What changed in this filing

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Item 7. Management’s Discussion and Analysis

2025-05-22 compared with 2024-05-23 · 315 added, 348 removed, 370 unchanged (64% of the section changed)

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

VF Corporation (together with its subsidiaries, collectively known as “VF” or the "Company”) is a global leader in the design, procurement, marketing and distribution of branded lifestyle apparel, footwear and accessories.

VF’s diverse portfolio meets consumer needs across a broad spectrum of activities and lifestyles.

VF Corporation (together with its subsidiaries, collectively known as “VF” or the "Company”) is a portfolio of leading outdoor, active and workwear brands, including The North Face ® , Vans ® , Timberland ® and Dickies ® .

VF is committed to providing consumers with innovative products that are rooted in performance and elevated design, while delivering sustainable and long-term value for its employees, communities, and shareholders.

VF is diversified across brands, product categories, channels of distribution, geographies and consumer demographics.

We own a broad portfolio of brands in the outerwear, footwear, apparel, backpack, luggage and accessories categories.

Our products are marketed to consumers through our wholesale channel,

primarily in specialty stores, national chains, mass merchants, department stores, independently-operated partnership stores and with strategic digital partners.

We own a broad portfolio of brands in the apparel, footwear and accessories categories.

Our products are marketed to

consumers through our wholesale channel, primarily in specialty stores, national chains, mass merchants, department stores, independently-operated partnership stores and with strategic digital partners.

Our products are also marketed to consumers through our own direct-to-consumer operations, which include VF-operated stores, concession retail stores, brand e-commerce sites and other digital platforms.

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VF operates and reports using a 52/53 week fiscal year ending on the Saturday closest to March 31 of each year.

All references to the years ended March 2024 ("Fiscal 2024"), March 2023 ("Fiscal 2023") and March 2022 ("Fiscal 2022") relate to the 52-week fiscal years ended March 30, 2024, April 1, 2023, and April 2, 2022, respectively.

All references to the years ended March 2025 ("Fiscal 2025"), March 2024 ("Fiscal 2024") and March 2023 ("Fiscal 2023") relate to the 52-week fiscal years ended March 29, 2025, March 30, 2024, and April 1, 2023, respectively.

The following discussion and analysis focuses on our financial results for the years ended March 2025 and 2024 and year-to-year comparisons between these years.

A discussion of our results of operations for the year ended March 2024 compared to the year ended March 2023 is included in Part II, Item 7.

"Management's Discussion and Analysis of Financial Condition and Results of Operations" of our Annual Report on Form 10-K for the year ended April 1, 2023 , filed with the SEC on May 25, 2023, and is incorporated by reference into this Form 10-K.

"Management's Discussion and Analysis of Financial Condition and Results of Operations" of our Annual Report on Form 10-K for the year ended March 30, 2024 , filed with the SEC on May 23, 2024, and is incorporated by reference into this Form 10-K.

All per share amounts are presented on a diluted basis.

All percentages shown in the tables below and the discussion that follows have been calculated using unrounded numbers.

References to the year ended March 2024 foreign currency amounts and impacts below reflect the changes in foreign exchange rates from the year ended March 2023 when translating foreign currencies into U.S.

References to the year ended March 2025 foreign currency amounts and impacts below reflect the changes in foreign exchange rates from the year ended March 2024 when

translating foreign currencies into U.S.

VF’s most significant foreign currency exposure relates to business conducted in euro-based countries.

Additionally, VF conducts business in other developed and emerging markets around the world with exposure to foreign currencies other than the euro.

On July 16, 2024, VF entered into a definitive Stock and Asset Purchase Agreement (the "Purchase Agreement") with EssilorLuxottica S.A.

to sell the Supreme ® brand business ("Supreme").

On October 1, 2024, VF completed the sale of Supreme.

During the second quarter of Fiscal 2025, the Company determined that Supreme met the held-for-sale and discontinued operations accounting criteria.

Accordingly, VF has reported the results of Supreme and the related cash flows as discontinued operations in the Consolidated Statements of Operations and Consolidated Statements of Cash Flows, respectively, through the date of sale.

In addition, interest expense and the related interest rate swap impact for the delayed draw Term Loan ("DDTL") were allocated to discontinued operations due to the requirement within the DDTL Agreement, as amended, that the DDTL be prepaid upon the receipt of the net cash proceeds from the sale of Supreme.

The related held-for-sale assets and liabilities have been reported as

VF Corporation Fiscal 2025 Form 10-K 25

Table of Conten ts

assets and liabilities of discontinued operations in the Consolidated Balance Sheets, through the date of sale.

These changes have been applied to all periods presented.

Refer to Note 3 to VF’s consolidated financial statements for additional information on discontinued operations.

Unless otherwise noted, amounts, percentages and discussion for all periods included below reflect the results of operations and financial condition from VF’s continuing operations.

RECENT DEVELOPMENTS

Cybersecurity Incident

On December 13, 2023, VF detected unauthorized occurrences on a portion of its information technology ("IT") systems.

Upon detecting the unauthorized occurrences, VF began taking steps to contain, assess and remediate the incident, including beginning an investigation with leading external cybersecurity experts, activating its incident response plan, and shutting down some systems.

As a result of these and other measures, VF believes the threat actor was ejected from VF’s IT systems on December 15, 2023.

The threat actor disrupted VF’s business operations by encrypting some IT systems, and stole data from VF, including personal data.

After VF shut down some of its systems, VF experienced disruption to certain of its operations, including interrupted replenishment of retail store inventory and delayed order fulfillment which had impacts such as the cancellation by customers and consumers of some product orders, reduced demand on certain of its brands’ e-commerce sites, and delay of some wholesale shipments.

As of April 25, 2024, VF's investigation of the cybersecurity incident has concluded.

VF believes the impacts of the cybersecurity incident were not material to its financial condition or results of operations.

VF is seeking reimbursement of costs, expenses and losses stemming from the cybersecurity incident by submitting claims to VF’s cybersecurity insurers.

The timing and amount of any such reimbursements are not known at this time.

Impact of Tariffs

In April 2025, the U.S.

government announced broad-based, reciprocal tariffs on foreign imports.

The implementation of some of the announced tariffs has been delayed, while some have taken effect.

Additionally, in response, certain governments have announced retaliatory tariffs on goods imported from the U.S.

VF has a diversified sourcing country mix.

Approximately 85% of products purchased for sale in the U.S.

are sourced through Southeast Asia and Central and South America, with Vietnam, Bangladesh, Cambodia and Indonesia comprising the top four sourcing markets.

Less than 2% of total U.S.

products are sourced through China.

While the situation is dynamic and evolving, VF continues to analyze the impact of these tariffs on our business and is taking steps to mitigate our tariff exposure.

Mitigation strategies include sourcing optimization, accelerating production and shipments into the U.S.

during the period of delayed application of the reciprocal tariffs, negotiations with our vendors, and potential price increases.

However, the duration and scope of the tariffs are difficult to predict, along with the extent to which VF will be able to offset the impact through our mitigation efforts.

Supreme Divestiture

As noted above, VF completed the sale of Supreme on October 1, 2024.

VF received proceeds of $1.506 billion , net of cash sold, resulting in a final after-tax loss on sale of $126.6 million, which is included in the income (loss) from discontinued operations, net of tax line item in the Consolidated Statement of Operations for the year ended March 2025 .

VF used a portion of the net cash proceeds to prepay $1.0 billion of the DDTL on October 4, 2024, pursuant to the terms of the DDTL Agreement, as amended, which required repayment within ten business days of VF’s receipt of the net cash proceeds from the sale of Supreme, and to repay $450.0 million of commercial paper borrowings upon maturity during the third quarter of Fiscal 2025.

On October 30, 2023, VF introduced Reinvent, a transformation program to enhance focus on brand-building and to improve operating performance and allow VF to achieve its full potential.

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• Establish global commercial organization, inclusive of an Americas region:

Change the operating model with the establishment of a global commercial structure.

This includes the creation of an Americas regional platform, modeled on the Company's successful operations in the Europe and Asia-Pacific regions.

VF changed the operating model with the establishment of a global commercial structure.

includes the creation of an Americas regional platform, modeled on the Company's successful operations in the Europe and Asia-Pacific regions.

With this change, VF has created the role of Chief Commercial Officer, with responsibility for go-to-market execution globally.

• Sharpen brand presidents' focus on sustainable growth:

A direct consequence and intent of the operating model change, which is particularly critical at this stage for the Vans ® brand, enables brand presidents to direct greater

focus and attention to long-term brand-building, product innovation and growth strategies.

A direct consequence and intent of the operating model change, which is particularly critical at this stage for the Vans ® brand, enables brand presidents to direct greater focus and attention to long-term brand-building, product innovation and growth strategies.

• Appoint new Vans ® president :

The Global Brand President of Vans ® has stepped down from the position.

VF's CEO is serving as the brand president on an interim basis until a permanent brand president is appointed.

Sun Choe was appointed the new Global Brand President of Vans ® effective late July 2024.

• Optimize cost structure to improve operating efficiency and profitability:

Implement a large-scale cost reduction program, which is expected to deliver $300 million in fixed cost savings, by removing spend in non-strategic areas of the business, and simplifying and right-sizing VF's structure.

Actions have been implemented in a large-scale cost reduction program, which delivered $300.0 million in gross cost savings, by removing spend in non-strategic areas of the business, and simplifying and right-sizing VF's structure.

• Reduce debt and leverage:

In addition to improving operating performance, VF is committed to deleveraging the balance sheet.

Reinvent charges and project-related costs in Fiscal 2024 were $105.4 million, which primarily included costs associated with severance and employee-related benefits and the net impact of asset disposals and write-downs.

Dividend Update

On October 24, 2023, the Board of Directors declared a quarterly dividend of $0.09 per share that was paid during the third quarter of Fiscal 2024, which represented a 70% reduction when compared to the dividend of $0.30 per share paid in the second quarter of Fiscal 2024.

The decrease in the dividend was an action taken to strengthen the Company's financial position by reducing debt.

Subject to approval by its Board of Directors, VF intends to continue to pay quarterly dividends.

On May 14, 2024, the Board of Directors declared a quarterly dividend of $0.09 p er share to be paid during the first quarter of Fiscal 2025.

Impact of Global Events and Uncertainties

Although it did not have a significant impact in the current year, the coronavirus ("COVID-19") pandemic resulted in temporary closures of VF-operated retail stores in Fiscal 2023, most notably in the Asia-Pacific region, which impacted revenues in the region for the year ended March 2023.

The ongoing conflict between Russia and Ukraine and the conflict in the Middle East continue to cause disruption in the regions and unknown impacts to the global economy;

however, we currently do not expect significant disruption to our business.

VF used the proceeds from the sale of Supreme to prepay the DDTL and to repay $450.0 million of commercial paper borrowings.

In March 2025, VF completed an early redemption of $750.0 million in aggregate principal amount of its outstanding 2.400% Senior Notes due in April 2025.

In Fiscal 2025, the Company initiated the second phase of Reinvent, which is focused on a return to growth and improvements to profitability.

