VF Corporation reports financial results for its second quarter

VF Corporation has reported financial results for its second quarter (Q2’FY25) ended September 28, 2024, and the Company’s Board of Directors authorized a quarterly per share dividend of $0.09. 

Q2’FY25 Income Statement Review

• Results demonstrated broad-based year-over-year sequential improvement relative to Q1’FY25, with all key metrics in line with, or above the company’s expectations
• Revenue $2.8 billion, down 6% vs. last year, an improvement vs. Q1’FY25 down 10%
  • The North Face® down 3% (down 4% in constant dollars) as expected. This compares against a strongQ2’FY24 of up 19% (up 17% in constant dollars)
  • Vans® down 11% vs. last year, relative to Q1’FY25 down 21% vs. last year
• Gross margin 52.2%, up 120 basis points vs. last year
• Operating margin 9.9%, down 210 basis points vs. last year; adjusted operating margin down 60 basis points vs. last year to 11.4%
• Earnings (loss) per share (EPS) $0.52 vs. Q2’FY24 $(1.16); adjusted EPS $0.60 vs. Q2’FY24 $0.63Balance Sheet Review
• • Q2’FY25 ending inventories down 13% relative to the prior year

• For Q3’FY25 VF expects the following on a continuing operations basis:
  • Revenue in the range of $2.7 billion to $2.75 billion, down 1% to down 3% year-over-year in reported dollars, inclusive of an expected negative FX impact of approximately 100 basis points
  • Adjusted operating income in the range of $170 million to $200 million (Q3’FY24: $218 million)
• For FY25 VF expects free cash flow from continuing operations plus proceeds from non-core physical asset sales of approximately $425 million, with core fundamentals in line with previous guidance. Relative to the original full year guidance of $600 million, the change reflects the sale of Supreme and additional reinvestment initiatives in the second half of FY25, which are partially offset by the greater than anticipated proceeds for non-core physical asset sales.