US' VF Corporation reports $2.83 bn revenue in Q3 FY25, up 2% YoY

Net income for the quarter reached $167.8 million, a significant turnaround from the $42.5 million loss recorded in the last fiscal. Total costs and operating expenses for the quarter stood at $2,608.1 million, down from $2,871.4 million in the previous fiscal, driven by a significant reduction in impairment charges related to goodwill and intangible assets, VF Corporation said in a press release.

Consequently, operating income rebounded to $225.8 million, reversing the $91.2 million loss recorded in the prior fiscal. Net interest expense decreased to $36.5 million for the quarter, supporting a pre-tax income of $196.7 million, compared to a loss of $111.3 million in the same period last fiscal.

Basic and diluted earnings per share (EPS) for continuing operations stood at $0.43, compared to a loss of $0.24 per share in the prior-fiscal quarter.

Brand-wise, The North Face saw a 5 per cent YoY rise, generating $1,253.3 million, while timberland grew by 11 per cent YoY to $527 million. However, Vans and Dickies experienced declines of 9 per cent YoY and 10 per cent YoY, respectively.

Regionally, Americas and Europe, the Middle East, and Africa (EMEA) grew modestly by 1 per cent YoY, while Asia-Pacific (APAC) region recorded a 5 per cent increase. The direct-to-consumer (DTC) channel saw a 3 per cent YoY decline, whereas wholesale expanded by 8 per cent YoY.

Distribution channel-wise, wholesale revenue grew by 8 per cent YoY, both on a reported and constant currency basis, while direct-to-consumer (DTC) revenue declined by 3 per cent. Within the DTC segment, digital sales fell by 3 per cent, reflecting a continued softness in online consumer demand.

9-month financials

In the nine-month (9M) period ended December 30, 2024, revenues of the company declined by 4 per cent YoY to $7,360.9 million, and the operating income of the company rose to $376.7 million from $229.4 million in the 9M period in FY2024.

The company reported a net loss of $38.9 million in the nine-month period, though a marked improvement from the $550.6 million loss in 2023. EPS improved to $0.56 from a loss of $1.56 per share.

Over the nine-month period, wholesale revenue declined by 2 per cent YoY, whereas DTC revenue dropped by 7 per cent YoY, with digital sales also falling by 5 per cent YoY.

Outlook

For the fourth quarter (Q4 FY25), VF Corporation anticipates a revenue decline of 4 per cent to 6 per cent compared to the prior fiscal, with a constant currency decline of 2 per cent to 4 per cent. This guidance suggests that revenue for the second half of FY25 is expected to decline by 1 per cent to 2 per cent or remain flat to down 1 per cent in constant currency. The company projects adjusted operating income to range between a loss of $30 million and breakeven, with gross margin expected to improve year-over-year. However, selling, general, and administrative (SG&A) expenses are forecast to increase slightly compared to the previous fiscal.

ALCHEMPro News Desk (SG)