“I could not be more pleased with how our organization navigated fiscal 2021", commented Steve Rendle, Chairman, President and Chief Executive Officer. "Early in the year we took important actions to protect our people and the enterprise, while maintaining investments to drive our transformation and accelerate organic growth. At the same time, we took bold, forward-looking actions to spark additional growth and value creation. As a result, we are exiting this year in a position of strength with broad based momentum across the portfolio", he concluded.

Fourth Quarter Review

Revenue increased by 23% (up by 19% in constant dollars) to 2.6 billion US dollars. Excluding the impact of acquisitions, revenue increased by 16% (up by 12% in constant dollars) driven by VF's largest brands, e-commerce growth and an increase in the APAC region, which experienced a "significant negative impact from COVID-19 in the prior year period".

Operating income on a reported basis totalled 122 million US dollars. On an adjusted basis, operating income increased by 98% to 173 million US dollars, including a 34 million US dollars contribution from acquisitions. Operating margin on a reported basis increased to 4.7%. Adjusted operating margin increased 260 basis points, including a 100 basis point positive impact from acquisitions, to 6.7%.

Full Year Fiscal Review

Revenue decreased by 12% (down by 14% in constant dollars) to 9.2 billion US dollars. On an adjusted basis, excluding the impact of acquisitions, revenue decreased by 13% (down by 15% in constant dollars), driven by store closures and lower consumer demand as a result of the "COVID-19 outbreak and related government actions and regulations".

Operating income on a reported basis was 608 million US dollars. On an adjusted basis, operating income decreased by 45% (down by 47% in constant dollars) to 742 million Us dollars, including a 34 million US dollars contribution from acquisitions. Operating margin on a reported basis decreased 220 basis points to 6.6 percent. Adjusted operating margin decreased 480 basis points, including a 20 basis point positive impact from acquisitions, to 8.0%.

Discontinued Operations - Occupational Workwear Business

Back in January 2020, VF announced its decision to explore the divestiture of its Occupational Workwear business, comprised primarily of the following brands and businesses: Red Kap, VF Solutions, Bulwark, Workrite, Walls, Terra, Kodiak, Work Authority and Horace Small. The business also includes a license for certain Dickies occupational workwear products that have historically been sold through the business-to-business channel.

As of the 28^th of March 2020, the Occupational Workwear business met the held-for-sale and discontinued operations accounting criteria, which continued to be met as of April 3, 2021. Accordingly, the company has reported the related held-for-sale assets and liabilities as assets and liabilities of discontinued operations and included the operating results and cash flows of the business in discontinued operations for all periods presented. In late April 2021, VF entered into a definitive agreement to sell its Occupational Workwear business.

COVID-19 Outbreak Update

The majority of VF's supply chain is currently operational and according to the group "suppliers are complying with local public health advisories and governmental restrictions which has resulted in isolated product delays". VF's distribution centres are operational in accordance with local government guidelines while maintaining enhanced health and safety protocols.

In North America, approximately 15% of stores were closed at the end of the third quarter. The majority of the closures were Vans stores, predominantly based in California. In addition, other stores were operating with reduced capacity. Since that time, most stores have re-opened, including all VF-owned stores in California, with less than 5% of stores closed at the end of the fourth quarter. Currently less than 5% of stores remain closed.

In the EMEA region, approximately 50% of stores were closed at the end of the third quarter. Since that time additional stores have been re-closed, with approximately 60% of stores closed at the end of the fourth quarter. Some stores in the EMEA region have re-opened since the end of the quarter and currently approximately 20% of stores are closed.

Nearly all of VF's owned retail stores in the APAC region, including Mainland China, were open during the quarter and remain open.