In doing so, the Company initiated a set of transformational workstreams focused on revenue growth, margin expansion and selling, general and administrative expense contraction.

VF aims to generate between $500.0 and $600.0 million in net operating income expansion in Fiscal 2028.

Reinvent restructuring charges in the year ended March 2025 were $81.4 million and cumulative charges were $190.1 million since the inception of the program, which primarily included costs associated with severance and employee-related benefits and the impact of asset impairments and write-downs.

For additional information regarding recent developments, see "Item 1A.

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26 VF Corporation Fiscal 2025 Form 10-K

Table of Conten ts

SUMMARY OF THE YEAR ENDED MARCH 2025

• Revenues decreased 10% to $10.5 billion compared to the year ended March 2023, including a 1% favorable impact from foreign currency.

• Outdoor segment revenues decreased 3% to $5.5 billion compared to the year ended March 2023, including a 1% favorable impact from foreign currency.

• Active segment revenues decreased 17% to $4.1 billion compared to the year ended March 2023, including a 1% favorable impact from foreign currency.

• Work segment revenues decreased 16% to $891.5 million compared to the year ended March 2023.

• Wholesale revenues were down 14% compared to the year ended March 2023, including a 1% favorable impact from foreign currency.

• Direct-to-consumer revenues were down 5% compared to the year ended March 2023, including a 1% favorable impact from foreign currency.

E-commerce revenues decreased 8% in the year ended March 2024.

Direct-to-consumer revenues accounted for 47% of VF’s total revenues in the year ended March 2024.

• International revenues increased 1% compared to the year ended March 2023, including a 2% favorable impact from foreign currency.

Revenues in Europe were flat, including a 4% favorable impact from foreign currency.

Revenues in the Asia-Pacific region increased 3%, including a 4% unfavorable impact from foreign currency.

International revenues represented 54% of VF’s total revenues in the year ended March 2024.

• Revenues in the Americas region decreased 18% compared to the year ended March 2023, including a 1% favorable impact from foreign currency.

• Gross margin decreased 50 basis points to 52.0% in the year ended March 2024 compared to the year ended March 2023, primarily driven by unfavorable foreign currency impacts, partially offset by favorable mix.

• Earnings (loss) per share decreased to $(2.49) in the year ended March 2024 from $0.31 in the year ended March 2023.

The decrease was primarily driven by increased tax expense due to the unfavorable decision in the Timberland tax case and lower profitability across all segments in the year ended March 2024.

• Revenues decreased 4% to $9.5 billion com pared to the year ended March 2024.

• Outdoor segm ent revenues increased 1% to $5.6 billion compared to the year ended March 2024, including a 1% unfavorable impact from foreign currency.

• Active segment revenues decreased 12% to $3.1 billion compared to the year ended March 2024, including a 1% unfavorable impact from foreign currency.

• Work segment revenues decreased 7% to $833.1 million compared to the year ended March 2024, i ncluding a 1% unfavorable impact from foreign currency.

• Wholesale revenues we re down 2% compared to the year ended March 2024.

• Direct-to-consumer revenues were down 6% compared to the year ended March 2024.

• I nternational revenues decreased 2% compared to the year ended March 2024, including a 1% unfavorable impact from foreign currency.

• Revenues in the Americas reg ion decreased 7% co mpared to the year ended March 2024, i ncluding a 1% unfavorable impact from foreign currency.

• Gross margin increased 190 basis points to 53.5% in the year ended March 2025 compared to the year ended March 2024, primarily driven by lower product costs and improved inventory quality.

• Earnings (loss) per share wa s $0.18 in the year ended March 2025 compared to ($2.62) in the year ended March 2024.

The year ended March 2024 included increased tax expense due to the unfavorable decision in the Timberland tax case, which negatively impacted earnings per share by $1.72.

The increase in earnings per share was also due to lower impairment charges in the current year compared to the year ended March 2024 and increased profitability in the Outdoor and Work segments.

The increase in earnings per share was also partially offset by lower profitability in the Active segment.

ANALYSIS OF RESULTS OF OPERATIONS

Consolidated Statements of Operations

The following table presents a summary of the changes in net revenues for the year ended March 2024 compared to the year ended March 2023:

The following table presents a summary of the changes in revenues for the year ended March 2025 compared to the year ended March 2024:

(In millions) Year Ended March

Net revenues — 2023 $ 11,612.5

Revenues — 2024 $ 9,915.7

Organic (361.3)

Impact of foreign currency (49.7)

Net revenues — 2024 $ 10,454.7

Revenues — 2025 $ 9,504.7

Year Ended March 2025 Compared to Year Ended March 2024

VF reported a 10% decrease in revenues in Fiscal 2024 compared to Fiscal 2023, including a 1% favorable impact from foreign currency .

The revenue decrease was attributed to declines across all segments, most notably in the Active and Work segments.

The revenue decrease was primarily driven by weakness in the Americas region wholesale channel, partially offset by overall growth in the Asia-Pacific region.

The Asia-Pacific region was negatively impacted by COVID-19 resurgence in Mainland China in Fiscal 2023 .

VF reported a 4% decrease in reven ues in Fiscal 2025 compared to Fiscal 2024.

The revenue decrease was driven by declines across the Active and Work segments, partially offset by an increase in the Outdoor segment.

The revenue decrease was also due to declines across the Americas and Europe regions, with the most significant declines in the Americas region.

Additional details on revenues are provided in the section titled “Information by Reportable Segment”.

The following table presents the percentage relationship to net revenues for components of the Consolidated Statements of Operations:

The following table presents the percentage relationship to revenues for components of the Consolidated Statements of Operations:

Year Ended March

Gross margin (net revenues less cost of goods sold) 52.0 % 52.5 %

Gross margin (revenues less cost of goods sold) 53.5 % 51.6 %

Selling, general and administrative expenses 49.4 47.9

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Operating margin 3.2 % (1.5 %)

Amounts may not sum due to rounding.

VF Corporation Fiscal 2025 Form 10-K 27

Table of Conten ts

Year Ended March 2025 Compared to Year Ended March 2024

Gross margin decreased 50 basis points to 52.0% in Fiscal 2024 compared to 52.5% in Fiscal 2023.

The decrease in gross margin in Fiscal 2024 was driven by unfavorable foreign currency impacts, partially offset by favorable mix.

Selling, general and administrative expenses as a percentage of total revenues increased 400 basis points in Fiscal 2024 compared to Fiscal 2023.

Gross margin increased 190 basis points to 53.5% in Fiscal 2025 compared to 51.6% in Fiscal 2024.

The increase in gross margin in Fiscal 2025 was driven b y lower product costs and improved inventory quality.

Selling, general and administrative expenses as a percentage of revenues increased 150 basis points in Fiscal 2025 comp ared to Fiscal 2024, reflecting lower leverage of operating expenses due to decreased revenues.

Selling, general and administrative expenses decreased $57.8 million in Fiscal 2025 compared to Fiscal 2024 .

The decrease was due to lower distribution costs, compensation and administrative costs and direct-to-consumer expenses, partially offset by higher information technology costs and Reinvent charges.

The decrease was primarily due to cost savings from Reinvent, lower information technology costs and distribution expenses and gains recognized from sale leaseback transactions, partially offset by Reinvent restructuring charges and project-related costs and higher compensation costs, including performance-based compensation.

During the year ended March 2025 , VF recorde d goodwill and intangible asset impairment charges of $89.2 million related to the Dickies indefinite-lived trademark intangible asset and Icebreaker reporting unit.

During the third quarter of Fiscal 2025, VF determined that a triggering event had occurred requiring a quantitative analysis of the Dickies indefinite-lived trademark intangible asset, and as a result of the impairment testing performed, VF recorded an indefinite-lived trademark intangible asset impairment charge of $51.0 million .

As a result of VF's annual impairment testing as of the beginning of the fourth quarter of Fiscal 2025, VF recorded a goodwill impairment charge of $38.2 million related t o the Icebreaker reporting unit.

During the year ended March 2024 , VF recorded goodwill impairment charges of $507.6 million related to the Timberland, Dickies and Icebreaker reporting units.

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During the fourth quarter of Fiscal 2024, VF also performed an impairment analysis of the Timberland reporting unit as a result of a triggering event and recorded an additional goodwill impairment charge of $211.7 million.

VF recorded goodwill and intangible asset impairment charges of $394.1 million and $340.9 million, respectively, in the year ended March 2023 related to the Supreme reporting unit.

During the second quarter of Fiscal 2023, VF determined that a triggering event had occurred requiring a quantitative analysis of the Supreme reporting unit goodwill and indefinite-lived trademark intangible asset.

As a result of the impairment testing performed, VF recorded impairment charges of $229.0 million and $192.9 million to the Supreme reporting unit goodwill and indefinite-lived trademark intangible asset, respectively.

During the fourth quarter of Fiscal 2023 , in connection with its ann ual impairment testing, VF performed a quantitative analysis of the Supreme reporting unit goodwill and indefinite-lived trademark intangible asset.

As a result of the impairment testing performed, VF recorded additional impairment charges of $165.1 million and $148.0 million to the Supreme reporting unit goodwill and indefinite-lived trademark intangible asset, respectively.

In Fiscal 2024, operating margin decreased to (0.3)% from 2.8% in Fiscal 2023, primarily due to the items described above.

Net interest expense increased $58.8 million to $223.4 million in Fiscal 2024.

The increase in net interest expense was primarily due to additional borrowings on long-term debt at higher rates, partially offset by lower short-term commercial paper borrowings and higher investment rates.

In Fiscal 2025, operating margin increased to 3.2% from (1.5%) in Fiscal 2024, primarily due to the items described above.

N et interest expense decreased $16.4 million to $149.2 million in Fiscal 2025.

The decrease in net interest expense was primarily

due to decreased levels of short-term commercial paper borrowings and long-term debt, and an increase in interest income due to higher average cash equivalents and rates during the year.

T otal outstanding interest-bearing debt averaged $5.0 billion and $6.7 billion for Fiscal 2025 and Fiscal 2024, respectively, with short-term borrowings representing 4.1% and 5.8% of average debt outstanding for the respective years.

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Other income (expense), net primarily consists of components of net periodic pension cost (excluding the service cost component), certain foreign currency and hedging gains and losses and other non-operating gains and losses.

Other income (expense) netted to $23.8 million and $(119.8) million in Fiscal 2024 and Fiscal 2023, re spectively.

Other income (expense), net in Fiscal 2024 primarily included legal settlement gains of $29.1 million, $3.2 million of net periodic pension cost and $2.9 million of foreign currency and hedging losses .

Other income (expense), net in Fiscal 2023 primarily included a $91.8 million pension settlement charge, which resulted from the purchase of a group annuity contract and transfer of a portion of the assets and liabilities associated with the U.S.

qualified defined benefit pension plan to an insurance company, and $23.0 million of foreign currency and hedging losses .

The effective income tax rate was (314.6)% in Fiscal 2024 compared to (174.0)% in Fiscal 2023.

The Fiscal 2024 effective income tax rate included a net discrete tax expense of $704.6 million, primarily related to the tax effects of decisions in the Timberland tax case and Belgium excess profits ruling.

