Business Wire | Jan 27, 2021 06:55AM EST

VF Reports Third Quarter Fiscal 2021 Results; Raises Full Year Fiscal 2021 Outlook

Jan. 27, 2021

DENVER--(BUSINESS WIRE)--Jan. 27, 2021--VF Corporation (NYSE: VFC) today reported financial results for its third quarter ended December 26, 2020. All per share amounts are presented on a diluted basis. This release refers to "reported" and "constant dollar" amounts, terms that are described under the heading "Constant Currency - Excluding the Impact of Foreign Currency." Unless otherwise noted, "reported" and "constant dollar" amounts are the same. This release also refers to "continuing" and "discontinued" operations amounts, which are concepts described under the heading "Discontinued Operations - Occupational Workwear Business." Unless otherwise noted, results presented are based on continuing operations. This release also refers to "adjusted" amounts, a term that is described under the heading "Adjusted Amounts - Excluding Transaction and Deal Related Expenses and Costs Related to Specified Strategic Business Decisions." Unless otherwise noted, "reported" and "adjusted" amounts are the same.

"Our third quarter results were largely ahead of expectations despite the impact of additional COVID-19-related disruption to our business," said Steve Rendle, VF's Chairman, President and CEO. "Our portfolio remains on track to return to growth in the fiscal fourth quarter and we are confident in VF's plans to accelerate growth into fiscal 2022 and to continue advancing our business model transformation. We remain optimistic about the year ahead and look forward to improvements in our geopolitical, macroeconomic and pandemic-related situations."

Constant Currency - Excluding the Impact of Foreign Currency

This release refers to "reported" amounts in accordance with U.S. generally accepted accounting principles ("GAAP"), which include translation and transactional impacts from foreign currency exchange rates. This release also refers to "constant dollar" amounts, which exclude the impact of translating foreign currencies into U.S. dollars. Reconciliations of GAAP measures to constant currency amounts are presented in the supplemental financial information included with this release, which identifies and quantifies all excluded items, and provides management's view of why this information is useful to investors.

Discontinued Operations - Occupational Workwear Business

On January 21, 2020, VF announced its decision to explore the divestiture of its Occupational Workwear business. The Occupational Workwear business is comprised primarily of the following brands and businesses: Red Kap(r), VF Solutions(r), Bulwark(r), Workrite(r), Walls(r), Terra(r), Kodiak(r), Work Authority(r) and Horace Small(r). The business also includes certain Dickies(r) occupational workwear products that have historically been sold through the business-to-business channel.

During the three months ended March 2020, the company determined that the Occupational Workwear business met the held-for-sale and discontinued operations accounting criteria. Accordingly, the company has reported the related held-for-sale assets and liabilities as assets and liabilities of discontinued operations and included the operating results and cash flows of the business in discontinued operations for all periods presented.

Adjusted Amounts - Excluding Transaction and Deal Related Expenses and Costs Related to Specified Strategic Business Decisions

The adjusted amounts in this release exclude transaction and deal related expenses associated primarily with the acquisition of the Supreme(r)brand. Total transaction and deal related expenses were approximately $7 million in the third quarter and the first nine months of fiscal 2021.

The adjusted amounts in this release exclude costs related to a transformation initiative for our Asia-Pacific regional operations as well as certain cost optimization activities and other charges indirectly related to the strategic review of the Occupational Workwear business. The adjusted amounts also exclude costs related to strategic business decisions in South America and the operating results of jeanswear wind down activities in South America following the spin-off of Kontoor Brands. Total costs were approximately $39 million in the third quarter of fiscal 2021 and $77 million in the first nine months of fiscal 2021. Adjusted amounts for the first nine months of fiscal 2021 also exclude approximately $42 million of noncash non-operating expenses related to the release of certain currency translation amounts associated with the wind down activities in South America.

Combined, the above items negatively impacted earnings per share by $0.10 during the third quarter of fiscal 2021 and $0.29 during the first nine months of fiscal 2021. All adjusted amounts referenced herein exclude the effects of these amounts.

Reconciliations of measures calculated in accordance with GAAP to adjusted amounts are presented in the supplemental financial information included with this release, which identifies and quantifies all excluded items, and provides management's view of why this information is useful to investors.

COVID-19 Outbreak Update

As the global impact of COVID-19 continues, VF remains first and foremost focused on a people-first approach that prioritizes the health and well-being of its employees, customers, trade partners and consumers around the world. To help mitigate the spread of COVID-19 and in response to public health advisories and governmental actions and regulations, VF has modified its business practices, including the temporary closing of offices and retail stores, instituting travel bans and restrictions and implementing health and safety measures including social distancing and quarantines.

The majority of VF's supply chain is currently operational. Suppliers are complying with local public health advisories and governmental restrictions which has resulted in isolated product delays. VF is working with its suppliers to minimize disruption. VF's distribution centers are operational in accordance with local government guidelines while maintaining enhanced health and safety protocols.

