爆走黑料

VF Reports Fourth Quarter and Full Year Fiscal 2020 Results

• Full year fiscal 2020 revenue from continuing operations increased 2 percent (up 4 percent in constant dollars) to $10.5 billion; excluding acquisitions and divestitures, adjusted revenue increased 3 percent (up 4 percent in constant dollars);
• Full year fiscal 2020 Active segment revenue increased 4 percent (up 6 percent in constant dollars) including a 10 percent (11 percent in constant dollars) increase in Vans^庐 brand revenue; Outdoor segment revenue was flat (up 1 percent in constant dollars) including a 3 percent (5 percent in constant dollars) increase in The North Face^庐 brand revenue; Work segment revenue was flat (up 1 percent in constant dollars) including a 3 percent (4 percent in constant dollars) increase in Dickies^庐 brand revenue;
• Full year fiscal 2020 International revenue increased 1 percent (up 4 percent in constant dollars); China revenue increased 10 percent (up 14 percent in constant dollars);
• Full year fiscal 2020 Direct-to-Consumer revenue increased 5 percent (up 6 percent in constant dollars); Digital revenue increased 15 percent (up 17 percent in constant dollars);
• Full year fiscal 2020 gross margin from continuing operations increased 70 basis points to 55.3 percent; on an adjusted basis, gross margin increased 70 basis points to 55.5 percent;
• Full year fiscal 2020 operating income from continuing operations decreased 22 percent; adjusted operating income from continuing operations increased 4 percent (6 percent in constant dollars);
• Full year fiscal 2020 earnings per share from continuing operations was $1.57. Adjusted earnings per share from continuing operations increased 5 percent (up 7 percent in constant dollars) to $2.68; and,
• Full year fiscal 2020 cash flow from continuing operations was approximately $800 million; on an adjusted basis, cash flow from continuing operations was approximately $900 million; In fiscal 2020 the company returned approximately $1.7 billion to shareholders through share repurchases and dividends.

听

DENVER--(BUSINESS WIRE)-- VF Corporation (NYSE: VFC) today reported financial results for its fourth quarter and full year ended March 28, 2020. All per share amounts are presented on a diluted basis. This release refers to 鈥渞eported鈥� and 鈥渃onstant dollar鈥� amounts, terms that are described under the heading 鈥淐onstant Currency - Excluding the Impact of Foreign Currency.鈥� Unless otherwise noted, 鈥渞eported鈥� and 鈥渃onstant dollar鈥� amounts are the same. This release also refers to 鈥渃ontinuing鈥� and 鈥渄iscontinued鈥� operations amounts, which are concepts described under the heading 鈥淒iscontinued Operations - Occupational Workwear Business and Kontoor Brands Business.鈥� Unless otherwise noted, results presented are based on continuing operations. This release also refers to 鈥渁djusted鈥� amounts, a term that is described under the heading 鈥淎djusted Amounts - Excluding Transaction and Deal Related Expenses, Costs Related to Office Relocations and Specified Strategic Business Decisions, Noncash Impairment Charge, Pension Settlement Charge, the Impact of Debt Extinguishment and the Impact of Tax Legislation.鈥� Unless otherwise noted, 鈥渞eported鈥� and 鈥渁djusted鈥� amounts are the same.

鈥淭hrough the first ten months of fiscal 2020 our business delivered results above our stated long-term growth objectives. Then the world changed for all of us as a result of COVID-19," said Steve Rendle, Chairman, President and Chief Executive Officer. "From the early days of the outbreak VF has taken a people-first approach in our COVID-19 response, prioritizing the health and safety of our people, while also protecting their financial well-being. As we've implemented measures to care for and protect our people, we've also taken several key actions to advance our Enterprise Protection Strategy," Rendle continued. "These prudent actions, most of which have been precautionary, have helped us preserve liquidity and given us more flexibility to manage our global business operations through the prolonged crisis. Moving forward we're committed to using this moment to set VF and our brands up for the next successful chapter in our 121-year history."