Other income (expense) netted to ($9.4) million a nd $24.7 million in Fiscal 2025 and Fiscal 2024, re spectively.

Other income (expense), net in Fiscal 2025 primarily included equity investment impairments of $15.6 million, cyber insurance recoveries of $13.7 million received in Fiscal 2025, $4.2 million of net periodic pension cost and $2.3 million of foreign currency and hedging losses.

Other income (expense), net in Fiscal 2024 primarily includ ed legal settlement gains of $29.1 million, $3.2 million of net periodic pension cost and $2.0 million of foreign currency and hedging losses.

T he effective income tax rate was 52.2% in Fiscal 2025 compared to (257.5%) in Fiscal 2024.

The Fiscal 2025 effective income tax rate included a net discrete tax expense of $19.4 million , which included a $1.1 million net tax benefit related to unrecognized tax benefits and interest, a $5.1 million tax expense related to stock compensation, a $12.0 million tax expense related to return to accrual adjustments, and a $6.7 million net tax expense related to tax rate changes on deferred tax items.

Refer to Note 20 to VF's consolidated financial statements for additional information.

The $704.6 million net discrete tax expense in Fiscal 2024 decreased the effective income tax rate by 301.5% compared to a favorable 223.5% impact of discrete items for Fiscal 2023.

Excluding discrete items, the effective tax rate during Fiscal 2024 decreased by approximately 62.6% primarily due to the jurisdictional mix of earnings and losses and the impact of nondeductible goodwill impairment in Fiscal 2024, resulting in a consolidated pre-tax loss.

As a result of the above, net income (loss) in Fiscal 2024 was $(968.9) million ($(2.49) per diluted share), compared to $118.6 million ($0.31 per diluted share) in Fiscal 2023.

The $19.4 million n et discrete tax expense in Fiscal 2025 increased t he effective income tax rate by 13.4% compared to a favorable 247.4% impact of discrete items for Fiscal 2024.

Excluding discrete items, the effective tax rate during Fiscal 2025 increased by approximately 48.9% primarily due to jurisdictional mix of earnings and the impact of nondeductible goodwill impairment.

As a result of the above, income (loss) from continuing operations in Fiscal 2025 was $69.3 million ( $0.18 p er diluted share), compared to ($1.0) billion (($2.62) per diluted share) in Fiscal 2024.

Refer to additional discussion in the “Information by Reportable Segment” section below.

28 VF Corporation Fiscal 2025 Form 10-K

Table of Conten ts

Information by Reportable Segment

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Outdoor, Active and Work.

We have included an Other category in the tables below 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.

The primary financial measures used by management to evaluate the financial results of VF's reportable segments are segment revenues and segment profit.

The primary financial measures used by management to assess performance and allocate resources to VF's segments are segment revenues and segment profit.

Segment profit comprises the operating income and other income (expense), net line items of each segment.

Refer to Note 21 to the consolidated financial statements for a summary of results of operations by segment, along with a reconciliation of segment profit to income before income taxes.

VF Corporation Fiscal 2024 Form 10-K 29

Refer to Note 21 to the consolidated financial statements for a summary of results of operations by segment, along with a reconciliation of segment profit to income (loss) from continuing operations before income taxes.

Year Ended March 2025 Compared to Year Ended March 2024

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Year Ended March

(In millions) Outdoor Active Work Other Total

(In millions) Outdoor Active Work Total

Segment revenues — 2024 $ 5,501.4 $ 3,522.7 $ 891.5 $ 9,915.7

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Segment revenues — 2025 $ 5,576.3 $ 3,095.3 $ 833.1 $ 9,504.7

Segment Profit (Loss):

Segment Profit:

Year Ended March

(In millions) Outdoor Active Work Other Total

Segment profit (loss) — 2023 $ 785.4 $ 654.7 $ 121.2 $ (0.5) $ 1,560.7

(In millions) Outdoor Active Work Total

Segment profit — 2024 $ 602.7 $ 237.5 $ 17.6 $ 857.9

Organic 121.3 (84.3) 35.8 72.8

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VF Corporation Fiscal 2025 Form 10-K 29

Table of Conten ts

The following sections discuss the changes in revenues and profitability by segment.

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Segment profit 724.4 602.7 20.2 %

Operating margin 11.0 % 13.9 %

Segment profit margin 13.0 % 11.0 %

The Outdoor segment includes the following brands:

The North Face ® , Timberland ® , Smartwool ® , Altra ® and Icebreaker ® .

The North Face ® , Timberland ® , Altra ® , Smartwool ® and Icebreaker ® .

Year Ended March 2025 Compared to Year Ended March 2024

Global revenues for Outdoor decreased 3% in Fiscal 2024 compared to Fiscal 2023, including a 1% favorable impact due to foreign currency.

Revenues in the Americas region decreased 14% in Fiscal 2024, including a 1% favorable impact from foreign currency.

Revenues in the Asia-Pacific region increased 20% in Fiscal 2024, including a 5% unfavorable impact from foreign currency and a 27% increase in Greater China (which includes Mainland China, Hong Kong and Taiwan), including a 5% unfavorable impact from foreign currency.

Revenues in the Europe region increased 6%, including a 4% favorable impact from foreign currency.

Global revenues for The North Face ® brand increased 2% in Fiscal 2024, including a 1% favorable impact from foreign currency.

The increase in the year ended March 2024 was driven by growth in the Asia-Pacific and Europe regions.

Revenues in the Asia-Pacific region increased 27% in Fiscal 2024, including a 4% unfavorable impact from foreign currency.

Revenues in the Europe region increased 9% in Fiscal 2024, including a 4% favorable impact from foreign currency.

Revenues in the Americas region decreased 10% in the year ended March 2024.

Global revenues for the Timberland ® brand decreased 11% in Fiscal 2024, including a 2% favorable impact from foreign

The overall decline was most significantly driven by a 32% decrease in the Americas region in the year ended March 2024, including a 1% favorable impact from foreign currency.

Revenues in the Asia-Pacific region increased 7% in Fiscal 2024, including a 3% unfavorable impact from foreign currency.

Revenues in the Europe region increased 1% in the year ended March 2024, including a 4% favorable impact from foreign currency.

Global direct-to-consumer revenues for Outdoor increased 3% in Fiscal 2024.

Th e increase was primarily due to The North Face ® brand in the Asia-Pacific and Europe regions.

Global wholesale revenues decreased 7% in Fiscal 2024, including a 1% favorable impact from foreign currency.

The decrease was primarily driven by declines in the Americas regions.

Operating margin decreased in Fiscal 2024 compared to Fiscal 2023, reflecting increased direct-to-consumer expenses and higher information technology costs.

The decrease was partially offset by higher gross margin, primarily driven by favorable pricing and mix, partially offset by unfavorable foreign currency impacts.

Global revenues for Outdo or increased 1% in Fiscal 2025 compared to Fiscal 2024, including a 1% unfavorable impact due to foreign currency.

Revenues in the Asia-Pacific region increased 14% in Fiscal 2025, includin g a 14% increase in Greater China (which includes Mainland China, Hong Kong and Taiwan).

Revenue s in the Europe region remained flat.

Revenues in the Americas region decreased 2% in Fiscal 2025, including a 1% unfavorable impact from foreign currency.

Global revenues for The North Face ® brand increased 1% in Fiscal 2025.

Revenues in the Asia-Pacific region increased 18% in Fiscal 2025, including a 1% unfavorable imp act from foreign currency.

Revenues in the Europe region remained flat in Fiscal 2025.

Revenues in the Americas reg ion decreased 5% in Fiscal 2025.

Global revenues for the Timberland ® brand increased 3% in Fiscal 2025.

Revenues in the Americas region increased 12% in

Fiscal 2025, including a 1% unfavorable i mpact from foreign currency.

Revenues in the Asia-Pacifi c region decreased 1% in Fiscal 2025, including a 2% unfavorable impact from for eign currency.

Revenues in the Europe regio n decreased 2% in Fiscal 2025.

Global d irect-to-consumer revenues for Outdoor increased 6% in Fiscal 2025.

The increase was primarily due to The North Face ® brand across all regions.

Global wholesale revenues decreased 2% in Fiscal 2025, including a 1% unfavorable impact from foreign currency.

The decrease w as primarily driven by declines i n The North Face ® brand in the Americas and Europe regi ons.

Segment profit margin increased in Fiscal 2025 compared to Fiscal 2024 , reflecting higher gross margin, primarily driven by lower product costs and less promotional activity.

Year Ended March

2 unchanged sentences

Segment profit 152.8 237.5 (35.7 %)

Operating margin 8.7 % 13.3 %

Segment profit margin 4.9 % 6.7 %

The Active segment includes the following brands:

Vans ® , Supreme ® , Kipling ® , Napapijri ® , Eastpak ® and JanSport ® .

Vans ® , Kipling ® , Napapijri ® , Eastpak ® and JanSport ® .

Year Ended March 2025 Compared to Year Ended March 2024

Global revenues for Active decreased 17% in Fiscal 2024 compared to Fiscal 2023, including a 1% favorable impact from foreign currency.

Revenues in the Americas region decreased 23% in Fiscal 2024.

Revenues in the Europe region decreased 8% in the year ended March 2024, including a 4% favorable impact from foreign currency.

Revenues in the Asia-Pacific region decreased 12% in Fiscal 2024, including a 3% unfavorable impact from foreign currency, and an 18% decrease in Greater China, including a 3% unfavorable impact from foreign currency.

Vans ® brand global revenues decreased 24% in Fiscal 2024, including a 1% favorable impact from foreign currency.

overall decline in Fiscal 2024 was most significantly driven by a 28% decrease in the Americas region, including a 1% favorable impact from foreign currency.

Revenues in the Asia-Pacific region decreased 24% in the year ended March 2024, including a 2% unfavorable impact from foreign currency.

The declines in the Americas and Asia-Pacific regions include the impact of strategic wholesale channel reset actions taken during Fiscal 2024.

Revenues in the Europe region decreased 13% in Fiscal 2024, including a 3% favorable impact from foreign currency.

Glo bal revenues for Active decreased 12% in Fiscal 2025 compared to Fiscal 2024, including a 1% unfavorable imp act from foreign currency.

Revenues in the Americas region decreased 13% in Fiscal 2025, including a 1% unfavorable i mpact from foreign currency.

Revenues in the Asia-Pacific regio n decreased 23% in Fiscal 2025, including a 1% unfavorable impac t from foreign cu rrency, and a 31% decrease in Greater China, including a 1% unfavorable impac t from foreign currency.

Revenues in the Europe region decreased 7% i n Fiscal 2025.

Vans ® brand global revenues decreased 16% in Fiscal 2025, including a 1% unfavorable i mpact from foreign currency.

The overall decline in F iscal 2025 was most significantly driven by a 16% decrease in the Americas region, including a 1% unfavorable impact from foreign currency.

The decrease in the Americas region was partially offset by the deliberate actions taken to right-size inventories in the Americas wholesale channel in the second half of Fiscal 2024.