In North America, over 95 percent of VF's owned retail stores were open at the beginning of the third quarter, with all VF-owned retail stores re-opened by mid-October. Since that time additional stores have been re-closed, with approximately 15 percent of stores closed by the end of the quarter. The majority of the closures were Vans(r) stores, predominantly based in California. In addition, other stores are operating with reduced capacity. Stores in North America have begun to re-open since the end of the quarter and currently less than 10 percent of stores are closed in the region.

In the EMEA region, nearly all of VF's owned retail stores were open at the beginning of the third quarter. Since that time additional stores have been re-closed, with approximately 50 percent of stores closed by the end of the quarter. Additional stores in the EMEA region have re-closed since the end of the quarter and currently over 60 percent of stores are closed.

Nearly all of VF's owned retail stores in the APAC region, including Mainland China, were open during the quarter and remain open.

VF is continuing to monitor the COVID-19 outbreak globally and will comply with guidance from government entities and public health authorities to prioritize the health and well-being of its employees, customers, trade partners and consumers. As COVID-19 uncertainty continues, VF expects ongoing disruption to its business operations.

Third Quarter Fiscal 2021 Income Statement Review

* Revenue decreased 6 percent (down 8 percent in constant dollars) to $3.0 billion driven by store closures and lower consumer demand as a result of the COVID-19 outbreak and related government actions and regulations. * Gross margin decreased 250 basis points to 54.7 percent, primarily driven by elevated promotional activity to clear excess inventory and the timing of net foreign currency transaction activity. On an adjusted basis, gross margin decreased 150 basis points to 55.7 percent. * Operating income on a reported basis was $412 million. On an adjusted basis, operating income was $458 million. Operating margin was 13.9 percent. Adjusted operating margin was 15.4 percent. * Earnings per share was $0.83 on a reported basis. On an adjusted basis, earnings per share was $0.93.

Balance Sheet Highlights

Inventories were down 14 percent compared with the same period last year. During the quarter, VF returned approximately $191 million of cash to shareholders through dividends. As part of the company's liquidity preservation actions during the ongoing COVID-19 outbreak, the company has suspended its share repurchase program. VF has $2.8 billion remaining under its current share repurchase authorization.

Full Year Fiscal 2021 Outlook

VF's full year outlook assumes no material deterioration to the company's current business operations as a result of COVID-19, governmental actions and regulations. VF's full year fiscal 2021 outlook has been updated and includes the following:

* Revenue is now expected to be in the range of $9.1 billion to $9.2 billion, reflecting a decrease of 12 percent to 13 percent on an adjusted basis. The updated outlook includes approximately $125 million of revenue from the Supreme(r) brand. This compares to the previous expectation of at least $9.0 billion, reflecting a decrease of approximately 14 percent on an adjusted basis.

* Adjusted earnings per share is expected to be approximately $1.30, reflecting a decrease of approximately 51 percent. The updated outlook includes approximately $0.05 of adjusted earnings per share from the Supreme(r) brand. This compares to the previous expectation of at least $1.20, reflecting a decrease of approximately 55 percent.

* Adjusted free cash flow is now expected to be approximately $650 million. This compares to the previous expectation of greater than $600 million.

Dividend Declared

VF's Board of Directors declared a quarterly dividend of $0.49 per share, payable on March 22, 2021, to shareholders of record on March 10, 2021. Subject to approval by its Board of Directors, VF intends to continue to pay its regularly scheduled dividend and is not currently contemplating the suspension of its dividend.

Webcast Information

VF will host its third quarter fiscal 2021 conference call beginning at 8:30 a.m. Eastern Time today. The conference call will be broadcast live via the Internet, accessible at ir.vfc.com. For those unable to listen to the live broadcast, an archived version will be available at the same location.

Presentation

A presentation on third quarter fiscal 2021 results will be available at ir.vfc.com beginning at approximately 7:30 a.m. Eastern Time today and will be archived at the same location.

About VF

Founded in 1899, VF Corporation is one of the world's largest apparel, footwear and accessories companies connecting people to the lifestyles, activities and experiences they cherish most through a family of iconic outdoor, active and workwear brands including Vans(r), The North Face(r), Timberland(r) and Dickies(r). Our purpose is to power movements of sustainable and active lifestyles for the betterment of people and our planet. We connect this purpose with a relentless drive to succeed to create value for all stakeholders and use our company as a force for good. For more information, please visit vfc.com.

