Business Wire | Jan 28, 2022 06:55AM EST

VF Reports Third Quarter Fiscal 2022 Results; Reaffirms Full Year Fiscal 2022 Earnings Outlook

Jan. 28, 2022

DENVER--(BUSINESS WIRE)--Jan. 28, 2022--VF Corporation (NYSE: VFC) today reported financial results for its third quarter ended January 1, 2022. 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 Activities, Costs Related to Specified Strategic Business Decisions and Tax Items." Unless otherwise noted, "reported" and "adjusted" amounts are the same. This release also refers to amounts "excluding acquisitions" or as "adjusted organic", which exclude the contribution from the Supreme(r) brand.

"We delivered strong double-digit top and bottom line results and returned about $500 million in cash to shareholders in the third quarter, all of which has been achieved amidst continuing macro headwinds," said Steve Rendle, VF's Chairman, President and CEO. "The broad-based momentum across our brands is testament to the resilience of our diversified portfolio model, which has enabled us to deliver a strong quarter and reaffirm our full year earnings outlook in a challenging environment. I am confident that VF remains well-positioned for continued, profitable, long-term growth."

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 June 28, 2021, VF completed the sale of its Occupational Workwear business. The Occupational Workwear business was 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 included a license for certain Dickies(r) occupational workwear products that have historically been sold through the business-to-business channel. 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, through the date of sale.

Adjusted Amounts - Excluding Transaction and Deal Related Activities, Costs Related to Specified Strategic Business Decisions and Tax Items

The adjusted amounts in this release exclude transaction and deal related activities associated with the acquisition of the Supreme(r) brand. Total transaction and deal related activities include a decrease in the estimated fair value of the contingent consideration liability of $50 million in the third quarter of fiscal 2022 and $158 million in the first nine months of fiscal 2022, and integration costs of approximately $1 million in the third quarter of fiscal 2022 and $6 million in the first nine months of fiscal 2022.

The adjusted amounts in this release exclude costs related to VF's business model transformation, a transformation initiative for our Asia-Pacific regional operations and certain cost optimization activities and other charges indirectly related to the divestiture of the Occupational Workwear business. Total costs were approximately $14 million in the third quarter of fiscal 2022 and $38 million in the first nine months of fiscal 2022.

The adjusted amounts in this release exclude approximately $52 million net tax expense associated with certain discrete tax activities recognized during the third quarter and first nine months of fiscal 2022.

Combined, the above items negatively impacted earnings per share by $0.03 during the third quarter of fiscal 2022 and positively impacted earnings per share by $0.17 during the first nine months of fiscal 2022. 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

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. COVID-19 related manufacturing capacity constraints have continued during the third quarter, though the situation has improved over time. VF expects to be back to nearly full capacity in the coming weeks. Additionally, continued port congestion, equipment availability and other logistics challenges have contributed to ongoing product delays. VF is working with its suppliers to minimize disruption and is employing expedited freight as needed. VF's distribution centers are operational in accordance with local government guidelines while maintaining enhanced health and safety protocols.

In North America, no stores were closed during the third quarter. Currently, all stores are open.

In the EMEA region, 6% of stores were closed during third quarter. Currently, only one store is closed.

In the APAC region, including Mainland China, nearly all stores were open at the beginning of the third quarter. No stores were closed at the end of the quarter. Currently, 1% of stores are closed.

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 2022 Income Statement Review

* Revenue increased 22 percent (up 22 percent in constant dollars) to $3.6 billion. Excluding the impact of acquisitions, revenue increased 15 percent (up 16 percent in constant dollars) driven by the EMEA and North American regions, which experienced a negative impact from COVID-19 in the prior year period.

* Gross margin increased 140 basis points to 56.1 percent, primarily driven by reduced promotional activity and offsetting incremental freight costs. On an adjusted basis, gross margin increased 60 basis points, including a 20 basis point positive impact from acquisitions, to 56.3 percent.

