乱伦巴士 Corporation Reports First Quarter Results and Maintains FY24 Earnings Outlook
DENVER--(BUSINESS WIRE)-- 乱伦巴士 Corporation (NYSE: 乱伦巴士C) today announced financial results for its first quarter (Q1'FY24) ended July 1, 2023.
Q1'FY24 Financial Highlights
- Revenue down 8% to $2.1 billion
- Loss per share down 2% to $(0.15); adjusted loss per share $(0.15) vs. Q1'FY23 adjusted earnings per share $0.09
Bracken Darrell, President and CEO, said: 鈥淚 am honored to lead this great company into the next chapter of its history. I am passionate about building brands through a design-and-innovation lens and creating unique and differentiated products, immersive storytelling and elevated experiences for consumers. 乱伦巴士 has a portfolio of globally recognized, iconic brands, a deeply embedded purpose and impressive talent, all of which gives me every confidence we have all the necessary ingredients to unlock the company's significant potential and return to delivering strong, sustainable and profitable growth which will translate to elevated shareholder returns.鈥�
Q1鈥橣Y24 Operating Highlights
- The North Face庐 delivered its 10th consecutive quarter of double-digit constant dollar revenue growth, up 12%
- Vans庐 down 22%, impacted by wholesale in the Americas (down 39% and down 40% in constant dollars) as the turnaround work continues at the brand
- Wholesale down 12%, including wholesale in the Americas down 18%
- Direct-to-Consumer (DTC) down 3% (down 2% in constant dollars) and up 6% excluding Vans庐 (up 7% in constant dollars)
- International markets increased by 3% (up 4% in constant dollars)
- Greater China up 24% (up 31% in constant dollars), leading further improvement in the APAC region of up 13% (up 18% in constant dollars)
- EMEA revenue down 2% (down 3% in constant dollars), reflecting continued growth in DTC, but lower wholesale revenue
FY24 Outlook
- The company reiterates full year EPS guidance range of $2.05 to $2.25
- Revenue is now expected to be modestly down to flat for the year, reflecting ongoing weakness in our wholesale business and a longer than anticipated turnaround for Vans
- Free cash flow is expected to be in line with previous guidance of approximately $900 million
Matt Puckett, CFO, said: 鈥淲hile our Q1 performance is not reflective of our standards, we achieved our earnings target in the quarter. We remain focused on improving our operational execution, although it will take time for our revenue performance to benefit from actions that are underway. We are well positioned to advance our key priorities this year with an emphasis on increasing operating earnings through improved gross margins, generating healthy cash flow and reducing debt, all of which lead to a strengthened financial position.鈥�
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Summary Revenue Information |
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|
(Unaudited) |
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| 听 | ||||||||||||
|
听 |
听 |
Three Months Ended June |
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|
(Dollars in millions) |
听 |
2023 |
听 |
2022 |
听 |
% Change |
听 |
% Change (constant currency) |
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|
Brand: |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
||||
|
Vans庐 |
听 |
$ |
737.5 |
听 |
$ |
946.8 |
听 |
(22 |
)% |
听 |
(22 |
)% |
|
The North Face庐 |
听 |
听 |
538.2 |
听 |
听 |
481.1 |
听 |
12 |
% |
听 |
12 |
% |
|
Timberland庐 |
听 |
听 |
253.8 |
听 |
听 |
269.5 |
听 |
(6 |
)% |
听 |
(6 |
)% |
|
Dickies庐 |
听 |
听 |
136.6 |
听 |
听 |
170.4 |
听 |
(20 |
)% |
听 |
(19 |
)% |
|
Other Brands |
听 |
听 |
420.2 |
听 |
听 |
393.9 |
听 |
7 |
% |
听 |
7 |
% |
|
乱伦巴士 Revenue |
听 |
$ |
2,086.3 |
听 |
$ |
2,261.6 |
听 |
(8 |
)% |
听 |
(8 |
)% |
|
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
||||
|
Region: |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
||||
|
Americas |
听 |
$ |
1,183.8 |
听 |
$ |
1,385.1 |
听 |
(15 |
)% |
听 |
(15 |
)% |
|
EMEA |
听 |
听 |
584.3 |
听 |
听 |
594.6 |
听 |
(2 |
)% |
听 |
(3 |
)% |
|
APAC |
听 |
听 |
318.2 |
听 |
听 |
281.9 |
听 |
13 |
% |
听 |
18 |
% |
|
乱伦巴士 Revenue |
听 |
$ |
2,086.3 |
听 |
$ |
2,261.6 |
听 |
(8 |
)% |
听 |
(8 |
)% |
|
International |
听 |
$ |
1,026.7 |
听 |
$ |
992.0 |
听 |
3 |
% |
听 |
4 |
% |
|
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
||||
|
Channel: |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
||||
|
DTC |
听 |
$ |
973.6 |
听 |
$ |
999.1 |
听 |
(3 |
)% |
听 |
(2 |
)% |
|
Wholesale (a) |
听 |
听 |
1,112.7 |
听 |
听 |
1,262.5 |
听 |
(12 |
)% |
听 |
(12 |
)% |
|
乱伦巴士 Revenue |
听 |
$ |
2,086.3 |
听 |
$ |
2,261.6 |
听 |
(8 |
)% |
听 |
