World Footwear

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VF Corp cuts full year outlook but outlines long-term growth strategy

Oct 6, 2022 United States
VF Corp cuts full year outlook but outlines long-term growth strategy
The US-based apparel and footwear group revised its outlook for the current fiscal year after lower-than-expected results in the second quarter. It also mapped out a 5-year strategic growth plan
The company reported that it is now anticipating a revenue growth between 5% to 6% (in constant dollars) for the full year of 2023, as compared to the previous guidance of at least 7%. Adjusted earnings per share are expected in the range of 2.60 US dollars and 2.70 US dollars, down from the last outlook of between 3.05 US dollars and 3.15 US dollars.

The parent of Vans, Timberland, and the North Face, among others, added that the revised outlook comes after lower-than-expected results for the second quarter of the current fiscal year, general uncertainty and a weaker than expected back-to-school season for Vans, which led to a more promotional environment in North America.

Nonetheless, at its 2022 Investor Day, the group announced that it expects to see a compounded annual growth rate for revenue over the next five years up in the mid to high single digits. By fiscal year 2027, it also forecasts an operating margin of about 15% and earnings per share growth of high single to low double-digits. Moreover, between fiscal years 2023 and 2027, VF plans to return about 7 billion US dollars in cash to shareholders through dividends and share repurchases.

"Our new five-year growth plan demonstrates how we will leverage VF's proven strengths and distinct model to deliver superior returns to shareholders over the long term. The global economic environment has dramatically changed since we held our last Investor Day in late 2019. Despite significant disruptions during the past three years, VF has successfully navigated the challenges to become a more agile and focused enterprise that is advancing a clear vision to be the world's most dynamic portfolio of iconic, deeply loved, active-lifestyle brands”, commented VF Chairman, President and CEO, Steve Rendle.

The company will release its second quarter results on the 26th of October 2022.


Image Credits: themds.com

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