion prepayment of DDTL using proceeds from Supreme sale |
Future Outlook
VF Corporation is positioning itself to navigate the evolving retail landscape by focusing on direct-to-consumer sales and enhancing its e-commerce capabilities. The company aims to achieve a more balanced growth across its brand portfolio while addressing the challenges posed by changing consumer behaviors.
A Who Owns V.F. Corporation (VFC)
Major Shareholders
As of 2024, V.F. Corporation's ownership is characterized by a mix of institutional and individual shareholders. The top shareholders include:
| Shareholder | Ownership Percentage | Type of Shareholder |
|---|---|---|
| The Vanguard Group, Inc. | 9.5% | Institutional Investor |
| BlackRock, Inc. | 8.2% | Institutional Investor |
| State Street Corporation | 6.1% | Institutional Investor |
| FMR LLC (Fidelity) | 5.7% | Institutional Investor |
| Wellington Management Group LLP | 4.3% | Institutional Investor |
| Capital Research Global Investors | 3.8% | Institutional Investor |
| Individual Investors | 62.4% | Retail Investors |
Institutional Ownership Trends
Institutional ownership of V.F. Corporation has seen fluctuations over the past year, reflecting changing market conditions and investor sentiment. The following table outlines the percentage of institutional ownership over the last three quarters:
| Quarter | Institutional Ownership Percentage |
|---|---|
| Q1 2024 | 67.8% |
| Q2 2024 | 66.2% |
| Q3 2024 | 65.5% |
Executive Ownership
As of September 2024, V.F. Corporation's executives hold a significant number of shares. The following table summarizes the ownership structure among key executives:
| Executive Name | Position | Shares Owned |
|---|---|---|
| Benno Dorer | CEO | 240,000 |
| Scott Baxter | President | 150,000 |
| Jill Granoff | COO | 120,000 |
| David T. B. Dyer | CFO | 100,000 |
Stock Performance Overview
V.F. Corporation's stock performance has been impacted by various factors throughout 2024. The following table presents key financial metrics related to the stock:
| Metric | Value |
|---|---|
| Current Share Price | $15.50 |
| Market Capitalization | $6.05 billion |
| P/E Ratio | 12.5 |
| Dividend Yield | 2.9% |
| 52-Week High | $30.50 |
| 52-Week Low | $12.00 |
Recent Corporate Actions
In October 2024, V.F. Corporation completed the sale of Supreme to EssilorLuxottica S.A. for $1.5 billion. This transaction is anticipated to influence the company's financial standing and shareholder structure significantly moving forward.
V.F. Corporation (VFC) Mission Statement
Mission Statement Overview
The mission of V.F. Corporation (VFC) as of 2024 emphasizes a commitment to delivering innovative products that enhance the lives of consumers while fostering a sustainable future. The company aims to lead in the outdoor and active lifestyle apparel segments through its renowned brands.
Key Brand Focus
- The North Face®
- Vans®
- Timberland®
- Dickies®
Financial Performance Summary
In the three months ended September 2024, VFC reported the following segment revenues (in millions):
| Segment | 2024 Revenue | 2023 Revenue | Change (%) |
|---|---|---|---|
| Outdoor | $1,658.7 | $1,713.7 | (3.5) |
| Active | $879.8 | $968.2 | (9.1) |
| Work | $219.5 | $238.3 | (7.9) |
| Total | $2,757.9 | $2,920.1 | (5.6) |
Global Revenue Breakdown
The total global revenues for the six months ended September 2024 were $4,527.0 million, compared to $4,888.2 million in the same period of 2023.
| Region | 2024 Revenue (in millions) | 2023 Revenue (in millions) | Change (%) |
|---|---|---|---|
| Americas | $2,624.9 | $2,773.1 | (5.4) |
| Europe | $1,607.1 | $1,673.3 | (3.9) |
| Asia-Pacific | $656.3 | $610.1 | 7.6 |
Profitability Metrics
VFC's profitability metrics for the three months ended September 2024 are summarized as follows:
| Metric | 2024 | 2023 |
|---|---|---|
| Gross Margin | 52.2% | 51.0% |
| Operating Margin | 9.9% | 12.0% |
| Earnings Per Share (EPS) | $0.52 | $(1.16) |
Strategic Initiatives
VFC has initiated a transformation program known as "Reinvent," focusing on:
- Enhancing brand-building efforts.