(8 |
)% |
|
All references to the three months ended June 2023 relate to the 13-week fiscal period ended July 1, 2023 and all references to the three months ended June 2022 relate to the 13-week fiscal period ended July 2, 2022. |
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|
Note: Amounts may not sum due to rounding |
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|
(a) Royalty revenues are included in the wholesale channel for all periods. |
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Q1'FY24 Income Statement Review
- Revenue $2.1 billion, down 8% with the big four brands down 11% and the balance of the portfolio up 7%
- The North Face庐 revenue $0.5 billion, up 12%
- Vans庐 revenue $0.7 billion, down 22%
- Gross margin 52.8%, down 110 basis points; Adjusted gross margin 52.8%, down 130 basis points due primarily to increased promotions
- Adjusted gross margin headwinds include 200 basis points of unfavorable rate impact (including promotions) and 10 basis points of adverse foreign currency exchange rates, partially offset by 80 basis points of mix benefits
- Operating margin (0.4)%, down 320 basis points; adjusted operating margin (0.4)%, down 380 basis points
- Adjusted operating margin contraction driven by 130 basis points of unfavorable gross margin impact and 250 basis points of deleverage
- Loss per share of $(0.15), down 2%; adjusted loss per share $(0.15) vs. Q1'FY23 adjusted earnings per share $0.09
Q1'FY24 Balance Sheet Review
- Inventories increased by $446 million during Q1鈥橣Y24, up 19% relative to last year; primarily driven by core and excess replenishment inventory
- 乱伦巴士 modified terms with the majority of its suppliers in the first quarter of fiscal 2023 to take ownership of inventory near point of shipment rather than destination; this program has now been fully lapped in Q1
- Accounts payable increased 25% relative to last year, which was largely driven by the modified terms with the majority of suppliers
Q1鈥橣Y24 Shareholder Returns
- Return of $117 million to shareholders through cash dividends
- 乱伦巴士鈥檚 Board of Directors declared a quarterly dividend of $0.30 per share. This dividend will be payable on September 20, 2023, to shareholders of record at the close of business on September 11, 2023. Subject to approval by its Board of Directors, 乱伦巴士 intends to continue to pay quarterly dividends
Webcast Information
乱伦巴士 will host its first quarter fiscal 2024 conference call beginning at 4:30 p.m. Eastern Time today. The conference call will be broadcast live via the Internet, accessible at . For those unable to listen to the live broadcast, an archived version will be available at the same location.
About 乱伦巴士
Founded in 1899, 乱伦巴士 Corporation is one of the world鈥檚 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庐, The North Face庐, Timberland庐 and Dickies庐. 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 .
Financial Presentation Disclosure
All per share amounts are presented on a diluted basis. This release refers to 鈥渞eported鈥� and 鈥渃onstant dollar鈥� amounts, terms that are described under the heading below 鈥淐onstant Currency - Excluding the Impact of Foreign Currency.鈥� Unless otherwise noted, 鈥渞eported鈥� and 鈥渃onstant dollar鈥� amounts are the same. This release also refers to 鈥渁djusted鈥� amounts, a term that is described under the heading below 鈥淎djusted Amounts - Excluding Transaction and Deal Related Activities.鈥� Unless otherwise noted, 鈥渞eported鈥� and 鈥渁djusted鈥� amounts are the same.
Constant Currency - Excluding the Impact of Foreign Currency
This release refers to 鈥渞eported鈥� amounts in accordance with U.S. generally accepted accounting principles (鈥淕AAP鈥�), which include translation and transactional impacts from foreign currency exchange rates. This release also refers to 鈥渃onstant dollar鈥� 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鈥檚 view of why this information is useful to investors.
Adjusted Amounts - Excluding Transaction and Deal Related Activities
The adjusted amounts in this release exclude transaction and deal related activities associated with the review of strategic alternatives for the Global Packs business, consisting of the Kipling庐, Eastpak庐 and JanSport庐 brands. Total transaction and deal related activities include costs of approximately $1 million in the first quarter of fiscal 2024.
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鈥檚 view of why this information is useful to investors. The company also provides guidance on a non-GAAP basis as we cannot predict certain elements which are included in reported GAAP results.
