Q1 2025 VF Corp Earnings Call Transcript
Key Points
- VF Corp (VFC) achieved $50 million in cost savings during the quarter, contributing to their $300 million target.
- Inventories were reduced by 24% year-over-year, indicating improved inventory management.
- Net debt decreased by $587 million year-over-year, supporting the company's deleveraging plan.
- The sale of Supreme for $1.5 billion will help sharpen focus on core business and improve leverage.
- The North Face brand saw 8% growth in direct-to-consumer (DTC) sales globally, with strong performance in the APAC region.
- Overall revenue was down 8% year-over-year, reflecting ongoing challenges.
- Gross margin decreased by 80 basis points, primarily due to clear-out activities from Vans product reset.
- Operating margin declined by 360 basis points, driven by SG&A deleverage.
- Vans brand continued to struggle, with a 21% decline in Q1, although showing modest improvement from Q4.
- The Americas region performed below potential, with a 12% decline in Q1, although an improvement from the previous quarter.
Good afternoon. My name is Angela, and I will be your conference operator today. At this time, I would like to welcome everyone to the VF Corporation first-quarter fiscal year 2025 earnings call. (Operator Instructions) I will now turn the call over to Allegra Perry, Vice President, Investor Relations, to open the conference call. You may begin.
Good afternoon, and welcome to VF Corporation's first-quarter fiscal 2025 conference call. Participants on today's call will make forward-looking statements. These statements are based on current expectations and are subject to uncertainties that could cause actual results to differ materially. These uncertainties are detailed in documents filed regularly with the SEC.
Unless otherwise noted, amounts referred to on today's call will be on an adjusted constant dollar basis, which we've defined in the press release that was issued this afternoon and which we use as lead numbers in our discussion because we believe they more accurately represent the true
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