Forward-looking Statements

Certain statements included in this release are "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements are made based on our expectations and beliefs concerning future events impacting VF and therefore involve several risks and uncertainties. You can identify these statements by the fact that they use words such as "will," "anticipate," "estimate," "expect," "should," and "may" and other words and terms of similar meaning or use of future dates, however, the absence of these words or similar expressions does not mean that a statement is not forward-looking. All statements regarding VF's plans, objectives, projections and expectations relating to VF's operations or financial performance, and assumptions related thereto are forward-looking statements. We caution that forward-looking statements are not guarantees and that actual results could differ materially from those expressed or implied in the forward-looking statements. VF undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Potential risks and uncertainties that could cause the actual results of operations or financial condition of VF to differ materially from those expressed or implied by forward-looking statements include, but are not limited to: risks arising from the widespread outbreak of an illness or any other communicable disease, or any other public health crisis, including the coronavirus (COVID-19) global pandemic; the level of consumer demand for apparel, footwear and accessories; disruption to VF's distribution system; the financial strength of VF's customers; fluctuations in the price, availability and quality of raw materials and contracted products; disruption and volatility in the global capital and credit markets; VF's response to changing fashion trends, evolving consumer preferences and changing patterns of consumer behavior; intense competition from online retailers; manufacturing and product innovation; increasing pressure on margins; VF's ability to implement its business strategy; VF's ability to grow its international and direct-to-consumer businesses; retail industry changes and challenges; VF's and its vendors' ability to maintain the strength and security of information technology systems; the risk that VF's facilities and systems and those of our third-party service providers may be vulnerable to and unable to anticipate or detect data security breaches and data or financial loss; VF's ability to properly collect, use, manage and secure consumer and employee data; foreign currency fluctuations; stability of VF's manufacturing facilities and foreign suppliers; continued use by VF's suppliers of ethical business practices; VF's ability to accurately forecast demand for products; continuity of members of VF's management; VF's ability to protect trademarks and other intellectual property rights; possible goodwill and other asset impairment; maintenance by VF's licensees and distributors of the value of VF's brands; VF's ability to execute and integrate acquisitions, including the recently acquired Supreme(r)brand; changes in tax laws and liabilities; legal, regulatory, political and economic risks; the risk of economic uncertainty associated with the exit of the United Kingdom from the European Union ("Brexit") or any other similar referendums that may be held; adverse or unexpected weather conditions; VF's indebtedness and its ability to obtain financing on favorable terms, if needed, could prevent VF from fulfilling its financial obligations; climate change and increased focus on sustainability issues; and risks associated with the spin-off of our Jeanswear business completed on May 22, 2019, including the risk that VF will not realize all of the expected benefits of the spin-off; the risk that the spin-off will not be tax-free for U.S. federal income tax purposes; and the risk that there will be a loss of synergies from separating the businesses that could negatively impact the balance sheet, profit margins or earnings of VF. More information on potential factors that could affect VF's financial results is included from time to time in VF's public reports filed with the SEC, including VF's Annual Report on Form 10-K, and Quarterly Reports on Form 10-Q, and Forms 8-K filed or furnished with the SEC.

VF CORPORATION

Condensed Consolidated Statements of Operations

(Unaudited)

(In thousands, except per share amounts)

Three Months Ended December % Nine Months Ended December %

2020 2019 Change 2020 2019 Change

Net revenues $ 2,971,541 $ 3,155,723 (6 )% $ 6,656,158 $ 8,386,135 (21 )%

Costs andoperating expenses

Cost of goods 1,345,024 1,351,653 0 % 3,134,381 3,704,254 (15 )%sold

Selling,general and 1,214,518 1,264,031 (4 )% 3,036,639 3,497,315 (13 )%administrativeexpenses

Total costsand operating 2,559,542 2,615,684 (2 )% 6,171,020 7,201,569 (14 )%expenses

Operating 411,999 540,039 (24 )% 485,138 1,184,566 (59 )%income

Interest, net (31,776 ) (17,337 ) 83 % (90,656 ) (49,306 ) 84 %

Other income 6,484 (22,144 ) * (27,059 ) (18,361 ) *(expense), net

Income fromcontinuingoperations 386,707 500,558 (23 )% 367,423 1,116,899 (67 )%before incometaxes

Income tax 59,048 78,976 (25 )% 74,260 4,667 *expense

Income fromcontinuing 327,659 421,582 (22 )% 293,163 1,112,232 (74 )%operations

Income fromdiscontinued 19,581 43,421 (55 )% 25,186 50,993 (51 )%operations,net of tax

Net income $ 347,240 $ 465,003 (25 )% $ 318,349 $ 1,163,225 (73 )%

Earnings percommon share - basic ^(a)

Continuing $ 0.84 $ 1.06 (21 )% $ 0.75 $ 2.80 (73 )%operations

Discontinued 0.05 0.11 (54 )% 0.06 0.13 (50 )%operations

Total earningsper common $ 0.89 $ 1.17 (24 )% $ 0.82 $ 2.93 (72 )%share - basic

Earnings percommon share - diluted^ (a)

Continuing $ 0.83 $ 1.05 (21 )% $ 0.75 $ 2.77 (73 )%operations

Discontinued 0.05 0.11 (54 )% 0.06 0.13 (49 )%operations

Total earningsper common $ 0.88 $ 1.16 (24 )% $ 0.81 $ 2.90 (72 )%share -diluted

Weightedaverage shares outstanding

Basic 389,872 395,940 389,262 396,806

Diluted 392,851 400,322 391,607 401,499

Cash dividendsper common $ 0.49 $ 0.48 2 % $ 1.45 $ 1.42 2 %share



* Calculation not meaningful

Basis of presentation of condensed consolidated financial statements: VFoperates and reports using a 52/53 week fiscal year ending on the Saturdayclosest to March 31 of each year. For presentation purposes herein, allreferences to periods ended December 2020 relate to the 13-week and 39-weekfiscal periods ended December 26, 2020 and all references to periods endedDecember 2019 relate to the 13-week and 39-week fiscal periods ended December28, 2019. References to March 2020 relate to information as of March 28, 2020.

