US firm VF Corporation's revenue at $11.6 bn in FY23

The company's gross margin decreased by 200 basis points, landing at 52.5 per cent. This decrease was primarily due to increased promotional activity and product costs, although it was somewhat mitigated by pricing actions and lower freight costs. When adjusted, the gross margin dropped 220 basis points to 52.6 per cent, VF Corporation said in a press release.

In terms of operating income, the reported figure stood at $328 million in FY23. However, on an adjusted basis, it showed a 27 per cent decrease (down 20 per cent in constant dollars), coming to $1.1 billion. The operating margin on a reported basis was 2.8 per cent, while the adjusted operating margin showed a decrease of 330 basis points to 9.8 per cent.

The reported earnings per share (EPS) were $0.31 in FY23. On an adjusted basis, EPS decreased by 34 per cent (down 26 per cent in constant dollars) to $2.10.

Turning to the fourth quarter (Q4) of FY23, VF Corporation reported a 3 per cent year-on-year (YoY) decrease in revenue, adjusting to flat in constant dollars, totalling $2.7 billion. This was primarily due to a decline in the Americas region, attributed to a challenging wholesale environment. This was partially offset by increases in the EMEA and APAC regions.

Brand-specific revenue for Q4 saw The North Face at $0.9 billion, marking a 12 per cent YoY increase (16 per cent in constant dollars), and Vans at $0.9 billion, a decrease of 14 per cent YoY (12 per cent in constant dollars), the release added.

“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 Van is progressing according to plan, as we navigate the known near-term challenges,” said Benno Dorer, interim president and CEO.

Gross margin decreased by 230 basis points YoY to 49.6 per cent in Q4 FY23, with adjusted gross margin also at 49.6 per cent after a decrease of 260 basis points YoY. The reported operating income loss was $161 million, with adjusted operating income at $152 million, a decrease of 32 per cent YoY (25 per cent in constant dollars). The reported EPS loss was $0.55, while the adjusted EPS stood at $0.17, a decrease of 62 per cent YoY (55 per cent in constant dollars).

Fibre2Fashion News Desk (DP)