“In Q4, we made progress advancing our Reinvent transformation program. We closed the fiscal year with further inventory reductions helping us deliver 1 billion USD in operating cash flow and over 800 million USD in free cash flow, exceeding our guidance. As we move into fiscal year 2025, we will continue to execute our broader turnaround plans, including driving continued momentum on our key priorities, namely fixing the Americas, turning around Vans, reducing costs and paying down debt, while progressing on the actions resulting from our strategic portfolio review”, commented Bracken Darrell, President and CEO of VF Corp.

Fourth Quarter Results

In the three months to the 30^th of March, the company’s revenue reached 2.4 billion US dollars, a decrease of 13% on both a reported and constant currency basis, as compared to the same period of last year.

In line with the previous quarter, Vans revenue declined sharply by 26% or 27% on a constant currency basis to 631.2 million US dollars. The North Face, another of the company’s key brands, recorded a 5% year-over-year decline in revenue to 814.3 million US dollars on both a reported and constant currency basis due to continued weakness in the US wholesale business.

Timberland's fourth quarter revenue of 341.5 million US dollars decreased by 14% on both a reported and constant currency basis, and Dickies' fourth quarter revenue of 162.4 million US dollars decreased by 15% versus on both a reported and constant currency basis, as compared the same period of the previous year. Total sales for all other brands declined by 3% on a reported basis and 2% on a constant currency basis to 424.4 million US dollars.

VF’s profitability took another hit in the fourth quarter of fiscal 2024. Both reported and adjusted gross margins fell by 1.2 percentage points from the fourth quarter of the previous fiscal year to 48.4%. The operating margin fared even worse, dipping by 9.1 percentage points to a negative 15.0% and the adjusted operating margin dropped by 7.7 percentage points to negative 2.1%.

As a result, the company recorded a fourth quarter loss per share of 1.08 US dollars, as compared to a loss of 0.55 US dollars in the final quarter of fiscal 2023, and an adjusted loss per share of 0.32 US dollars, as compared to adjusted earnings per share of 0.17 US dollars in the same period of the prior year.

On the other hand, the Reinvent turnaround plan is showing some progress. VF Corp reported gross cost savings of approximately 40 million US dollars and a 23% reduction in inventories to 382 million US dollars compared to the same period last year.

Full Year Results

The US company recorded a full year revenue of 10.5 billion US dollars, a decrease of 10% on a reported basis and 11% on a constant currency basis, as compared to the previous fiscal year.

The company also went from a profit to a loss, reporting a full year loss per share of 2.49 US dollars, as compared to earnings per share of 0.31 US dollars in fiscal year 2023, and adjusted earnings per share of 0.74, as compared to adjusted earnings per share of 2.10 US dollars in the fiscal 2023.

CFO Appointment

VF Corp announced the appointment of Paul Vogel as Chief Financial Officer, effective from the 8^th of July 2024. H most recently served as Chief Financial Officer of Spotify, where, according to the company’s statement, “he dramatically improved the financial health of the company”. He will succeed Matt Puckett, who as previously announced, will be stepping down after 23 years with VF.