NYSE$VFC

VF Corp · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

VF Corporation reported its third quarter earnings, reaffirmed its full year fiscal 2023 EPS outlook, maintained revenue within the prior range, and unveiled actions to strengthen its financial position.

VF Corporation's Q3'FY23 revenue decreased by 3% to $3.5 billion, but increased by 3% in constant dollars. Earnings per share (EPS) decreased by 1% to $1.31, while adjusted EPS decreased by 17% to $1.12. The company is taking actions to improve execution, focus on consumer opportunities, and enhance operational performance.

  • Revenue decreased by 3% (increased by 3% in constant dollars) to $3.5 billion.
  • Earnings per share (EPS) decreased by 1% to $1.31; Adjusted EPS decreased by 17% to $1.12.
  • The North Face® experienced a 7% increase (13% in constant dollars).
  • VF is commencing a review of strategic alternatives for its Global Packs business, consisting of the Kipling®, Eastpak®, and JanSport® brands.

Headline financials

Total Revenue

$3.53B

Previous: $3.62B-2.6%
EPS (adj)

$1.12

Previous: $1.35-17.0%
Adjusted OM ex Dickies

14.9%

No prior period
Operating Margin

14.6%

No prior period
Gross Margin

54.9%

Previous: 56.1%-2.1%
Capital Expenditures

-$130M

Previous: -$214M+39.2%
Free Cash Flow

$378M

Previous: $304M+24.4%
Net Income

$508M

Previous: $518M-1.9%
Operating Income

$516M

Previous: $678M-23.9%
Gross Profit

$1.94B

Previous: $2.03B-4.6%
Cash & Equivalents

$571M

Previous: $1.33B-57.2%
Total Assets

$14.3B

Previous: $13.5B+5.7%
Stock-Based Comp

$10.2M

Previous: $21.6M-52.5%

Revenue & EPS history

VF Corp · Revenue · Quarterly

$3.53B

Q3 2023-2.6%vs Q3 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 Corporation provided FY23 outlook, expecting total revenue up approximately 3% in constant dollars, Vans® revenue to decline by high single digits %, The North Face® to be up by at least 14%, adjusted gross margin down approximately 200 basis points, adjusted operating margin approximately 9.5%, and adjusted EPS $2.05 to $2.15.

Tailwinds

  • Total VF revenue up approximately 3% in constant dollars, within the previous outlook range
  • The North Face® is expected to be up by at least 14% in constant dollars, compared to the previous outlook of up at least 12%
  • Completing the previously announced actions which will deliver approximately $225 million in annualized savings once complete in FY24
  • Clear plans in place to address the ongoing challenging macro-economic environment in the near term
  • Actions are expected to lead to improved operating performance and will strengthen the Company's financial position

Headwinds

  • Vans® revenue is expected to decline by high single digits % in constant dollars, compared to the previous outlook of down mid-single digits %
  • Adjusted gross margin down approximately 200 basis points, compared to the previous outlook of down 100 to 150 basis points
  • Adjusted operating margin approximately 9.5%, compared to the previous outlook of approximately 11.0%
  • Adjusted EPS $2.05 to $2.15, within the previous outlook of $2.00 to $2.20
  • Adjusted cash flow from operations approximately $0.7 billion, compared to the previous outlook of at least $0.9 billion

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 Q3 2023

Historical avgQ3 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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