Revenues in the Asia-Pacific region decreased 28% in Fiscal 2025, including a 1% unfavorable impact from foreign currency.

Revenues in the Europe region decreased 9% in Fiscal 2025.

The decline in Vans ® was also attributed to deliberate strategic actions taken in Fiscal

2025, including reducing wholesale store fronts and inventory in the Asia-Pacific region (specifically in China), exiting value-channel wholesale customers and closing unprofitable owned retail stores in the Americas region, and reducing distressed sales.

Global direct-to-consumer revenues for Active decreased 20% in Fiscal 2025.

The decrease was primarily due to declines in the Americas region, which decreased 17% in Fiscal 2024, including a 1% favorable impact from foreign currency .

Global wholesale

VF Corporation Fiscal 2024 Form 10-K 31

revenues for Active decreased 24% in Fiscal 2024, and included a 2% favorable impact from foreign currency.

The decrease in Fiscal 2024 was primarily due to a 32% decrease in the Americas region, including a 1% favorable impact from foreign currency.

Wholesale revenues in the Europe region decreased 14% in the year ended March 2024 , including a 3% favorable impact from foreign currency.

The decrease was primarily due to declines in the Americas region, which decreased 21% in Fiscal 2025, including a 1% unfavorable impact from foreign currency .

Global wholesale revenues for Active decreased 3% in Fiscal 2025, including a 1% unfavorable impact from foreign currency.

Wholesale revenues in the Europe region decreased 4% in Fiscal 2025.

Wholesale revenues in the Asia-Pacific region decreased 14%, including a 1% unfavorable impact from foreign currency.

Operating margin decreased in Fiscal 2024 compared to Fiscal 2023, reflecting lower leverage of operating expenses due to decreased revenues.

The decrease was also due to lower gross margin, primarily driven by unfavorable foreign currency impacts, partially offset by favorable mix .

The decrease was partially offset by legal settlement gains of $29.1 million.

The decrease in Fiscal 2025 was partially offset by a 1% increase in the Americas region, including a 2% unfavorable impact from foreign currency.

Segment profit margin decreased in Fiscal 2025 compared to Fiscal 2024, reflecting legal settlement gains of $29.1 million recorded in the prior year and lower leverage of operating expenses due to decreased revenues.

30 VF Corporation Fiscal 2025 Form 10-K

Table of Conten ts

Year Ended March

2 unchanged sentences

Segment profit 53.1 17.6 201.2 %

Operating margin 2.0 % 11.4 %

Segment profit margin 6.4 % 2.0 %

The Work segment includes the following brands:

1 unchanged sentence

Year Ended March 2025 Compared to Year Ended March 2024

Global Work revenues decreased 16% in Fiscal 2024 compared to Fiscal 2023.

Global Work revenues decreased 7% in Fiscal 2025 compared to Fiscal 2024, including a 1% unfavorable impact fro m foreign currency.

Revenues in the Americas region decreased 5% in Fiscal 2025.

Revenues in the Asia-Pacific region decreased 35%, including a 3% unfavorable impact from foreign currency.

Revenues in the Europe region increased 6%, including a 5% favorable impact from foreign currency.

Revenues in the Europe region decreased 10%.

Revenues in the Asia -Pacific region decreased 14%, including a 1% unfavorable impact fro m foreign currency.

Dickies ® brand global revenues decreased 12% in Fiscal 2025.

The decline was primarily driven by a decrease in the Americas region of 15%, reflecting lower inventory replenishment and weakness with certain key U.S.

wholesale customer accounts .

The decline in the year ended March 2024 was also attributed to

a decrease in the Asia-Pacific region of 35%, including a 3% unfavorable impact from foreign currency, primarily due to broad-based weakness in Greater China.

Revenues in the Europe region increased 6% in the year ended March 2024, including a 5% favorable impact from foreign currency.

Operating margin decreased in Fiscal 2024 compared to Fiscal 2023, reflecting lower gross margin resulting from higher distressed inventory reserves and higher material costs, and lower leverage of operating expenses due to decreased revenues.

The decrease was partially offset by price increases and favorable mix.

Reconciliation of Segment Profit to Consolidated Income (Loss) Before Income Taxes

The decline was primarily driven by a decrease in the Americas region of 13%, reflecti ng lower inventory replenishment and

weakness with certain key U.S.

wholesale cust omer accounts .

Revenues in the Europe regi on decreased 10% in Fis cal 2025.

Revenues in the Asia-Pacific region decreased 14%, including a 1% unfavorable imp act from foreign curre ncy, primarily due to broad-based weakness in Greater China.

Segment profit margin increased in Fiscal 2025 compared to Fiscal 2024, reflecting higher gross margin, primarily driven by improved inventory quality .

Reconciliation of Segment Profit to Income (Loss) From Continuing Operations Before Income Taxes

There are three types of costs necessary to reconcile total segment profit to consolidated income (loss) from continuing operations before income taxes.

These costs are (i) impairment of goodwill and indefinite-lived intangible assets, which is excluded from segment profit because these costs are not part of the ongoing operations of the respective businesses, (ii) corporate and other expenses, which are excluded from segment profit to the extent they are not allocated to the

segments, and (iii) interest expense, net, which is excluded from segment profit because substantially all financing costs are managed at the corporate office and are not under the control of segment management.

Impairment of goodwill and indefinite-lived intangible assets and net interest expense are discussed in the “Consolidated Statements of Operations” section, and corporate and other expenses are discussed below.

These costs are (i) impairment of goodwill and intangible assets, which is excluded from segment profit because these costs are not part of the ongoing operations of the respective businesses, (ii) corporate and other expenses, which are excluded from segment profit to the extent

they are not allocated to the segments, and (iii) interest expense, net, which is excluded from segment profit because substantially all financing costs are managed at the corporate office and are not under the control of segment management.

Impairment of goodwill and intangible assets and net interest expense are discussed in the “Consolidated Statements of Operations” section, and corporate and other expenses are discussed below.

Year Ended March

6 unchanged sentences

These costs include management information systems and the centralized finance, supply chain and human resources functions that support worldwide operations.

The costs also include

software system implementations and upgrades and other strategic projects.

The costs also include software system implementations and upgrades and other strategic projects.

Operating costs of information systems and shared services are charged to the segments based on utilization of those services.

2 unchanged sentences

Headquarters’ costs include compensation and benefits of corporate management and staff, legal and professional fees,

32 VF Corporation Fiscal 2024 Form 10-K

and general and administrative expenses that have not been allocated to the segments.

1 unchanged sentence

defined benefit pension plans.

Corporate and other expenses decreased $142.5 million in Fiscal 2024 when compared to Fiscal 2023.

The decrease was primarily due to a $91.8 million pension settlement charge recorded in the first quarter of Fiscal 2023.

The decrease was also attributed to lower compensation and administrative costs and lower foreign currency and hedging losses, partially offset by Reinvent charges in Fiscal 2024.

Corporate and other expenses increased $77.1 million in Fiscal 2025 when compared to Fiscal 2024.

The increase was due to higher Reinvent restructuring charges and project-related costs, higher compensation costs, including performance-based compensation, and equity investment impairments, partially offset by cost savings from Reinvent.

VF Corporation Fiscal 2025 Form 10-K 31

Table of Conten ts

International

International revenues increased 1% in Fiscal 2024 compared to Fiscal 2023.

Foreign currency had a favorable impact of 2% on international revenues in Fiscal 2024 .

Revenues in the Europe region were flat in Fiscal 2024, including a 4% favorable impact from foreign currency.

In the Asia-Pacific region, revenues increased 3% in Fiscal 2024, including a 4% unfavorable impact from foreign currency.

Revenues in Greater China increased 9% in Fiscal 2024, including a 4% unfavorable

impact from foreign currency.

The year ended March 2023 was negatively impacted by COVID-19 resurgence in Mainland China.

Revenues in the Americas (non-U.S.) region decreased 3% in Fiscal 2024, including a 3% favorable impact from foreign currency.

International revenues decreased 2% in Fiscal 2025 compared to Fiscal 2024.

Foreign currency had an unfavorable impact of 1% on international revenues in Fiscal 2025.

Revenues in the Europe re gion decreased 3% in Fisca l 2025.

Revenues in the Americas (non-U.S.) region decreased 7% in Fiscal 2025, including a 5% unfavorable impact from foreign

In the Asia-Pacific re gion, revenues increased 1% in Fiscal 2025, including a 1% unfavorable impact from foreign currency .

Revenues in Greater China increased 3% in Fiscal 2025, including a 1% unfavorable impac t from foreign currency.

International revenues were 55% of total VF revenues in Fiscal 2025 compared to 54% in Fiscal 2024.

Direct-to-Consumer

Direct-to-consumer revenues decreased 5% in Fiscal 2024 compared to Fiscal 2023, including a 1% favorable impact from foreign currency.

VF's e-commerce business declined 8% in Fiscal 2024.

The decrease was primarily driven by declines in the e-commerce business in the Americas region.

Revenues from VF-operated retail stores decreased 5% in Fiscal 2024, including a 1% favorable impact from foreign currency.

opened 81 stores in Fiscal 2024, bringing the total number of VF-owned retail stores to 1,185 at March 2024, which also reflects 161 store closures during the period.

Direct-to-consumer reven ues decreased 6% in Fiscal 2025 compared to Fiscal 2024.

VF's e-commerce business decreased 6% in Fiscal 2025, including a 1% unfavorable impact from for eign currency .

The decrease was primarily driven by declines i n the e-commerce business in the Americas region.

Revenues from VF-operated reta il stores decreased 8% i n Fiscal 2025.

VF ope ned 73 stores in Fiscal 2025, bringing the total

number of VF-owned retail stores to 1,127 at March 2025, which also reflects 114 s tore closures during the period.

There were 1,168 VF-owned retail stores at March 2024.

Direct-to-consumer revenues were 47% of total VF revenues in Fiscal 2024 compared to 45% in Fiscal 2023.

Wholesale revenues decreased 14% in Fiscal 2024 compared to Fiscal 2023, including a 1% favorable impact from foreign currency.

The results were primarily driven by declines in the

wholesale business in the Americas region.

Direct-to-consumer revenues w ere 44% of total VF revenues in Fiscal 2025 compared to 45% in Fiscal 2024.

Wholesale revenues decreased 2% in Fiscal 2025 compared to Fiscal 2024.

The results were primarily driven by declines in the wholesale business in t he Americas and Europe regions.

Wholesale revenues were 56% of total revenues in Fiscal 2025 compared to 55% in Fiscal 2024.

1 unchanged sentence

Balance Sheets

The following discussion refers to significant changes in balances at March 2024 compared to March 2023:

• Decrease in accounts receivable — primarily due to lower wholesale shipments.

• Decrease in inventories — driven by VF reducing elevated inventory levels, primarily in core and replenishment products.

• Decrease in property, plant and equipment — primarily due to asset disposals, write-downs and reclassifications to current assets held-for-sale.

• Decrease in goodwill — primarily due to $507.6 million in impairment charges related to the Timberland, Dickies and Icebreaker reporting units recorded in Fiscal 2024.

