VF Corporation

Sector: Apparel and footwear Countries of operation: Canada, China, the UK, the US and around 165 other countries across the Americas, Europe and Asia Pacific Key product categories: Lifestyle apparel, footwear and related products for men, women and children Annual Metrics [caption id="attachment_149734" align="aligncenter" width="698"] Fiscal year ends on March 31 of the same calendar year after FY18; fiscal year ends on December 31 before FY18 [/caption]   Summary Founded in 1899 and headquartered in Denver, Colorado, VF Corporation produces branded lifestyle accessories, apparel and footwear. The company’s segments include Outdoor (its brands including Altra, Icebreaker, The North Face, Smartwool and Timberland), Active (Eagle Creek, Eastpak, JanSport, Kipling, Napapijri and Vans) and Work (Dickies and Timberland PRO). As of April 2, 2022, VF Corporation manages a total of 1,322 stores across the Americas, Asia Pacific and Europe. Company Analysis Coresight Research insight: VF its brand portfolio, streamlining and optimizing its Outdoor, Active and Work portfolios—aiming to provide greater financial flexibility to fuel its long-term strategic growth initiatives. The company acquired Supreme in 2020, aiming at accelerating VF Corporation’s consumer-minded, retail-centric, hyper-digital business model transformation, according to the company. In April 2021, the company entered a definitive agreement to sell the occupational portion of its Work segment (brands including Bulwark, Red Kap, VF Solutions and Walls). We think that VF Corporation’s offerings are well positioned to capitalize on the growing demand for casual, fitness and outdoor apparel products. However, the company still faces significant challenges amid the Covid-19 pandemic as well as increased competition from athletic brands such as Adidas, NIKE and Under Armour.

Tailwinds	Headwinds
Accelerating consumer trends in casualization, fitness, health and wellness—and consumers’ increased desire to get outdoors and live an active lifestyle Continued momentum in China and across digital channels	Covid-19 pandemic-related impacts have contributed to increasing product delays, including continued port congestion, equipment availability and other logistics challenges Increased competition from athletics brands such as Adidas, NIKE and Under Armour

  Strategy Introduced in early 2020, VF Corporation’s growth strategy comprises four pillars. Below, we highlight recent company developments under each. 1. Evolve the company into a consumer-minded and retail-centric enterprise—and connect online and offline

• Continue to connect with consumers through engaging, purpose-led marketing, including campaigns such as The North Face–Girl Scouts partnership, The North Face Summer Base Camp, and Walls Are Meant for Climbing (in partnership with gyms across the US).

2. Optimize and drive its portfolio

• Optimize and streamline its portfolio to keep pace with changing trends. In 2020, the company acquired Supreme for $2 billion to enrich its streetwear offering. On April 28, 2021, VF Corporation announced the sale of the occupational portion of its Work segment.

3. Increase investments in Asia

• Continue to expand in China. Increase partner doors on the mainland, led by its Dickies and Vans brands, and launch new collections.
• Continue to enhance synergies between brands and digital wholesale partners in China. Develop digital ecosystems in the region continuously to elevate the shopper experience and seamlessly integrate online and offline.

4. Elevate direct channels

• Continue to elevate direct channels and reduce wholesale. VF Corporation evolved from a wholesale-dominated business, with only 5% digital revenue in 2017, to a streamlined portfolio with over 40% direct to consumer (DTC) and around 30% total digital penetration by 2021.

Revenue Breakdown (FY22) [caption id="attachment_148358" align="aligncenter" width="420"] Note: VF Corporation include Other category for reconciliation of revenues and profit, and it is primarily related to the sale of non-VF products[/caption]   Company Developments

Date	Development
May 18, 2022	Recognized by 3BL Media in its 100 Best Corporate Citizens ranking for the company’s work across people and planet, including employees, climate change, the environment and human rights, among other categories.
April 13, 2022	The VF Foundation, the philanthropic arm of VF Corporation, releases its second Impact Report, which details how the Foundation positively impacted more than three million people in 73 countries during the period between March 29, 2020, to April 3, 2021.
March 17, 2022	VF Corporation appoints Kevin Bailey as Global Brand President, Vans.
January 11, 2022	VF Corporation appoints Nicole Otto as Global Brand President, The North Face.
November 30, 2021	VF Corporation appoints Nina Flood as President, Global Packs (Eastpak, JanSport and Kipling).
October 26, 2021	VF Corporation publishes New Made for Change Sustainability and Responsibility Report, setting out the company’s achievements in people, planet and product commitments.
October 26, 2021	VF Corporation appoints Allegra Perry to the position of Vice President, Investor Relations.
October 22, 2021	Vans partners with Roblox platform to create Vans World, a metaverse that connects virtual and real-world fashion. The world allows consumers to customize their own skateboards and shoes and purchase goods.
September 7, 2021	VF Corporation announces that Veronica Wu has stepped down from the company’s Board of Directors, effective immediately.
April 28, 2021	VF Corporation enters into a definitive agreement to sell the occupational portion of its Work segment to a subsidiary of Redwood Capital Investments, LLC, a diversified holding company.
April 22, 2021	VF Corporation appoints Matt Puckett as Chief Financial Officer.
March 3, 2021	VF Corporation appoints Susie Mulder as Global Brand President, Timberland.
March 2, 2021	VF Corporation issues its first impact report, outlining the positive impact its financial grants and philanthropic partnerships have had on more than four million people in 53 countries during the year.
February 18, 2021	VF Corporation appoints Jan Van Mossevelde as Global Brand President, Icebreaker.
February 9, 2021	VF Corporation announces its goals to eliminate all single-use plastic packaging by 2025.
January 11, 2021	VF Corporation announces a regional transformation plan to enable long-term growth in Asia.
December 28, 2020	VF Corporation completes its acquisition of Supreme.
November 2, 2020	VF Corporation appoints Lauren Guthrie as Vice President, Global Inclusion and Diversity.
September 3, 2020	Timberland collaborates with Redress, an environmental charity, to support the next generation of sustainable fashion designers.
August 3, 2020	VF Corporation appoints Winnie Ma as President, Greater China.
April 2020	VF Corporation contributes $1.5 million to support Covid-19 relief efforts.
February 2020	VF Corporation appoints Travis Campbell, currently General Manager of The North Force brand for the Americas region, to the newly created role of President.
January 2020	VF Corporation explores strategic alternatives for the occupational portion of its work brands, including sale.
November 2019	VF Corporation appoints Andrea Canneloni to the newly created role of President, Product Platform for its EMEA region.

  Management Team

• Steven Rendle—Executive Chairman, President and CEO
• Matt Puckett —EVP and Chief Financial Officer
• Cameron Bailey—EVP, Global Supply Chain
• Velia Carboni—EVP and Chief Digital & Technology Officer

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Source: Company reports