Constant Currency - Excluding the Impact of Foreign Currency

This release refers to 鈥渞eported鈥� amounts in accordance with U.S. generally accepted accounting principles (鈥淕AAP鈥�), which include translation and transactional impacts from foreign currency exchange rates. This release also refers to 鈥渃onstant dollar鈥� amounts, which exclude the impact of translating foreign currencies into U.S. dollars. The 鈥渃onstant dollar鈥� amounts also exclude the impact of foreign currency-denominated transactions in countries with highly inflationary economies. Reconciliations of GAAP measures to constant currency amounts are presented in the supplemental financial information included with this release, which identifies and quantifies all excluded items, and provides management鈥檚 view of why this information is useful to investors.

Discontinued Operations - Occupational Workwear Business and Kontoor Brands Business

On January 21, 2020, VF announced its decision to explore the divestiture of its Occupational Workwear business. The Occupational Workwear business is comprised primarily of the following brands and businesses: Red Kap^庐, VF Solutions^庐, Bulwark^庐, Workrite^庐, Walls^庐, Terra^庐, Kodiak^庐, Work Authority^庐 and Horace Small^庐. The business also includes certain Dickies^庐 occupational workwear products that have historically been sold through the business-to-business channel.

During the three months ended March 2020, the company determined that the Occupational Workwear business met the held-for-sale and discontinued operations accounting criteria. 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.

On May 22, 2019, VF completed the spin-off of its Jeans business, which included the Wrangler^庐, Lee^庐 and Rock & Republic^庐 brands, as well as the VF Outlet^TM business, into an independent, publicly traded company under the name Kontoor Brands, Inc. (鈥淜ontoor Brands鈥�). Accordingly, the company has removed the assets and liabilities of the Jeans business as of this date and included the operating results and cash flows of the business in discontinued operations for all periods presented.

Adjusted Amounts - Excluding Transaction and Deal Related Expenses, Costs Related to Office Relocations and Specified Strategic Business Decisions, Noncash Impairment Charge, Pension Settlement Charge, the Impact of Debt Extinguishment and the Impact of Tax Legislation

The adjusted amounts in this release exclude transaction and deal related expenses associated with the acquisitions and integration of the Icebreaker^庐 and Altra^庐 brands. The adjusted amounts in this release also exclude transaction expenses associated with the completed spin-off of the Jeans business that did not meet the criteria for discontinued operations. Total transaction and deal related expenses were approximately $22 million in fiscal 2020. The fiscal 2020 amounts also exclude an adjustment to tax expense in the third quarter of fiscal 2020 of approximately $10 million associated with the loss on sale for the Reef^庐 divestiture.

The adjusted amounts in this release exclude costs associated with the previously announced relocation of VF鈥檚 global headquarters and certain brands to Denver, Colorado. The adjusted amounts in this release also exclude costs related to strategic business decisions in South America and the operating results of jeanswear wind down activities in South America following the spin-off of Kontoor Brands. The adjusted amounts also exclude certain cost optimization activities indirectly related to the strategic review of the Occupational Workwear business. Total costs were approximately $21 million in the fourth quarter of fiscal 2020 and $72 million in fiscal 2020. In addition, the fourth quarter and full year fiscal 2020 exclude approximately $48 million of noncash non-operating expenses related to the release of certain currency translation amounts associated with the wind down activities in South America.

The adjusted amounts in this release exclude a noncash goodwill impairment charge related to the Timberland^庐 reporting unit of approximately $323 million in the fourth quarter and full year fiscal 2020.

The adjusted amounts in this release exclude a noncash pension settlement charge. The pension settlement charge was a result of actions taken to reduce risk, volatility and the liability associated with VF's U.S. pension plan. Total expense was approximately $23 million in fiscal 2020.

