VF Corporation revealed its Q1'FY24 financial results, showing an 8% revenue decrease to $2.1 billion. Loss per share also dipped by 2% to $(0.15), with adjusted loss per share at $(0.15), compared to Q1'FY23's adjusted earnings per share of $0.09.
Bracken Darrell, President and CEO of VF Corporation, expressed confidence in the company's future despite the challenging market environment. He emphasized the importance of building brands through design and innovation, providing unique experiences for consumers. With a portfolio of globally recognized, iconic brands, VF Corporation aims to achieve sustainable and profitable growth, thereby enhancing shareholder returns.
Q1'FY24 saw operating highlights, with The North Face achieving its 10th consecutive quarter of double-digit constant dollar revenue growth, increasing by 12%. However, Vans faced a setback, down 22%, primarily impacted by wholesale in the Americas. Despite this, VF Corporation remains committed to its turnaround efforts for the brand.
Regarding the FY24 outlook, VF Corporation maintains its EPS guidance range of $2.05 to $2.25. Revenue is expected to be modestly down to flat for the year due to ongoing weakness in the wholesale business and a longer turnaround time for Vans. However, the company is confident in generating healthy cash flow and reducing debt.
Matt Puckett, CFO of VF Corporation, acknowledged that the Q1 performance did not meet their standards. The company aims to improve operational execution, which will take time to reflect positively on revenue performance. Puckett highlighted key priorities for the year, including increasing operating earnings through improved gross margins, generating strong cash flow, and reducing debt to strengthen their financial position.
Despite the challenges, VF Corporation's portfolio of iconic brands, along with its strategic initiatives, positions it well for future growth and shareholder returns. The company remains committed to delivering on its objectives and driving progress throughout the fiscal year.
