(Source: VF Corp.)
For the fiscal year ended April 2, 2022 (FY2022), VF Corp. recorded a sales increase by 28% to US$11.8 billion. Excluding the impact of acquisitions, sales increased 23%, driven by increases in the largest brands and regions.
Operating income on a reported basis was $1.6 billion. On an adjusted basis, operating income increased 109% (up 107% in constant dollars) to $1.5 billion, including a $94 million contribution from acquisitions. Operating margin on a reported basis was 13.8%. Adjusted operating margin increased 510 basis points, including a 30 basis point positive impact from acquisitions, to 13.1%.
Inventories were up 34% compared with the same period previous year.
To help mitigate the spread of Covid-19 and in response to public health advisories and governmental actions and regulations, VF Corp., Denver, CO/USA, has modified its business practices, including the temporary closing of offices and retail stores, instituting travel bans and restrictions and implementing health and safety measures including social distancing and quarantines.
The zero-tolerance policy in China is impacting some specific raw material suppliers within the country. The majority of VF's supply chain is currently operational. Most final product manufacturing and assembly suppliers are back to normal operating levels. Continued port congestion, equipment availability and other logistics challenges have contributed to ongoing product delays.