NYSE$VFC

VF Corp · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

VF Corporation reported a balanced performance in Q2 with revenue declining 4% and adjusted EPS decreasing 34%.

VF Corporation's Q2 FY23 revenue reached $3.1 billion, a 4% decrease year-over-year, but up 2% in constant dollars. Adjusted EPS was $0.73, down 34%. The company is revising its full-year earnings outlook due to foreign currency fluctuations and increased promotional activity.

  • Revenue declined by 4% to $3.1 billion, but increased by 2% in constant dollars.
  • The North Face® revenue grew by 8% (14% in constant dollars), while Vans® revenue decreased by 13% (8% in constant dollars).
  • Adjusted EPS decreased by 34% to $0.73.
  • VF is revising its full-year earnings outlook to reflect increased negative impacts from foreign currency fluctuations as well as heightened inventory levels and increased promotional activity in the marketplace.

Headline financials

Total Revenue

$3.08B

Previous: $3.2B-3.7%
EPS (adj)

$0.73

Previous: $1.11-34.2%
Adjusted OM ex Dickies

12.3%

No prior period
Operating Margin

-2.9%

No prior period
Gross Margin

51.4%

Previous: 53.7%-4.3%
Capital Expenditures

-$90M

Previous: -$145M+37.8%
Free Cash Flow

-$208M

Previous: $319M-165.2%
Net Income

-$118M

Previous: $464M-125.5%
Operating Income

-$90.8M

Previous: $558M-116.3%
Gross Profit

$1.58B

Previous: $1.72B-7.9%
Cash & Equivalents

$553M

Previous: $1.36B-59.4%
Total Assets

$13.8B

Previous: $13.9B-0.8%
Stock-Based Comp

$15.2M

Previous: $22.6M-32.8%

Revenue & EPS history

VF Corp · Revenue · Quarterly

$3.08B

Q2 2023-3.7%vs Q2 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

VF Corp · $2.17B total across 3 segments · Q4 2026

  • Outdoor
    $1.34B
  • Active
    $589M
  • All Other
    $238M

Forward guidance

VF is maintaining its constant dollar revenue outlook but revising its earnings outlook to reflect increased negative impacts from foreign currency fluctuations as well as heightened inventory levels and increased promotional activity in the marketplace.

Tailwinds

  • Total VF revenue up 5% to 6% in constant dollars, unchanged from the previous outlook

Headwinds

  • Adjusted gross margin down 100 to 150 basis points, compared to the previous outlook of down 50 basis points
  • Adjusted operating margin 11.0%, compared to the previous outlook of approximately 12.0%
  • Adjusted EPS is now expected to be in the range of $2.40 to $2.50, versus $3.18 in the prior year and compared to the previous outlook of $2.60 to $2.70
  • Adjusted cash flow from operations at least $0.9 billion, compared to the previous outlook of $1.0 billion
  • Capital expenditures approximately $230 million versus the previous outlook of $240 million

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

-1.5%

Avg return

Earnings day

-2.6%

Avg return

5 days after

+0.6%

Avg return

30 days after

32%

22 / 69 earnings

Positive

+29.3%

Q2 2025

Best reaction

-15.9%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026-3.2%-0.2%+3.5%
Q3 2026-5.5%+1.1%-4.2%
Q2 2026-12.4%-15.5%+4.0%
Q1 2026+2.4%+1.5%+22.0%
Q4 2025-15.9%-16.8%-18.8%
Q3 2025-3.9%-7.4%-6.2%
Q2 2025+29.3%+25.8%+21.7%
Q1 2025+9.5%+8.3%+11.0%
Q4 2024-3.9%-1.0%+14.8%
Q3 2024-7.4%-7.4%-2.7%
Q2 2024-12.8%-8.3%+1.4%
Q1 2024-3.8%-2.1%-0.3%
Q4 2023-6.2%-7.7%-3.2%
Q3 2023-0.8%-8.3%-19.7%
Q2 2023-4.2%-1.3%+19.9%
Q1 2023-4.7%-5.4%-12.2%
Q4 2022+2.9%-1.0%-0.6%
Q3 2022-3.2%-3.0%-12.9%
Q2 2022-4.5%-4.4%+2.6%
Q1 2022-3.2%-6.2%-9.4%
Q4 2021-9.7%-6.6%-6.1%
Q3 2021-6.8%-7.6%-7.0%
Q2 2021-6.7%-6.4%+2.3%
Q1 2021-1.1%+2.4%+12.3%
Q4 2020+1.8%+1.0%+10.5%
Q3 2020-10.6%-11.6%-11.5%
Q2 2020-8.1%-9.3%-4.7%
Q1 2020+1.2%+0.1%-11.2%
Q4 2019-3.0%-3.1%+1.9%
Q3 2019+11.6%+13.1%+18.6%
Q2 2019-10.9%-11.4%-5.5%
Q2 2018+1.8%-0.7%-5.5%
Q1 2018-2.5%-0.4%+3.7%
Q4 2017-12.4%-11.2%-10.1%
Q3 2017+7.3%+6.8%+10.5%
Q2 2017+4.1%+5.5%+6.7%
Q1 2017-8.5%-7.6%-7.2%
Q4 2016+4.1%+6.2%+7.1%
Q3 2016-2.9%-0.6%+4.6%
Q2 2016-1.0%-2.3%+2.6%
Q1 2016+3.2%
Q4 2015+0.4%
Q3 2015-10.0%
Q2 2015-1.0%
Q1 2015-1.6%
Q4 2014+6.2%
Q3 2014+4.6%
Q2 2014-1.4%
Q1 2014+1.2%
Q4 2013-5.7%
Q3 2013+3.5%
Q2 2013-2.3%
Q1 2013-2.2%
Q4 2012+6.9%
Q3 2012-6.7%
Q2 2012+6.1%
Q1 2012-1.3%
Q4 2011-0.1%
Q3 2011+3.9%
Q2 2011+0.1%
Q1 2011+0.2%
Q1 2010+0.0%
Q4 2010-0.1%
Q4 2007-0.1%
Q3 2009-0.6%
Q3 2010-0.6%
Q4 2009-0.8%
Q2 2010-0.8%
Q2 2009-0.8%

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