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VF's Q4 sales increase 9 percent, earning jump

By Prachi Singh

May 20, 2022

Business

Image: Gucci x The North Face

VF Corporation’s fourth quarter revenue of 2.8 billion dollars, rose 9 percent or 12 percent in constant dollars. Earnings per share of 21 cents, increased 32 percent; while adjusted EPS of 45 cents, was up 67 percent.

Full year revenue of 11.8 billion dollars, increased 28 percent or 27 percent in constant dollars. Excluding acquisitions, revenue was up 23 percent. EPS was 3.10 dollars, up 242 percent; and adjusted EPS jumped 143 percent to 3.18 dollars, including a 19 cents per share contribution from acquisitions.

Commenting on the company’s trading results, Steve Rendle, chairman, president and CEO of VF, said: "We largely delivered on the commitments we made at the outset of Fiscal 2022 by achieving broad-based growth across our family of brands. A portion of our active segment did not achieve its potential. We understand the issues, we have the right people in place and we know we will do better.”

Review of VF’s Q4 financial performance

The North Face revenue of 0.8 billion dollars, was up 24 percent or 26 percent in constant dollars, and Vans revenue of 1 billion dollars remained flat or was up 2 percent in constant dollars.

Gross margin of 51.9 percent, declined 20 basis points; while adjusted gross margin of 52.2 percent, was down 50 basis points Operating margin was 6.8 percent, up 210 basis points; and adjusted operating margin was 7.9 percent, up 120 basis points.

FY22 financial highlights of VF’s results

Gross margin of 54.5 percent, was up 180 basis points; while adjusted gross margin of 54.8 percent, was up 150 basis points, including a 20 basis point positive impact from acquisitions.

Operating margin of 13.8 percent, was up 720 basis points; and adjusted operating margin of 13.1 percent, was up 510 basis points, including a 30 basis point positive impact from acquisitions.

For full year fiscal 2023, VF expects revenue to increase at least 7 percent in constant dollars, The North Face revenue to be up low double digit percent; Vans revenue to be up mid-single digit percent, gross margin to increase approximately 50 basis points, operating margin of approximately 13.6 percent and EPS of 3.30 dollars to 3.40 dollars.

VF’s board of directors has declared a quarterly dividend of 50 cents per share, payable on June 21, 2022, to shareholders of record on June 10, 2022.

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VF CORPORATION