V.f. Corporation · NYSE:VFC
V.f — Investor Day
53 slides from V.f's investor day presentation
Slide 1: Reinvent to Grow: Investor Day FY25 Part 1
REINVENT TO GROW G INVESTOR DAY FY25 PART |
Slide 2: Allegra Perry, VP Investor Relations
ALLEGRA PERRY VP, INVESTOR RELATIONS
Slide 3: Safe Harbor Statement Disclosure
I N V E S T O R D A Y F Y 2 5 | P A R T 1 SAFE HARBOR STATEMENT DISCLOSURE Certain statements included in this presentation are "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward- looking statements are made
Slide 4: GAAP to Non-GAAP
I N V E S T O R D A Y F Y 2 5 | P A R T 1 GAAP TO NON-GAAP Financial information contained in this presentation represent financial measures that are calculated and presented on the basis of methodologies other than in accordance with generally accepted accounting principles in the United States of
Slide 5: Bracken Darrell, President & CEO
BRACKEN DARRELL PRESIDENT & CEO
Slide 6: Reinvent to Grow
I N V E S T O R D A Y F Y 2 5 | P A R T 1 REINVENT TO GROW BRACKEN DARRELL President & CEO Enterprise Strategy ABHISHEK DALMIA Chief Strategy, Transformation & Digital Officer Reinvent Program MARTINO SCABBIA GUERRINI Chief Commercial Officer & President, Emerging Brands Commercial Platform BRENT HY
Slide 7: If We Say It, We Do It
I N V E S T O R D A Y F Y 2 5 | P A R T 1 IF WE SAY IT, WE DO IT WHAT WE SAID: WHAT WE DID: Strengthen the balance sheet Divested Supreme to pay down debt Reduce costs On track to deliver $300M cost savings by end of FY25 Change operating model Operationalized new Commercial platform Reset leadershi
Slide 8: We Will Update You Today on Our Enterprise and Financial Game Plan
I N V E S T O R D A Y F Y 2 5 | P A R T 1 WE WILL UPDATE YOU TODAY ON OUR ENTERPRISE AND FINANCIAL GAME PLAN Enterprise Financial ▪ VF portfolio strategy ▪ Medium-term financial model ▪ Building a competitive advantage ▪ Plan for leverage reduction through key capabilities ▪ Capital allocation Brand
Slide 9: Investor Day FY25 Part 1
INVESTOR DAY FY25 | PART) 1 G G VANS NOBTERD Tumberland & “OFF THE WALL” -FACE! 27s . =~ 7 aT = ERSTPAK)—_sicebreaker SEORT kipling § RNBNBIRH «© Smartwool. ® 2 wvewWel-Yenv
Slide 10: VF Brands Anchored in Performance with Elevated Design
I N V E S T O R D A Y F Y 2 5 | P A R T 1 VF BRANDS ANCHORED IN PERFORMANCE WITH ELEVATED DESIGN Function-forward Fashion-forward Performance Performance-Inspired Lifestyle Fashion Luxury ▪ VF brands anchored in Performance while elevating design, innovation & “style” ▪ Performance with Style offers
Slide 11: We Will Invest in Six Scalable Capabilities to Enhance Competitive Advantage
I N V E S T O R D A Y F Y 2 5 | P A R T 1 WE WILL INVEST IN SIX SCALABLE CAPABILITIES TO ENHANCE OUR COMPETITIVE ADVANTAGE 1 2 3 4 5 6 BEST-IN-CLASS GLOBAL INTEGRATED ELEVATED MODERN COMMERCIAL BUSINESS USE-CASE TALENT DESIGN MARKETING PLATFORM PLANNING CENTRIC AI DEVELOPMENT Create products and Dev
Slide 12: We Have a Clear Path to a Minimum 10% Operating Margin
I N V E S T O R D A Y F Y 2 5 | P A R T 1 WE HAVE A CLEAR PATH TO A MINIMUM 10% OPERATING MARGIN GROSS MARGIN 52% 55% SG&A % OF REVENUE 47% 45% OPERATING MARGIN 5% 10% FY24 Medium-term1 LEVERAGE2 2.5x 1As used throughout this presentation, “medium-term” is defined as in FY28 2Leverage represents net
