VF Fy2022 Shareholderletter Digital Final
VF Fy2022 Shareholderletter Digital Final
VF Fy2022 Shareholderletter Digital Final
F I S CA L Y EA R 2 0 2 2
Letter to Shareholders and Stakeholders
In fiscal year 2022 (FY22), VF Corporation continued to grow, progress and intentionally evolve.
Despite global supply chain disruptions, geopolitical tensions, macroeconomic volatility and
international conflict, our 123rd year in business was marked by the continued advancement
of our strategy and broad-based revenue and profit growth. We made meaningful progress
toward our long-term goals and leveraged our portfolio strategy to deliver both top- and
bottom-line growth in alignment with our commitments. Our success in FY22 – and our ability
to strengthen our business amid several obstacles – clearly demonstrates the unwavering
adaptability and resiliency of VF’s talented associates around the world. As we look ahead,
we remain focused on investing in our core growth strategies, shaping our company for the
future and delivering value to our shareholders and stakeholders.
• Global revenue increased 28% (27% in constant dollars) to $11.8 billion. Excluding the
2
• Gross margin increased 180 basis points to 54.5%. On an adjusted basis, gross margin
3
increased 150 basis points to 54.8%, including a positive impact from the Supreme ®
• Earnings per share (EPS) was $3.10. On an adjusted basis, EPS was $3.18, including
4 5
• FY22 cash flow from operations reached $858 million, and we returned over $1.1 billion
to shareholders through share repurchases and dividends.
2 VF Corporation Annual Report F I S CA L Y EAR 2 0 2 2
1. OPTIMIZING OUR PORTFOLIO: VF has evolved and simplified our portfolio during the
past five years, moving from 32 to 12 brands anchored in the outdoor, active and work/
work-inspired sectors where there are meaningful consumer tailwinds. In early FY22,
we sold nine occupational workwear brands and businesses – Bulwark , Horace Small ,
® ®
Kodiak , Red Kap , Terra , VF Solutions , Walls , Work Authority and Workrite . Divesting
® ® ® ® ® ® ®
these labels and others further focused our portfolio on a carefully curated group of
outdoor and activity-based lifestyle brands that are strongly positioned for direct-to-
consumer (DTC) growth and international expansion. We’ve always considered the active
management of our brand portfolio a differentiating advantage. And moving forward,
we’ll continue to make M&A a priority for capital allocation. Our goal remains to strategically
and dynamically manage our portfolio to maximize exposure to the most attractive tailwind
parts of the marketplace and leverage VF’s brand-building and operational strengths
to generate synergies and operating efficiencies.
2. INVESTING IN ASIA: During FY22, we completed the transition of our Asia Product
Supply Hub from Hong Kong to Singapore and our brands’ regional center of operations
from Hong Kong to Shanghai. This move to Shanghai specifically has enhanced our teams’
focus on product relevance and brand connections with Chinese consumers. By embracing
emerging channels, elevating store formats and optimizing omnichannel integration, our
brands are strengthening the ways we serve consumers in this fast-moving market. Despite
the disruption to the Chinese economy and slower growth in FY22, particularly in the
fourth quarter while a significant portion of the market was under COVID-19 restrictions,
we continue to see long-term growth opportunities across the region. Consumer interest
in our core categories is growing and we’re committed to continued expansion in China
and across Asia-Pacific.
continued growth from our DTC channels. In FY22, our DTC business increased 31%,
including a 10-percentage point revenue growth contribution from the Supreme acquisition,
®
and now represents 46% of VF’s total revenue, while our DTC Digital business accounts
for 20%.
We also released our third annual profile on Inclusion, Diversity, Equity & Action (IDEA), which
defines the strategic pillars that drive VF’s IDEA goals. Additionally, we publicly committed
to two aspirational employee representation goals: our desire to achieve, by 2030, gender parity
globally at the director level and above, and 25% representation of Black, Indigenous and people
of color (BIPOC) at the director level and above in the United States. In FY22, we made progress
toward both aspirational goals, with those who identify as women comprising 42% of the director
level and above population globally and BIPOC associates representing 18% of the director level
and above population in the United States. Through this focused commitment, we will continue
6
to evolve our employee base to better align with and serve our diverse and global consumers.
VF Corporation Annual Report F I S CA L Y EAR 2 0 2 2
In closing, I want to express my optimism about the year ahead. Despite the challenges and
uncertainties we face on a global level, I enter this new fiscal year with a refreshed sense of pride
and confidence. We will continue to focus on accelerating organic growth across our portfolio and
building on our broad-based momentum to deliver on our annual financial commitments. VF
has the right brands, the right strategies and the right people to lead our company into the next
phase of growth and success. I’m confident that VF is well-positioned to continue to invest for
growth and leverage our portfolio advantages to generate sustained and elevated returns
for our shareholders.
As always, I’m grateful for the ongoing support and guidance from our Board of Directors.
I’m thankful for the commitment of our 35,000 talented associates who give their all for VF
every day. And I’m emboldened by the continued confidence you, our shareholders and
stakeholders, have in VF.
STEVEN E. RENDLE
Chairman, President & Chief Executive Officer
June 3, 2022
FOOTNOTES:
1
All financial information provided reflects the results of VF’s continuing operations, which exclude the Occupational Workwear business that was sold in June 2021.
2
Constant dollar amounts exclude the impact of translating foreign currencies into U.S. dollars.
3
Adjusted gross margin for FY22 excludes the impact of specified strategic business decisions of $29.3 million (30 basis points), primarily related to VF’s business transformation initiatives.
4
All per share amounts are presented on a diluted basis.
5
Adjusted diluted EPS for FY22 excludes the impact of transaction and deal-related activities of ($141.0 million) (($0.36 per share)), primarily related to a decrease in the estimated fair
value of the contingent consideration liability associated with the Supreme® acquisition, specified strategic business decisions of $52.4 million ($0.13 per share), primarily related to VF’s
business transformation initiatives, and certain tax items of $119.2 million ($0.30 per share).
6
Compared to FY21, when those who identify as women comprised 40% of the director level and above population globally and BIPOC associates represented 16% of the director level
and above population in the United States.
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