VF Corporation, the company that owns brands like Vans, The North Face, Timberland and Dickies, announced its fourth quarter and full year report ended 28 March 2020.
In fourth quarter, its revenue decreased by 11 per cent (down 10 per cent in constant dollars) to US $ 2.1 billion driven by lower consumer demand as a result of the COVID-19 outbreak and related government actions and regulations.
For the full year, revenue increased by 2 per cent (up 4 per cent in constant dollars) to US $ 10.5 billion. Excluding the impact of acquisitions and divestitures and on an adjusted basis, revenue increased by 3 per cent (up 4 per cent in constant dollars), driven by VF’s two largest brands, and its international and direct-to-consumer platforms.
It also added that the first quarter of fiscal 2021 revenues is expected to be down slightly more than 50 per cent and dull-year fiscal 2021 free cash flow is expected to exceed US $ 600 million.
The company also said that it has sufficient liquidity and flexibility to operate during the disruptions caused by COVID-19 and related governmental actions and regulations and health authority advisories.
However, due to the uncertainty of the duration and severity of COVID-19, governmental actions in response to the pandemic and the speed with which this pandemic is developing and impacting VF, its consumers, customers and suppliers, it is not possible to reasonably estimate the extent of the impact on VF’s financial condition or results of operations at this time.