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 乱伦巴士 and therefore involve several risks and uncertainties. You can identify these statements by the fact that they use words such as 鈥渨ill,鈥� 鈥渁nticipate,鈥� 鈥渆stimate,鈥� 鈥渆xpect,鈥� 鈥渟hould,鈥� and 鈥渕ay鈥� 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 乱伦巴士鈥檚 plans, objectives, projections and expectations relating to 乱伦巴士鈥檚 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. 乱伦巴士 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 乱伦巴士 to differ materially from those expressed or implied by forward-looking statements include, but are not limited to: the level of consumer demand for apparel and footwear; disruption to 乱伦巴士鈥檚 distribution system; changes in global economic conditions and the financial strength of 乱伦巴士鈥檚 customers, including as a result of current inflationary pressures; fluctuations in the price, availability and quality of raw materials and finished products; disruption and volatility in the global capital and credit markets; 乱伦巴士鈥檚 response to changing fashion trends, evolving consumer preferences and changing patterns of consumer behavior; 乱伦巴士's ability to maintain the image, health and equity of its brands; intense competition from online retailers and other direct-to-consumer business risks; third-party manufacturing and product innovation; increasing pressure on margins; 乱伦巴士鈥檚 ability to implement its business strategy; 乱伦巴士鈥檚 ability to grow its international, direct-to-consumer and digital businesses; 乱伦巴士鈥檚 ability to find and amplify consumer tailwinds, build brands on multiple growth horizons and leverage platforms for speed to scale and efficiency; retail industry changes and challenges; 乱伦巴士鈥檚 ability to create and maintain an agile and efficient operating model and organizational structure; 乱伦巴士鈥檚 and its vendors鈥� ability to maintain the strength and security of information technology systems; the risk that 乱伦巴士鈥檚 facilities and systems and those of our third-party service providers may be vulnerable to and unable to anticipate or detect data or information security breaches and data or financial loss; 乱伦巴士鈥檚 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 乱伦巴士鈥檚 vendors鈥� manufacturing facilities and 乱伦巴士鈥檚 ability to establish and maintain effective supply chain capabilities; continued use by 乱伦巴士鈥檚 suppliers of ethical business practices; 乱伦巴士鈥檚 ability to accurately forecast demand for products; 乱伦巴士鈥檚 ability to recruit, develop or retain key executive or employee talent or successfully transition executives; continuity of members of 乱伦巴士鈥檚 management; changes in the availability and cost of labor; 乱伦巴士鈥檚 ability to protect trademarks and other intellectual property rights; possible goodwill and other asset impairment such as the impairment charges related to the Supreme庐 reporting unit goodwill and indefinite-lived trademark intangible asset; maintenance by 乱伦巴士鈥檚 licensees and distributors of the value of 乱伦巴士鈥檚 brands; 乱伦巴士鈥檚 ability to execute acquisitions and dispositions, integrate acquisitions and manage its brand portfolio; business resiliency in response to natural or man-made economic, public health, political or environmental disruptions; changes in tax laws and additional tax liabilities, including for the timing of income inclusion associated with our acquisition of the Timberland庐 brand in 2011; legal, regulatory, political, economic, and geopolitical risks, including those related to the current conflict in Ukraine; changes to laws and regulations; adverse or unexpected weather conditions, including any potential effects from climate change; 乱伦巴士's indebtedness and its ability to obtain financing on favorable terms, if needed, could prevent 乱伦巴士 from fulfilling its financial obligations; 乱伦巴士's ability to pay and declare dividends or repurchase its stock in the future; climate change and increased focus on environmental, social and governance issues; 乱伦巴士's ability to execute on its sustainability strategy and achieve its sustainability related goals and targets; 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; and tax risks associated with the spin-off of our Jeanswear business completed in 2019. More information on potential factors that could affect 乱伦巴士鈥檚 financial results is included from time to time in 乱伦巴士鈥檚 public reports filed with the SEC, including 乱伦巴士鈥檚 Annual Report on Form 10-K, and Quarterly Reports on Form 10-Q, and Forms 8-K filed or furnished with the SEC.
