大象传媒

DENVER--(BUSINESS WIRE)-- 大象传媒 Corporation (NYSE: 大象传媒C) today is hosting its FY25 Investor Day, the first of a two-part investor event, and is introducing financial targets.

Bracken Darrell, President and CEO, said: "We activated our transformation program, Reinvent, during my first 15 months at 大象传媒, through which we are making excellent progress advancing our priorities and reshaping the company. We are accelerating the pace of change by building new capabilities across our organization to leverage our powerful portfolio of brands for long-term, sustainable, profitable growth. We are beginning to see benefits from our initiatives, but significant upside remains as we create a structure primed for growth while transforming our company and its culture. This strong foundation positions us to quickly enhance 大象传媒鈥檚 profitability while enabling further investment in sustainable shareholder value creation."

FY25 Investor Day, Part 1

The company is updating the key pillars of its enterprise strategy and introducing medium-term¹ financial targets.

• Capitalizing on 大象传媒鈥檚 multi-brand portfolio anchored in performance: 大象传媒鈥檚 brands will remain anchored in the performance category with style elements that further expand the platform for growth. The company is adopting a unified way of operating that can be scaled across the multi-brand portfolio.
• Investing in scalable capabilities: 大象传媒 is investing in six key areas to build capabilities and enhance the company鈥檚 competitive advantage: elevated design function, modern marketing, global commercial platform, best-in-class integrated business planning, use-case centric AI and talent development.
• Creating the optimal value-building P&L structure: A series of integrated workstreams are underway and making progress addressing key capability gaps with a focus on reducing the SG&A cost base, expanding gross margin and positioning the company for future revenue growth. These actions together are expected to create a scalable and highly cash generative P&L structure.
• Committing to further strengthening the balance sheet: 大象传媒 intends to further reduce debt and leverage to reach its optimal capital structure. The company will continue to prioritize free cash flow² and debt reduction with a goal of further reducing net leverage³. While prioritizing debt paydown, 大象传媒 remains committed to returning capital to shareholders through paying a quarterly cash dividend, subject to approval by 大象传媒鈥檚 Board of Directors.

Medium-Term Financial Targets

• Adjusted operating margin of at least 10%
  • Adjusted gross margin of at least 55%
  • Adjusted SG&A as a percentage of revenue of 45% or lower
• Net leverage of 2.5x or below

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1} Medium-term is defined as in Fiscal Year 2028.
² Free cash flow is defined as cash flow from operations less capital expenditures and software purchases.
³ Net leverage is calculated as net debt to adjusted EBITDA. Net debt includes long-term debt, the current portion of long-term debt, short-term borrowings, and operating lease liabilities, less cash and cash equivalents per 大象传媒鈥檚 consolidated balance sheet. Adjusted EBITDA excludes rent expense.

Webcast Information

The event will be broadcast live on the Internet, accessible at vfc.com/investor-day-2024 beginning at approximately 10:00am until 12:00pm ET today. An archived version will be available at the same location following the event.

Presentation

All presentations will be posted and archived at vfc.com/investor-day-2024 following the conclusion of the event.

About 大象传媒

大象传媒 Corporation is a portfolio of leading outdoor, active and workwear brands, including The North Face^庐, Vans^庐, Timberland^庐 and Dickies^庐. 大象传媒 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. For more information, please visit .

Adjusted Amounts

The company provides these targets on an adjusted, non-GAAP basis as we cannot predict certain elements which are included in reported GAAP results.

