V.F. Corporation · NYSE:VFC
V.F — Q3 FY2022 Earnings Presentation
37 slides from V.F's earnings presentation, Jan 28, 2022
Slide 1: Q3 Fiscal 2022 Earnings Presentation
Q3 Fiscal 2022 EARNINGS PRESENTATION JANUARY 28, 2022
Slide 2: Safe Harbor Statement
Safe Harbor Statement Certain statements included in this release are "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements are made based on our expectations and beliefs concerning future events impacting VF and therefore involve several risks an
Slide 3: GAAP to Non-GAAP
GAAP to Non-GAAP All numbers and information presented are on a continuing operations basis, and thus exclude the Occupational Workwear business. Additionally, unless otherwise noted, all numbers are on an “adjusted” basis which excludes transaction and deal related activities associated primarily w
Slide 4: Fiscal 2024 Global Business Strategy
Fiscal 2024 Global Business Strategy DRIVE AND ELEVATE DISTORT TO OPTIMIZE OUR DIRECT ASIA PORTFOLIO CHANNELS ACCELERATE CONSUMER-MINDED, RETAIL- CENTRIC, HYPER-DIGITAL BUSINESS MODEL TRANSFORMATION Q 3 F I S C A L 2 0 2 2 4
Slide 5: COVID-19 Updates
r, —-COVID-19 Updates
Slide 6: COVID-19 Operational Update as of 1/28/2022
COVID-19 Operational Update as of 1/28/2022 All offices open with mask requirements and limited meeting sizes North America No stores were closed during the third quarter; all stores are open All offices open; some countries have offices accessible only to essential employees EMEA 6% of stor
Slide 7: Q3'22 Business & Financial Performance
Q3’22 Business & Financial Performance
Slide 8: Business Performance
Q3'22 Business Performance Adjusted Revenue Gross Margin Vans® $3.6B 56.3% +8% / +8% C$ +22% / +22% C$ +60bps / +70bps C$ +15%* / +16% C$* +40bps* / +50bps C$* The North Face® DTC Greater China +28% / +27% C$ +30% / +30% C$ -6% / -9% C$ +17%* / +18% C$* Mainland China -8% / -12% C$ *Organic Q 3 F I
Slide 9: Financial Performance
Q3'22 Financial Performance Adjusted Adjusted Adjusted Operating Earnings Revenue Gross Margin Margin Per Share** $3.6B 56.3% 17.7% $1.35 +22% / +22% C$ +60bps / +70bps C$ +230bps / +230bps C$ +45% / +44% C$ +15%* / +16% C$* +40bps* / +50bps C$* +180bps* / +170bps C$* +33%* / +32% C$* *Organic **On
Slide 10: Financial Summary
Q3'22 Financial Summary $ in millions; except EPS Q3’21 Q3'22 YOY CHANGE YOY CHANGE* REVENUE $2,972 $3,624 +22% +15% ADJUSTED GROSS MARGIN 55.7% 56.3% +60 bps +40 bps ADJUSTED OPERATING INCOME $458 $643 +40% +29% ADJUSTED OPERATING MARGIN 15.4% 17.7% +230 bps +180 bps ADJUSTED NET INCOME $366 $529 +
Slide 11: Strategic Growth Drivers
Q3'22 Strategic Growth Drivers Big 4 Brands International DTC DTC Digital +15% +19% / +20% C$ +30% / +30% C$ +21% / +21% C$ +15% C$ +14%* / +14% C$* +17%* / +18% C$* +3%* / +3% C$* vs. Q3’20 +61%* *Organic Q 3 F I S C A L 2 0 2 2 11
Slide 12: Q3'22: Revenue Breakdown
Q3'22: Revenue Breakdown REVENUE +22% C$; excluding acquisitions revenue +15%* (+16% C$*) BIG 4 BRANDS +15% (+15% C$), with Vans® +8% (+8% C$), The North TOTAL Face® +28% (+27% C$), Timberland ® +11% (+11% C$), and Dickies® +4% (+4% C$) $3,624 M REVENUE INTERNATIONAL +19% (+20% C$), with APAC +5% (+
Slide 13: Big Four Brand Revenue
Q3'22 Big Four Brand Revenue +8% +28% +11% +4% +8% C$ +27% C$ +11% C$ +4% C$ Q 3 F I S C A L 2 0 2 2 13