* Operating income on a reported basis was $678 million. On an adjusted basis, operating income increased 40 percent (40 percent in constant dollars) to $643 million, including a $54 million contribution from acquisitions. Operating margin on a reported basis was 18.7 percent. Adjusted operating margin increased 230 basis points, including a 50 basis point positive impact from acquisitions, to 17.7 percent.

* Earnings per share was $1.32 on a reported basis. On an adjusted basis, earnings per share increased 45 percent (up 44 percent in constant dollars) to $1.35, including an $0.11 contribution from acquisitions.

Balance Sheet Highlights

Inventories were up 20 percent compared with the same period last year. During the quarter, VF returned approximately $195 million of cash to shareholders through dividends. The company also repurchased approximately $300 million of shares and has $2.5 billion remaining under its current share repurchase authorization.

Full Year Fiscal 2022 Outlook

VF's full year outlook assumes no material deterioration to the company's current business operations as a result of COVID-19 and related governmental actions and regulations. VF's full year fiscal 2022 outlook includes the following:

* Revenue is expected to be approximately $11.85 billion, reflecting growth of around 28 percent, including an approximate $600 million contribution from the Supreme(r) brand. By segment, revenue for Outdoor is now expected to increase between 26 percent and 28 percent versus the previous expectation of a 25 to 27 percent increase; revenue for Active is now expected to increase between 31 percent and 33 percent versus the previous expectation of a 35 to 37 percent increase; revenue for Work is still expected to increase between 19 and 21 percent.

* International revenue is expected to increase between 22 percent and 24 percent. By geographic region, in the EMEA region, revenue is expected to increase between 28 percent and 30 percent. In the Asia Pacific region, revenue is expected to increase between 7 percent and 9 percent. And, in the Americas (non-U.S.) region, revenue is expected to increase between 33 percent and 35 percent.

* Direct-to-consumer revenue is now expected to increase between 32 percent and 34 percent versus the previous expectation of 34 percent and 36 percent, including Digital revenue growth of greater than 15 percent versus the previous expectation of about 20 percent.

* Adjusted gross margin is expected to be at least 55.0 percent, which represents an estimated increase of at least 170 basis points.

* Adjusted operating margin is expected to increase at least 500 basis points to at least 13.0 percent.

* Adjusted earnings per share is expected to be around $3.20, including an approximate $0.25 contribution from the Supreme(r) brand.

* Adjusted cash flow from operations is expected to be approximately $1.0 billion.

* Other full year assumptions include an effective tax rate of approximately 14 percent and capital expenditures of approximately $350 million.

Dividend Declared

VF's Board of Directors declared a quarterly dividend of $0.50 per share, payable on March 21, 2022, to shareholders of record on March 10, 2022. 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.

Supplemental Information

VF has made available supplemental investor information related to historical quarterly and annual revenues for the top 4 brands for fiscal 2020 and fiscal 2021. The information provided is in accordance with U.S. generally accepted accounting principles ("GAAP"). VF believes this provides investors with useful supplemental financial information regarding VF's underlying business trends and the performance of VF's consolidated operations. The supplemental financial information is accessible at ir.vfc.com.

Webcast Information

VF will host its third quarter fiscal 2022 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 2022 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 and other direct-to-consumer business risks; manufacturing and product innovation; increasing pressure on margins; VF's ability to implement its business strategy; VF's ability to grow its international, direct-to-consumer and digital businesses; VF's ability to transform its model to be more consumer-minded, retail-centric and hyper-digital; retail industry changes and challenges; VF's ability to create and maintain an agile and efficient operating model and organizational structure; 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 business, consumer and employee data and comply with privacy and security regulations; foreign currency fluctuations; stability of VF's and VF's vendors' manufacturing facilities and VF's ability to establish and maintain effective supply chain capabilities; 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 recruit, develop or retain qualified employees; 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 acquisitions and dispositions and integrate acquisitions, including the recently acquired Supreme(r) brand; business resiliency in response to natural or man-made economic, political or environmental disruptions; changes in tax laws and liabilities; legal, regulatory, political and economic risks and changes to laws and regulations; 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 Nine Months Ended December December