^(a) Amounts have been calculated using unrounded numbers.

VF CORPORATION

Condensed Consolidated Balance Sheets

(Unaudited)

(In thousands)

December March December

2020 2020 2019

ASSETS

Current assets

Cash and equivalents $ 3,254,236 $ 1,369,028 $ 540,029

Accounts receivable, net 1,411,565 1,308,051 1,539,923

Inventories 1,075,983 1,293,912 1,254,460

Short-term investments 599,403 - -

Other current assets 383,384 444,886 356,882

Current assets of 560,648 611,139 464,404 discontinued operations

Total current assets 7,285,219 5,027,016 4,155,698

Property, plant and 955,845 954,406 867,205 equipment, net

Goodwill and intangible 3,056,254 3,010,564 3,377,738 assets, net

Operating lease right-of-use 1,476,503 1,273,514 1,259,066 assets

Other assets 970,520 867,751 958,253

Other assets of discontinued - - 196,302 operations

Total assets $ 13,744,341 $ 11,133,251 $ 10,814,262

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

Short-term borrowings $ 299,748 $ 1,228,812 $ 56,001

Current portion of long-term 1,006 1,018 4,677 debt

Accounts payable 412,324 407,021 389,749

Accrued liabilities 1,664,760 1,260,252 1,410,609

Current liabilities of 120,185 126,781 101,056 discontinued operations

Total current liabilities 2,498,023 3,023,884 1,962,092

Long-term debt 5,786,552 2,608,269 2,110,488

Operating lease liabilities 1,211,655 1,020,651 1,014,544

Other liabilities 1,109,937 1,123,113 1,128,834

Other liabilities of - - 30,714 discontinued operations

Total liabilities 10,606,167 7,775,917 6,246,672

Stockholders' equity 3,138,174 3,357,334 4,567,590

Total liabilities and $ 13,744,341 $ 11,133,251 $ 10,814,262 stockholders' equity



VF CORPORATION

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(In thousands)

Nine Months Ended December

2020 2019

Operating activities

Net income $ 318,349 $ 1,163,225

Income from discontinued operations, net of 25,186 50,993 tax

Income from continuing operations, net of 293,163 1,112,232 tax

Depreciation and amortization 204,580 194,647

Reduction in the carrying amount of 309,579 282,531 right-of-use assets

Other adjustments 276,955 (775,433 )

Cash provided by operating activities - 1,084,277 813,977 continuing operations

Cash provided by operating activities - 57,779 27,649 discontinued operations

Cash provided by operating activities 1,142,056 841,626

Investing activities

Purchases of short-term investments (800,000 ) -

Proceeds from maturities of short-term 200,000 - investments

Capital expenditures (152,446 ) (179,195 )

Software purchases (51,964 ) (36,104 )

Other, net (9,116 ) 52,728

Cash used by investing activities - (813,526 ) (162,571 ) continuing operations

Cash used by investing activities - (3,171 ) (11,385 ) discontinued operations

Cash used by investing activities (816,697 ) (173,956 )

Financing activities

Net increase (decrease) from short-term 2,044,426 (601,055 ) borrowings and long-term debt

Share repurchases - (500,003 )

Cash dividends paid (564,904 ) (562,298 )

Cash received from Kontoor Brands, net of - 906,148 cash transferred of $126.8 million

Proceeds from issuance of Common Stock, net 45,867 135,086 of payments for tax withholdings

Cash provided (used) by financing 1,525,389 (622,122 ) activities

Effect of foreign currency rate changes on 12,513 (4,927 ) cash, cash equivalents and restricted cash

Net change in cash, cash equivalents and 1,863,261 40,621 restricted cash

Cash, cash equivalents and restricted cash 1,411,322 556,587 - beginning of year

Cash, cash equivalents and restricted cash $ 3,274,583 $ 597,208 - end of period

VF CORPORATION

Supplemental Financial Information

Reportable Segment Information

(Unaudited)

(In thousands)

% Change Three Months Ended December % Change Constant % Constant % Change Currency Change Currency Adjusted^ and ^(a) (b) Adjusted 2020 2019 ^ (a) (b)

Segment revenues

Outdoor $ 1,571,043 $ 1,659,108 (5 )% (7 )% (5 )% (7 )%

Active 1,127,121 1,239,462 (9 )% (11 )% (9 )% (11 )%

Work 270,182 251,063 8 % 6 % 8 % 6 %

Other ^(c) 3,195 6,090 * * * *

Totalsegment $ 2,971,541 $ 3,155,723 (6 )% (8 )% (6 )% (8 )%revenues

Segmentprofit (loss)

Outdoor $ 311,767 $ 348,995 (11 )% (13 )%

Active 201,373 286,474 (30 )% (31 )%

Work 16,900 22,111 (24 )% (22 )%

Other ^(c) (4,435 ) (2,800 ) * *

Totalsegment 525,605 654,780 (20 )% (21 )% profit

Corporateand other (107,122 ) (136,885 ) (22 )% (22 )% expenses

Interest, (31,776 ) (17,337 ) 83 % 83 % net

Incomefromcontinuingoperations $ 386,707 $ 500,558 (23 )% (25 )% beforeincometaxes



^(a) Refer to constant currency definition on the following pages.

