Fourth quarter revenue of 2.4 billion dollars at VF Corporation, was down 13 percent with The North Face down 5 percent, brand DTC up 6 percent or 7 percent in constant dollars, with ongoing weakness in US wholesale.
FY24 revenue of 10.5 billion dollars, was down 10 percent or 11 percent in constant dollars.
The company also announced the appointment of Paul Vogel as chief financial officer, effective July 8, 2024. The company said that Vogel will succeed Matt Puckett, who as previously announced, will be stepping down.
Commenting on the company’s financial performance, Bracken Darrell, VF’s president and CEO, said: “In Q4, we made progress advancing our Reinvent transformation program. We closed the fiscal year with further inventory reductions helping us deliver 1 billion dollars in operating cash flow and over 800 million dollars in free cash flow, exceeding our guidance.”
Highlights of VF’s Q4 results
Vans was down 26 percent or 27 percent in constant dollars in the fourth quarter.
The company’s reported and adjusted gross margin stood at 48.4 percent, down 120 basis points, operating margin of negative 15 percent, was down 910 basis points and adjusted operating margin of negative 2.1 percent, declined 770 basis points.
Full year gross margin of 52 percent, dropped 50 basis points; while adjusted gross margin of 52.1 percent, was down 50 basis points. Operating margin was negative 0.3 percent, down 310 basis points; and adjusted operating margin of 5.6 percent, was down 420 basis points.
VF reported loss per share of 1.08 dollars and adjusted loss per share of 32 cents versus the previous year. For the full year, loss per share widened to 2.49 dollars, while adjusted EPS was 74 cents versus 2.10 dollars in FY23.
“As we move into fiscal year 2025, we will continue to execute our broader turnaround plans, including driving continued momentum on our key priorities, namely fixing the Americas, turning around Vans, reducing costs and paying down debt, while progressing on the actions resulting from our strategic portfolio review,” added Darrell.
VF appoints Paul Vogel as new CFO
Vogel, the company added, is an experienced finance executive with significant operational, financial planning and capital markets experience.
He most recently served as chief financial officer of Spotify Technology, a popular audio streaming subscription service, where he improved the financial health of the company. During his tenure as CFO, Spotify’s revenue nearly doubled, users more than doubled, and the company achieved expanded operating margins and free cash flow.
“Paul’s extensive operational and financial expertise at a global, consumer-oriented company, and his deep knowledge of finance and the capital markets, will be valuable as we continue to strengthen VF’s financial positioning and drive the company’s return to profitable growth,” said Darrell.
Before serving as CFO, Vogel was Spotify’s head of financial planning & analysis, treasury and investor relations from 2016 to 2020, where he helped lead the company’s direct listing and build its investor base.
“VF has all the right ingredients to return to growth – with a portfolio of globally renowned brands with loyal consumer bases in expanding markets, a talented team, and an innovative, purpose-driven culture. I look forward to working with the world-class team Bracken has assembled to enhance growth and value creation for shareholders,” added Vogel.
Prior to joining Spotify, Vogel spent 20 years in the investment community as both an equity investor and publishing research analyst, most recently as managing director and head of the internet and media equity research team at Barclays from 2013 to 2016.
Previously, Vogel spent 10 years at AllianceBernstein as global sector head for consumer, media and internet investing. He started his career as a research analyst at Morgan Stanley and DLJ.