2021 2020 2021 2020

Net revenues $ $ $ $ 3,624,384 2,971,541 9,017,176 6,656,158

Costs and operating expenses

Cost of goods sold 1,592,604 1,345,024 4,027,601 3,134,381

Selling, general and 1,353,338 1,214,518 3,549,763 3,036,639 administrative expenses

Total costs and operating 2,945,942 2,559,542 7,577,364 6,171,020 expenses

Operating income 678,442 411,999 1,439,812 485,138

Interest, net (33,388 ) (31,776 ) (100,533 ) (90,656 )

Loss on debt (3,645 ) - (3,645 ) - extinguishment

Other income (expense), (95 ) 6,484 16,495 (27,059 )net

Income from continuingoperations before income 641,314 386,707 1,352,129 367,423 taxes

Income tax expense 123,513 59,048 216,303 74,260

Income from continuing 517,801 327,659 1,135,826 293,163 operations

Income from discontinued - 19,581 170,273 25,186 operations, net of tax

Net income $ 517,801 $ 347,240 $ $ 318,349 1,306,099

Earnings per common share - basic ^(a)

Continuing operations $ 1.33 $ 0.84 $ 2.90 $ 0.75

Discontinued operations - 0.05 0.44 0.06

Total earnings per common $ 1.33 $ 0.89 $ 3.34 $ 0.82 share - basic

Earnings per common share - diluted^ (a)

Continuing operations $ 1.32 $ 0.83 $ 2.89 $ 0.75

Discontinued operations - 0.05 0.43 0.06

Total earnings per common $ 1.32 $ 0.88 $ 3.32 $ 0.81 share - diluted

Weighted average shares outstanding

Basic 390,430 389,872 391,187 389,262

Diluted 392,495 392,851 393,547 391,607

Cash dividends per common $ 0.50 $ 0.49 $ 1.48 $ 1.45 share



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 2021 relate to the 13-week and 39-weekfiscal periods ended January 1, 2022 and all references to periods endedDecember 2020 relate to the 13-week and 39-week fiscal periods ended December26, 2020. References to March 2021 relate to information as of April 3, 2021.

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

VF CORPORATION

Condensed Consolidated Balance Sheets

(Unaudited)

(In thousands)

December March December

2021 2021 2020

ASSETS

Current assets

Cash and equivalents $ $ 815,750 $ 1,333,839 3,254,236

Accounts receivable, net 1,495,859 1,298,020 1,411,565

Inventories 1,287,210 1,061,839 1,075,983

Short-term investments - 598,806 599,403

Other current assets 483,738 423,877 383,384

Current assets of discontinued - 587,578 560,648operations

Total current assets 4,600,646 4,785,870 7,285,219

Property, plant and equipment, net 1,049,691 975,876 955,845

Goodwill and intangible assets, net 5,419,777 5,454,972 3,056,254

Operating lease right-of-use assets 1,302,545 1,474,434 1,476,503

Other assets 1,163,663 1,062,877 970,520

Total assets $ $ $ 13,536,322 13,754,029 13,744,341

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

Short-term borrowings $ 106,010 $ 11,061 $ 299,748

Current portion of long-term debt 500,915 1,023 1,006

Accounts payable 559,716 463,208 412,324

Accrued liabilities 2,057,237 1,609,928 1,664,760

Current liabilities of discontinued - 125,257 120,185operations

Total current liabilities 3,223,878 2,210,477 2,498,023

Long-term debt 4,646,379 5,709,149 5,786,552

Operating lease liabilities 1,093,013 1,236,461 1,211,655

Other liabilities 919,652 1,541,778 1,109,937

Total liabilities 9,882,922 10,697,865 10,606,167

Stockholders' equity 3,653,400 3,056,164 3,138,174

Total liabilities and stockholders' $ $ $equity 13,536,322 13,754,029 13,744,341



VF CORPORATION

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(In thousands)