Slide 13: VF Has a Compelling Value Proposition
I N V E S T O R D A Y F Y 2 5 | P A R T 1 VF HAS A COMPELLING VALUE PROPOSITION CURRENT LONG TERM ▪ Trading significantly off sustained historic highs ▪ Powerful portfolio of brands in attractive and growing markets ▪ Highly levered with a clear path to de-lever ▪ New operating model provides abilit
Slide 14: Abhishek Dalmia, Chief Strategy, Transformation & Digital Officer
ABHISHEK DALMIA CHIEF STRATEGY, TRANSFORMATION & DIGITAL OFFICER G
Slide 15: Next Phase of the Reinvent Turnaround Program
I N V E S T O R D A Y F Y 2 5 | P A R T 1 WE ARE NOW IN THE NEXT PHASE OF THE REINVENT TURNAROUND PROGRAM While resetting we… Executing workstreams as one Reinvent program matters because… Identified capability gaps and opportunities for Integrated approach unlocks synergies between workstreams to d
Slide 16: Nine Focused Workstreams to Drive ~$500M-600M Operating Income Expansion
I N V E S T O R D A Y F Y 2 5 | P A R T 1 NINE FOCUSED WORKSTREAMS IN ACTION TO DRIVE ~$500M-600M OF OPERATING INCOME EXPANSION Revenue 1 Global Brand Positioning FINANCIAL Growth 2 Marketing Effectiveness 3 Product Creation Gross Margin Expansion 4 Integrated Business Planning ~$250M-300M 5 Markdow
Slide 17: Improved Buying and Rebalancing to Drive ~$150M Gross Profit Expansion
I N V E S T O R D A Y F Y 2 5 | P A R T 1 Revenue IMPROVED BUYING AND REBALANCING TO GM 4 DRIVE ~$150M GROSS PROFIT EXPANSION SG&A Integrated Business Planning EXAMPLE: INVENTORY REBALANCING Identification of opportunities Product Creation Est. margin uplift, by product Deployed a new Sales & Operat
Slide 18: Store Optimization Will Improve Experience While Driving ~$50M SG&A Reduction
I N V E S T O R D A Y F Y 2 5 | P A R T 1 Revenue STORE OPTIMIZATION WILL IMPROVE EXPERIENCE GM WHILE DRIVING ~$50M SG&A REDUCTION SG&A 6 Store Fleet & Labor Optimization EXAMPLE: STORE LABOR FROM: Understaffing during peak TO: Labor hours matched to and overstaffing during slow hours customer traff
Slide 19: Modernizing Our Marketing Will Drive Higher Effectiveness on Spend
I N V E S T O R D A Y F Y 2 5 | P A R T 1 Revenue 2 MODERNIZING OUR MARKETING WILL DRIVE GM HIGHER EFFECTIVENESS ON SPEND SG&A Marketing Effectiveness EXAMPLE: MARKETING EFFECTIVENESS Boosting and sharpening Shifting to modern marketing Doubling down on our content engine marketing spend to focus on
Slide 20: Reinvent Program Expected to Drive ~$500-600M Operating Income Expansion
I N V E S T O R D A Y F Y 2 5 | P A R T 1 REINVENT PROGRAM EXPECTED TO DRIVE ~$500-600M OPERATING INCOME EXPANSION We are investing in We are resetting our We are tracking scalable capabilities operating model, progress with relevant to enable change talent and culture leading KPIs 19
Slide 21: Martino Scabbia Guerrini, Chief Commercial Officer
NO SCABBIA GUERRINI CHIEF COMMERCIAL OFFICER & PRESIDENT OF EMERGING BRANDS a
Slide 22: Ten Months into Execution of Global Commercial Organization
I N V E S T O R D A Y F Y 2 5 | P A R T 1 TEN MONTHS INTO EXECUTION OF GLOBAL COMMERCIAL ORGANIZATION AMERICAS EMEA APAC The North Face Climb Festival, Brooklyn Vans, Paris Fashion Week Timberland, Shibuya Tokyo 1 Activating Americas platform 2 Innovating and evolving EMEA and APAC 3 Transferring le
