VF Q4 revenue and earnings decline
VF Corporation’s fourth quarter revenue of 2.7 billion dollars, was down 3 percent or flat in constant dollars. The company reported a loss per share of 55 cents and adjusted EPS of 17 cents.
For the fiscal year 2023, VF revenue of 11.6 billion dollars, was down 2 percent but up 3 percent in constant dollars. EPS decreased to 31 cents and adjusted EPS to 2.10 dollars.
Commenting on the company’s trading results, Benno Dorer, VF’s interim president and CEO, said in a release: “We delivered quarterly results in line with our guidance, led by ongoing strength in The North Face and our international business, with accelerating momentum in Greater China.”
Highlights of VF’s Q4 performance
For the fourth quarter, The North Face brand sales were up 12 percent or up 16 percent in constant dollars, while Vans brand revenues were down 14 percent or down 12 percent in constant dollars, representing the beginning of growth in APAC in constant dollars while the Americas remained negative.
The company’s international business was up 2 percent and up 8 percent in constant dollars in the fourth quarter. The EMEA region delivered its eighth consecutive quarter of growth in constant dollars, Greater China increased 3 percent and 10 percent in constant dollars, while Americas region declined 7 percent, primarily driven by reductions in the US wholesale business.
VF expects to return to profitability in FY24
For the current fiscal year, the company projects total VF revenue flat to up slightly in constant dollars, including first quarter revenue down high-single digits in constant dollars reflecting a challenging US wholesale environment. Gross margin up at least 100 basis points, and EPS of 2.05 dollars to 2.25 dollars.
“We expect to improve our operating performance and financial results, highlighted by increasing gross margins, EBITDA growth, and strong cash generation, all of which supports our plan to de-lever. I remain confident VF is well positioned to return to sustainable and profitable growth beginning in FY24,” added Matt Puckett, VF CFO.
VF’s board of directors declared a quarterly dividend of 30 cents per share, payable on June 20, 2023, to shareholders of record on June 12, 2023.