Nine Months Ended December

2021 2020

Operating activities

Net income $ $ 318,349 1,306,099

Income from discontinued operations, net of tax 170,273 25,186

Income from continuing operations, net of tax 1,135,826 293,163

Depreciation and amortization 199,652 204,580

Reduction in the carrying amount of right-of-use 309,588 309,579 assets

Other adjustments (853,776 ) 276,955

Cash provided by operating activities - continuing 791,290 1,084,277 operations

Cash provided by operating activities - 6,090 57,779 discontinued operations

Cash provided by operating activities 797,380 1,142,056

Investing activities

Business acquisitions, net of cash received 3,760 -

Proceeds from sale of businesses, net of cash sold 616,529 -

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

Proceeds from sale and maturities of short-term 598,806 200,000 investments

Capital expenditures (214,220 ) (152,446 )

Software purchases (63,758 ) (51,964 )

Other, net 12,819 (9,116 )

Cash provided (used) by investing activities - 953,936 (813,526 )continuing operations

Cash used by investing activities - discontinued (525 ) (3,171 )operations

Cash provided (used) by investing activities 953,411 (816,697 )

Financing activities

Net increase (decrease) from short-term borrowings (411,400 ) 2,044,426 and long-term debt

Share repurchases (299,999 ) -

Cash dividends paid (579,194 ) (564,904 )

Proceeds from issuance of Common Stock, net of 32,929 45,867 payments for tax withholdings

Cash provided (used) by financing activities (1,257,664 ) 1,525,389

Effect of foreign currency rate changes on cash, (9,339 ) 12,513 cash equivalents and restricted cash

Net change in cash, cash equivalents and 483,788 1,863,261 restricted cash

Cash, cash equivalents and restricted cash - 851,205 1,411,322 beginning of year

Cash, cash equivalents and restricted cash - end $ $ of period 1,334,993 3,274,583

VF CORPORATION

Supplemental Financial Information

Reportable Segment Information

(Unaudited)

(In thousands)

Three Months Ended % Change December % Change % Constant % Constant Change Currency Change Currency Organic and 2021 2020 ^(a) ^ (b) Organic ^(a) (b)

Segment revenues

Outdoor $ $ 23 % 23 % 23 % 23 % 1,928,427 1,571,043

Active 1,410,577 1,127,121 25 % 26 % 8 % 8 %

Work 285,101 270,182 6 % 5 % 6 % 5 %

Other ^(c) 279 3,195 * * * *

Total segment $ $ 22 % 22 % 15 % 16 %revenues 3,624,384 2,971,541

Segment profit (loss)

Outdoor $ 450,432 $ 311,767

Active 254,497 201,373

Work 47,672 16,900

Other ^(c) (44 ) (4,435 )

Total segment 752,557 525,605 profit

Corporate and (74,210 ) (107,122 ) other expenses

Interest, net (33,388 ) (31,776 )

Loss on debt (3,645 ) - extinguishment

Income fromcontinuingoperations $ 641,314 $ 386,707 before incometaxes



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

^(b) Excludes acquisition representing the operating results of Supreme for thethree months ended December 2021. Refer to Non-GAAP financial information on"Reconciliation of Select GAAP Measures to Non-GAAP Measures - Three and NineMonths Ended December 2021" 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 and sourcing activities related totransition services.

