V.F. Corporation · NYSE:VFC
V.F — Q1 FY2022 Earnings Presentation
38 slides from V.F's earnings presentation, Jul 30, 2021
Slide 1: Q1 Fiscal 2022 Earnings Presentation
Q1 Fiscal 2022 EARNINGS PRESENTATION JULY 30, 2021
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, which was sold during the three months ended June 2021. Additionally, unless otherwise noted, all numbers are on an “adjusted” basis which excludes transa
Slide 4: VF Purpose
VF Purpose WE POWER MOVEMENTS OF SUSTAINABLE AND ACTIVE LIFESTYLES FOR THE BETTERMENT OF PEOPLE AND OUR PLANET Ranked #25 (#2 in Consumer Durables & Apparel) Ranked #3 out of the Russell 1000 index up from #6 in 2020 up from #33 in 2020 Announced Diversity Law Fellowship One of forty “Global Partner
Slide 5: 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 1 F I S C A L 2 0 2 2 5
Slide 6: COVID-19 Updates
g —-COVID-19 Updates
Slide 7: COVID-19 Operational Update as of 7/27/2021
COVID-19 Operational Update as of 7/27/2021 Offices open with limited capacity North America <5% of stores were closed at the beginning of the first quarter, all stores have since reopened Offices open with limited capacity; one office remains closed EMEA ~60% of stores were closed at the be
Slide 8: Q1'22 Business & Financial Performance
Q1’22 Business & Financial Performance
Slide 9: Business Performance
Q1'22 Business Performance Adjusted Revenue Gross Margin Vans® $2.2B 56.7% +110% / +102% C$ +104% / +96% C$ +260bps / +250bps C$ +90%* / +83% C$* +230bps* / +220bps C$* The North Face® DTC Greater China +93% / +83% C$ +97% / +90% C$ +19% / +9% C$ +70%* / +64% C$* Mainland China +23% / +12% C$ *Organ
Slide 10: Financial Performance
Q1'22 Financial Performance Adjusted Adjusted Adjusted Operating Earnings Revenue Gross Margin Margin Per Share** $2.2B 56.7% 6.8% $0.27 +104% / +96% C$ +260bps / +250bps C$ +2820bps / +2800bps C$ +148% / +144% C$ +90%* / +83% C$* +230bps* / +220bps C$* +2710bps* / +2680bps C$* +136%* / +133% C$* *O
Slide 11: Financial Summary
Q1'22 Financial Summary $ in millions; except EPS Q1’21 Q1'22 YOY CHANGE YOY CHANGE* REVENUE $1,076 $2,195 +104% +90% ADJUSTED GROSS MARGIN 54.1% 56.7% +260 bps +230 bps ADJUSTED OPERATING INCOME (LOSS) -$230 $148 +164% +151% ADJUSTED OPERATING MARGIN -21.4% 6.8% +2820 bps +2710 bps ADJUSTED NET INC
Slide 12: Strategic Growth Drivers
Q1'22 Strategic Growth Drivers Big 4 Brands International DTC DTC Digital +94% +84% / +68% C$ +97% / +90% C$ +25% / +20% C$ +86% C$ +74%* / +58% C$* +70%* / +64% C$* -4%* / -9% C$* vs. Q1’20 +72%* *Organic Q 1 F I S C A L 2 0 2 2 12
Slide 13: Q1'22: Revenue Breakdown
Q1'22: Revenue Breakdown REVENUE +96% C$; excluding acquisitions revenue +90%* (+83% C$*) BIG 4 BRANDS +94% (+86% C$), with Vans® +110% (+102% C$), The North TOTAL Face® +93% (+83% C$), Timberland ® +70% (+63% C$), and Dickies® +61% (+58% C$) $2,195 M REVENUE INTERNATIONAL +84% (+68% C$), with APAC
Slide 14: Big Four Brand Revenue
Q1'22 Big Four Brand Revenue +110% +93% +70% +61% +102% C$ +83% C$ +63% C$ +58% C$ Q 1 F I S C A L 2 0 2 2 14
Slide 15: Gross Margin Bridge