• Decrease in other assets — primarily due to the write-off of the $875.7 million income tax receivable in the second

quarter of Fiscal 2024 due to the unfavorable decision in the Timberland tax case related to 2011 taxes and interest disputed with the Internal Revenue Service ("IRS").

• Increase in short-term borrowings — primarily due to an increase in commercial paper borrowings.

• Decrease in accounts payable — primarily driven by lower inventory purchases and the timing of payments to vendors.

• Decrease in accrued liabilities — primarily due to lower accrued income taxes.

• Decrease in long-term debt — due to the reclassification of $1.0 billion of long-term debt due in December 2024 related to our delayed draw Term Loan Agreement (the "DDTL Agreement").

VF Corporation Fiscal 2024 Form 10-K 33

The following discussion refers to significant changes in balances for continuing operations at March 2025 compared to March 2024:

• Decrease in short-term borrowings — primarily due to a decrease in commercial paper borrowings resulting from a $450.0 million repayment using the proceeds from the sale of Supreme.

• Decrease in current portion of long-term debt — due to the prepayment of $1.0 billion of long-term debt due in

December 2024 related to the DDTL, partially offset by the reclassification of €500.0 million of long-term notes due in March 2026 to current liabilities.

• Decrease in long-term debt — due to the early redemption of $750.0 million of long-term notes due in April 2025 and the reclassification of €500.0 million of long-term notes due in March 2026 to current liabilities.

Liquidity and Cash Flows

4 unchanged sentences

Net debt to total capital 76.8% 80.1%

The decrease in working capital and the current ratio at March 2024 compared to March 2023 was primarily due to a net decrease in current assets driven by lower accounts receivable and inventories for the periods compared, as discussed in the "Balance Sheets" section above.

For the ratio of net debt to total capital above, net debt is defined as short-term and long-term borrowings, in addition to operating lease liabilities, net of unrestricted cash.

The increase in working capital and the current ratio at March 2025 compared to March 2024 was primarily due to a net decrease in current liabilities driven by decreased short-term borrowings and current portion of long-term debt as discussed in the "Balance Sheets" section above.

The increase at March 2025 compared to March 2024 was partially offset by a net decrease in current assets driven by lower cash and cash equivalents.

For the ratio of net debt to total capital above, net debt is defined as short-term and long-term borrowings, in addition to operating lease liabilities, net of unrestricted cash and cash equivalents.

Total capital is defined as net debt plus stockholders’ equity.

The increase in the net debt to total capital ratio at March 2024 compared to March 2023 was driven by a decrease in stockholders' equity, partially offset by a decrease in net debt for the periods compared.

The decrease in stockholders' equity was primarily driven by the net loss in the period and payments of dividends.

The decrease in net debt was driven by the repayment of

€850.0 million in aggregate principal amount of Senior Notes due in September 2023, partially offset by higher short-term borrowings, as discussed in the "Balance Sheets" section above.

The decrease in the net debt to total capital ratio at March 2025 compared to March 2024 was primarily driven by a decrease in net debt.

The decrease in net debt was primarily due to the prepayment of $1.0 billion of long-term debt in October 2024 related to the DDTL, the early redemption of

32 VF Corporation Fiscal 2025 Form 10-K

Table of Conten ts

$750.0 million of long-term notes in March 2025 and a decrease in short-term borrowings as discussed in the "Balance Sheets" section above, partially offset by lower cash and cash equivalents at March 2025 .

T he decrease in the net debt to total capital ratio at March 2025 com pared to March 2024 was partially offset by a decrease in stockholders' equity.

The decrease in stockholders' equity was primarily driven by the net loss for the period and payments of dividends.

VF’s primary source of liquidity is its expected annual cash flow from operating activities.

Cash from operations is typically lower in the first half of the calendar year as inventory builds to support peak sales periods in the second half of the calendar year.

Cash from operations is typically lower

in the first half of the calendar year as inventory builds to support peak sales periods in the second half of the calendar year.

Cash provided by operating activities in the second half of the calendar year is substantially higher as inventories are sold and accounts receivable are collected.

Additionally, direct-to-consumer sales are highest in the fourth quarter of the calendar year.

VF's additional sources of liquidity include available borrowing capacity against its Global Credit Facility, available cash balances and international lines of credit.

In summary, our cash flows were as follows:

VF's additional sources of liquidity include available borrowing capacity against its $2.25 billion senior unsecured revolving line of credit (the "Global Credit Facility") , available cash balances and international lines of credit.

In summary, our cash flows from continuing operations were as follows:

Year Ended March

(In millions) 2025 2024

Cash provided (used) by operating activities $ 1,014.6 $ (655.8)

Cash used by investing activities (172.3) (188.1)

Cash provided (used) by financing activities (959.6) 463.9

Cash Provided (Used) by Operating Activities

Cash flows related to operating activities are dependent on net income (loss), adjustments to net income (loss) and changes in working capital.

The increase in cash provided by operating activities in Fiscal 2024 compared to Fiscal 2023 was primarily due to a decrease in net cash used by working capital driven by lower accounts receivable and inventory balances in Fiscal 2024, and the $875.7 million payment related to the Timberland tax case in the prior year.

The increase in cash provided by operating activities was partially offset by lower earnings for the periods compared.

Cash Used by Investing Activities

The decrease in cash used by investing activities in Fiscal 2024 compared to Fiscal 2023 was primarily due to the liquidation of a life insurance contract investment of $39.7 million, decreased software purchases of $30.2 million and decreased capital expenditures of $20.1 million, partially offset by lower proceeds from the sale of assets of $72.9 million compared to the Fiscal 2023 period.

Cash Provided (Used) by Financing Activities

The increase in cash used by financing activities in Fiscal 2024 compared to Fiscal 2023 was primarily due to a $907.1 million payment of long-term debt in Fiscal 2024, compared to the issuance of €1.0 billion euro-denominated fixed rate notes,

borrowings of $1.0 billion under the DDTL Agreement and a $500.0 million payment of long-term debt in Fiscal 2023.

The increase was partially offset by a $579.1 million net increase in short-term borrowings for the periods compared, a $57.0 million payment of Supreme contingent consideration in Fiscal 2023 and a $399.7 million decrease in dividends paid for the periods compared.

Cash provided by operating activities $ 438.5 $ 884.7

Cash provided (used) by investing activities 1,432.5 (158.7)

Cash used by financing activities (2,146.0) (959.6)

Cash Provided by Operating Activities

Cash flows related to operating activities are dependent on income (loss) from continuing operations, adjustments to income (loss) from continuing operations and changes in working capital.

The decrease in cash provided by operating activities in Fiscal 2025 compared to Fiscal 2024 was primarily due to a decrease in net cash provided by working capital and a decrease in income from continuing operations, excluding the write-off of income tax receivables and interest related to the Timberland tax case in the prior year and higher impairment charges in the prior year.

Cash Provided (Used) by Investing Activities

The increase in cash provided by investing activities in Fiscal 2025 compared to Fiscal 2024 was primarily due to proceeds from the sale of Supreme, net of cash sold, of $1.506 billion in the period.

Fiscal 2025 also included proceeds from the sale of assets of $88.2 million, primarily related to a sale leaseback transaction of a distribution center, sale of an aircraft hangar, sale of a corporate-owned aircraft and sale of an office building.

The increase was also due to a decrease in capital expenditures of $49.5 million and a decrease in software purchases of $21.7 million in Fiscal 2025 compared to Fiscal 2024.

Cash Used by Financing Activities

The increase in cash used by financing activities in Fiscal 2025 compared to Fiscal 2024 was primarily due to a $1.0 billion prepayment of the DDTL and a $750.0 million early redemption of long-term debt in Fiscal 2025 , compared to a $907.1 million payment of long-term debt in Fiscal 2024.

The increase was also due to a $507.2 million net decrease in short-term borrowings for the periods compared.

The increase was partially offset by a $163.0 million decrease in dividends paid for the periods compared.

Share Repurchases

1 unchanged sentence

As of the end of Fiscal 2025, VF had $2.5 billion remaining for future repurchases under its share repurchase authorization.

VF's capital deployment priorities in the near-to-medium term will be focused on optimizing and driving the performance of the current portfolio and reducing leverage.

Revolving Credit Facility and Short-term Borrowings

VF's capital deployment priorities in the near-to-medium term will be focused on reducing leverage and reinvesting a portion of cost savings to drive profitable and sustainable growth.

Revolving Credit Facility, DDTL Agreement and Short-term Borrowings

VF relies on its ability to generate cash flows to finance its ongoing operations.

In addition, VF has significant liquidity from its available cash balances and credit facilities.

VF maintains a $2.25 billion senior unsecured revolving line of credit (the "Global Credit Facility") that expires in November 2026.

VF may request an unlimited number of one-year extensions so long as each extension does not cause the remaining life of the Global

34 VF Corporation Fiscal 2024 Form 10-K

Credit Facility to exceed five years, subject to stated terms and conditions;

VF maintains a G lobal Credit Facility t hat expires in November 2026.

VF may request an unlimited number of one-year extensions so long as each extension does not cause the remaining life of the Global Credit Facility to exceed five years, subject to stated terms and conditions;

however, granting of any extension is at the discretion of the lenders.

4 unchanged sentences

Outstanding short-term balances may vary from period to period depending on the level of corporate requirements.

VF has restrictive covenants on its Global Credit Facility, including a consolidated net indebtedness to consolidated net capitalization financial ratio covenant, as defined in the agreement as amended in April 2024, starting at 70% with future step downs.

The calculation of consolidated net indebtedness is net of unrestricted cash and the calculation of consolidated net capitalization permits certain addbacks, including non-cash impairment charges and material impacts resulting from adverse legal rulings, as defined in the amended agreement.

The covenant calculation also excludes consolidated operating lease liabilities.

Additionally, the amended agreement restricts the total amount of cash dividends and share repurchases to $500.0 million annually, on a calendar-year basis.

As of March 2024, VF was in compliance with all covenants.

VF has restrictive covenants on its Global Credit Facility and had restrictive covenants on the DDTL Agreement.

The agreement for the Global Credit Facility, as amended in May 2025, includes a consolidated net indebtedness to consolidated net capitalization financial ratio covenant, starting at 70% with future step downs.

The calculation of consolidated net indebtedness is net of unrestricted cash and cash equivalents and the calculation of consolidated net capitalization permits certain addbacks, including non-cash impairment charges and material impacts resulting from adverse legal rulings, as defined in the amended agreement.

The covenant calculation also excludes operating lease liabilities.

The agreement requires the pledge of certain assets of VF and certain of its subsidiaries pursuant to the agreement.

Additionally, the amended agreement restricts the total amount of cash dividends and share repurchases to

VF Corporation Fiscal 2025 Form 10-K 33

Table of Conten ts

$500.0 million annually, on a calendar-year basis.

The terms for the DDTL Agreement, as amended in August 2024, required the repayment of the DDTL upon the completion of the Supreme sale.

O n October 4, 2024, VF made an aggregate $1.0 billion prepayment of the DDTL using the net cash proceeds from the sale of Supreme.

As of March 2025, VF was in compliance w ith all covenants.