* Calculation not meaningful

VF CORPORATION

Supplemental Financial Information

Reportable Segment Information

(Unaudited)

(In thousands)

Nine Months Ended % Change December % Change % Constant % Constant Change Currency Change Currency Organic and 2021 2020 ^(a) ^ (b) Organic^ (a) (b)

Segment revenues

Outdoor $ $ 32 % 30 % 32 % 30 % 4,052,802 3,066,678

Active 4,104,818 2,898,639 42 % 39 % 26 % 24 %

Work 858,999 686,163 25 % 24 % 25 % 24 %

Other ^(c) 557 4,678 * * * *

Total segment $ $ 35 % 34 % 29 % 27 %revenues 9,017,176 6,656,158

Segment profit (loss)

Outdoor $ 662,761 $ 283,531

Active 809,708 467,632

Work 150,649 13,672

Other ^(c) (696 ) (9,322 )

Total segment 1,622,422 755,513 profit

Corporate and (166,115 ) (297,434 ) other expenses

Interest, net (100,533 ) (90,656 )

Loss on debt (3,645 ) - extinguishment

Income (loss)fromcontinuing $ $ 367,423 operations 1,352,129before incometaxes



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

^(b) Excludes acquisition representing the operating results of Supreme for thenine months ended December 2021. Refer to Non-GAAP financial information on"Reconciliation of Select GAAP Measures to Non-GAAP Measures - Three and NineMonths Ended December 2021" 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 and sourcing activities related totransition services.

* Calculation not meaningful

VF CORPORATION

Supplemental Financial Information

Reportable Segment Information - Constant Currency Basis

(Unaudited)

(In thousands)

Three Months Ended December 2021

As Reported Adjust for Foreign

under GAAP Currency Constant Exchange Currency

Segment revenues

Outdoor $ 1,928,427 $ 733 $ 1,929,160

Active 1,410,577 4,027 1,414,604

Work 285,101 (693 ) 284,408

Other 279 - 279

Total segment revenues $ 3,624,384 $ 4,067 $ 3,628,451

Segment profit (loss)

Outdoor $ 450,432 $ (2,776 ) $ 447,656

Active 254,497 1,362 255,859

Work 47,672 (125 ) 47,547

Other (44 ) 2 (42 )

Total segment profit 752,557 (1,537 ) 751,020

Corporate and other expenses (74,210 ) 54 (74,156 )

Interest, net (33,388 ) - (33,388 )

Loss on debt extinguishment (3,645 ) - (3,645 )

Income from continuingoperations before income $ 641,314 $ (1,483 ) $ 639,831 taxes

Diluted earnings per share 58 % 0 % 58 %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

Reportable Segment Information - Constant Currency Basis

(Unaudited)

(In thousands)

Nine Months Ended December 2021

As Reported Adjust for Foreign

under GAAP Currency Constant Exchange Currency

Segment revenues

Outdoor $ 4,052,802 $ (54,215 ) $ 3,998,587

Active 4,104,818 (62,929 ) 4,041,889

Work 858,999 (9,446 ) 849,553

Other 557 - 557

Total segment revenues $ 9,017,176 $ (126,590 ) $ 8,890,586

Segment profit (loss)

Outdoor $ 662,761 $ (7,860 ) $ 654,901

Active 809,708 (13,352 ) 796,356

Work 150,649 (2,194 ) 148,455

Other (696 ) (53 ) (749 )

Total segment profit 1,622,422 (23,459 ) 1,598,963

Corporate and other (166,115 ) 1,171 (164,944 )expenses

Interest, net (100,533 ) - (100,533 )

Loss on debt extinguishment (3,645 ) - (3,645 )

Income from continuingoperations before income $ 1,352,129 $ (22,288 ) $ 1,329,841 taxes



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 2021

(Unaudited)

(In thousands, except per share amounts)

Three Transaction Specified ContributionMonths As Reported and Deal Strategic Tax from AdjustedEnded Related Business Items Adjusted Acquisition OrganicDecember under GAAP Activities Decisions ^(c) ^(d)2021 ^(a) ^(b)

