V.F. CORPORATION Reports Q3 FY2023 Earnings Results on February 7 2023
March 23, 2023
Earnings Overview
On February 7 2023, V.F. CORPORATION ($NYSE:VFC) reported its earnings results for the third quarter of FY2023, ending December 31 2022. The company had total revenue of USD 507.9 million, a drop of 1.9% compared to the same period in the previous year. Net income was USD 3530.7 million, a decrease of 2.6% year over year.
Transcripts Simplified
V.F. Corporation reported a 3% increase in revenue, a 140 basis point decline in adjusted gross margin, and a 280 basis point decline in adjusted operating margins during the quarter. The Americas region saw a 1% decline in revenue, while the EMEA region saw 10% growth and the APAC region saw 4% growth. Higher discounts and increased promotional environment led to a 170 basis point decline in rates, which was partially offset by strategic pricing actions and FX transaction benefits. SG&A deleveraged by 110 basis points and was driven by higher marketing spend, deleverage in distribution and freight spending, and some direct-to-consumer costs.
The company paid an $875 million Timberland tax deposit, funded by the issuance of a $1 billion term loan, and ended the quarter with approximately $1.9 billion in liquidity. Lead times across the supply chain continue to be longer than usual.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for V.f. Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 11.7k | 414.32 | 7.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for V.f. Corporation. More…
| Operations | Investing | Financing |
| -766.56 | -256.51 | 407.54 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for V.f. Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 14.31k | 10.99k | 8.54 |
Key Ratios Snapshot
Some of the financial key ratios for V.f. Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -1.6% | -9.5% | 5.0% |
| FCF Margin | ROE | ROA |
| -8.7% | 10.6% | 2.5% |
Market Price
On Tuesday, February 7, 2023, V.F. CORPORATION reported its earnings results for the third quarter of the fiscal year 2023. The stock opened at $28.4 and closed at $28.5, representing a 0.5% decrease from the prior closing price of $28.7. V.F. CORPORATION is an American apparel and footwear company that specializes in outdoor and active lifestyle products, with popular brands such as The North Face, Wrangler, Vans, and Timberland.
Overall, the strong earnings results from V.F. CORPORATION reflect the company’s commitment to maintaining a balanced portfolio of brands and strategic initiatives. With this in mind, the company is well-positioned to continue growing its business and capitalizing on new opportunities in the future. Live Quote…
Analysis
At GoodWhale, we recently conducted an analysis of V.F. CORPORATION‘s financials. Our star chart rate V.F. CORPORATION highly in profitability and weakly in asset, dividend, and growth. This led us to classify V.F. CORPORATION as a ‘cow’, a company that has the track record of paying out consistent and sustainable dividends. Investors who are looking for a stable and reliable dividend income may be interested in V.F. CORPORATION. Additionally, our health score for the company is 8/10, indicating that it is in a strong standing with regards to its cashflows and debt and is capable to safely ride out any crisis without the risk of bankruptcy. More…
Peers
VF Corporation is an American multinational apparel and footwear company with more than 30 brands, including Vans, The North Face, Timberland, Kipling, and Wrangler. VF is the largest apparel company in the world and its products are sold in more than 170 countries. Capri Holdings Ltd, Under Armour Inc, and Hanesbrands Inc are all VF’s competitors in the apparel industry.
– Capri Holdings Ltd ($NYSE:CPRI)
As of 2022, Capri Holdings Ltd has a market cap of 6.42B and ROE of 25.1%. The company is a global fashion luxury group, whose brands include Michael Kors, Jimmy Choo, and Versace. It has a strong presence in North America, Europe, and Asia, with over 500 stores in more than 50 countries.
– Under Armour Inc ($NYSE:UAA)
Under Armour Inc is an American sports clothing and footwear company. The company’s products are designed to improve athletic performance. Under Armour was founded in 1996 by Kevin Plank, a former University of Maryland football player. The company is headquartered in Baltimore, Maryland.
– Hanesbrands Inc ($NYSE:HBI)
Hanesbrands is a publicly traded clothing company with a market capitalization of $2.41 billion as of 2022. The company’s return on equity, a measure of profitability, was 54.97% as of the same year. Hanesbrands produces a variety of clothing items, including underwear, socks, t-shirts, and sweatshirts. The company also manufactures and markets a range of other products, such as towels and blankets. Hanesbrands operates in the United States, Canada, Mexico, Europe, Asia, and Australia.
Summary
V.F. Corporation reported their earnings results for the third quarter of the fiscal year 2023, ending December 31 2022. Total revenue was down 1.9% year over year at USD 507.9 million and net income was down 2.6% year over year, totaling USD 3530.7 million. For investors, this indicates that V.F. Corporation may not be a solid short-term investment option, as profit margins are currently low. However, the company still has potential, and investors may want to consider additional factors such as financials, competitive position, and potential future products when determining whether or not to invest in V.F. Corporation.
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