VF has a global commercial paper program that allows for borrowings of up to $2.25 billion to the extent that it has borrowing capacity under the Global Credit Facility.

There were $250.0 million in U.S.

commercial paper borrowings as of March 2024.

In addition to the U.S.

commercial paper program, VF commenced a euro commercial paper borrowing program during the second quarter of Fiscal 2024.

As of March 2024, there were no outstanding euro commercial paper borrowings under this program.

Standby letters of credit issued under the Global Credit Facility as of March 2024 were $0.6 million, leaving approximately $2.0 billion available for borrowing against the Global Credit Facility at March 2024, subject to applicable financial covenants.

VF has $81.2 million of international lines of credit with various banks, which are uncommitted and may be terminated at any time by either VF or the banks.

Total outstanding balances under these arrangements were $13.9 million at March 2024.

Based on VF's current ratings, there is no active market for commercial paper.

As of March 2025, there were no U.S.

or euro commercial paper borrowings.

The euro commercial paper borrowing program was terminated in January 2025.

Standby letters of credit issued under the Global Credit Facility as of March 2025 w ere $0.6 million, leaving approximately $2.2 billion available for borrowing against the Global Credit Facility at March 2025, subject to applicable financial covenants.

VF has $90.4 million o f international lines of credit with various banks, which are uncommitted and may be terminated at any time by either VF or the banks.

Total outstanding balances under these arrangements we re $11.9 million at March 2025.

Borrowings under these arrangements had a weighted average interest rate of 43.8% at March 2025.

Additionally, VF had $674.6 million of unrestricted cash and equivalents at March 2024.

On September 18, 2023, VF repaid €850.0 million ($907.1 million) in aggregate principal amount of its outstanding 0.625% Senior Notes due in September 2023, in accordance with the terms of the notes.

Additionally, VF had $429.4 million of un restricted cash and cash equivalents at March 2025.

On March 27, 2025, VF completed an early redemption of $750.0 million in aggregate principal amount of its outstanding 2.400% Senior Notes due April 2025.

The redemption price was equal to 100% of the principal amount of the Notes to be redeemed.

Supply Chain Financing Program

VF facilitates a voluntary supply chain finance ("SCF") program that enables a significant portion of our inventory suppliers to leverage VF's credit rating to receive payment from participating financial institutions prior to the payment date specified in the terms between VF and the supplier.

The SCF program is administered through third-party platforms that allow

participating suppliers to track payments from VF and elect which receivables, if any, to sell to the financial institutions.

The transactions are at the sole discretion of both the suppliers and financial institutions, and VF is not a party to the agreements and has no economic interest in the supplier's decision to sell a receivable.

The SCF program is administered through third-party platforms that allow participating suppliers to track payments from VF and elect which receivables, if any, to sell to the financial institutions.

The transactions are at the sole discretion of both the suppliers and financial institutions, and VF is not a party to the agreements and

has no economic interest in the supplier's decision to sell a receivable.

The terms between VF and the supplier, including the amount due and scheduled payment terms (which are generally within 90 days of the invoice date) are not impacted by a supplier's participation in the SCF program.

1 unchanged sentence

At March 2025 and 2024 , the accounts payable line item in VF's Consolidated Balance Sheets included total outstanding obligations of $481.7 million and $485.0 million , respectively, due to suppliers that are eligible to participate in the SCF program.

In the second quarter of Fiscal 2023, VF extended its payment terms with eligible suppliers under the SCF program.

The change is not expected to have a material impact on VF's long-term overall liquidity or capital resources.

Rating Agencies

At the end of March 2024 , VF’s long-term debt ratings were ‘BBB-’ by Standard & Poor’s ("S&P") Global Ratings and ‘Baa3’ by Moody’s Investors Service ("Moody's"), and U.S.

commercial paper ratings by those rating agencies were ‘A-3’ and ‘P-3’, respectively.

The Moody's rating for VF's euro commercial paper was also 'P-3' at the end of March 2024 .

There is no active market for euro commercial paper based on VF's current rating.

VF's credit rating outlook by both S&P and Moody's at the end of March 2024 was 'negative'.

VF’s credit agency ratings allow for access to additional liquidity at competitive rates.

Further downgrades to VF's ratings would negatively impact borrowing costs.

At th e end of March 2025 , VF’s long-term debt ratings were ‘BB’ by Standard & Poor’s ("S&P") Global Ratings and ‘Ba1’ by Moody’s Investors Service ("Moody's"), and U.S.

commercial paper ratings by those rating agencies were ‘B’ and ‘NP’, respectively.

Based on VF's current ratings, there is no active market for commercial paper.

VF's credit rating outlook by S&P and Moody's was 'stable' at the end of March 2025 .

Further downgrades to VF's ratings would neg atively impact borrowing costs.

None of VF’s long-term debt agreements contain acceleration of maturity clauses based solely on changes in credit ratings.

2 unchanged sentences

Cash dividends totaled $0.36 per share in Fiscal 2025 compared to $0.78 in Fiscal 2024.

The dividend payout ratio was (31.3)% of diluted earnings (loss) per share in Fiscal 2024 compared to 592.8% in Fiscal 2023.

The dividend payout ratio was (74.5%) o f diluted earnings (loss) per share in Fiscal 2025 compared to (31.3%) in Fiscal 2024.

The Company declared a dividend of $0.09 per share that is payable in the first quarter of Fiscal 2026.

Subject to approval by its Board of Directors, VF intends to continue to pay quarterly dividends.

Other Matters

As previously reported, VF petitioned the U.S.

Tax Court (the “Tax Court”) to resolve an IRS dispute regarding the timing of income inclusion associated with VF’s acquisition of The Timberland Company in September 2011.

While the IRS argued that all such income should have been immediately included in 2011, VF

34 VF Corporation Fiscal 2025 Form 10-K

reported periodic income inclusions in subsequent tax years.

In Fiscal 2023, the Tax Court issued its final decision in favor of the IRS, which was appealed by VF.

On October 19, 2022, VF paid $875.7 million related to the 2011 taxes and interest being disputed, which was recorded as an income tax receivable based on the technical merits of our position with regards to the case and began to accrue interest income.

On September 8, 2023, the U.S.

Court of Appeals for the First Circuit ("Appeals Court") upheld the Tax Court's decision in favor of the IRS.

As a result of the Appeals Court decision, VF wrote off the related income tax receivable and associated interest and recorded $690.0 million

of income tax expense in the second quarter of Fiscal 2024.

This amount included the reversal of $19.6 million of interest income, of which $7.5 million was recorded in the first quarter of Fiscal 2024.

This amount reflects the total estimated net impact to VF's tax expense, which includes the expected reduction in taxes paid on the periodic inclusions that VF has reported, release of related deferred tax liabilities, and consideration of indirect tax effects resulting from the decision.

The estimated impact is subject to future adjustments based on finalization with tax authorities.

Table of Conten ts

Contractual Obligations

17 unchanged sentences

Variable payments for occupancy-related costs, real estate taxes, insurance and contingent rent are not included above.

In addition, $82.3 million of leases (on an undiscounted basis) that have not yet commenced with terms of 1 to 15 years beginning primarily in Fiscal 2025 are not included above.

In addit ion, approximately $130.2 million of leases (on an undiscounted basis) that have not yet commenced with terms of 2 to 15 years beginning primarily in Fiscal 2026 are not included above .

(3) Interest payment obligations represent required interest payments on long-term debt.

15 unchanged sentences

VF purchases insurance from highly-rated commercial carriers to cover other risks, including directors and officers, cyber, property, stock throughput, employment practices, wage and hour and umbrella, and to establish stop-loss limits on self-insurance arrangements.

36 VF Corporation Fiscal 2024 Form 10-K

Cash and equivalents risks

VF had $674.6 million of cash and equivalents at the end of Fiscal 2024.

Management continually monitors the credit ratings of the financial institutions with whom VF conducts business and geopolitical risks that may impact countries where VF has cash balances.

Cash and cash equivalents risks

VF had $429.4 million of cash and cash equivalents at the end of Fiscal 2025.

Management continually monitors the credit ratings of the financial institutions with whom VF conducts business and

geopolitical risks that may impact countries where VF has cash balances.

Management also monitors the credit quality of cash equivalents.

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qualified defined benefit plan.

VF will continue to evaluate the funded status and future funding requirements of these plans, which depends in part on the future performance of the plans’ investment portfolios.

Management believes that VF has sufficient liquidity to make any required contributions to the pension plans in future years.

VF’s reported earnings are subject to risks due to the volatility of its pension cost (income), which has ranged in recent years from cost of $101.9 million in the year ended March 2023 to income of $7.3 million in the year ended March 2022.

VF’s reported earnings are subject to risks due to the volatility of its pension cost, which has ranged in recent years from cost of $12.1 million in the year ended March 2024 to cost of $101.9 million in the year ended March 2023.

These fluctuations are primarily due to differences in the amount of settlement charges recorded in the respective periods.

The changes are also impacted by varying amounts of actuarial gains and losses that are deferred and amortized to future years’ pension cost (income).

The assumptions that impact actuarial gains and losses include the rate of return on investments held by the pension plans, the discount rate used to value participant liabilities and demographic characteristics of the participants.

The changes are also impacted by varying amounts of actuarial gains and losses that are deferred and amortized to future years’ pension cost.

The assumptions that impact actuarial gains and losses include the

VF Corporation Fiscal 2025 Form 10-K 35

Table of Conten ts

rate of return on investments held by the pension plans, the discount rate used to value participant liabilities and demographic characteristics of the participants.

VF has taken a series of steps to manage the risk and volatility in the pension plans and their impact on the financial statements, including the following:

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Under the group annuity contract, Prudential assumed responsibility for benefit payments and annuity administration for approximately 17,700 retirees and beneficiaries.

The investment strategy of the U.S.

qualified plan continues to define dynamic asset allocation targets that are dependent upon

changes in the plan’s funded status, capital market expectations, and risk tolerance.

Management will continue to evaluate actions that may help to reduce VF’s risks related to its defined benefit plans.

• During the year ended March 2025, in efforts to de-risk the U.S.

qualified plan, VF implemented an asset allocation of 100% liability-hedging asset classes, primarily in fixed-income investments.

• Subsequent to the end of Fiscal 2025, in May 2025, VF executed a resolution to terminate the U.S.

qualified plan.

The termination of the plan is anticipated to be effective in July 2025, is subject to the appropriate regulatory approvals, and is expected to be completed in Fiscal 2026.

VF's settlement obligations and related charges will depend upon both the nature and timing of participant settlements and prevailing market conditions.

VF currently estimates settlement charges to be between $200.0 and $300.0 million.

Interest rate risks

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In addition, VF may use derivative financial instruments to manage risk.

Since most of VF’s long-term debt has fixed interest rates, the exposure primarily relates to changes in interest rates on variable rate short-term borrowings (which averaged approximately $386.0 million at an 8.1% rate during Fiscal 2024).

Additionally, VF entered into a DDTL Agreement during Fiscal 2023, which has a variable interest rate.