|
乱伦巴士 CORPORATION |
||||||||
|
Condensed Consolidated Statements of Operations |
||||||||
|
(Unaudited) |
||||||||
|
(In thousands, except per share amounts) |
||||||||
| 听 | ||||||||
|
听 |
听 |
Three Months Ended June |
||||||
|
听 |
听 |
2023 |
听 |
2022 |
||||
|
Net revenues |
听 |
$ |
2,086,336 |
听 |
听 |
$ |
2,261,595 |
听 |
|
Costs and operating expenses |
听 |
听 |
听 |
听 |
||||
|
Cost of goods sold |
听 |
听 |
985,269 |
听 |
听 |
听 |
1,042,982 |
听 |
|
Selling, general and administrative expenses |
听 |
听 |
1,110,059 |
听 |
听 |
听 |
1,155,251 |
听 |
|
Total costs and operating expenses |
听 |
听 |
2,095,328 |
听 |
听 |
听 |
2,198,233 |
听 |
|
Operating income (loss) |
听 |
听 |
(8,992 |
) |
听 |
听 |
63,362 |
听 |
|
Interest expense, net |
听 |
听 |
(49,719 |
) |
听 |
听 |
(31,262 |
) |
|
Other income (expense), net |
听 |
听 |
(3,567 |
) |
听 |
听 |
(94,714 |
) |
|
Loss before income taxes |
听 |
听 |
(62,278 |
) |
听 |
听 |
(62,614 |
) |
|
Income tax benefit |
听 |
听 |
(4,853 |
) |
听 |
听 |
(6,654 |
) |
|
Net loss |
听 |
$ |
(57,425 |
) |
听 |
$ |
(55,960 |
) |
|
Net loss per common share (a) |
听 |
听 |
听 |
听 |
||||
|
Basic |
听 |
$ |
(0.15 |
) |
听 |
$ |
(0.14 |
) |
|
Diluted |
听 |
$ |
(0.15 |
) |
听 |
$ |
(0.14 |
) |
|
Weighted average shares outstanding |
听 |
听 |
听 |
听 |
||||
|
Basic |
听 |
听 |
388,160 |
听 |
听 |
听 |
387,563 |
听 |
|
Diluted |
听 |
听 |
388,160 |
听 |
听 |
听 |
387,563 |
听 |
|
Cash dividends per common share |
听 |
$ |
0.30 |
听 |
听 |
$ |
0.50 |
听 |
|
听 |
听 |
听 |
听 |
听 |
||||
|
Basis of presentation of condensed consolidated financial statements: 乱伦巴士 operates and reports using a 52/53 week fiscal year ending on the Saturday closest to March 31 of each year. For presentation purposes herein, all references to the three months ended June 2023 and June 2022 relate to the 13-week fiscal period ended July 1, 2023 and the 13-week fiscal period ended July 2, 2022, respectively. References to March 2023 relate to information as of April 1, 2023. |
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|
(a) Amounts have been calculated using unrounded numbers. |
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| 乱伦巴士 CORPORATION | |||||||||
|
Condensed Consolidated Balance Sheets |
|||||||||
|
(Unaudited) |
|||||||||
|
(In thousands) |
|||||||||
| 听 | |||||||||
|
听 |
听 |
June |
听 |
March |
听 |
June |
|||
|
听 |
听 |
2023 |
听 |
2023 |
听 |
2022 |
|||
|
ASSETS |
听 |
听 |
听 |
听 |
听 |
听 |
|||
|
Current assets |
听 |
听 |
听 |
听 |
听 |
听 |
|||
|
Cash and equivalents |
听 |
$ |
806,529 |
听 |
$ |
814,887 |
听 |
$ |
528,029 |
|
Accounts receivable, net |
听 |
听 |
1,214,223 |
听 |
听 |
1,610,295 |
听 |
听 |
1,249,713 |
|
Inventories |
听 |
听 |
2,787,021 |
听 |
听 |
2,292,790 |
听 |
听 |
2,341,395 |
|
Other current assets |
听 |
听 |
405,784 |
听 |
听 |
434,737 |
听 |
听 |
492,569 |
|
Total current assets |
听 |
听 |
5,213,557 |
听 |
听 |
5,152,709 |
听 |
听 |
4,611,706 |
|
Property, plant and equipment, net |
听 |
听 |
943,163 |
听 |
听 |
942,440 |
听 |
听 |
1,007,853 |
|
Goodwill and intangible assets, net |
听 |
听 |
4,614,442 |
听 |
听 |
4,621,234 |
听 |
听 |
5,343,684 |
|
Operating lease right-of-use assets |
听 |
听 |
1,349,725 |
听 |
听 |
1,372,182 |
听 |
听 |
1,227,462 |
|
Other assets |
听 |
听 |
1,923,011 |
听 |
听 |
1,901,923 |
听 |
听 |
1,021,048 |
|
Total assets |
听 |
$ |
14,043,898 |
听 |
$ |
13,990,488 |
听 |
$ |
13,211,753 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
听 |
听 |
听 |
听 |
听 |
听 |
|||
|
Current liabilities |
听 |
听 |
听 |
听 |
听 |
听 |
|||
|
Short-term borrowings |
听 |
$ |
58,520 |
听 |
$ |
11,491 |
听 |
$ |
827,380 |
|
Current portion of long-term debt |
听 |
听 |
928,736 |
听 |
听 |
924,305 |
听 |
听 |
1,058 |
|
Accounts payable |
听 |
听 |
1,282,313 |
听 |
听 |
936,319 |
听 |
听 |
1,022,755 |
|
Accrued liabilities |
听 |
听 |
1,546,866 |
听 |
听 |
1,673,651 |
听 |
听 |
1,612,804 |
|
Total current liabilities |
听 |
听 |
3,816,435 |
听 |
听 |
3,545,766 |
听 |
听 |
3,463,997 |
|
Long-term debt |
听 |
听 |
5,722,448 |
听 |
听 |
5,711,014 |
听 |
听 |
4,468,399 |
|
Operating lease liabilities |
听 |
听 |
1,155,852 |
听 |
听 |
1,171,941 |
听 |
听 |
1,006,274 |
|
Other liabilities |
听 |
听 |
632,400 |
听 |
听 |
651,054 |
听 |
听 |
920,590 |
|
Total liabilities |
听 |
听 |
11,327,135 |
听 |
听 |
11,079,775 |
听 |
听 |
9,859,260 |
|
Stockholders' equity |
听 |
听 |
2,716,763 |
听 |
听 |
2,910,713 |
听 |
听 |
3,352,493 |
|
Total liabilities and stockholders' equity |
听 |
$ |
14,043,898 |
听 |
$ |