The adjusted amounts in this release exclude the impact of debt extinguishment that resulted from the premiums, amortization and fees associated with cash tender offers for VF's outstanding 2033 6.00% and 2037 6.45% notes, and the full redemption of VF's outstanding 2021 3.50% notes. The total impact of debt extinguishment was approximately $68 million in the fourth quarter and full year fiscal 2020.

The adjusted amounts in this release exclude the impact of recent Swiss tax legislation. On May 19, 2019, Switzerland voted to approve the Federal Act on Tax Reform and AHV Financing ("Swiss Tax Act"). The Swiss Tax Act was enacted during fiscal 2020, the transitional impact of which resulted in a net tax expense of approximately $71 million in the fourth quarter of fiscal 2020 and a net tax benefit of approximately $94 million in fiscal 2020. Additionally, the fiscal 2020 amounts also exclude an adjustment to tax expense in the fourth quarter of fiscal 2020 of approximately $3 million associated with the transitional impact of the Tax Cuts and Jobs Act ("U.S. Tax Act").

Combined, the above items negatively impacted earnings per share by $1.32 during the fourth quarter of fiscal 2020 and $1.11 during fiscal 2020. All adjusted amounts referenced herein exclude the effects of these amounts.

Adjusted cash flow from continuing operations reflects the impact of the cash-related acquisition, integration, divestiture, separation, relocation and other strategic business decision costs paid in fiscal 2020. Free cash flow represents adjusted cash flow from operating activities, less capital expenditures.

Reconciliations of measures calculated in accordance with GAAP to adjusted amounts are presented in the supplemental financial information included with this release, which identifies and quantifies all excluded items, and provides management鈥檚 view of why this information is useful to investors.

COVID-19 Outbreak Update and Response Summary

As the global spread of COVID-19 continues, VF remains first and foremost focused on a people-first approach that prioritizes the health and well-being of its employees, customers, trade partners and consumers around the world. To help mitigate the spread of COVID-19 and in response to health advisories and governmental actions and regulations, VF has modified its business practices, including the temporary closing of offices and retail stores, instituting travel bans and restrictions, implementing health and safety measures including social distancing and quarantines.

VF has taken several proactive actions to advance its Enterprise Protection Strategy in response to the COVID-19 outbreak. These actions have included: temporarily reducing the CEO's base salary by 50 percent and the VF Executive Leadership Team's base salaries by 25 percent; temporarily forgoing the cash retainer paid to VF's Board of Directors; completing a $3 billion bond offering to establish a significant cash buffer to ensure near-term liquidity; temporarily suspending its share repurchase plan; and proceeding with the previously announced divestiture of VF's Occupational Workwear business as an additional source of cash. As of the date of this release, VF has approximately $3 billion of cash on hand in addition to approximately $2.2 billion available under its revolving credit facility.

Currently, all of VF's retail stores in the APAC region, including Mainland China, have re-opened. While retail store traffic has improved recently, it remains down significantly compared with the prior year. VF has started a phased reopening of its retail stores in the EMEA region, in accordance with guidance from government entities and healthcare authorities. In North America, VF is prepared to begin a phased reopening of its retail stores also subject to guidance from government entities and healthcare authorities to allow proper training and preparation of the retail environment. VF currently expects most of its retail stores to be open by mid-calendar year 2020. While most of VF's wholesale customers in North America and EMEA remain closed, many have announced reopening plans in the coming weeks.

Consistent with VF's long-term strategy, the company's digital platform remains a high priority through which its brands stay connected with consumer communities while providing experiential content. VF continues to operate its global network of distribution centers with enhanced health and safety protocols to serve the company's consumers and customers.

COVID-19 has also impacted some of VF's suppliers, including third-party manufacturers, logistics providers and other vendors. At this time, many of VF's facilities continue to manufacture and distribute products globally in a reduced capacity. VF is actively monitoring its supply chain and implementing mitigation plans.

