VF Corporation Reports 4% Revenue Decline to $9.5 Billion for Fiscal Year Ending March 2025

VF Corporation reported a revenue decline of 4% for the fiscal year ending March 29, 2025, totaling $9.5 billion, down from $9.9 billion in the previous year. The decrease was primarily driven by a 12% drop in the Active segment, which includes brands like Vans and Kipling, and a 7% decline in the Work segment, which includes Dickies. In contrast, the Outdoor segment, featuring brands such as The North Face and Timberland, saw a slight revenue increase of 1%. The company also noted a gross margin improvement of 190 basis points to 53.5%, attributed to lower product costs and enhanced inventory quality.

In terms of profitability, VF Corporation reported earnings of $0.18 per share, a significant recovery from a loss of $2.62 per share in the prior fiscal year. The previous year's results were adversely affected by a substantial tax expense related to a legal decision involving Timberland, which impacted earnings per share by $1.72. The improved earnings in Fiscal 2025 were also supported by reduced impairment charges compared to the previous year, which had seen significant write-downs.

Strategically, VF Corporation completed the divestiture of its Supreme brand to EssilorLuxottica for $1.5 billion in cash on October 1, 2024. This sale was part of the company's broader Reinvent turnaround program, which aims to enhance operational efficiency and profitability. The program has already yielded $300 million in gross cost savings and a reduction in debt, with VF planning to generate an additional $500 to $600 million in net operating income expansion by Fiscal 2028.

Operationally, VF's direct-to-consumer revenues decreased by 6%, accounting for 44% of total revenues, while wholesale revenues fell by 2%. The company operated 1,127 retail stores globally at the end of Fiscal 2025, having opened 73 new stores but also closed 114 during the year. The Americas region represented the largest share of revenue at 51%, followed by Europe at 34% and Asia-Pacific at 15%. The company continues to focus on geographic expansion and product innovation as key drivers for future growth.

Looking ahead, VF Corporation remains cautious about market conditions, particularly in light of recent tariff announcements and ongoing economic uncertainties. The company is committed to its transformation strategy and aims to leverage its multi-brand portfolio to drive sustainable growth. Management has indicated that while challenges remain, they are optimistic about returning to growth and improving profitability in the coming fiscal years.