13,990,488 |
听 |
$ |
13,211,753 |
| 乱伦巴士 CORPORATION | ||||||||
|
Condensed Consolidated Statements of Cash Flows |
||||||||
|
(Unaudited) |
||||||||
|
(In thousands) |
||||||||
|
听 |
听 |
听 |
||||||
|
听 |
听 |
Three Months Ended June |
||||||
|
听 |
听 |
2023 |
听 |
2022 |
||||
|
Operating activities |
听 |
听 |
听 |
听 |
||||
|
Net loss |
听 |
$ |
(57,425 |
) |
听 |
$ |
(55,960 |
) |
|
Depreciation and amortization |
听 |
听 |
67,075 |
听 |
听 |
听 |
66,754 |
听 |
|
Reduction in the carrying amount of right-of-use assets |
听 |
听 |
95,728 |
听 |
听 |
听 |
93,337 |
听 |
|
Other adjustments |
听 |
听 |
58,197 |
听 |
听 |
听 |
(462,451 |
) |
|
Cash provided (used) by operating activities |
听 |
听 |
163,575 |
听 |
听 |
听 |
(358,320 |
) |
|
Investing activities |
听 |
听 |
听 |
听 |
||||
|
Capital expenditures |
听 |
听 |
(61,763 |
) |
听 |
听 |
(52,657 |
) |
|
Software purchases |
听 |
听 |
(22,827 |
) |
听 |
听 |
(26,907 |
) |
|
Other, net |
听 |
听 |
(5,972 |
) |
听 |
听 |
10,045 |
听 |
|
Cash used by investing activities |
听 |
听 |
(90,562 |
) |
听 |
听 |
(69,519 |
) |
|
Financing activities |
听 |
听 |
听 |
听 |
||||
|
Contingent consideration payment |
听 |
听 |
鈥� |
听 |
听 |
听 |
(56,976 |
) |
|
Net increase (decrease) from short-term borrowings and long-term debt |
听 |
听 |
46,415 |
听 |
听 |
听 |
(8,344 |
) |
|
Cash dividends paid |
听 |
听 |
(116,575 |
) |
听 |
听 |
(194,135 |
) |
|
Proceeds from issuance of Common Stock, net of (payments) for tax withholdings |
听 |
听 |
(1,725 |
) |
听 |
听 |
(1,766 |
) |
|
Cash used by financing activities |
听 |
听 |
(71,885 |
) |
听 |
听 |
(261,221 |
) |
|
Effect of foreign currency rate changes on cash, cash equivalents and restricted cash |
听 |
听 |
(9,326 |
) |
听 |
听 |
(58,988 |
) |
|
Net change in cash, cash equivalents and restricted cash |
听 |
听 |
(8,198 |
) |
听 |
听 |
(748,048 |
) |
|
Cash, cash equivalents and restricted cash 鈥� beginning of year |
听 |
听 |
816,319 |
听 |
听 |
听 |
1,277,082 |
听 |
|
Cash, cash equivalents and restricted cash 鈥� end of period |
听 |
$ |
808,121 |
听 |
听 |
$ |
529,034 |
听 |
| 乱伦巴士 CORPORATION | ||||||||||||
|
Supplemental Financial Information |
||||||||||||
|
Reportable Segment Information |
||||||||||||
|
(Unaudited) |
||||||||||||
|
(In thousands) |
||||||||||||
|
听 |
听 |
听 |
听 |
听 |
听 |
听 |
||||||
|
听 |
听 |
Three Months Ended June |
听 |
% Change |
听 |
% Change Constant Currency (a) |
||||||
|
听 |
听 |
2023 |
听 |
2022 |
听 |
听 |
||||||
|
Segment revenues |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
||||
|
Outdoor |
听 |
$ |
829,697 |
听 |
听 |
$ |
768,624 |
听 |
听 |
8% |
听 |
8% |
|
Active |
听 |
听 |
1,066,009 |
听 |
听 |
听 |
1,253,945 |
听 |
听 |
(15)% |
听 |
(15)% |
|
Work |
听 |
听 |
190,630 |
听 |
听 |
听 |
238,878 |
听 |
听 |
(20)% |
听 |
(20)% |
|
Other (b) |
听 |
听 |
鈥� |
听 |
听 |
听 |
148 |
听 |
听 |
* |
听 |
* |
|
Total segment revenues |
听 |
$ |
2,086,336 |
听 |
听 |
$ |
2,261,595 |
听 |
听 |
(8)% |
听 |
(8)% |
|
Segment profit (loss) |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
||||
|
Outdoor |
听 |
$ |
(43,661 |
) |
听 |
$ |
(46,851 |
) |
听 |
听 |
听 |
听 |
|
Active |
听 |
听 |
123,782 |
听 |
听 |
听 |
214,031 |
听 |
听 |
听 |
听 |
听 |
|
Work |
听 |
听 |
6,831 |
听 |
听 |
听 |
35,002 |
听 |
听 |
听 |
听 |
听 |
|
Other (b) |
听 |
听 |
鈥� |
听 |
听 |
听 |
(225 |
) |
听 |
听 |
听 |
听 |
|
Total segment profit |
听 |
听 |
86,952 |
听 |
听 |
听 |
201,957 |
听 |
听 |
听 |
听 |
听 |
|
Corporate and other expenses |
听 |
听 |
(99,511 |
) |
听 |
听 |
(233,309 |
) |
听 |
听 |
听 |
听 |
|
Interest expense, net |
听 |
听 |
(49,719 |
) |
听 |
听 |
(31,262 |
) |
听 |
听 |
听 |
听 |
|
Loss before income taxes |
听 |
$ |
(62,278 |
) |
听 |
$ |
(62,614 |
) |
听 |
听 |
听 |
听 |
|
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
||||
|
(a) Refer to constant currency definition on the following pages. |
||||||||||||
|
(b) Other is included for purposes of reconciliation of revenues and profit, but it is not considered a reportable segment. Other primarily includes sourcing activities related to transition services. |
||||||||||||
|
* Calculation not meaningful |
||||||||||||
| 乱伦巴士 CORPORATION | ||||||||||||
|
Supplemental Financial Information |
||||||||||||
|
Reportable Segment Information 鈥� Constant Currency Basis |
||||||||||||
|
(Unaudited) |
||||||||||||
|
(In thousands) |
||||||||||||
|
听 |
听 |
听 |
||||||||||
|
听 |
听 |
Three Months Ended June 2023 |
||||||||||
|
听 |
听 |
As Reported |
听 |
Adjust for Foreign |
听 |
听 |
||||||
|
听 |
听 |
under GAAP |
听 |
Currency Exchange |
听 |
Constant Currency |
||||||