VF believes it has sufficient liquidity and flexibility to operate during the disruptions caused by COVID-19 and related governmental actions and regulations and health authority advisories. However, due to the uncertainty of the duration and severity of COVID-19, governmental actions in response to the pandemic and the speed with which this pandemic is developing and impacting VF, its consumers, customers and suppliers, it is not possible to reasonably estimate the extent of the impact on VF's financial condition or results of operations at this time.

Fourth Quarter Fiscal 2020 Income Statement Review

• Revenue decreased 11 percent (down 10 percent in constant dollars) to $2.1 billion driven by lower consumer demand as a result of the COVID-19 outbreak and related government actions and regulations.
• Gross margin decreased 150 basis points to 53.1 percent, primarily driven by elevated promotional activity to clear excess inventory, partially offset by favorable mix shift toward higher margin businesses. On an adjusted basis, gross margin decreased 100 basis points to 53.9 percent.
• Operating loss on a reported basis was $(257) million. On an adjusted basis, operating income decreased 51 percent to $87 million. Operating margin on a reported basis decreased to (12.2) percent. Adjusted operating margin decreased 350 basis points to 4.1 percent.
• Earnings (loss) per share was $(1.22) on a reported basis. On an adjusted basis, earnings per share decreased 70 percent (down 69 percent in constant dollars) to $0.10.

Full Year Fiscal 2020 Income Statement Review

• Revenue increased 2 percent (up 4 percent in constant dollars) to $10.5 billion. Excluding the impact of acquisitions and divestitures and on an adjusted basis, revenue increased 3 percent (up 4 percent in constant dollars), driven by VF's two largest brands, and our International and Direct-to-Consumer platforms.
• Gross margin increased 70 basis points to 55.3 percent, including favorable mix shift toward higher margin businesses. On an adjusted basis, gross margin increased 70 basis points to 55.5 percent.
• Operating income on a reported basis was $928 million. On an adjusted basis, operating income increased 4 percent (up 6 percent in constant dollars) to $1.345 billion. Operating margin on a reported basis decreased 280 basis points to 8.8 percent. Adjusted operating margin increased 30 basis points to 12.8% percent.
• Earnings per share was $1.57 on a reported basis. On an adjusted basis, earnings per share increased 5 percent (up 7 percent in constant dollars) to $2.68.

Balance Sheet Highlights

Inventories were up 10 percent compared with the same period last year. In fiscal 2020, VF returned approximately $750 million of cash to shareholders through dividends. The company also repurchased approximately $1 billion of shares and has $2.8 billion remaining under its current share repurchase authorization. As part of the company's liquidity preservation actions during the ongoing COVID-19 outbreak, the company has suspended its share repurchase program.

Full Year Fiscal 2021 Outlook

Due to the uncertainty of the duration and severity of COVID-19, governmental actions and regulations in response to the pandemic and the speed with which the pandemic is developing and impacting VF, its consumers, customers and suppliers, it is not possible to provide a financial outlook for full-year fiscal 2021 at this time. First quarter fiscal 2021 revenues are expected to be down slightly more than 50%. Full-year fiscal 2021 free cash flow is expected to exceed $600 million.

Dividend Declared

On May 12, 2020, VF鈥檚 Board of Directors declared a quarterly dividend of $0.48 per share. This dividend will be payable on June 22, 2020, to shareholders of record on June 10, 2020. Subject to approval by its Board of Directors, VF intends to continue to pay its regularly scheduled dividend and is currently not contemplating the suspension of its dividend program.

Webcast Information

VF will host its fourth quarter fiscal 2020 conference call beginning at 8:30 a.m. Eastern Time today. The conference call will be broadcast live via the Internet, accessible at . For those unable to listen to the live broadcast, an archived version will be available at the same location.

Presentation

A presentation on fourth quarter fiscal 2020 results will be available at beginning at approximately 7:30 a.m. Eastern Time today and will be archived at the same location.

