The following is a summary of the V.F. Corporation (VFC) Q4 2024 Earnings Call Transcript:
Financial Performance:
V.F. Corporation reported a revenue decline of 11% for FY 2024, with adjusted earnings per share of $0.74.
The company's year-end net debt stood at about $5.3 billion, down approximately $540 million from the previous year.
Revenue reduction by 13% in Q4 was due largely to a cautious wholesale approach and inventory reductions, notably in the U.S.
The operating margin in Q4 dropped by 770 basis points to a negative 2.1%, with adjusted earnings per share at -$0.32.
$80 million in gross savings were realized in Q4, mainly due to headcount reductions and supply chain savings.
Despite challenging revenue conditions in the near term, the company is projected to generate $600 million from free cash flow and noncore asset sales and end the year with $2 billion liquidity.
Business Progress:
The Reinvent program introduced in Q2 saw great progression in Q4 with key organizational and leadership changes being made.
As part of strategic portfolio review efforts to reduce debt and build the balance sheet, a $300 million cost savings target is expected to be met by mid-fiscal year.
Significant investments are planned to improve key brands' performances via product design, innovation, and enhanced in-store executions.
Around 115 Vans' active stores have been reduced over two years and 40 more are slated to close this year.
Vans continues to enhance its distribution model across formats. Similarly, Supreme continues to register strong sales.
Functional leadership changes include Paul Vogel heading Finance, as part of the company's ongoing transformative plans.
More details: VF Corp IR
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