Slide 23: Activation of Americas Platform as Key Enabler of Local Market Turnaround
I N V E S T O R D A Y F Y 2 5 | P A R T 1 ACTIVATION OF AMERICAS PLATFORM AS A KEY ENABLER OF LOCAL MARKET TURNAROUND Americas platform objectives: 1. Strengthen operational discipline and performance management 2. Establish new ways of working and collaboration across brands 3. Capture commercial o
Slide 24: Americas Wholesale: Disciplined Marketplace Management
I N V E S T O R D A Y F Y 2 5 | P A R T 1 AMERICAS WHOLESALE: DISCIPLINED MARKETPLACE MANAGEMENT AND ELEVATION IN MULTI-BRAND RETAIL WHAT HAVE WE DONE ▪ Key account partnerships ▪ Cross-brand execution ▪ Segmentation and elevation WHAT WE ARE SEEING ▪ Growth and share recapture ▪ Quality of growth ▪
Slide 25: Americas DTC: Driving Operational Excellence and Innovation
I N V E S T O R D A Y F Y 2 5 | P A R T 1 AMERICAS DTC: DRIVING OPERATIONAL EXCELLENCE AND INNOVATION ACROSS STORES AND DIGITAL PLACEHOLDER Improving store productivity Enhancing in-store Upgrading digital platforms Building consumer through ongoing optimization experience with digital and elevating
Slide 26: Evolving International Platforms to Sustain Accretive Contribution
I N V E S T O R D A Y F Y 2 5 | P A R T 1 EVOLVING INTERNATIONAL PLATFORMS TO SUSTAIN ACCRETIVE CONTRIBUTION TO VF Power of the regional platforms as amplifier of brand impact AND Power of our brands in markets through local relevance and elevation + Innovating EMEA and APAC platforms Transferring l
Slide 27: Amplifying Commercial Impact Across Regions and Business Models
I N V E S T O R D A Y F Y 2 5 | P A R T 1 AMPLIFYING COMMERICAL IMPACT ACROSS REGIONS AND BUSINESS MODELS The North Face Summit, London The North Face Summit, Shanghai The North Face, Williamsburg The North Face Partner, Singapore The North Face Partner, Italy The North Face Kids, Shanghai 26
Slide 28: Regional Platforms Act as Growth Catalyst for Emerging Brands
I N V E S T O R D A Y F Y 2 5 | P A R T 1 REGIONAL PLATFORMS ACT AS GROWTH CATALYST FOR EMERGING BRANDS Altra, Europe Icebreaker, China 27
Slide 29: Delivering on Promise of Integrated Commercial Organization
I N V E S T O R D A Y F Y 2 5 | P A R T 1 DELIVERING ON PROMISE OF INTEGRATED COMMERCIAL ORGANIZATION ▪ Established Americas regional platform to elevate execution in key marketplace ▪ Evolving and innovating commercial platforms to amplify power of brands ▪ Sharing learnings and capitalizing on str
Slide 30: Brent Hyder, Chief People Officer
BRENT HYDER BRIEF PEOPLE OFFICER SMtenceeecceecceeceeeetneeeerten enn,
Slide 31: We Have Established a Committed Leadership Team
I N V E S T O R D A Y F Y 2 5 | P A R T 1 WE HAVE ESTABLISHED A COMMITTED LEADERSHIP TEAM BRACKEN DARRELL CAROLINE BROWN SUN CHOE NINA FLOOD CHRIS GOBLE MARTINO SCABBIA JAN VAN LEEUWEN WINNIE MA President & CEO Global Brand President, Global Brand President, Global Brand President, Global Brand Pres
Slide 32: Guided by a Values-Based Turnaround Plan
I N V E S T O R D A Y F Y 2 5 | P A R T 1 GUIDED BY A VALUES-BASED TURNAROUND PLAN INTEGRITY CONSUMER-FOCUSED GROWTH MINDSET SIMPLICITY WIN TOGETHER Lead with transparency, Put the consumer at Never stop learning, Be bold. Radically Exceed the expected trust, empathy and the center. growing, explori