Q1'22 Gross Margin Bridge YoY mix impacted by +30 bps 56.7% sharp rebound in +530 bps +10 bps Wholesale business; Expect ~+80 bps mix benefit FY’22 vs. FY’20 54.1% -310 bps Note: Gross Margin on an adjusted basis *Numbers on an adjusted organic basis ** Reflects the impact of FX translation only Q 1
Slide 16: Gross Margin Bridge
Q1'22 Gross Margin Bridge +80 bps +30 bps 56.7% 56.3% +10 bps -80 bps Includes -50 bps impact from FX transaction timing and -30 bps impact from expedited freight Note: Gross Margin on an adjusted basis *Numbers on an adjusted organic basis ** Reflects the impact of FX translation only Q 1 F I S C A
Slide 17: Operating Margin Bridge
Q1'22 Operating Margin Bridge Strategic Investments +27% +110 bps 6.8% +2460 bps +20 bps +230 bps -21.4% Note: Operating Margin on an adjusted basis *Numbers on an adjusted organic basis Q 1 F I S C A L 2 0 2 2 17 ** Reflects the impact of FX translation only
Slide 18: Q1'22 Brand Performance
Q1'22 Brand Performance
Slide 19: Vans Global Performance
Q1’22 Vans ® Global Performance REVENUE INCREASED +110% (+102% C$); GLOBAL BRAND REVENUE NOW EXCEEDS PRE-PANDEMIC LEVELS DTC +86% (+81% C$) driven by B&M growth of +369% (+361% C$); DTC Digital +73% vs. Q1’20 +110% Wholesale +149% (+136% C$) despite timing of inventory receipts and delays in pro
Slide 20: Vans Regional Performance
Q1’22 Vans ® Regional Performance AM E R I C AS + 1 4 6 % ( + 1 4 4 % C $ ) EUROPE +148% (+125% C$) AP A C + 2 9 % ( + 1 9 % C $ ) DTC +87% WHOLESALE (+70% C$) DTC WHOLESALE +28% +30% +258% WHOLESALE (+19% C$) (+19% C$) (+252% C$) +200% DTC +109% (+173% C$) (+108% C$) Americas DTC revenue now exce
Slide 21: The North Face Global Performance
Q1’22 The North Face ® Global Performance REVENUE INCREASED +93% (+83% C$); GLOBAL BRAND REVENUE NOW EXCEEDS PRE-PANDEMIC LEVELS Strong rebound globally across channels; 168% (142% C$) growth in EMEA and 31% (22% C$) growth in APAC; Global DTC Digital +93% +80% vs. Q1’20 Broad-based momentum fro
Slide 22: The North Face Regional Performance
Q1’22 The North Face ® Regional Performance AM E R I C AS + 8 1 % ( + 8 0 % C $ ) EUROPE +168% (+142% C$) AP A C + 3 1 % ( + 2 2 % C $ ) WHOLESALE DTC +13% DTC (+7% C$) +29% WHOLESALE +145% (+28% C$) WHOLESALE +185% (+121% C$) +148% (+157% C$) (+145% C$) DTC +38% (+27% C$) Quality of sales continu
Slide 23: Timberland Global Performance
Q1’22 Timberland ® Global Performance REVENUE INCREASED +70% (+63% C$) Americas business now exceeds pre-pandemic levels, supported by sharp recovery in Americas DTC (+96% C$) +70% Global DTC Digital +87% vs. Q1’20; Continued outsized strength from Outdoor and Timberland PRO® Strong demand for
Slide 24: Timberland Regional Performance
Q1’22 Timberland ® Regional Performance AM E R I C AS + 1 1 1 % ( + 1 0 8 % C $ ) EUROPE +74% (+58% C$) AP A C - 1 8 % ( - 2 2 % C $ ) DTC +98% WHOLESALE (+96% C$) WHOLESALE DTC -47% +3 1 % +134% (-49% C$) (+20% C$) (+112% C$) WHOLESALE DTC +116% -7% (+112% C$) (-12% C$) Americas business now exce
Slide 25: Dickies Global Performance