^(b) Excludes the operating results of jeanswear wind down activities in SouthAmerica post the separation of Kontoor Brands for the three months endedDecember 2019. Refer to Non-GAAP financial information on "Reconciliation ofSelect GAAP Measures to Non-GAAP Measures - Three and Nine Months EndedDecember 2019" page for additional information.

^(c) Other is included for purposes of reconciliation of revenues and profit,but it is not considered a reportable segment. Includes results primarilyrelated to the sale of non-VF products.

* Calculation not meaningful

VF CORPORATION

Supplemental Financial Information

Reportable Segment Information

(Unaudited)

(In thousands)

% Change Nine Months Ended December % Change Constant % Constant % Change Currency Change Currency Adjusted and ^(a) ^ (b) Adjusted 2020 2019 ^ (a) (b)

Segment revenues

Outdoor $ 3,066,678 $ 3,795,665 (19 )% (21 )% (19 )% (21 )%

Active 2,898,639 3,885,222 (25 )% (26 )% (25 )% (26 )%

Work 686,163 674,826 2 % 1 % 2 % 1 %

Other ^(c) 4,678 30,422 * * * *

Totalsegment $ 6,656,158 $ 8,386,135 (21 )% (22 )% (20 )% (22 )%revenues

Segmentprofit (loss)

Outdoor $ 283,531 $ 525,107 (46 )% (48 )%

Active 467,632 982,240 (52 )% (53 )%

Work 13,672 52,129 (74 )% (74 )%

Other ^(c) (9,322 ) (2,035 ) * *

Totalsegment 755,513 1,557,441 (51 )% (53 )% profit

Corporateand other (297,434 ) (391,236 ) (24 )% (24 )% expenses

Interest, (90,656 ) (49,306 ) 84 % 84 % net

Incomefromcontinuingoperations $ 367,423 $ 1,116,899 (67 )% (69 )% beforeincometaxes



^(a) Refer to constant currency definition on the following pages.

^(b) Excludes the operating results of jeanswear wind down activities in SouthAmerica post the separation of Kontoor Brands for the nine months endedDecember 2019. Refer to Non-GAAP financial information on "Reconciliation ofSelect GAAP Measures to Non-GAAP Measures - Three and Nine Months EndedDecember 2019" page for additional information.

^(c) Other is included for purposes of reconciliation of revenues and profit,but it is not considered a reportable segment. Includes results primarilyrelated to the sale of non-VF products.

* Calculation not meaningful

VF CORPORATION

Supplemental Financial Information

Reportable Segment Information - Constant Currency Basis

(Unaudited)

(In thousands)

Three Months Ended December 2020

As Reported Adjust for Foreign

under GAAP Currency Constant Exchange Currency

Segment revenues

Outdoor $ 1,571,043 $ (35,799 ) $ 1,535,244

Active 1,127,121 (21,655 ) 1,105,466

Work 270,182 (3,750 ) 266,432

Other 3,195 667 3,862

Total segment revenues $ 2,971,541 $ (60,537 ) $ 2,911,004

Segment profit (loss)

Outdoor $ 311,767 $ (6,748 ) $ 305,019

Active 201,373 (3,161 ) 198,212

Work 16,900 398 17,298

Other (4,435 ) (1,468 ) (5,903 )

Total segment profit 525,605 (10,979 ) 514,626

Corporate and other (107,122 ) 254 (106,868 ) expenses

Interest, net (31,776 ) - (31,776 )

Income from continuingoperations before income $ 386,707 $ (10,725 ) $ 375,982 taxes

Diluted earnings per (21 ) % (2 ) % (23 ) %share growth



Constant Currency Financial Information

VF is a global company that reports financial information in U.S. dollars inaccordance with GAAP. Foreign currency exchange rate fluctuations affect theamounts reported by VF from translating its foreign revenues and expenses intoU.S. dollars. These rate fluctuations can have a significant effect on reportedoperating results. As a supplement to our reported operating results, wepresent constant currency financial information, which is a non-GAAP financialmeasure that excludes the impact of translating foreign currencies into U.S.dollars. We use constant currency information to provide a framework to assesshow our business performed excluding the effects of changes in the rates usedto calculate foreign currency translation. Management believes this informationis useful to investors to facilitate comparison of operating results and betteridentify trends in our businesses.

To calculate foreign currency translation on a constant currency basis,operating results for the current year period for entities reporting incurrencies other than the U.S. dollar are translated into U.S. dollars at theaverage exchange rates in effect during the comparable period of the prior year(rather than the actual exchange rates in effect during the current yearperiod).

