Revenue of US firm VF Corporation at $10.5 bn in FY24

The operating margin was minus 0.3 per cent, a decline of 310 basis points, while the adjusted operating margin was 5.6 per cent, down 420 basis points. The company generated approximately $80 million in gross cost savings through its Reinvent initiative but incurred approximately $105 million in related charges during FY24. The reported loss per share was $2.49, a stark contrast to the $0.31 earnings per share in FY23. Adjusted EPS was $0.74, down from $2.10 in FY23, the company said in a press release.

In the fourth quarter of fiscal 2024 (Q4 FY24), VF Corporation's revenue was $2.4 billion, a 13 per cent decline year-on-year. The North Face brand saw a 5 per cent decline, while its direct-to-consumer (DTC) segment grew by 6 per cent (7 per cent in constant dollars). The Vans brand experienced a significant drop of 26 per cent (27 per cent in constant dollars).

Both reported and adjusted gross margins for Q4 FY24 were 48.4 per cent, down 120 basis points from the previous year. The operating margin was minus 15 per cent, down 910 basis points, while the adjusted operating margin was minus 2.1 per cent, down 770 basis points. The reported loss per share was minus $1.08, compared to a loss of minus $0.55 in Q4 FY23. Adjusted EPS was minus $0.32, down from $0.17 in the same quarter last year.

"In Q4, we made progress advancing our Reinvent transformation programme. We closed the fiscal with further inventory reductions helping us deliver $1 billion in operating cash flow and over $800 million in free cash flow, exceeding our guidance. As we move into fiscal 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," said Bracken Darrell, president and CEO.

Fibre2Fashion News Desk (DP)