|
Segment revenues |
听 |
听 |
听 |
听 |
听 |
听 |
||||||
|
Outdoor |
听 |
$ |
829,697 |
听 |
听 |
$ |
2,333 |
听 |
听 |
$ |
832,030 |
听 |
|
Active |
听 |
听 |
1,066,009 |
听 |
听 |
听 |
67 |
听 |
听 |
听 |
1,066,076 |
听 |
|
Work |
听 |
听 |
190,630 |
听 |
听 |
听 |
1,152 |
听 |
听 |
听 |
191,782 |
听 |
|
Other |
听 |
听 |
鈥� |
听 |
听 |
听 |
鈥� |
听 |
听 |
听 |
鈥� |
听 |
|
Total segment revenues |
听 |
$ |
2,086,336 |
听 |
听 |
$ |
3,552 |
听 |
听 |
$ |
2,089,888 |
听 |
|
Segment profit (loss) |
听 |
听 |
听 |
听 |
听 |
听 |
||||||
|
Outdoor |
听 |
$ |
(43,661 |
) |
听 |
$ |
1,115 |
听 |
听 |
$ |
(42,546 |
) |
|
Active |
听 |
听 |
123,782 |
听 |
听 |
听 |
478 |
听 |
听 |
听 |
124,260 |
听 |
|
Work |
听 |
听 |
6,831 |
听 |
听 |
听 |
69 |
听 |
听 |
听 |
6,900 |
听 |
|
Other |
听 |
听 |
鈥� |
听 |
听 |
听 |
鈥� |
听 |
听 |
听 |
鈥� |
听 |
|
Total segment profit |
听 |
听 |
86,952 |
听 |
听 |
听 |
1,662 |
听 |
听 |
听 |
88,614 |
听 |
|
Corporate and other expenses |
听 |
听 |
(99,511 |
) |
听 |
听 |
(272 |
) |
听 |
听 |
(99,783 |
) |
|
Interest expense, net |
听 |
听 |
(49,719 |
) |
听 |
听 |
鈥� |
听 |
听 |
听 |
(49,719 |
) |
|
Loss before income taxes |
听 |
$ |
(62,278 |
) |
听 |
$ |
1,390 |
听 |
听 |
$ |
(60,888 |
) |
|
Diluted net loss per share growth |
听 |
听 |
(2 |
)% |
听 |
听 |
1 |
% |
听 |
听 |
(1 |
)% |
|
听 |
听 |
听 |
听 |
听 |
听 |
听 |
||||||
|
Constant Currency Financial Information |
||||||||||||
|
乱伦巴士 is a global company that reports financial information in U.S. dollars in accordance with GAAP. Foreign currency exchange rate fluctuations affect the amounts reported by 乱伦巴士 from translating its foreign revenues and expenses into U.S. dollars. These rate fluctuations can have a significant effect on reported operating results. As a supplement to our reported operating results, we present constant currency financial information, which is a non-GAAP financial measure that excludes the impact of translating foreign currencies into U.S. dollars. We use constant currency information to provide a framework to assess how our business performed excluding the effects of changes in the rates used to calculate foreign currency translation. Management believes this information is useful to investors to facilitate comparison of operating results 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 in currencies other than the U.S. dollar are translated into U.S. dollars at the average exchange rates in effect during the comparable period of the prior year (rather than the actual exchange rates in effect during the current year period). |
||||||||||||
|
These constant currency performance measures should be viewed in addition to, and not in lieu of or superior to, our operating performance measures calculated in accordance with GAAP. The constant currency information presented may not be comparable to similarly titled measures reported by other companies. |
||||||||||||
| 乱伦巴士 CORPORATION | |||||||||||
|
Supplemental Financial Information |
|||||||||||
|
Reconciliation of Select GAAP Measures to Non-GAAP Measures - Three Months Ended June 2023 |
|||||||||||
|
(Unaudited) |
|||||||||||
|
(In thousands, except per share amounts) |
|||||||||||
|
听 |
听 |
听 |
听 |
听 |
听 |
听 |
|||||
|
Three Months Ended June 2023 |
听 |
As Reported under GAAP |
听 |
Transaction and Deal Related Activities (a) |
听 |
Adjusted |
|||||
|
Revenues |
听 |
$ |
2,086,336 |
听 |
听 |
$ |
鈥� |
听 |
$ |
2,086,336 |
听 |
|
听 |
听 |
听 |
听 |
听 |
听 |
听 |
|||||
|
Gross profit |
听 |
听 |
1,101,067 |
听 |
听 |
听 |
鈥� |
听 |
听 |
1,101,067 |
听 |
|
Percent |
听 |
听 |
52.8 |
% |
听 |
听 |
听 |
听 |
52.8 |
% |
|
|
听 |
听 |
听 |
听 |
听 |
听 |
听 |
|||||
|
Operating loss |
听 |
听 |
(8,992 |
) |
听 |
听 |
1,118 |
听 |
听 |
(7,874 |
) |
|
Percent |
听 |
听 |
(0.4 |
)% |
听 |
听 |
听 |
听 |
(0.4 |
)% |
|
|
听 |
听 |
听 |
听 |
听 |
听 |
听 |
|||||
|
Diluted net loss per share (b) |
听 |
听 |
(0.15 |
) |
听 |
听 |
鈥� |
听 |
听 |
(0.15 |
) |
|
听 |
听 |
听 |
听 |
听 |
听 |
听 |
|||||
|
(a) Transaction and deal related activities reflect activities associated with the review of strategic alternatives for the Global Packs business, consisting of the Kipling庐, Eastpak庐 and JanSport庐 brands, which totaled $1.1 million for the three months ended June 2023. The transaction and deal related activities resulted in a net tax benefit of $0.3 million in the three months ended June 2023. |
|||||||||||
|
(b) Amounts shown in the table have been calculated using unrounded numbers. The diluted net loss per share impacts were calculated using 388,160,000 weighted average common shares for the three months ended June 2023. |