These constant currency performance measures should be viewed in addition to,and not in lieu of or superior to, our operating performance measurescalculated in accordance with GAAP. The constant currency information presentedmay not be comparable to similarly titled measures reported by other companies.

VF CORPORATION

Supplemental Financial Information

Reportable Segment Information - Constant Currency Basis

(Unaudited)

(In thousands)



Nine Months Ended December 2020

As Reported Adjust for Foreign

under GAAP Currency Constant Exchange Currency

Segment revenues

Outdoor $ 3,066,678 $ (54,808 ) $ 3,011,870

Active 2,898,639 (27,897 ) 2,870,742

Work 686,163 (3,167 ) 682,996

Other 4,678 696 5,374

Total segment revenues $ 6,656,158 $ (85,176 ) $ 6,570,982

Segment profit (loss)

Outdoor $ 283,531 $ (13,046 ) $ 270,485

Active 467,632 (6,712 ) 460,920

Work 13,672 (51 ) 13,621

Other (9,322 ) (3,057 ) (12,379 )

Total segment profit 755,513 (22,866 ) 732,647

Corporate and other (297,434 ) 83 (297,351 )expenses

Interest, net (90,656 ) - (90,656 )

Income from continuingoperations before income $ 367,423 $ (22,783 ) $ 344,640 taxes

Diluted earnings per share (73 )% (2 )% (75 )%growth



Constant Currency Financial Information

VF is a global company that reports financial information in U.S. dollars inaccordance with GAAP. Foreign currency exchange rate fluctuations affect theamounts reported by VF from translating its foreign revenues and expenses intoU.S. dollars. These rate fluctuations can have a significant effect onreported operating results. As a supplement to our reported operating results,we present constant currency financial information, which is a non-GAAPfinancial measure that excludes the impact of translating foreign currenciesinto U.S. dollars. We use constant currency information to provide a frameworkto assess how our business performed excluding the effects of changes in therates used to calculate foreign currency translation. Management believes thisinformation is useful to investors to facilitate comparison of operatingresults and better identify trends in our businesses.

To calculate foreign currency translation on a constant currency basis,operating results for the current year period for entities reporting incurrencies other than the U.S. dollar are translated into U.S. dollars at theaverage exchange rates in effect during the comparable period of the prioryear (rather than the actual exchange rates in effect during the current yearperiod).

These constant currency performance measures should be viewed in addition to,and not in lieu of or superior to, our operating performance measurescalculated in accordance with GAAP. The constant currency informationpresented may not be comparable to similarly titled measures reported by othercompanies.

VF CORPORATION

Supplemental Financial Information

Reconciliation of Select GAAP Measures to Non-GAAP Measures - Three and NineMonths Ended December 2020

(Unaudited)

(In thousands, except per share amounts)

Transaction SpecifiedThree Months Ended As Reported and Deal StrategicDecember 2020 under GAAP Related Business Adjusted Costs ^(a) Decisions ^(b)

Revenues $ 2,971,541 $ - $ - $ 2,971,541



Gross profit 1,626,517 - 27,936 1,654,453

Percent 54.7 % 55.7 %



Operating income 411,999 6,680 39,378 458,057

Percent 13.9 % 15.4 %



Diluted earningsper share from 0.83 0.01 0.09 0.93 continuingoperations ^(c)



Transaction SpecifiedNine Months Ended As Reported and Deal StrategicDecember 2020 under GAAP Related Business Adjusted Costs ^(a) Decisions ^(b)

Revenues $ 6,656,158 $ - $ - $ 6,656,158



Gross profit 3,521,777 410 42,599 3,564,786

Percent 52.9 % 53.6 %



Operating income 485,138 7,132 76,863 569,133

Percent 7.3 % 8.6 %



Diluted earningsper share from 0.75 0.01 0.27 1.04 continuingoperations ^(c)



^(a) Transaction and deal related costs include expenses associated with theacquisition of Supreme Holdings, Inc. of $6.6 million for both the three andnine months ended December 2020. Transaction and deal related costs alsoinclude expenses associated with the anticipated sale of the OccupationalWorkwear business of $0.1 million and $0.5 million, that did not meet thecriteria for discontinued operations, for the three and nine months endedDecember 2020, respectively. The transaction and deal related costs resulted ina net tax benefit of $1.7 million in both the three and nine months endedDecember 2020.

^(b) Specified strategic business decisions for the three and nine months endedDecember 2020 include costs related to a transformation initiative for ourAsia-Pacific regional operations of $20.3 million in both periods. Specifiedstrategic business decisions also include cost optimization activities andother charges indirectly related to the strategic review of the OccupationalWorkwear business, which totaled $19.1 million and $52.3 million during thethree and nine months ended December 2020, respectively. The costs also includejeanswear wind down activities in South America after the separation of KontoorBrands, and costs related to specified strategic business decisions to ceaseoperations in Argentina and planned business model changes in certain othercountries in South America, which totaled $4.0 million for the nine monthsended December 2020. The nine months ended December 2020 also include a $42.4million noncash charge recorded in the 'Other income (expense), net' linerelated to the release of certain currency translation amounts associated withthe wind down activities in South America. The specified strategic businessdecisions resulted in a net tax benefit of $5.7 million and $11.7 million inthe three and nine months ended December 2020, respectively.

