VF Corp has reported lower revenue for the fourth quarter, mainly driven by a double-digit decline at Vans amid several “deliberate strategic actions”.
The company’s revenue slid 5 per cent to $2.1 billion (down 3 per cent in constant currency), which management said was in line with expectations.
Vans saw the steepest sales drop of 22 per cent, attributed to “deliberate strategic actions” aimed at establishing a strong foundation for future growth and improved profitability.
The North Face recorded a 2 per cent uplift while Timberland surged 10 per cent. Dickies sales decreased 14 per cent amid continued traffic and wholesale softness.
By region, sales were down 6 per cent in the Americas, down 5 per cent in EMEA and flat in Apac.
The company posted an operating loss of $73 million and an adjusted operating income of $22 million during the quarter, which management said was above expectations thanks to the Reinvent transformation program.
Net loss decreased 64 per cent to $150.7 million, and net debt was down 26 per cent to $4.9 billion.
For the full year, revenue fell 4 per cent to $9.5 billion and net loss narrowed by 80 per cent to $189.7 million.
VF expects sales to decline 3-5 per cent in the first quarter of this fiscal year. Full-year free cash flow is forecast to increase $313 million.
“We are well-positioned to navigate increased volatility in the macro environment, and I am confident that the actions we are taking will enable our brands to return to growth and VF to deliver strong, sustainable value creation,” commented president and CEO Bracken Darrell.
