V.F. Corp. (NYSE: VFC) reported Q4 EPS of $0.27, $0.02 worse than the analyst estimate of $0.29. Revenue for the quarter came in at $2.6 billion versus the consensus estimate of $2.5 billion.

Fourth Quarter Fiscal 2021 Income Statement Review

• Revenue increased 23 percent (up 19 percent in constant dollars) to $2.6 billion. Excluding the impact of acquisitions, revenue increased 16 percent (up 12 percent in constant dollars) driven by VF's largest brands, e-commerce growth and an increase in the APAC region, which experienced a significant negative impact from COVID-19 in the prior year period. The fourth quarter of fiscal 2021 also included an extra week when compared to the fiscal 2020 period due to VF's 53-week fiscal 2021.
• Gross margin decreased 100 basis points to 52.1 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 120 basis points, including a 60 basis point positive impact from acquisitions, to 52.7 percent.
• Operating income on a reported basis was $122 million. On an adjusted basis, operating income increased 98 percent to $173 million, including a $34 million contribution from acquisitions. Operating margin on a reported basis increased to 4.7 percent. Adjusted operating margin increased 260 basis points, including a 100 basis point positive impact from acquisitions, to 6.7 percent.
• Earnings per share was $0.16 on a reported basis. On an adjusted basis, earnings per share increased 169 percent (up 150 percent in constant dollars) to $0.27, including a $0.06 contribution from acquisitions.

“I could not be more pleased with how our organization navigated fiscal 2021," said Steve Rendle, Chairman, President and Chief Executive Officer. "Early in the year we took important actions to protect our people and the enterprise, while maintaining investments to drive our transformation and accelerate organic growth. At the same time, we took bold, forward-looking actions to spark additional growth and value creation. As a result, we are exiting this year in a position of strength with broad based momentum across the portfolio."

GUIDANCE:

V.F. Corp. sees FY2022 EPS of $3.05, versus the consensus of $3.02. V.F. Corp. sees FY2022 revenue of $11.8 billion, versus the consensus of $11.41 billion.

VF’s outlook for full year fiscal 2022 is on an adjusted continuing operations basis unless otherwise noted and includes the following:

• Revenue is expected to approximate $11.8 billion, reflecting growth of approximately 28 percent, including an approximate $600 million contribution from the Supreme® brand. By segment, revenue for Outdoor is expected to increase between 23 percent and 25 percent; revenue for Active is expected to increase between 34 percent and 36 percent; and, revenue for Work is expected to increase between 10 percent and 12 percent.
• International revenue is expected to increase between 25 percent and 27 percent. By geographic region, in the EMEA region, revenue is expected to increase between 29 percent and 31 percent. In the Asia Pacific region, revenue is expected to increase between 18 percent and 20 percent. And, in the Americas (non-U.S.) region, revenue is expected to increase between 28 percent and 30 percent.
• Direct-to-consumer revenue is expected to increase between 38 percent and 40 percent, including Digital revenue growth of between 29 percent and 31 percent.
• Adjusted gross margin is expected to exceed 56.0 percent, which represents an estimated increase of more than 270 basis points.
• Adjusted operating margin is expected to approximate 12.8 percent, which represents an estimated increase of approximately 480 basis points.
• Adjusted earnings per share is expected to approximate $3.05, including an approximate $0.25 contribution from the Supreme® brand.
• Adjusted cash flow from operations is expected to exceed $1.0 billion.
• Other full year assumptions include an effective tax rate of approximately 15 percent and capital expenditures of approximately $350 million.

For earnings history and earnings-related data on V.F. Corp. (VFC) click here.