In its recent report, VF Corporation has shared its financial results for the third quarter of fiscal year 2024 (Q3'FY24), highlighting key metrics and performance indicators. The report encompasses the period ended December 30, 2023, with comparisons made to the same period in the previous year.

The company's gross margin for Q3'FY24 stood at 55.1%, reflecting an increase of 20 basis points. Furthermore, the adjusted gross margin increased by 40 basis points to reach 55.3%. This improvement was primarily driven by favorable mix, contributing approximately 175 basis points to the adjusted gross margin. However, there were headwinds of approximately 135 basis points due to an unfavorable rate impact, mainly influenced by transactional foreign exchange rates.

In terms of operating margin, there was a significant decline to (1.1)%, down by 1,570 basis points. However, the adjusted operating margin stood at 9.3%, reflecting a decrease of 560 basis points. The decline in adjusted operating margin was attributed to a 610 basis point deleverage effect, partially offset by a 40 basis point favorable constant currency gross margin impact and 10 basis points of translational foreign currency exchange rate benefits.

The company reported a loss per share of $(0.11) for Q3'FY24, contrasting with earnings per share of $1.31 in Q3'FY23. On an adjusted basis, the company recorded earnings per share of $0.57, down from $1.12 in the same period the previous year.

VF Corporation experienced a notable decrease in inventories during Q3'FY24, with a reduction of $333 million, representing a 17% decline compared to the previous year. Additionally, the company significantly reduced its net debt by approximately $640 million relative to the previous year.

Furthermore, the company reported a return of $35 million to shareholders through cash dividends in Q3'FY24. VF's Board of Directors announced a quarterly dividend of $0.09 per share, payable on March 20, 2024, to shareholders of record as of March 11, 2024. It is worth noting that further quarterly dividends are subject to approval by the company's Board of Directors.

These financial results were presented on a diluted basis and referenced as "reported" and "constant dollar" amounts. The company also provided "adjusted" amounts, excluding certain items such as Reinvent transformation program costs, noncash impairment charges, tax and legal items, and transaction and deal-related activities. These adjustments were made with the aim of providing useful information to investors.

Overall, VF Corporation's Q3'FY24 financial results showcased an increase in gross margin, offset by a decline in operating margin and a loss per share. The company's strategic initiatives, including inventory reduction and debt reduction, are contributing to its financial performance. However, challenges related to exchange rates and other factors continue to impact its profitability. VF Corporation remains committed to providing value to its shareholders while navigating these market conditions.