Q1’22 Dickies ® Global Performance REVENUE INCREASED +61% (+58% C$) +61% Work-inspired Lifestyle product momentum continues across all regions, representing ~40% of global brand revenue Performance in the Americas (+83% C$) exceeding expectations, with strength across all key accounts, including
Slide 26: Dickies Regional Performance
Q1’22 Dickies ® Regional Performance AM E R I C AS + 8 4 % ( + 8 3 % C $ ) EUROPE +10% (-1% C$) AP AC + 7 % ( f l a t C $ ) DTC DTC -26% +11% (-33% C$) DTC -8% WHOLESALE (-15% C$) WHOLESALE +23% +20% (+16% C$) WHOLESALE (+8% C$) +106% Strong demand across all channels and with key Work-inspired
Slide 27: FY'22 Outlook
FY’22 Outlook
Slide 28: Fiscal Year 2022 Outlook
Fiscal Year 2022 Outlook Adjusted Adjusted Adjusted Adjusted Operating Earnings Revenue Gross Margin Margin Per Share* at least $12.0B >56% >13.0% at least $3.20 + at least 30% +>270bps +>500bps + at least 145% PREVIOUSLY ~$11.8B PREVIOUSLY ~12.8% PREVIOUSLY ~$3.05 *On a diluted basis. Q 1 F I S C A
Slide 29: Fiscal Year 2022 Revenue Outlook: Segments
Fiscal Year 2022 Revenue Outlook: Segments Outdoor Active Work +24% to +26% +37% to +39% +16% to +18% PREVIOUSLY +23% to +25% PREVIOUSLY +34% to +36% PREVIOUSLY +10% to +12% Q 1 F I S C A L 2 0 2 2 29
Slide 30: Fiscal Year 2022 Revenue Outlook: Brands
Fiscal Year 2022 Revenue Outlook: Brands +28% to +26% to +18% to +mid-teen% 29% +28% +20% PREVIOUSLY +26% to +28% PREVIOUSLY +25% to +27% PREVIOUSLY +16% to +18% PREVIOUSLY +10% to +12% Q 1 F I S C A L 2 0 2 2 30
Slide 31: Fiscal Year 2022 Revenue Outlook: Regions
Fiscal Year 2022 Revenue Outlook: Regions +29% to +31% EMEA +32% to +34% U.S. PREVIOUSLY +28% to +30% +18% to +20% APAC +28% to +30% AMERICAS (non-U.S.) Q 1 F I S C A L 2 0 2 2 31
Slide 32: Fiscal Year 2022 Revenue Outlook: Channels
Fiscal Year 2022 Revenue Outlook: Channels Direct-to- Direct-to-Consumer Wholesale Consumer Digital + at least 20% +39% to +41% +29% to +31% PREVIOUSLY +17% to +19% PREVIOUSLY +38% to +40% Q 1 F I S C A L 2 0 2 2 32
Slide 33: Appendix
Appendix
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 June 2021 (Unaudited) (In thousands, except per share amounts) Transaction and As Reported Deal Related Specified Strategic Contribution from
Slide 35: 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 June 2020 (Unaudited) (In thousands, except per share amounts) Specified Strategic As Reported Transaction and Deal Business Three Months Ende
Slide 36: Appendix: Top Brand Revenue
Appendix: Top 4 Brand Revenue VF CORPORATION Supplemental Financial Information Top 4 Brand Revenue Information (Unaudited) Three Months Ended June 2021 Top 4 Brand Revenue Growth Americas EMEA APAC Global ® Vans % cha nge 146 % 148 % 29 % 110 % (a) % cha nge cons ta nt currency 144 % 125 % 19 % 102
Slide 37: Appendix: Segment, Geographic & Channel Revenue – Q1'22
Appendix: Segment, Geographic & Channel Revenue – Q1'22 VF CORPORATION Supplemental Financial Information Reportable Segment, Geographic and Channel Revenue Growth - Three Months Ended June 2021 (Unaudited) Three Months Ended June 2021 % Change Constant % Change Constant % Change Currency* % Change
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