Revenues $ $ - $ - $ - $ $ (193,177 ) $ 3,624,384 3,624,384 3,431,207



Gross 2,031,780 - 9,875 - 2,041,655 (115,794 ) 1,925,861 profit

Percent 56.1 % 56.3 % 56.1 %



Operating 678,442 (49,398 ) 13,809 - 642,853 (54,174 ) 588,679 income

Percent 18.7 % 17.7 % 17.2 %



Dilutedearningsper sharefrom 1.32 (0.13 ) 0.03 0.13 1.35 (0.11 ) 1.24 continuingoperations^(e)



Nine Transaction Specified ContributionMonths As Reported and Deal Strategic Tax from AdjustedEnded Related Business Items Adjusted Acquisition^ OrganicDecember under GAAP Activities Decisions ^(c) (d)2021 ^(a) ^(b)

Revenues $ $ - $ - $ - $ $ (438,482 ) $ 9,017,176 9,017,176 8,578,694



Gross 4,989,575 - 21,944 - 5,011,519 (263,988 ) 4,747,531 profit

Percent 55.3 % 55.6 % 55.3 %



Operating 1,439,812 (151,880 ) 37,671 - 1,325,603 (93,847 ) 1,231,756 income

Percent 16.0 % 14.7 % 14.4 %



Dilutedearningsper sharefrom 2.89 (0.37 ) 0.08 0.13 2.72 (0.19 ) 2.53 continuingoperations^(e)



^(a) Transaction and deal related activities include activities associated withthe acquisition of Supreme Holdings, Inc. ("Supreme") for the three and ninemonths ended December 2021. Transaction and deal related activities include adecrease in the estimated fair value of the contingent consideration liabilityof $50.0 million and $158.0 million for the three and nine months endedDecember 2021, respectively, and integration costs of $0.6 million and $6.1million for the three and nine months ended December 2021, respectively. Thetransaction and deal related activities resulted in a net tax benefit of $3.2million and net tax expense of $5.1 million in the three and nine months endedDecember 2021, respectively, primarily related to the impact of the decreasesin the estimated fair value of the contingent consideration liability on theinterim tax rate calculations.

^(b) Specified strategic business decisions for the three and nine months endedDecember 2021 include costs related to VF's business model transformation of$0.5 million and $2.2 million in the three and nine months ended December 2021,respectively, related primarily to restructuring and other costs. Specifiedstrategic business decisions also include costs related to a transformationinitiative for our Asia-Pacific regional operations of $13.7 million and $35.5million in the three and nine months ended December 2021, respectively.Specified strategic business decisions also include cost optimization chargesand other activities, including the sale of certain assets, indirectly relatedto the divestiture of the Occupational Workwear business, which totaled incomeof $0.4 million during the three months ended December 2021. The specifiedstrategic business decisions also include non-operating expense of $0.2 millionand income of $1.5 million during the three and nine months ended December2021, respectively, associated with VF's transformation initiatives. Thespecified strategic business decisions resulted in a net tax benefit of $2.0million and $5.2 million in the three and nine months ended December 2021,respectively.

^(c) Tax items include $51.9 million net tax expense associated with certaindiscrete tax activities recognized during the three and nine months endedDecember 2021. This is comprised of $87.1 million tax expense for unrecognizedtax benefits resulting from updated estimates related to intellectual propertytransfers completed in a prior period, and $35.2 million tax benefit related tothe reorganization of certain foreign operations.

^(d) The contribution from acquisition represents the operating results ofSupreme for the three and nine months ended December 2021. The results excludetransaction and deal related activities.

^(e) Amounts shown in the table have been calculated using unrounded numbers.The diluted earnings per share impacts were calculated using 392,495,000 and393,547,000 weighted average common shares for the three and nine months endedDecember 2021, respectively.