|||||||||||
|
听 |
听 |
听 |
听 |
听 |
听 |
听 |
|||||
|
Non-GAAP Financial Information |
|||||||||||
|
The financial information above has been presented on a GAAP basis and on an adjusted basis, which excludes the impact of transaction and deal related activities. The adjusted presentation provides non-GAAP measures. Management believes these measures provide investors with useful supplemental information regarding 乱伦巴士's underlying business trends and the performance of 乱伦巴士's ongoing operations and are useful for period-over-period comparisons of such operations. |
|||||||||||
|
Management uses the above financial measures internally in its budgeting and review process and, in some cases, as a factor in determining compensation. While management believes that these non-GAAP financial measures are useful in evaluating the business, this information should be considered as supplemental in nature and should be viewed in addition to, and not in lieu of or superior to, 乱伦巴士's operating performance measures calculated in accordance with GAAP. In addition, these non-GAAP financial measures may not be the same as similarly titled measures presented by other companies. |
|||||||||||
|
乱伦巴士 CORPORATION |
|||||||||||||||||
|
Supplemental Financial Information |
|||||||||||||||||
|
Reconciliation of Select GAAP Measures to Non-GAAP Measures - Three Months Ended June 2022 |
|||||||||||||||||
|
(Unaudited) |
|||||||||||||||||
|
(In thousands, except per share amounts) |
|||||||||||||||||
|
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
|||||||
|
Three Months Ended June 2022 |
听 |
As Reported under GAAP |
听 |
Transaction and Deal Related Activities (a) |
听 |
Specified Strategic Business Decisions (b) |
听 |
Pension Settlement Charge (c) |
听 |
Adjusted |
|||||||
|
Revenues |
听 |
$ |
2,261,595 |
听 |
听 |
$ |
鈥� |
听 |
$ |
鈥� |
听 |
$ |
鈥� |
听 |
$ |
2,261,595 |
听 |
|
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
|||||||
|
Gross profit |
听 |
听 |
1,218,613 |
听 |
听 |
听 |
鈥� |
听 |
听 |
5,081 |
听 |
听 |
鈥� |
听 |
听 |
1,223,694 |
听 |
|
Percent |
听 |
听 |
53.9 |
% |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
54.1 |
% |
|||
|
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
|||||||
|
Operating income |
听 |
听 |
63,362 |
听 |
听 |
听 |
331 |
听 |
听 |
13,778 |
听 |
听 |
鈥� |
听 |
听 |
77,471 |
听 |
|
Percent |
听 |
听 |
2.8 |
% |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
3.4 |
% |
|||
|
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
|||||||
|
Diluted earnings (loss) per share (d) |
听 |
听 |
(0.14 |
) |
听 |
听 |
鈥� |
听 |
听 |
0.03 |
听 |
听 |
0.20 |
听 |
听 |
0.09 |
听 |
|
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
|||||||
|
(a) Transaction and deal related activities include activities associated with the acquisition of Supreme Holdings, Inc. ("Supreme") for the three months ended June 2022. Transaction and deal related activities include integration costs of $0.3 million for the three months ended June 2022. The transaction and deal related activities resulted in a net tax benefit of $0.1 million in the three months ended June 2022. |
|||||||||||||||||
|
(b) Specified strategic business decisions for the three months ended June 2022 include costs related to 乱伦巴士's business model transformation of $6.0 million in the three months ended June 2022, related primarily to restructuring and other costs. Specified strategic business decisions also include costs related to a transformation initiative for our Asia-Pacific regional operations of $7.8 million in the three months ended June 2022. The specified strategic business decisions resulted in a net tax benefit of $2.2 million in the three months ended June 2022. |
|||||||||||||||||
|
(c) A pension settlement charge of $91.8 million was recorded in the 'Other income (expense), net' line item in the three months ended June 2022. The pension settlement charge resulted from the purchase of a group annuity contract, which was an action taken to streamline administration, manage financial risk associated with pension plans, and to transfer a portion of the liability associated with 乱伦巴士's U.S. pension plan to an insurance company. The pension settlement charge resulted in a net tax benefit of $13.8 million in the three months ended June 2022, related to the impact of the settlement charge on the interim tax rate calculation. |
|||||||||||||||||