Slide 14: Gross Margin Bridge Q3'22 vs. Q3'21
Q3’22 vs. Q3’21 Gross Margin Bridge +0 bps +20 bps 56.3% 55.7% +0 bps +40 bps Note: Gross Margin on an adjusted basis *Numbers on an adjusted organic basis ** Reflects the impact of FX translation only Q 3 F I S C A L 2 0 2 2 14
Slide 15: Gross Margin Bridge Q3'22 vs. Q3'20
Q3'22 vs. Q3’20 Gross Margin Bridge +120 bps -260 bps 57.2% +0 bps +20 bps 56.3% +30 bps -50 bps impact from FX transaction timing & -210 bps expedited freight Note: Gross Margin on an adjusted basis *Numbers on an adjusted organic basis ** Reflects the impact of FX translation only Q 3 F I S C A L
Slide 16: Operating Margin Bridge Q3'22 vs. Q3'21
Q3’22 vs. Q3’21 Operating Margin Bridge +10 bps +50 bps 17.7% +130 bps 15.4% +40 bps Strategic Investments +15% Note: Operating Margin on an adjusted basis *Numbers on an adjusted organic basis Q 3 F I S C A L 2 0 2 2 16 ** Reflects the impact of FX translation only
Slide 17: Q3'22 Brand Performance
Q3'22 Brand Performance
Slide 18: Vans Global Performance
Q3’22 Vans ® Global Performance REVENUE INCREASED +8% (+8% C$) DTC +16% (+16% C$) driven by B&M growth of +31% (+31% C$); DTC Digital decline of -1% (-1% C$; +54% vs. Q3’20) +8% Wholesale -5% (-4% C$); challenged by extended COVID lockdowns in APAC and continued global supply chain disruptions
Slide 19: Vans Regional Performance
Q3’22 Vans ® Regional Performance AM E R I C AS + 1 1 % ( + 1 1 % C $ ) EUROPE +22% (+24% C$) AP A C - 1 7 % ( - 1 8 % C $ ) WHOLESALE WHOLESALE WHOLESALE -23% -5% +12% (-23% C$) (-5% C$) DTC DTC (+14% C$) +37% -12% (+39% C$) (-13% C$) DTC +20% (+20% C$) US business returned to growth vs. FY20, fu
Slide 20: The North Face Global Performance
Q3’22 The North Face ® Global Performance REVENUE INCREASED +28% (+27% C$); GLOBAL REVENUE OF OVER $1.2B IS LARGEST QUARTER IN TNF HISTORY +28% Continued strength globally across all regions and channels; +21% (+20% C$) growth in the Americas, +40% (+41% C$) growth in EMEA, and +29% (+25% C$) grow
Slide 21: The North Face Regional Performance
Q3’22 The North Face ® Regional Performance AM E R I C AS + 2 1 % ( + 2 0 % C $ ) EUROPE +40% (+41% C$) AP A C + 2 9 % ( + 2 5 % C $ ) WHOLESALE WHOLESALE WHOLESALE DTC +33% +40% DTC +34% (+29% C$) +8% +48% (+39% C$) (+34% C$) (+51% C$) (+8% C$) DTC +27% (+23% C$) Continued improvement in quality
Slide 22: Timberland Global Performance
Q3’22 Timberland ® Global Performance REVENUE INCREASED +11% (+11% C$) ALONG WITH SIGNIFICANT PROFITABILITY IMPROVEMENT Global performance driven by continued momentum in Americas (+16%) and Europe (+14%, +17% C$) +11% Global DTC +19% (+20% C$) with solid B&M growth and DTC digital +47% vs. Q3
Slide 23: Timberland Regional Performance
Q3’22 Timberland ® Regional Performance AM E R I C AS + 1 6 % ( + 1 6 % C $ ) EUROPE +14% (+17% C$) AP A C - 1 1 % ( - 1 2 % C $ ) WHOLESALE DTC -9% +15% (-7% C$) WHOLESALE (+15% C$) -14% DTC (-16% C$) WHOLESALE +45% (+49% C$) DTC +17% -8% (+16% C$) (-9% C$) Continued strength in Wholesale as key
Slide 24: Dickies Global Performance
Q3’22 Dickies ® Global Performance REVENUE INCREASED +4% (+4% C$) +4% Strength across segments with exceptional performance in Workwear; Work-inspired Lifestyle product continues to drive growth globally Americas region seeing healthy demand growth across channels and key accounts Improvemen
