“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. As a result, we were able to close the fiscal year with 10 out of 12 brands flat or growing revenue, and five up double digits, despite the challenging consumer environment. At the same time, we significantly improved our supply chain performance while the work to turn around Vans is progressing according to plan, as we navigate the known near-term challenges”, commented Benno Dorer, Interim President and CEO of VF Corp.

Fourth Quarter Results

In the last quarter of fiscal 2023, the company's revenue reached 2.7 billion US dollars, down by 3% (or flat in constant currency) as compared to the same period of the prior year. This result was mainly driven by a “decline in the Americas region primarily due to a challenging wholesale environment, partially offset by increases in the EMEA and APAC regions”, said VF.

On a comparable basis to the same period of fiscal 2022, in this quarter, Vans recorded a revenue decline of 14% (or 12% in constant currency) to 857.0 million US dollars, Timberland's revenue decreased by 9% (or by 6% in constant currency), amounting to 395.6 million US dollars, and Dickies' revenue totalled 191.5 million US dollars, down by 3% (or flat in constant currency). Meanwhile, in the same quarter, The North Face brand registered a revenue growth of 12% (or 16% in constant currency) to 859.5 million US dollars.

The company's gross margin contracted by 230 basis points in the fourth quarter of 2022 to 49.6%, year-over-year, due to the “elevated promotional activity and increased product costs”, which were partially offset by pricing actions.

In the three months to the 1^st of April, VF posted a net loss of 214.9 million US dollars, as compared to an 80.8 million US dollars net income in the same period of the prior year.

Full Year Results

The company's revenue reached 11.6 billion US dollars throughout fiscal 2023, down by 2% (or up by 3% in constant currency) as compared to the same months of the previous year, primarily driven by the performance at the North Face brand and in the EMEA region, partially offset by weaker performances by Vans and Dickies.

In the twelve months to the 1^st of April, VF's gross margin narrowed by 200 basis points to 52.5% from the same period of fiscal 2022 due to the aforementioned “elevated promotional activity and increased product costs, partially offset by pricing actions and lower freight”.

Over fiscal 2023, the company's net income amounted to 118.6 million US dollars, on a comparable basis to the net income of 1.39 billion US dollars posted in fiscal 2022.

Fiscal 2024 Outlook

The US-based footwear company is expecting its fiscal 2024 revenue to be “flat to up slightly in constant dollars, including first quarter revenue down high-single digits in constant dollars, reflecting a challenging US Wholesale environment”. It is also anticipating a gross margin up at least 100 basis points, benefitting from a lower promotional environment across the marketplace.