DENVER–(BUSINESS WIRE)– VF Corporation (NYSE: VFC) today reported financial results for its second quarter ended September 26, 2020.

“Our year to date results have surpassed our internal expectations across all brands, driven by Digital and China, two of our key growth pillars. We are beginning to see signs of stabilization and strength across all aspects of our business, supporting our decision to raise the dividend and provide a financial outlook for the balance of the year. Although uncertainties remain, investments in our digital transformation are resulting in near-term momentum and improved capabilities to emerge in an even stronger position.”

– Steve Rendle, VF’s Chairman, President and CEO-

  • Revenue from continuing operations decreased 18 percent (down 19 percent in constant dollars) to $2.6 billion;
  • Active segment revenue decreased 15 percent (down 16 percent in constant dollars) including a 10 percent (11 percent in constant dollars) decrease in Vans® brand revenue; Outdoor segment revenue decreased 24 percent (down 26 percent in constant dollars) including a 25 percent (26 percent in constant dollars) decrease in The North Face® brand revenue; Work segment revenue increased 14 percent including a 19 percent (18 percent in constant dollars) increase in Dickies® brand revenue;
  • International revenue decreased 15 percent (down 18 percent in constant dollars); Europe revenue decreased 16 percent (down 20 percent in constant dollars); Greater China revenue increased 16 percent (up 14 percent in constant dollars), including an increase of 21 percent (19 percent in constant dollars) in Mainland China;
  • Direct-to-Consumer revenue decreased 17 percent (down 18 percent in constant dollars);
  • Direct-to-Consumer Digital revenue increased 44 percent (up 42 percent in constant dollars);
  • Gross margin from continuing operations decreased 340 basis points, including a 110 basis point impact from the timing of net foreign currency transaction activity, to 50.8 percent; on an adjusted basis, gross margin decreased 350 basis points to 50.9 percent;
  • Operating income from continuing operations on a reported basis was $320 million; on an adjusted basis, operating income from continuing operations was $342 million;
  • Earnings per share from continuing operations was $0.62. Adjusted earnings per share from continuing operations was $0.67;
  • VF ended the second quarter of fiscal 2021 with inventories down 10 percent compared to the prior year; at the end of the second quarter the company had approximately $2.7 billion of cash and short-term investments in addition to $2.23 billion remaining under VF’s revolving credit facility; the company also returned $186 million to shareholders through dividends;
  • Full year fiscal 2021 revenue expected to be at least $9.0 billion, reflecting a decrease of approximately 14 percent on an adjusted basis, including low single-digit growth in the second half driven by a return to growth in the fourth quarter; full year fiscal 2021 adjusted earnings per share is expected to be at least $1.20, reflecting a decrease of approximately 55 percent (down approximately 56 percent in constant dollars); and,
  • Quarterly dividend increased by 2 percent to $0.49 per share, marking VF’s 48th consecutive year of dividend increases.

Full Year Fiscal 2021 Outlook

VF’s full year outlook assumes no material deterioration to the company’s current business operations as a result of COVID-19, governmental actions and regulations. VF’s full year fiscal 2021 outlook includes the following:

  • Revenue is expected to be at least $9.0 billion, reflecting a decrease of approximately 14 percent on an adjusted basis, including low single-digit growth in the second half driven by a return to growth in the fourth quarter.
  • Adjusted earnings per share is expected to be at least $1.20, reflecting a decrease of approximately 55 percent (down approximately 56 percent in constant dollars).
  • Adjusted free cash flow is still expected to exceed $600 million.

Click here to read the complete financial release

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