- Improving operational performance.
- Achieving profitable growth through cost optimization.
Recent Developments
On October 1, 2024, V.F. Corporation completed the sale of its brand Supreme to EssilorLuxottica S.A. for an aggregate base purchase price of $1.5 billion, which significantly impacts its financial positioning moving forward.
Conclusion on Strategic Focus
V.F. Corporation's mission underscores its commitment to innovation, sustainability, and leadership in the outdoor and active lifestyle markets, as reflected in its recent financial performance and strategic initiatives.
How V.F. Corporation (VFC) Works
Company Overview
V.F. Corporation (VFC) operates in the apparel industry, focusing on branded lifestyle apparel, footwear, and accessories. The company manages a portfolio of well-known brands including The North Face, Vans, Timberland, and Dickies.
Financial Performance
For the six months ended September 2024, VFC reported a net revenue of $4.53 billion, a decrease of 7% compared to $4.89 billion in the same period in 2023. The three-month period ended September 2024 showed a revenue of $2.76 billion, down from $2.92 billion year over year.
| Financial Metrics | Six Months Ended September 2024 | Six Months Ended September 2023 | Change (%) |
|---|---|---|---|
| Net Revenue | $4.53 billion | $4.89 billion | -7% |
| Gross Margin | 51.8% | 51.5% | +0.3% |
| Operating Margin | 3.3% | 6.6% | -3.3% |
| Net Income (Loss) | $(206.7) million | $(508.1) million | +59.4% |
Segment Performance
VFC's operations are segmented into Outdoor, Active, and Work categories. For the three months ended September 2024, the following revenue figures were reported:
| Segment | Revenue (in millions) | 2024 | 2023 | Change (%) |
|---|---|---|---|---|
| Outdoor | $1,658.7 | $1,713.7 | -3.1% | |
| Active | $879.8 | $968.2 | -9.1% | |
| Work | $219.5 | $238.3 | -7.9% | |
| Total | $2,757.9 | $2,920.1 | -5.6% |
Regional Performance
Revenue by region for the three months ended September 2024 is as follows:
| Region | Revenue (in millions) |
|---|---|
| Americas | $1,172.7 |
| Europe | $846.8 |
| Asia-Pacific | $367.0 |
| Total | $2,386.5 |
Cash Flow and Liquidity
In the six months ended September 2024, VFC reported cash used by operating activities of $(301.8) million, compared to $(60.7) million in the prior year. Cash flows from investing activities were $(16.4) million, while financing activities provided $126.0 million.
| Cash Flow Metrics | Six Months Ended September 2024 | Six Months Ended September 2023 |
|---|---|---|
| Cash Used by Operating Activities | $(301.8) million | $(60.7) million |
| Cash Used by Investing Activities | $(16.4) million | $(145.7) million |
| Cash Provided by Financing Activities | $126.0 million | $(125.9) million |
Debt and Equity
As of September 2024, VFC's total outstanding debt averaged $6.2 billion with a weighted average interest rate of 2.7%. The company had $492.2 million in cash and cash equivalents, and a current ratio of 1.0 to 1.
| Debt Metrics | September 2024 | March 2024 | September 2023 |
|---|---|---|---|
| Total Debt | $6.2 billion | $6.9 billion | $6.6 billion |
| Cash and Cash Equivalents | $492.2 million | $484.8 million | $500.2 million |
| Current Ratio | 1.0 | 1.2 | 1.5 |
Stock Performance
For the three months ended September 2024, VFC reported earnings per share (EPS) of $0.52, compared to $(1.16) in the same period in 2023.