|
(d) Amounts shown in the table have been calculated using unrounded numbers. The GAAP diluted earnings per share was calculated using 387,563,000 weighted average common shares for the three months ended June 2022. The adjusted diluted earnings per share was calculated using 388,396,000 weighted average common shares for the three months ended June 2022. |
|||||||||||||||||
|
听 |
|||||||||||||||||
|
Non-GAAP Financial Information |
|||||||||||||||||
|
The financial information above has been presented on a GAAP basis and on an adjusted basis, which excludes the impact of transaction and deal related activities, activity related to specified strategic business decisions and a pension settlement charge. The adjusted presentation provides non-GAAP measures. Management believes these measures provide investors with useful supplemental information regarding 乱伦巴士's underlying business trends and the performance of 乱伦巴士's ongoing operations and are useful for period-over-period comparisons of such operations. |
|||||||||||||||||
|
Management uses the above financial measures internally in its budgeting and review process and, in some cases, as a factor in determining compensation. While management believes that these non-GAAP financial measures are useful in evaluating the business, this information should be considered as supplemental in nature and should be viewed in addition to, and not in lieu of or superior to, 乱伦巴士's operating performance measures calculated in accordance with GAAP. In addition, these non-GAAP financial measures may not be the same as similarly titled measures presented by other companies. |
|||||||||||||||||
| 乱伦巴士 CORPORATION | ||||||||||||
|
Supplemental Financial Information |
||||||||||||
|
Top 4 Brand Revenue Information |
||||||||||||
|
(Unaudited) |
||||||||||||
| 听 | ||||||||||||
|
听 |
听 |
Three Months Ended June 2023 |
||||||||||
|
Top 4 Brand Revenue Growth |
听 |
Americas |
听 |
EMEA |
听 |
APAC |
听 |
Global |
||||
|
Vans庐 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
||||
|
% change |
听 |
(26 |
)% |
听 |
(17 |
)% |
听 |
(7 |
)% |
听 |
(22 |
)% |
|
% change constant currency* |
听 |
(27 |
)% |
听 |
(18 |
)% |
听 |
(3 |
)% |
听 |
(22 |
)% |
|
The North Face庐 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
||||
|
% change |
听 |
9 |
% |
听 |
4 |
% |
听 |
49 |
% |
听 |
12 |
% |
|
% change constant currency* |
听 |
9 |
% |
听 |
2 |
% |
听 |
57 |
% |
听 |
12 |
% |
|
Timberland庐 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
||||
|
% change |
听 |
(21 |
)% |
听 |
6 |
% |
听 |
22 |
% |
听 |
(6 |
)% |
|
% change constant currency* |
听 |
(21 |
)% |
听 |
4 |
% |
听 |
26 |
% |
听 |
(6 |
)% |
|
Dickies庐 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
听 |
||||
|
% change |
听 |
(24 |
)% |
听 |
17 |
% |
听 |
(21 |
)% |
听 |
(20 |
)% |
|
% change constant currency* |
听 |
(24 |
)% |
听 |
15 |
% |
听 |
(18 |
)% |
听 |
(19 |
)% |
| 听 | ||||||||||||
|
*Refer to constant currency definition on previous pages. |
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| 乱伦巴士 CORPORATION | ||||||
|
Supplemental Financial Information |
||||||
|
Geographic and Channel Revenue Information |
||||||
|
(Unaudited) |
||||||
| 听 | ||||||
|
听 |
听 |
Three Months Ended June 2023 |
||||
|
听 |
听 |
% Change |
听 |
% Change Constant Currency* |
||
|
Geographic Revenue Growth |
听 |
听 |
听 |
听 |
||
|
Americas |
听 |
(15 |
)% |
听 |
(15 |
)% |
|
EMEA |
听 |
(2 |
)% |
听 |
(3 |
)% |
|
APAC |
听 |
13 |
% |
听 |
18 |
% |
|
Greater China |
听 |
24 |
% |
听 |
31 |
% |
|
International |
听 |
3 |
% |
听 |
4 |
% |
|
Global |
听 |
(8 |
)% |
听 |
(8 |
)% |
|
听 |
听 |
听 |
听 |
听 |
||
|
听 |
听 |
Three Months Ended June 2023 |
||||
|
听 |
听 |
% Change |
听 |
% Change Constant Currency* |
||
|
Channel Revenue Growth |
听 |
听 |
听 |
听 |
||
|
Wholesale (a) |
听 |
(12 |
)% |
听 |
(12 |
)% |
|
Direct-to-consumer |
听 |
(3 |
)% |
听 |
(2 |
)% |
|
Digital |
听 |
(4 |
)% |
听 |
(3 |
)% |
|
听 |
听 |
听 |
听 |
听 |
||
|
听 |
听 |
As of June |
||||
|
听 |
听 |
2023 |
听 |
2022 |
||
|
DTC Store Count |
听 |
听 |
听 |
听 |
||
|
Total |
听 |
1,250 |
听 |
听 |
1,297 |
听 |
|
听 |
听 |
听 |
听 |
听 |
||
|
*Refer to constant currency definition on previous pages. |
||||||
|
(a) Royalty revenues are included in the wholesale channel for all periods. |
||||||
听
View source version on businesswire.com:
Investor Contact:
Allegra Perry
ir@vfc.com
Media Contact:
Colin Wheeler
corporate_communications@vfc.com
Source: 乱伦巴士 Corporation