VF Corporation

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SKU: VFC Category:

Description

VF Corporation delivered mixed results for the previous quarter, with revenues above the analyst consensus. However, it failed to meet Wall Street’s earnings expectations. In the second quarter, the company faced challenges, with declines in Vans and the Americas business outweighing positive performances in The North Face and international markets. Despite an overall 4% decrease in revenue, the company successfully reduced inventory and paid down debt, ending the quarter with $1.7 billion in liquidity and a net leverage of 4.5x, slightly ahead of midyear plans. The Americas experienced an 11% decline, driven by wholesale pressures, while DTC showed a 5% increase, excluding Vans. The North Face delivered a strong quarter, with a 17% revenue increase. Vans, however, faced a disappointing quarter with a 23% revenue decline attributed to slow sell-through rates and challenged traffic. Timberland revenue fell 10%, impacted by softness in America’s wholesale market. VF Corporation also introduced Reinvent, a transformation program aiming for $300 million in fixed cost reductions. The company adjusted its fiscal 2024 expectations, citing a longer-than-expected Vans turnaround, weaker North American business, a choppier European macro environment, and cross currents from Reinvent. The balance sheet focused on reducing inventory, with an expected year-end decrease of mid- to high-single digits.

Our Report Structure:

⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

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