Slide 25: Dickies Regional Performance
Q3’22 Dickies ® Regional Performance AM E R I C AS + 3 0 % ( + 3 0 % C $ ) EUROPE -40% (-40% C$) AP AC - 2 8 % ( - 2 9 % C $ ) DTC +18% (+17% C$) DTC -1% DTC WHOLESALE (+1% C$) -29% WHOLESALE -51% (-30% C$) -27% (-50% C$) (-28% C$) WHOLESALE +34% (+34% C$) Favorable sell-through trends across chan
Slide 26: FY'22 Outlook
FY’22 Outlook
Slide 27: Fiscal Year 2022 Outlook
Fiscal Year 2022 Outlook Adjusted Adjusted Adjusted Operating Earnings Revenue Gross Margin Margin Per Share* ~$11.85B >55% >13.0% ~$3.20 +~28% +>170bps +>500bps +~145% PREVIOUSLY ABOUT PREVIOUSLY ~56% PREVIOUSLY ~13.0% $12.0B *On a diluted basis. Q 3 F I S C A L 2 0 2 2 27
Slide 28: Fiscal Year 2022 Revenue Outlook: Segments
Fiscal Year 2022 Revenue Outlook: Segments Outdoor Active Work +26% to +28% +31% to +33% +19% to +21% PREVIOUSLY +25% to +27% PREVIOUSLY +35% to +37% Q 3 F I S C A L 2 0 2 2 28
Slide 29: Fiscal Year 2022 Revenue Outlook: Brands
Fiscal Year 2022 Revenue Outlook: Brands +21% to +29% to +18% to >+20% 22% +30% +20% PREVIOUSLY +26% to +28% PREVIOUSLY +27% to +29% Q 3 F I S C A L 2 0 2 2 29
Slide 30: Fiscal Year 2022 Revenue Outlook: Regions
Fiscal Year 2022 Revenue Outlook: Regions +28% to +30% EMEA PREVIOUSLY +30% to +32% +33% to +35% U.S. +7% to +9% APAC PREVIOUSLY +12% to +14% +33% to +35% AMERICAS (non-U.S.) PREVIOUSLY +30% to +32% Q 3 F I S C A L 2 0 2 2 30
Slide 31: Fiscal Year 2022 Revenue Outlook: Channels
Fiscal Year 2022 Revenue Outlook: Channels Direct-to- Direct-to-Consumer Wholesale Consumer Digital +23% to +25% +32% to +34% +>15% PREVIOUSLY ~+25% PREVIOUSLY +34% to +36% PREVIOUSLY ~+20% Q 3 F I S C A L 2 0 2 2 31
Slide 32: Appendix
Appendix
Slide 33: Appendix: GAAP to Non-GAAP
Appendix: GAAP to Non-GAAP VF CORPORATION Supplemental Financial Information Reconciliation of Select GAAP Measures to Non-GAAP Measures - Three Months Ended December 2021 (Unaudited) (In thousands, except per share amounts) Transaction and Contribution As Reported Deal Related Specified Strategic f
Slide 34: Appendix: GAAP to Non-GAAP
Appendix: GAAP to Non-GAAP VF CORPORATION Supplemental Financial Information Reconciliation of Select GAAP Measures to Non-GAAP Measures - Three Months Ended December 2020 (Unaudited) (In thousands, except per share amounts) As Reported Transaction and Deal Specified Strategic (a) Three Months Ended
Slide 35: Appendix: Top 4 Brand Revenue
Appendix: Top 4 Brand Revenue VF CORPORATION Supplemental Financial Information Top 4 Brand Revenue Information (Unaudited) Three Months Ended December 2021 Top 4 Brand Revenue Growth Americas EMEA APAC Global ® Vans % cha nge 11 % 22 % (17)% 8% (a) % cha nge cons ta nt currency 11 % 24 % (18)% 8% ®
Slide 36: Appendix: Segment, Geographic & Channel Revenue – Q3'22
Appendix: Segment, Geographic & Channel Revenue – Q3'22 VF CORPORATION Supplemental Financial Information Reportable Segment, Geographic and Channel Revenue Growth - Three Months Ended December 2021 (Unaudited) Three Months Ended December 2021 % Change Constant % Change Constant (a) % Change Currenc
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