Slide 33: Powering a Value-Creating Growth Model
I N V E S T O R D A Y F Y 2 5 | P A R T 1 POWERING A VALUE-CREATING GROWTH MODEL All enterprise roles – Brands, Regions, Enterprise Functions – partner to maximize value creation for VF. Consumer Feedback Brand strategy, Business product portfolio execution, GTM, and marketing BRANDS REGIONS marketp
Slide 34: Building Culture by Driving Alignment Across the Business
I N V E S T O R D A Y F Y 2 5 | P A R T 1 BUILDING CULTURE BY DRIVING ALIGNMENT ACROSS THE BUSINESS STRATEGIC & PROCESS COMPENSATION CULTURAL ALIGNMENT ALIGNMENT ALIGNMENT ▪ Adapted Salesforce V2MOM1 ▪ Incentives aligned to annual ▪ 24/7 listening tools – Pulse Connect model financial plan (revenue,
Slide 35: Our Growth Agenda Is Supported by Change in Key Areas
I N V E S T O R D A Y F Y 2 5 | P A R T 1 OUR GROWTH AGENDA IS SUPPORTED BY CHANGE IN KEY AREAS ▪ A committed leadership team ▪ Guided by the right values ▪ Powered by the right operating (growth) model ▪ Building a strong culture and organizational alignment 34
Slide 36: Paul Vogel, Chief Financial Officer
PAUL VOGEL CHIEF FINANCIAL OFFICER
Slide 37: Investor Day FY25 Part 1
INVESTOR DAY FY25 | PART. 1 G G VANS NORTH Tumberland & “OFF THE WALL” -FACE! Z7 ss . =~ 7 a = = ERSTPAK)~_sicebreaker SEORT kipling = WNBNBeRH «© Smartwool. ® & wewel-Yeu
Slide 38: We Are Operating Well Below Our Historical Levels
I N V E S T O R D A Y F Y 2 5 | P A R T 1 WE ARE OPERATING WELL BELOW OUR HISTORICAL LEVELS GROSS MARGIN 55% 53% 52% SG&A % OF REVENUE 42% 43% 47% OPERATING MARGIN 13% 10% 5% FY19-FY201 FY21-FY231 FY24 1 Figures represent averages across the fiscal years 37
Slide 39: Financial Philosophy to Drive Sustainable, Profitable Growth
I N V E S T O R D A Y F Y 2 5 | P A R T 1 FINANCIAL PHILOSOPHY TO DRIVE SUSTAINABLE, PROFITABLE GROWTH We are here for quality growth We don’t believe in high leverage We will continue to reinvent ourselves 38
Slide 40: Creating the Optimal P&L Structure to Achieve At Least 10% Operating Margin
I N V E S T O R D A Y F Y 2 5 | P A R T 1 CREATING THE OPTIMAL P&L STRUCTURE TO ACHIEVE AT LEAST 10% OPERATING MARGIN Medium-term GROSS MARGIN 55% SG&A % OF REVENUE 45% OPERATING MARGIN 10% 39
Slide 41: We Will Expand Gross Margin
I N V E S T O R D A Y F Y 2 5 | P A R T 1 WE WILL EXPAND GROSS MARGIN FY24 51.6% Gross Margin Reset Actions & Lower Promotions Product Creation Integrated Business Planning Markdown Management Medium-term Gross Margin 55.0% 40
Slide 42: We Will Innovate While Improving Efficiency
I N V E S T O R D A Y F Y 2 5 | P A R T 1 WE WILL INNOVATE WHILE IMPROVING EFFICIENCY FY24 SG&A % Revenue 46.5%* Reinvestment Inflation Digital & Technology Store Labor & Expenses Distribution & Logistics Organizational Effectiveness & Other Efficiencies Medium-term SG&A % Revenue 45.0% *Includes Su
Slide 43: We Have a Clear Philosophy on Capital Allocation
I N V E S T O R D A Y F Y 2 5 | P A R T 1 WE HAVE A CLEAR PHILOSOPHY ON CAPITAL ALLOCATION 1 Debt reduction 2 Reinvestment 3 Dividend 4 Share buyback 5 Portfolio 42
Slide 44: We Will Reduce Leverage to 2.5x or Below