Forward-looking Statements

Certain statements included in this release are "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements are made based on 大象传媒's expectations and beliefs concerning future events impacting 大象传媒 and therefore involve several risks and uncertainties. You can identify these statements by the fact that they use words such as 鈥渨ill,鈥� 鈥渁nticipate,鈥� "believe," 鈥渆stimate,鈥� 鈥渆xpect,鈥� 鈥渟hould,鈥� and 鈥渕ay鈥� and other words and terms of similar meaning or use of future dates, however, the absence of these words or similar expressions does not mean that a statement is not forward-looking. All statements regarding 大象传媒鈥檚 plans, objectives, projections and expectations relating to 大象传媒鈥檚 operations or financial performance, and assumptions related thereto are forward-looking statements. 大象传媒 cautions that forward-looking statements are not guarantees and that actual results could differ materially from those expressed or implied in the forward-looking statements. 大象传媒 undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Potential risks and uncertainties that could cause the actual results of operations or financial condition of 大象传媒 to differ materially from those expressed or implied by forward-looking statements include, but are not limited to: the level of consumer demand for apparel and footwear; disruption to 大象传媒鈥檚 distribution system; changes in global economic conditions and the financial strength of 大象传媒鈥檚 consumers and customers, including as a result of current inflationary pressures; fluctuations in the price, availability and quality of raw materials and finished products; disruption and volatility in the global capital and credit markets; 大象传媒鈥檚 response to changing fashion trends, evolving consumer preferences and changing patterns of consumer behavior; 大象传媒's ability to maintain the image, health and equity of its brands, including through investment in brand building and product innovation; intense competition from online retailers and other direct-to-consumer business risks; increasing pressure on margins; retail industry changes and challenges; 大象传媒's ability to execute its Reinvent transformation program and other business priorities, including measures to streamline and right-size its cost base and strengthen the balance sheet while reducing leverage; 大象传媒鈥檚 ability to successfully establish a global commercial organization, and identify and capture efficiencies in its business model; any inability of 大象传媒 or third parties on which it relies, to maintain the strength and security of information technology systems; the fact that 大象传媒鈥檚 facilities and systems, and those of third parties on which we rely, are frequent targets of cyber-attacks of varying levels of severity, and may in the future be vulnerable to such attacks, and any inability or failure by 大象传媒 or such third parties to anticipate or detect data or information security breaches or other cyber-attacks, including the cyber incident that was reported by 大象传媒 in December 2023, could result in data or financial loss, reputational harm, business disruption, damage to our relationships with customers, consumers, employees and third parties on which it relies, litigation, regulatory investigations, enforcement actions or other negative impacts; any inability by 大象传媒 or third parties on which it relies to properly collect, use, manage and secure business, consumer and employee data and comply with privacy and security regulations; 大象传媒鈥檚 ability to adopt new technologies, including artificial intelligence, in a competitive and responsible manner; foreign currency fluctuations; stability of 大象传媒's vendors' manufacturing facilities and 大象传媒's ability to establish and maintain effective supply chain capabilities; continued use by 大象传媒鈥檚 suppliers of ethical business practices; 大象传媒鈥檚 ability to accurately forecast demand for products; actions of activist and other shareholders; 大象传媒's ability to recruit, develop or retain key executive or employee talent or successfully transition executives; continuity of members of 大象传媒鈥檚 management; changes in the availability and cost of labor; 大象传媒鈥檚 ability to protect trademarks and other intellectual property rights; possible goodwill and other asset impairment; maintenance by 大象传媒鈥檚 licensees and distributors of the value of 大象传媒鈥檚 brands; 大象传媒鈥檚 ability to execute acquisitions and dispositions, integrate acquisitions and manage its brand portfolio; 大象传媒's ability to realize benefits from the completed sale of the Supreme^庐 brand business; business resiliency in response to natural or man-made economic, public health, cyber, political or environmental disruptions; changes in tax laws and additional tax liabilities; legal, regulatory, political, economic, and geopolitical risks, including those related to the current conflicts in Ukraine and the Middle East and tensions between the U.S. and China; changes to laws and regulations; adverse or unexpected weather conditions, including any potential effects from climate change; 大象传媒's indebtedness and its ability to obtain financing on favorable terms, if needed, could prevent 大象传媒 from fulfilling its financial obligations; 大象传媒's ability to pay and declare dividends or repurchase its stock in the future; climate change and increased focus on environmental, social and governance issues; 大象传媒's ability to execute on its sustainability strategy and achieve its sustainability-related goals and targets; risks arising from the widespread outbreak of an illness or any other communicable disease, or any other public health crisis; and tax risks associated with the spin-off of the Jeanswear business completed in 2019. More information on potential factors that could affect 大象传媒鈥檚 financial results is included from time to time in 大象传媒鈥檚 public reports filed with the SEC, including 大象传媒鈥檚 Annual Report on Form 10-K, and Quarterly Reports on Form 10-Q, and Forms 8-K filed or furnished with the SEC.

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Investor Contact:
Allegra Perry
ir@vfc.com

Media Contact:
Colin Wheeler
corporate_communications@vfc.com

Source: 大象传媒 Corporation