^(c) Amounts shown in the table have been calculated using unrounded numbers.The diluted earnings per share impacts were calculated using 392,851,000 and391,607,000 weighted average common shares for the three and nine months endedDecember 2020, respectively.



Non-GAAP Financial Information

The financial information above has been presented on a GAAP basis and on anadjusted basis, which excludes the impact of transaction and deal related costsand activity related to specified strategic business decisions. The adjustedpresentation provides non-GAAP measures. Management believes these measuresprovide investors with useful supplemental information regarding VF'sunderlying business trends and the performance of VF's ongoing operations andare useful for period-over-period comparisons of such operations.

Management uses the above financial measures internally in its budgeting andreview process and, in some cases, as a factor in determining compensation.While management believes that these non-GAAP financial measures are useful inevaluating the business, this information should be considered as supplementalin nature and should be viewed in addition to, and not in lieu of or superiorto, VF's operating performance measures calculated in accordance with GAAP. Inaddition, these non-GAAP financial measures may not be the same as similarlytitled measures presented by other companies.

VF CORPORATION

Supplemental Financial Information

Reconciliation of Select GAAP Measures to Non-GAAP Measures - Three and NineMonths Ended December 2019

(Unaudited)

(In thousands, except per share amounts)



Three RelocationMonths Transaction and Specified Pension Impact ofEnded As Reported and Deal Strategic Settlement Swiss Tax AdjustedDecember under GAAP Related Business Charge ^(c) Act ^(d)2019 Costs^ (a) Decisions ^ (b)

Revenues $ 3,155,723 $ - $ (231 ) $ - $ - $ 3,155,492



Gross 1,804,070 - 831 - - 1,804,901 profit

Percent 57.2 % 57.2 %



Operating 540,039 - 16,195 - - 556,234 income

Percent 17.1 % 17.6 %



Dilutedearningsper sharefrom 1.05 0.03 0.03 0.04 - 1.15 continuingoperations^(e)



Nine RelocationMonths Transaction and Specified Pension Impact ofEnded As Reported and Deal Strategic Settlement Swiss Tax AdjustedDecember under GAAP Related Business Charge ^(c) Act ^(d)2019 Costs ^(a) Decisions ^ (b)

Revenues $ 8,386,135 $ - $ (14,252 ) $ - $ - $ 8,371,883



Gross 4,681,881 (630 ) (1,782 ) - - 4,679,469 profit

Percent 55.8 % 55.9 %



Operating 1,184,566 22,317 51,093 - - 1,257,976 income

Percent 14.1 % 15.0 %



Dilutedearningsper sharefrom 2.77 0.07 0.10 0.04 (0.41 ) 2.57 continuingoperations^(e)



^(a) Transaction and deal related costs include acquisition, integration andother costs related to the acquisitions of the Icebreaker^(r) and Altra^(r)brands, which totaled $12.8 million for the nine months ended December 2019.The costs also include separation and related expenses associated with thespin-off of the Jeans business of $9.5 million, that did not meet the criteriafor discontinued operations, for the nine months ended December 2019. Thesetransaction and deal related costs resulted in a net tax benefit of $5.8million in the nine months ended December 2019. Additionally, the three andnine months ended December 2019 include an adjustment to tax expense of $10.2million associated with the loss on sale for the divestiture of the Reef^(r)brand.

^(b) Relocation and specified strategic business decisions for the three andnine months ended December 2019 include costs associated with the relocation ofVF's global headquarters and certain brands to Denver, Colorado, which totaled$10.8 million and $41.5 million for the three and nine months ended December2019, respectively. This activity includes a gain of approximately $11 millionon the sale of certain office real estate and related assets in connection withthe relocation, which was recorded in the three months ended June 2019. Theactivity also includes the operating results of jeanswear wind down activitiesin South America post the separation of Kontoor Brands and costs related tospecified strategic business decisions to cease operations in Argentina andplanned business model changes in certain other countries in South America,which totaled $5.4 million and $9.6 million for the three and nine months endedDecember 2019, respectively. The relocation and specified strategic businessdecisions costs resulted in a net tax benefit of $3.0 million and $11.3 millionfor the three and nine months ended December 2019, respectively.

^(c) A pension settlement charge of $22.9 million was recorded in the 'Otherincome (expense), net' line for the three and nine months ended December 2019as a result of actions taken to reduce risk, volatility and the liabilityassociated with VF's U.S. pension plan. The pension settlement charge resultedin a net tax benefit of $5.8 million for both periods.

(d) On May 19, 2019, Switzerland voted to approve the Federal Act on Tax Reformand AHV Financing ("Swiss Tax Act"). Certain provisions of the Swiss Tax Actwere enacted during the three months ended September 2019, which resulted inadjustments to deferred tax positions of $164.4 million for the nine monthsended December 2019.

(e) Amounts shown in the table have been calculated using unrounded numbers.The diluted earnings per share impacts were calculated using 400,322,000 and401,499,000 weighted average common shares for the three and nine months endedDecember 2019, respectively.