I N V E S T O R D A Y F Y 2 5 | P A R T 1 WE WILL REDUCE LEVERAGE TO 2.5X OR BELOW 1 Sequential YoY improvement in Free Cash Flow2 5.1x Operating Margin Expansion Working Capital Optimization 2.5x Debt FY24 Medium-term FY28 1Leverage represents net leverage, calculated as net debt to adjusted EBITDA
Slide 45: We Are Reinventing to Grow
I N V E S T O R D A Y F Y 2 5 | P A R T 1 WE ARE REINVENTING TO GROW ▪ We are here for growth and to see an acceleration of revenue trend ▪ We are committed to achieving operating margin of at least 10% in FY28 ▪ We will reduce leverage and build sustainable long-term shareholder value 44
Slide 46: Reinvent to Grow
REINVENT TO GROW G INVESTOR DAY FY25 PART |
Slide 47: Reconciliation of Select GAAP Measures to Non-GAAP Measures (FY2024)
VF CORPORATION Supplemental Financial Information Reconciliation of Select GAAP Measures to Non-GAAP Measures (Unaudited) (In thousands) Transaction and Historical VF - as Less: Supreme - Deal Related VF Continuing Twelve Months Ended March 30, 2024 reported under Discontinued VF Continuing Impairme
Slide 48: Reconciliation of Select GAAP Measures to Non-GAAP Measures (FY2023)
VF CORPORATION Supplemental Financial Information Reconciliation of Select GAAP Measures to Non-GAAP Measures (Unaudited) (In thousands) Twelve Months Ended April 1, 2023 Historical VF - as reported Less: Supreme - Specified Strategic Business VF Continuing Operations (Fiscal 2023) under GAAP (a) Di
Slide 49: Reconciliation of Select GAAP Measures to Non-GAAP Measures (FY2022)
VF CORPORATION Supplemental Financial Information Reconciliation of Select GAAP Measures to Non-GAAP Measures (Unaudited) (In thousands) Twelve Months Ended April 2, 2022 Historical VF - as reported Less: Supreme - Specified Strategic Business VF Continuing Operations (Fiscal 2022) under GAAP (a) Di
Slide 50: Reconciliation of Select GAAP Measures to Non-GAAP Measures (FY2021)
VF CORPORATION Supplemental Financial Information Reconciliation of Select GAAP Measures to Non-GAAP Measures (Unaudited) (In thousands) Less: Supreme - Twelve Months Ended April 3, 2021 Historical VF - as Discontinued VF Continuing Transaction and Deal Specified Strategic VF Continuing (Fiscal 2021
Slide 51: Reconciliation of Select GAAP Measures to Non-GAAP Measures (FY2020)
VF CORPORATION Supplemental Financial Information Reconciliation of Select GAAP Measures to Non-GAAP Measures (Unaudited) (In thousands) Historical VF - as Twelve Months Ended March 28, 2020 reported under Transaction and Deal Relocation and Other Goodwill Impairment VF Continuing Operations (Fiscal
Slide 52: Reconciliation of Select GAAP Measures to Non-GAAP Measures (FY2019)
VF CORPORATION Supplemental Financial Information Reconciliation of Select GAAP Measures to Non-GAAP Measures (Unaudited) (In thousands) Twelve Months Ended March 30, 2019 Historical VF - as reported under Transaction and Deal Related Relocation and Other Strategic VF Continuing Operations (Fiscal 2
Slide 53: Adjusted EBITDA Reconciliation (FY2024)
VF CORPORATION Supplemental Financial Information Reconciliation of Select GAAP Measures to Non-GAAP Measures (Unaudited) (In thousands) Twelve Months Ended March 30, 2024 (Fiscal 2024) Operating loss - as reported under GAAP (a) $ (34,062) Adjustments to operating loss: Reinvent (b) 105,386 (c) Imp