Wed, Oct 30, 5:08 PM (64 days ago)
VF Corporation (NYSE: VFC) reported a challenging second quarter for fiscal 2025, ending September 28, 2024, with revenues declining 6% year-over-year to $2.76 billion. The Outdoor segment saw a 3% revenue drop, while Active and Work segments fell 9% and 8%, respectively. Gross margin improved by 120 basis points to 52.2%, attributed to reduced product costs. However, net income was $52.2 million, a recovery from a loss of $450.7 million in the prior year, largely due to significant tax expenses in 2023. Cash flow from operations was negative at $301.8 million, primarily due to lower income and increased working capital needs. The company completed the sale of its Supreme brand for $1.5 billion, recognizing a $124.8 million loss, and used part of the proceeds to prepay $1 billion in debt. Total liabilities increased to $10.81 billion, with a current ratio of 1.0, reflecting tighter liquidity. VF's restructuring program, "Reinvent," aims for $300 million in annual savings, focusing on reducing costs and improving profitability amid declining sales across all segments. The outlook remains cautious, with ongoing uncertainties in consumer demand and global economic conditions.