| Earnings Metrics | Three Months Ended September 2024 | Three Months Ended September 2023 |
|---|---|---|
| Earnings per Share (EPS) | $0.52 | $(1.16) |
How V.F. Corporation (VFC) Makes Money
Revenue Streams
V.F. Corporation generates revenue through multiple channels, primarily categorized into wholesale, direct-to-consumer, and royalty revenues. As of September 2024, the total revenue from these channels is detailed below:
| Channel | Three Months Ended September 2024 (in thousands) | Three Months Ended September 2023 (in thousands) |
|---|---|---|
| Wholesale | $1,827,796 | $1,905,166 |
| Direct-to-consumer | $914,937 | $997,457 |
| Royalty | $15,215 | $17,500 |
| Total Revenue | $2,757,948 | $2,920,123 |
Geographic Breakdown
The geographical distribution of V.F. Corporation's revenue highlights the importance of international markets. The following table summarizes revenue by region:
| Region | Three Months Ended September 2024 (in thousands) | Three Months Ended September 2023 (in thousands) |
|---|---|---|
| Americas | $1,355,858 | $1,506,080 |
| Europe | $1,009,555 | $1,042,758 |
| Asia-Pacific | $392,535 | $371,285 |
| Total Revenue | $2,757,948 | $2,920,123 |
Segment Performance
V.F. Corporation operates through several reportable segments: Outdoor, Active, and Work. The performance of each segment for the three months ended September 2024 is as follows:
| Segment | Revenue (in millions) | Segment Profit (in millions) | Operating Margin (%) |
|---|---|---|---|
| Outdoor | $1,658.7 | $287.4 | 17.3 |
| Active | $879.8 | $103.7 | 11.8 |
| Work | $219.5 | $20.4 | 9.3 |
| Total | $2,757.9 | $411.5 | 14.9 |
Direct-to-Consumer Strategy
V.F. Corporation's direct-to-consumer sales, which include e-commerce and retail store revenues, accounted for 33% of total revenues in the three months ended September 2024. The performance in this segment is as follows:
| Metric | Three Months Ended September 2024 | Three Months Ended September 2023 |
|---|---|---|
| Direct-to-Consumer Revenue (in thousands) | $914,937 | $997,457 |
| Retail Store Count | 1,160 | 1,235 |
| E-commerce Revenue Change (%) | -5% | -7% |
Cost Structure and Profitability
The cost structure of V.F. Corporation is critical in determining profitability. The following table outlines key financial metrics for the three months ended September 2024:
| Metric | Three Months Ended September 2024 | Three Months Ended September 2023 |
|---|---|---|
| Gross Margin (%) | 52.2 | 51.0 |
| Selling, General and Administrative Expenses (%) | 42.3 | 39.0 |
| Operating Margin (%) | 9.9 | 12.0 |
Income from Continuing Operations
For the three months ended September 2024, V.F. Corporation reported income from continuing operations as follows:
| Metric | Three Months Ended September 2024 | Three Months Ended September 2023 |
|---|---|---|
| Net Income (Loss) (in thousands) | $52,178 | $(450,697) |
| Earnings per Share (EPS) - Diluted | $0.13 | $(1.16) |
Cash Flow Analysis
Cash flow from operating activities in the six months ended September 2024 was as follows:
| Cash Flow Type | Six Months Ended September 2024 (in thousands) | Six Months Ended September 2023 (in thousands) |
|---|---|---|
| Cash Used by Operating Activities | $(301,823) | $(60,720) |
| Cash Used by Investing Activities | $(16,421) | $(145,728) |
| Cash Provided (Used) by Financing Activities | $125,974 | $(125,901) |
Debt and Liquidity
As of September 2024, V.F. Corporation's debt profile and liquidity position were as follows:
| Debt Type | Amount (in millions) |
|---|---|
| Total Debt | $6,200 |
| Cash and Cash Equivalents | $492.2 |
V.F. Corporation (VFC) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Article updated on 8 Nov 2024
Resources:
- V.F. Corporation (VFC) Financial Statements – Access the full quarterly financial statements for Q2 2025 to get an in-depth view of V.F. Corporation (VFC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View V.F. Corporation (VFC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.