Non-GAAP Financial Information

The financial information above has been presented on a GAAP basis and on anadjusted basis, which excludes the impact of transaction and deal relatedcosts, relocation and specified strategic business decisions, the impact of thepension settlement charge and the impact of the Swiss Tax Act. The adjustedpresentation provides non-GAAP measures. Management believes these measuresprovide investors with useful supplemental information regarding VF'sunderlying business trends and the performance of VF's ongoing operations andare useful for period-over-period comparisons of such operations.

Management uses the above financial measures internally in its budgeting andreview process and, in some cases, as a factor in determining compensation.While management believes that these non-GAAP financial measures are useful inevaluating the business, this information should be considered as supplementalin nature and should be viewed in addition to, and not in lieu of or superiorto, VF's operating performance measures calculated in accordance with GAAP. Inaddition, these non-GAAP financial measures may not be the same as similarlytitled measures presented by other companies.

VF CORPORATION

Supplemental Financial Information

Top 4 Brand Revenue Information

(Unaudited)



Three Months Ended December 2020 Nine Months Ended December 2020

Top 4Brand Americas EMEA APAC Global Americas EMEA APAC GlobalRevenueGrowth

Vans^(r)

% change (10 )% (9 ) 15 % (6 )% (30 )% (16 ) 6 % (22 )% % %

% change ) )constant (10 )% (13 % 9 % (8 )% (30 )% (19 % 5 % (23 )%currency*

The North Face^(r)

% change (12 )% 22 % 16 % 0 % (26 )% (3 ) 4 % (17 )% %

% change )constant (12 )% 17 % 10 % (2 )% (26 )% (7 % 1 % (18 )%currency*

Timberland ^(r)

% change (19 )% (11 ) (6 ) (14 )% (26 )% (24 ) (11 ) (23 )% % % % %

% change ) ) ) )constant (18 )% (16 % (11 % (17 )% (26 )% (28 % (13 % (25 )%currency*

Dickies^ (r)

% change 8 % 7 % 14 % 9 % 2 % (4 ) 20 % 5 % %

% change )constant 8 % 3 % 8 % 7 % 3 % (7 % 17 % 4 %currency*

*Refer to constant currency definition on previous pages.

VF CORPORATION

Supplemental Financial Information

Geographic and Channel Revenue Information

(Unaudited)



Three Months Ended December 2020

% Change % Change % Change Constant % Change Constant Adjusted ^ Currency Currency* (a) and Adjusted*^ (a)

Geographic Revenue Growth

U.S. (11 )% (11 )% (11 )% (11 )%

EMEA 1 % (4 )% 1 % (4 )%

APAC 6 % 1 % 6 % 1 %

Greater China 18 % 11 % 18 % 11 %

Americas (non-U.S.) (17 )% (16 )% (17 )% (16 )%

International 0 % (4 )% 0 % (4 )%

Global (6 )% (8 )% (6 )% (8 )%



Nine Months Ended December 2020

% Change % Change % Change Constant % Change Constant Adjusted ^ Currency Currency* (a) and Adjusted*^ (a)

Geographic Revenue Growth

U.S. (25 )% (25 )% (25 )% (25 )%

EMEA (17 )% (20 )% (17 )% (20 )%

APAC 0 % (2 )% 0 % (2 )%

Greater China 13 % 10 % 13 % 10 %

Americas (non-U.S.) (39 )% (38 )% (38 )% (36 )%

International (15 )% (17 )% (15 )% (17 )%

Global (21 )% (22 )% (20 )% (22 )%



Three Months Ended December 2020

% Change % Change % Change Constant % Change Constant Adjusted ^ Currency Currency* (a) and Adjusted*^ (a)

Channel Revenue Growth

Wholesale^ (b) (10 )% (12 )% (10 )% (12 )%

Direct-to-consumer (2 )% (4 )% (2 )% (4 )%

Digital 53 % 49 % 53 % 49 %



Nine Months Ended December 2020

% Change % Change % Change Constant % Change Constant Adjusted ^ Currency Currency* (a) and Adjusted*^ (a)

Channel Revenue Growth

Wholesale^ (b) (25 )% (26 )% (24 )% (25 )%

Direct-to-consumer (15 )% (16 )% (15 )% (16 )%

Digital 56 % 54 % 56 % 54 %



As of December

2020 2019

DTC Store Count

Total 1,396 1,397



*Refer to constant currency definition on previous pages.

^(a) Excludes the operating results of jeanswear wind down activities in SouthAmerica after the separation of Kontoor Brands for the three and nine monthsended December 2019. Refer to Non-GAAP financial information on "Reconciliationof Select GAAP Measures to Non-GAAP Measures - Three and Nine Months EndedDecember 2019" page for additional information.

^(b) Royalty revenues are included in the wholesale channel for all periods.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210127005156/en/

CONTACT: VF Corporation Joe Alkire, 720-778-4051 Vice President, Corporate Development, Investor Relations and Treasury or Craig Hodges, 720-778-4116 Vice President, Corporate Affairs