VF entered into floating-to-fixed interest rate swap contracts to hedge a portion of the cash flow risk associated with the DDTL Agreement.

Any change in interest rates would also affect interest income earned on VF’s cash equivalents.

Based on the average amount of variable rate borrowings and cash equivalents during Fiscal 2024, the effect of a hypothetical 1% increase in interest rates would be a decrease in reported net income of approximately $6.9 million and a hypothetical 1% decrease in interest rates would be an increase in reported net income of approximately $6.9 million.

Since all of VF’s long-term debt has fixed interest rates, the exposure relates to changes in interest rates on variable rate short-term borrowings (which averaged approximately $202.5 million at a 9.9% ra te during Fiscal 2025).

Howev er, any change in interest rates would also affect interest income earned on VF’s cash equivalents.

Based on the average amount of variable rate borrowings and cash equivalents during Fiscal 2025, the effect of a hypothetical 1% increase in interest rates woul d be an increase in reported net income of approximately $3.2 million and a hypothetical 1% decrease in interest rates would be a decrease in reported net income of approximate ly $3.2 million.

Foreign currency exchange rate risks

VF is a global enterprise subject to the risk of foreign currency fluctuations.

Approximately 54% of VF’s revenues in the year ended March 2024 were generated in international markets.

Approximatel y 55% of VF’s revenues in the year ended March 2025 were generated in international markets.

Most of VF’s foreign businesses operate in functional currencies other than the U.S.

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In March 2023 and February 2020, VF issued €1.0 billion of euro-denominated fixed-rate notes.

These notes, along with VF's euro commercial paper borrowings, have been designated as net investment hedges of VF’s investment in certain foreign operations.

These notes have been designated as net investment hedges of VF’s investment in certain foreign operations.

Because this debt qualified as a nonderivative hedging instrument, foreign currency transaction gains or losses on the debt are deferred in the foreign currency translation and other component of accumulated OCL as an offset to the foreign currency translation adjustments on the hedged investments.

Any amounts deferred in accumulated OCL will remain until the hedged investment is sold or substantially liquidated.

VF monitors net foreign currency market exposures and enters into derivative foreign currency contracts to hedge the effects of exchange rate fluctuations for a significant portion of forecasted foreign currency cash flows or specific foreign currency transactions (relating to cross-currency inventory purchases,

VF Corporation Fiscal 2024 Form 10-K 37

product sales, operating costs and intercompany royalty payments).

VF’s practice is to buy or sell foreign currency exchange contracts that cover up to 80% of foreign currency exposures for periods of up to 24 months.

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This use of financial instruments allows management to reduce the overall exposure to risks from exchange rate fluctuations on VF’s cash flows and earnings, since gains and losses on these contracts will offset a portion of losses and gains on the transactions being hedged.

For cash flow hedging contracts outstanding at the end of Fiscal 2024, a hypothetical 10% decrease and 10% increase in foreign currency exchange rates compared to rates at the end of Fiscal 2024, would result in a decrease in the unrealized net loss of approximately $61.8 million and an increase in the unrealized net loss of approximately $50.3 million, respectively.

For cash flow hedging contracts outstanding at the end of Fiscal 2025, a hypothetical 10% decrease and 10% increase in foreign currency exchange rates compared to rates at the end of Fiscal 2025, would result in an increase in the unrealized net gain of approximately $75.7 million and a decrease in the unrealized net gain of approximately $61.7 million, respectively.

However, any change in the fair value of the hedging contracts would be substantially offset by a change in the fair value of the underlying hedged exposure impacted by the currency rate changes.

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VF is exposed to credit-related losses in the event of nonperformance by counterparties to derivative hedging instruments.

To manage this risk, we have established counterparty credit guidelines and only enter into derivative transactions with financial institutions that have ‘A minus/A3’ investment grade credit ratings or better.

VF continually

monitors the credit rating of, and limits the amount hedged with, each counterparty.

To manage this risk, we have established counterparty credit guidelines and only enter into derivative

36 VF Corporation Fiscal 2025 Form 10-K

Table of Conten ts

transactions with financial institutions that have ‘A minus/A3’ investment grade credit ratings or better.

VF continually monitors the credit rating of, and limits the amount hedged with, each counterparty.

Additionally, management utilizes a portfolio of financial institutions to minimize exposure to potential counterparty defaults and adjusts positions as necessary.

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VF is exposed to market risks for the pricing of cotton, leather, rubber, wool and other materials, primarily due to the impact on the cost of sourced finished goods from independent contractors.

To manage risks of commodity price changes, management negotiates prices of finished goods in advance when possible.

To manage risks of commodity price changes, management negotiates prices of finished goods in advance

when possible.

VF has not historically managed commodity price exposures by using derivative instruments.

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The application of the acquisition method of accounting for business combinations and determination of fair value requires management to make judgments and may involve the use of significant estimates, including assumptions related to estimated future revenues, growth rates, cash flows, discount rates and royalty rates, among other items.

VF generally evaluates fair value at acquisition using three valuation techniques - the replacement cost, market and income methods - and weights the valuation methods based on what is most appropriate in the circumstances.

VF generally evaluates fair value at acquisition using three valuation techniques - the replacement cost, market and income methods

- and weights the valuation methods based on what is most appropriate in the circumstances.

The process of assigning fair values, particularly to acquired intangible assets, is highly subjective.

VF also utilizes third-party valuation specialists to assist management in the determination of the fair value of

38 VF Corporation Fiscal 2024 Form 10-K

assets acquired and liabilities assumed.

VF also utilizes third-party valuation specialists to assist management in the determination of the fair value of assets acquired and liabilities assumed.

Management estimates of fair value are based on assumptions believed to be reasonable, but are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates.

If the actual results differ from the estimates and judgments used, the amounts recorded in the consolidated financial statements may be exposed to potential impairment of the intangible assets and

goodwill, as discussed in the "Long-Lived Assets, Including Intangible Assets and Goodwill" section below.

If the actual results differ from the estimates and judgments used, the amounts recorded in the consolidated financial statements may be exposed to potential impairment of the intangible assets and goodwill, as discussed in the "Long-Lived Assets, Including Intangible Assets and Goodwill" section below.

During the measurement period, which is up to one year from the acquisition date, adjustments to the assets acquired and liabilities assumed may be recorded, with the corresponding offset to goodwill.

VF Corporation Fiscal 2025 Form 10-K 37

Long-Lived Assets, Including Intangible Assets and Goodwill

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Management uses the multi-period excess earnings method, which is a specific application of the discounted cash flow method, to value customer relationship assets.

The estimated pre-tax undiscounted cash flows of the asset through the end of its

useful life are compared to its carrying value.

The estimated pre-tax undiscounted cash flows of the asset through the end of its useful life are compared to its carrying value.

If the pre-tax undiscounted cash flows of the asset exceed its carrying value, there is no impairment charge.

If the pre-tax undiscounted cash flows of the asset are less than its carrying value, the estimated fair value of the asset is calculated based on the present value of the after-tax cash flows expected to be generated by the customer relationship asset after deducting contributory asset charges, and an impairment charge is recognized for the difference between the estimated fair value of the asset and its carrying value.

difference between the estimated fair value of the asset and its carrying value.

When testing operating lease right-of-use assets for potential impairment, VF uses the income-based discounted cash flow method using the estimated cash flows of the respective asset or asset group.

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Otherwise, the intangible asset or reporting unit is quantitatively tested for impairment.

An indefinite-lived intangible asset is quantitatively tested for possible impairment by comparing the estimated fair value of

VF Corporation Fiscal 2024 Form 10-K 39

the asset to its carrying value.

An indefinite-lived intangible asset is quantitatively tested for possible impairment by comparing the estimated fair value of the asset to its carrying value.

Fair value of an indefinite-lived trademark is based on an income approach using the relief-from-royalty method.

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The royalty rate is selected based on consideration of (i) royalty rates included in active license agreements, if applicable, (ii) royalty rates received by market participants in the apparel and footwear industry, and (iii) the current performance of the reporting unit.

If the estimated fair value of the trademark intangible asset exceeds its carrying value, there is no impairment charge.

If the estimated fair value of the trademark

38 VF Corporation Fiscal 2025 Form 10-K

intangible asset exceeds its carrying value, there is no impairment charge.

If the estimated fair value of the trademark is less than its carrying value, an impairment charge is recognized for the difference.

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The income-based fair value methodology requires management’s assumptions and judgments regarding economic conditions in the markets in which VF operates and conditions in the capital markets, many of which are outside of management’s control.

At the reporting unit level, fair value estimation requires management’s assumptions and judgments regarding the effects of overall economic conditions on the specific reporting unit, along with assessment of the reporting unit’s strategies

and forecasts of future cash flows.

Forecasts of individual reporting unit cash flows involve management’s estimates and assumptions regarding:

3 unchanged sentences

• A discount rate that reflects the risks inherent in realizing the forecasted cash flows.

A discount rate considers the risk-free rate of return on long-term treasury securities, the risk premium associated with investing in equity securities of comparable companies, the beta obtained from comparable companies and the cost of debt for investment grade issuers.

A discount rate considers the

risk-free rate of return on long-term treasury securities, the risk premium associated with investing in equity securities of comparable companies, the beta obtained from comparable companies and the cost of debt for investment grade issuers.

In addition, the discount rate may consider any company-specific risk (at the reporting unit level) in achieving the prospective financial information.

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Interim Impairment Testing

During the third quarter of Fiscal 2024, management determined that the recent downturn in the Timberland historical financial results, combined with a downward revision to the latest Fiscal 2024 forecast and forward-looking financial projections, was a triggering event that required management to perform a quantitative impairment analysis of both the Timberland reporting unit goodwill, which includes the Timberland ® brand, and the Timberland indefinite-lived trademark intangible asset, which includes both the Timberland ® and Timberland PRO ® brands.

The carrying values of the goodwill and indefinite-lived trademark intangible asset at the December 30, 2023 testing date were $407.9 million and $999.5 million, respectively.

As a result of the impairment testing performed, VF recorded a goodwill impairment charge of $195.3 million in the Consolidated Statement of Operations in the third quarter of Fiscal 2024 to write down the Timberland reporting unit carrying value to its estimated fair value.

No impairment charge was recorded on the indefinite-lived trademark intangible asset.

The estimated fair value of the indefinite-lived trademark intangible asset exceeded its carrying value by a significant amount.

During the third quarter of Fiscal 2024, management determined that the continued downturn in the Dickies financial results, weakness in certain key U.S.

wholesale customer accounts, including lost product placement, and weakness in certain international markets, combined with expectations of a slower recovery, which have resulted in further reductions to the financial projections, was a triggering event that required management to perform a quantitative impairment analysis of both the Dickies reporting unit goodwill and the Dickies indefinite-lived trademark intangible asset.

The carrying values

40 VF Corporation Fiscal 2024 Form 10-K

of the goodwill and indefinite-lived trademark intangible asset at the December 30, 2023 testing date were $61.8 million and $290.0 million , respectively.

Based on the analysis, management concluded that the Dickies reporting unit goodwill was fully impaired and thus recorded an impairment charge of $61.8 million in the Consolidated Statement of Operations in the third quarter of Fiscal 2024.

