Business Description

V.F. Corporation, founded in 1899, is a portfolio of leading outdoor and active brands, including The North Face ® , Vans ® and Timberland ® . 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. Unless the context indicates otherwise, the terms “VF,” the “Company,” “we,” “us,” and “our” used herein refer to V.F. Corporation and its consolidated subsidiaries. All references to “Fiscal 2026” relate to VF's current fiscal year which ran from March 30, 2025 through March 28, 2026. Unless otherwise noted, all discussion below, including amounts and percentages for all periods, reflect the results of operations and financial condition of VF’s continuing operations. As such, the Supreme ® brand business (“Supreme”) that was sold on October 1, 2024 has been excluded. The sale of the Dickies ® brand business (“Dickies”) on November 12, 2025, did not qualify for presentation as a discontinued operation and is therefore included within VF's continuing operations, through the date of sale. Business Model VF is diversified across brands, product categories, channels of distribution, geographies and consumer demographics. We own a broad portfolio of brands in the apparel, footwear, equipment and accessories categories. Our largest brands are The North Face ® , Vans ® and Timberland ® . Our products are marketed to customers 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. Revenues from the direct-to-consumer business represente d 44% of V F’s total Fiscal 2026 revenues. In addition to selling directly into international markets, many of our brands also sell products through licensees, agents and distributor s. In Fiscal 2026, VF derived 50% of its revenues from the Americas, 35% from Europe and 15% from Asia-P acific. To provide products across multiple channels of distribution in different geographic areas, we rely on our global sourcing of finished goods from geographically diversified independent contractors. Our supply chain utilizes technologies for inventory replenishment that enable us to match our assortment of products to consumer demand. We have three main regional sourcing hubs, which helps to reduce lead times by establishing production closer to end consumption. Transformation Strategy VF made further significant progress on its transformation strategy in Fiscal 2026, building on the initiatives put in place over the last three years to strengthen the balance sheet, expand margins and return to growth. In Fiscal 2026, VF advanced towards medium-term goals outlined at its Investor Day in October 2024 to achieve a 10% operating margin in Fiscal 2028 and a leverage ratio of 2.5x or lower by Fiscal 2028. Strengthen the Balance Sheet VF's primary financial focus has been on liquidity and leverage in the early part of its turnaround, with initiatives implemented to improve operating performance alongside paying down debt. Through tight cost discipline, working capital improvements and divestiture proceeds from the sales of Supreme in Fiscal 2025 and Dickies in Fiscal 2026, VF reduced long-term debt by $2.2 billion over a period of two fiscal years. Expand Margins Margin expansion initiatives are focused on both improving gross margin and reducing selling, general and administrative expenses. To achieve expansion the focus has included strengthening the product creation engine and building several artificial intelligence (“AI”) powered inventory planning capabilities. Levers included driving product mix through higher margin products, targeted pricing actions, and sharper markdown management. Across the business, during the last two fiscal years, the product function was consolidated into a single global engine while design was elevated in the new operating model to enhance innovation and improve speed to market. Inventory planning capabilities were upgraded with the introduction of new AI-enabled capabilities.…