VF Corp. says no changes to Q2 guidance excluding Supreme impact

According to a regulatory filing, on September 4, 2024, VF Corporation announced the availability of supplemental investor information related to VF’s historical quarterly and annual results for fiscal 2024 and the first quarter of fiscal 2025 that gives effect to the pending sale of the Supreme brand business in accordance with generally accepted accounting principles in the U.S. and on an adjusted basis. VF believes this provides investors with useful supplemental financial information regarding VF’s underlying business trends and the performance of VF’s ongoing operations, in accordance with GAAP and on an adjusted basis, post the closing of the pending sale of Supreme. Excluding the impact from Supreme in fiscal 2025, there are no changes to VF’s expectations for Q2’FY25 as provided on its Q1’FY25 earnings call on August 6, 2024. All comparisons to the prior year exclude Supreme from both years. The rate of revenue decline in Q2 is expected to improve modestly relative to Q1. Gross margin is expected to be up slightly in Q2 relative to last year. SG&A expenses in Q2 are expected to be slightly up versus the prior year period, which excluding Supreme, are expected to increase in the range of $25 million to $35 million, up 2% to 3% versus the prior year. This combined with the aforementioned revenue decline is expected to result in a higher rate of deleverage in Q2 relative to the prior quarter.