Based on the analysis, management concluded that the indefinite-lived trademark intangible asset was not impaired and the estimated fair value exceeded its carrying value by a significant amount.

Annual and Fourth Quarter Impairment Testing

During the third quarter of Fiscal 2025, management determined that the continued downturn in the Dickies financial results and projections, combined with expectations of a slower recovery than previously anticipated , was a triggering event that required management to perform a quantitative impairment analysis of the Dickies indefinite-lived trademark intangible asset.

The carrying value of the indefinite-lived trademark intangible asset at the November 23, 2024 testing date was $290.0 million .

As a result of the impairment testing performed, VF recorded an impairment charge of $51.0 million in the Consolidated Statement of Operations in the third quarter of Fiscal 2025 to write down the Dickies indefinite-lived trademark intangible asset to its estimated fair value.

Annual Impairment Testing

Management performed its annual goodwill and indefinite-lived intangible asset impairment testing as of the beginning of the fourth quarter of Fiscal 2025.

VF elected to bypass the qualitative analysis for the Icebreaker, Supreme, Timberland PRO, Altra and Smartwool reporting unit goodwill and indefinite-lived trademark intangible assets.

VF elected to bypass the qualitative analysis for the Icebreaker and Smartwool reporting unit goodwill and indefinite-lived trademark intangible assets and for the Timberland PRO reporting unit goodwill.

As a result of the annual impairment testing, VF recorded a goodwill impairment charge of $38.2 million in the Consolidated Statement of Operations for the year ended March 2025 related to Icebreaker.

Based on the analysis, management concluded that Icebreaker's indefinite-lived trademark intangible asset was not impaired and the estimated fair value exceeded its carrying value by a significant amount.

No other impairment charges were taken as a result of the annual impairment testing.

Based on the analyses, the estimated fair values of the Supreme, Altra and Timberland PRO reporting units exceeded the respective carrying values by 8%, 15% and 17%, respectively, and the estimated fair value of the Smartwool reporting unit exceeded its carrying value by a significant amount.

Based on the analyses, the estimated fair value of the Supreme indefinite-lived trademark intangible asset exceeded its carrying value by 3%, and the estimated fair values of the Altra and Smartwool indefinite-lived trademark intangible assets exceeded the respective carrying values by a significant amount.

During the fourth quarter of Fiscal 2024, management determined that the recent downward revision to the forward-looking financial projections was a triggering event that required management to perform a quantitative impairment analysis of both the Timberland reporting unit goodwill and indefinite-lived trademark intangible asset.

The carrying values of the goodwill and indefinite-lived trademark intangible asset at the testing date were $211.7 million and $999.5 million, respectively.

As a result of the impairment testing performed, management concluded that the Timberland reporting unit goodwill was fully impaired and thus recorded an additional impairment charge of $211.7 million in the Consolidated Statement of Operations for the year ended March 2024.

Based on the analysis, management concluded that the indefinite-lived trademark intangible asset was not impaired and the estimated fair value exceeded its carrying value by 14%.

During the fourth quarter of Fiscal 2024, management determined that the overall weakness in the Dickies business

and financial results, was a triggering event that required management to perform a quantitative impairment analysis of the Dickies indefinite-lived trademark intangible asset.

The carrying value of the indefinite-lived trademark intangible asset at the March 30, 2024 testing date was $290.0 million .

Based on the analysis, management concluded that the indefinite-lived trademark intangible asset was not impaired and the estimated fair value exceeded its carrying value by 16% .

No other impairment charges were required as a result of the annual impairment testing.

Based on the analyses, the estimated fair value of the Timberland PRO reporting unit exceeded its carrying value by 18% and the estimated fair value of the Smartwool reporting unit exceeded its carrying value by a significant amount.

Based on the analysis, the estimated fair value of the Smartwool indefinite-lived trademark intangible asset exceeded its carrying value by a significant amount.

For the remaining reporting units and indefinite-lived trademark intangible assets, VF elected to perform a qualitative analysis during the annual goodwill and indefinite-lived intangible asset impairment testing, as of the beginning of the fourth quarter of Fiscal 2025, to determine whether it was more likely than not that the goodwill and indefinite-lived trademark intangible assets in those reporting units were impaired.

Based on the results of the qualitative assessment, VF concluded it was more likely than not the carrying values of the goodwill and indefinite-lived trademark intangible assets were less than their fair values, and that further quantitative testing was not necessary.

Based on the results of the qualitative assessment, VF concluded it was more likely than not the carrying values of the goodwill and indefinite-

VF Corporation Fiscal 2025 Form 10-K 39

lived trademark intangible assets were less than their fair values, and that further quantitative testing was not necessary.

Refer to Notes 8, 9 and 24 to the consolidated financial statements for additional discussion on Fiscal 2025 impairment testing.

2 unchanged sentences

Although management believes the estimates and assumptions used in the impairment testing are reasonable and appropriate, it is possible that VF's assumptions and conclusions regarding impairment or recoverability of goodwill or indefinite-lived trademark intangible assets in any reporting unit could change in future periods.

There can be no assurance the estimates and assumptions, particularly our long-term financial projections, used in our goodwill and indefinite-lived intangible asset impairment testing will prove to be accurate predictions of the future, if, for example, (i) the businesses do not perform as projected, (ii) overall economic conditions in Fiscal 2025 or future years vary from current assumptions (including changes in discount rates, royalty rates and foreign currency exchange rates), (iii) business conditions or strategies change from current assumptions, including loss of major customers or channels, (iv) investors require higher rates of return on equity investments in the marketplace, or (v) enterprise values of comparable publicly traded companies, or actual sales transactions of comparable companies, were to decline, resulting in lower multiples of revenues and EBITDA.

A future impairment charge of goodwill or indefinite-lived intangible assets could have a material effect on VF’s consolidated financial position and results of operations.

There can be no assurance the estimates and assumptions, particularly our long-term financial projections, used in our goodwill and indefinite-

lived intangible asset impairment testing will prove to be accurate predictions of the future, if, for example, (i) the businesses do not perform as projected, (ii) overall economic conditions in Fiscal 2026 or future years vary from current assumptions (including changes in discount rates, royalty rates, foreign currency exchange rates and tariffs), (iii) business conditions or strategies change from current assumptions, including loss of major customers or channels, (iv) investors require higher rates of return on equity investments in the marketplace, or (v) enterprise values of comparable publicly traded companies, or actual sales transactions of comparable companies, were to decline, resulting in lower multiples of revenues and EBITDA.

Changes in these estimates and assumptions could result in a future impairment charge of goodwill or indefinite-lived intangible assets and such charges could have a material effect on VF’s consolidated financial position and results of operations.

As a global company, VF is subject to income taxes and files income tax returns in over 100 U.S.

2 unchanged sentences

The Company could be subject to changes in its tax rates, the adoption of new U.S.

or international tax legislation or changes

in interpretation of existing tax laws and regulations or rulings by courts or government authorities leading to exposure to additional tax liabilities.

or international tax legislation or changes in interpretation of existing tax laws and regulations or rulings by courts or government authorities leading to exposure to additional tax liabilities.

In particular, tax authorities and the courts have increased their focus on income earned in no- or low-tax jurisdictions or income that is not taxed in any jurisdiction.

Tax authorities have also become skeptical of

VF Corporation Fiscal 2024 Form 10-K 41

special tax rulings provided to companies offering lower taxes than may be applicable in other countries.

Tax authorities have also become skeptical of special tax rulings provided to companies offering lower taxes than may be applicable in other countries.

VF makes an ongoing assessment to identify any significant exposure related to increases in tax rates in the jurisdictions in which VF operates.

Furthermore, VF was granted a ruling which lowered the effective income tax rate on taxable earnings for years 2010 through 2014 under Belgium's excess profit tax regime.

During 2015, the European Union Commission (“EU”) investigated and announced its decision that these rulings were illegal and ordered the tax benefits to be collected from affected companies, including VF.

During 2017 and 2018, VF Europe BVBA was assessed and paid €35.0 million tax and interest, which was recorded as an income tax receivable and was included in the other current assets line item in VF's Consolidated Balance Sheets, based on the expected success of the requests for annulment.

After subsequent annulments and appeals, the General Court confirmed the decision of the EU on September 20, 2023.

As a result, VF wrote off the related income tax receivable and recorded a benefit for the associated foreign tax credit, resulting in $26.1 million of net income expense in the second quarter of Fiscal 2024.

As previously reported, VF petitioned the U.S.

Tax Court (the “Tax Court”) to resolve an IRS dispute regarding the timing of income inclusion associated with VF’s acquisition of The Timberland Company in September 2011.

While the IRS argued that all such income should have been immediately included in 2011, VF reported periodic income inclusions in subsequent tax years.

In Fiscal 2023, the Tax Court issued its final decision in favor of the IRS, which was appealed by VF.

On September 8, 2023, the U.S.

Court of Appeals for the First Circuit ("Appeals Court") upheld the Tax Court's decision in favor of the IRS.

As a result of the Appeals Court decision, VF wrote off the related income tax receivable and associated interest and recorded $690.0 million of income tax expense in the second quarter of Fiscal 2024.

This amount included the reversal of $19.6 million of interest income, of which $7.5 million was recorded in the first quarter of Fiscal 2024.

effects resulting from the decision.

The estimated impact is subject to future adjustments based on finalization with tax authorities.

The calculation of income tax liabilities involves uncertainties in the application of complex tax laws and regulations, which are subject to legal interpretation and significant management judgment.

3 unchanged sentences

A tax position is recognized if it meets this standard and is measured at the largest amount of benefit that has a greater than 50% likelihood of being realized.

Such judgments and estimates may change based on audit settlements, court cases and interpretation of tax laws and regulations.

judgments and estimates may change based on audit settlements, court cases and interpretation of tax laws and regulations.

Income tax expense could be materially affected to the extent VF prevails in a tax position or when the statute of limitations expires for a tax position for which a liability for unrecognized tax benefits or valuation allowances has been established, or to the extent VF is required to pay amounts greater than the established liability for unrecognized tax benefits.

1 unchanged sentence

There are no accruals for general or unknown tax expenses.

As of March 2024, VF had $711.1 million of gross deferred income tax assets related to operating loss, credit and capital loss carryforwards, and $435.3 million of valuation allowances against those assets.

As of March 2025, VF h ad $698.9 million of gr oss deferred income tax assets related to operating loss, credit and capital loss carryforwards, and $531.0 million of valuation allowances against those assets.

Realization of deferred tax assets related to operating loss, credit and capital loss carryforwards is dependent on future taxable income in specific jurisdictions, the amount and timing of which are uncertain, and on possible changes in tax laws.

6 unchanged sentences

“Management’s Discussion and Analysis of Financial Condition and Results of Operations” in this Annual Report.

40 VF Corporation Fiscal 2025 Form 10-K

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.

See “Index to Consolidated Financial Statements and Financial Statement Schedule” on page F-1 of this Annual Report for information required by this Item 8.

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.

Not applicable.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 7. Management’s Discussion and Analysis