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- By Mayank Marwah
VF Corp (NYSE:VFC) released the results for its fourth quarter and full year of fiscal 2021 on May 21 before the market opened.
The company's bottom line missed expectations. A goodwill impairment charge and the Covid-19 pandemic took a toll on the company's results. Revenue, however, surpassed projections.
Earnings results
The U.S. global apparel and footwear company reported adjusted earnings per share of 27 cents in the fourth quarter, up a mammoth 169% year-over-year. However, analysts had predicted EPS of 30 cents. Revenue of $2.58 billion was up 23% over the past year. This was above analysts' expectations of $2.51 billion.
For full-year fiscal 2021, revenue amounted to $9.2 billion compared to $10.5 billion in fiscal 2020. GAAP earnings (from both continuing and discontinuing operations) were $407.9 million, translating to $1.04 per diluted share. That compares with $679.5 million, or $1.70 per share, recorded in 2020.
The CEO of the company, Steve Rendle, commented the following:
Segment performance
The Active segment, which consists of activity-based lifestyle brands, saw revenue grow 22% in the fourth quarter to $1.26 billion.
The Work segment's revenue was up 23% on a year-over-year basis to $259.5 million. This segment provides work-inspired lifestyle clothing and footwear as well as occupational apparel, which are sold through direct-to-consumer (DTC), wholesale and business-to-business channels.
The Outdoor segment, which offers outdoor-based lifestyle brands including footwear, equipment, backpacks, luggage and luxuries, witnessed a growth in revenue of 25% to $1.06 billion.
As far as revenue growth by channel is concerned, DTC revenue soared 36%, while wholesale revenue climbed 14%. Digital revenue skyrocketed 106% during the quarter.
Liquidity
The company claims to have adequate liquidity to meet its near term obligations and operational needs. The company is confident that it will be able to navigate through the foreseeable future until the prevailing circumstances improve and recover.