About VF

Founded in 1899, VF Corporation is one of the world鈥檚 largest apparel, footwear and accessories companies connecting people to the lifestyles, activities and experiences they cherish most through a family of iconic outdoor, active and workwear brands including Vans^庐, The North Face^庐, Timberland^庐 and Dickies^庐. 爆走黑料 purpose is to power movements of sustainable and active lifestyles for the betterment of people and our planet. We connect this purpose with a relentless drive to succeed to create value for all stakeholders and use our company as a force for good. For more information, please visit .

Forward-looking Statements

Certain statements included in this release are "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements are made based on our expectations and beliefs concerning future events impacting VF and therefore involve several risks and uncertainties. You can identify these statements by the fact that they use words such as 鈥渨ill,鈥� 鈥渁nticipate,鈥� 鈥渆stimate,鈥� 鈥渆xpect,鈥� 鈥渟hould,鈥� and 鈥渕ay鈥� and other words and terms of similar meaning or use of future dates, however, the absence of these words or similar expressions does not mean that a statement is not forward-looking. All statements regarding VF鈥檚 plans, objectives, projections and expectations relating to VF鈥檚 operations or financial performance, and assumptions related thereto are forward-looking statements. We caution that forward-looking statements are not guarantees and that actual results could differ materially from those expressed or implied in the forward-looking statements. VF undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Potential risks and uncertainties that could cause the actual results of operations or financial condition of VF to differ materially from those expressed or implied by forward-looking statements include, but are not limited to: risks arising from the widespread outbreak of an illness or any other communicable disease, or any other public health crisis, including the coronavirus (COVID-19) global pandemic; the level of consumer demand for apparel, footwear and accessories; disruption to VF鈥檚 distribution system; the financial strength of VF鈥檚 customers; fluctuations in the price, availability and quality of raw materials and contracted products; disruption and volatility in the global capital and credit markets; VF鈥檚 response to changing fashion trends, evolving consumer preferences and changing patterns of consumer behavior; intense competition from online retailers; manufacturing and product innovation; increasing pressure on margins; VF鈥檚 ability to implement its business strategy; VF鈥檚 ability to grow its international and direct-to-consumer businesses; retail industry changes and challenges; VF鈥檚 and its vendors鈥� ability to maintain the strength and security of information technology systems; the risk that VF鈥檚 facilities and systems and those of our third-party service providers may be vulnerable to and unable to anticipate or detect data security breaches and data or financial loss; VF鈥檚 ability to properly collect, use, manage and secure consumer and employee data; foreign currency fluctuations; stability of VF鈥檚 manufacturing facilities and foreign suppliers; continued use by VF鈥檚 suppliers of ethical business practices; VF鈥檚 ability to accurately forecast demand for products; continuity of members of VF鈥檚 management; VF鈥檚 ability to protect trademarks and other intellectual property rights; possible goodwill and other asset impairment; maintenance by VF鈥檚 licensees and distributors of the value of VF鈥檚 brands; VF鈥檚 ability to execute and integrate acquisitions; changes in tax laws and liabilities; legal, regulatory, political and economic risks; the risk of economic uncertainty associated with the exit of the United Kingdom from the European Union (鈥淏rexit鈥�) or any other similar referendums that may be held; adverse or unexpected weather conditions; VF's indebtedness and its ability to obtain financing on financing on favorable terms, if needed, could prevent VF from fulfilling its financial obligations; climate change and increased focus on sustainability issues; and risks associated with the spin-off of our Jeanswear business completed on May 22, 2019, including the risk that VF will not realize all of the expected benefits of the spin-off; the risk that the spin-off will not be tax-free for U.S. federal income tax purposes; and the risk that there will be a loss of synergies from separating the businesses that could negatively impact the balance sheet, profit margins or earnings of VF. More information on potential factors that could affect VF鈥檚 financial results is included from time to time in VF鈥檚 public reports filed with the SEC, including VF鈥檚 Annual Report on Form 10-K, and Quarterly Reports on Form 10-Q, and Forms 8-K filed or furnished with the SEC.

听