Non-GAAP Financial Information

The financial information above has been presented on a GAAP basis, on anadjusted basis, which excludes the impact of transaction and deal relatedactivities, activity related to specified strategic business decisions andcertain tax items, and on an adjusted organic basis, which excludes theoperating results of Supreme (for the three and nine months ended December2021). Contribution from acquisition also excludes transaction and deal relatedactivities. These adjusted presentations are non-GAAP measures. Managementbelieves these measures provide investors with useful supplemental informationregarding VF's underlying business trends and the performance of VF's ongoingoperations and are useful for period-over-period comparisons of suchoperations.

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 2020

(Unaudited)

(In thousands, except per share amounts)

Transaction SpecifiedThree Months Ended As Reported and StrategicDecember 2020 Deal Related Business Adjusted under GAAP 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 StrategicDecember 2020 Deal Related Business Adjusted under GAAP 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

Top 4 Brand Revenue Information

(Unaudited)

Three Months Ended December 2021 Nine Months Ended December 2021

Top 4Brand Americas EMEA APAC Global Americas EMEA APAC GlobalRevenueGrowth

Vans^(r)

% change 11 % 22 % (17 ) 8 % 33 % 38 % 2 % 28 % %

% change ) )constant 11 % 24 % (18 % 8 % 32 % 34 % (3 % 26 %currency*

The North Face^(r)

% change 21 % 40 % 29 % 28 % 28 % 52 % 30 % 36 %

% changeconstant 20 % 41 % 25 % 27 % 27 % 49 % 24 % 34 %currency*

Timberland ^(r)

% change 16 % 14 % (11 ) 11 % 40 % 19 % (6 ) 25 % % %

% change ) )constant 16 % 17 % (12 % 11 % 39 % 18 % (9 % 23 %currency*

Dickies^ (r)

% change 30 % (40 ) (28 ) 4 % 46 % (22 ) (7 ) 24 % % % % %

% change ) ) ) )constant 30 % (40 % (29 % 4 % 46 % (24 % (11 % 23 %currency*

*Refer to constant currency definition on previous pages.

VF CORPORATION

Supplemental Financial Information

Geographic and Channel Revenue Information

(Unaudited)

Three Months Ended December 2021

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

Geographic Revenue Growth

U.S. 24 % 24 % 17 % 17 %

EMEA 26 % 28 % 23 % 25 %

APAC 5 % 3 % (5 )% (7 )%

Greater China (6 )% (9 )% (6 )% (9 )%

Americas (non-U.S.) 27 % 24 % 27 % 24 %

International 19 % 20 % 14 % 14 %

Global 22 % 22 % 15 % 16 %



Nine Months Ended December 2021

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

Geographic Revenue Growth

U.S. 41 % 41 % 33 % 33 %

EMEA 36 % 33 % 32 % 30 %

APAC 14 % 10 % 5 % 0 %

Greater China 5 % (1 )% 5 % (1 )%

Americas (non-U.S.) 45 % 37 % 45 % 37 %

International 30 % 26 % 24 % 21 %

Global 35 % 34 % 29 % 27 %



Three Months Ended December 2021

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

Channel Revenue Growth

Wholesale^ (b) 14 % 14 % 13 % 13 %

Direct-to-consumer 30 % 30 % 17 % 18 %

Digital 21 % 21 % 3 % 3 %



Nine Months Ended December 2021

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

Channel Revenue Growth

Wholesale^ (b) 29 % 27 % 29 % 27 %

Direct-to-consumer 43 % 41 % 28 % 27 %

Digital 23 % 21 % 2 % 0 %



As of December

2021 2020

DTC Store Count

Total 1,354 1,396



*Refer to constant currency definition on previous pages.

^(a) Excludes acquisition representing the operating results of Supreme for thethree and nine months ended December 2021. Refer to Non-GAAP financialinformation on "Reconciliation of Select GAAP Measures to Non-GAAP Measures -Three and Nine Months Ended December 2021" 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/20220128005025/en/

CONTACT: VF Corporation Allegra Perry, 720-501-3524 Vice President, Investor Relations or Craig Hodges, 720-778-4116 Vice President, Corporate Affairs