VF : Fiscal Year 2022 Annual Report

Annual Repor t

F I S C A L Y E A R 2 0 2 2

Letter to Shareholders and Stakeholders

To Our Shareholders and Stakeholders:

In fiscal year 2022 (FY22), VF Corporation continued to grow, progress and intentionally evolve. Despite global supply chain disruptions, geopolitical tensions, macroeconomic volatility and international conflict, our 123rd year in business was marked by the continued advancement of our strategy and broad-based revenue and profit growth. We made meaningful progress toward our long-term goals and leveraged our portfolio strategy to deliver both top- and bottom-line growth in alignment with our commitments. Our success in FY22 - and our ability to strengthen our business amid several obstacles - clearly demonstrates the unwavering adaptability and resiliency of VF's talented associates around the world. As we look ahead, we remain focused on investing in our core growth strategies, shaping our company for the future and delivering value to our shareholders and stakeholders.

FY22 FINANCIAL HIGHLIGHTS

VF is a family of beloved brands supported by world-class strategic platforms and enterprise functions. The challenges of FY22 put the value of our diversified portfolio on full display, enabling us to offset pressure in certain parts of our business while leveraging strength and growth in other areas. Here's a snapshot of our financial performance:1

• Global revenue increased 28% (27% in constant dollars)2 to $11.8 billion. Excluding the impact of the Supreme® acquisition, revenue increased 23%.
• Gross margin increased 180 basis points to 54.5%. On an adjusted basis,3 gross margin increased 150 basis points to 54.8%, including a positive impact from the Supreme® acquisition of 20 basis points.
• Earnings per share (EPS)4 was $3.10. On an adjusted basis,5 EPS was $3.18, including a contribution from the Supreme® acquisition of $0.19 per share.
• FY22 cash flow from operations reached $858 million, and we returned over $1.1 billion to shareholders through share repurchases and dividends.

2	VF Corporation Annual Report FISCAL YEAR 2022

CONSISTENT EXECUTION OF OUR STRATEGY

Driven by our relentless commitment to long-term growth, VF continued taking steps forward in four strategic areas during the year:

1. OPTIMIZING OUR PORTFOLIO: VF has evolved and simplified our portfolio during the past five years, moving from 32 to 12 brands anchored in the outdoor, active and work/ work-inspired sectors where there are meaningful consumer tailwinds. In early FY22, we sold nine occupational workwear brands and businesses - Bulwark®, Horace Small®,
   Kodiak®, Red Kap®, Terra®, VF Solutions®, Walls®, Work Authority® and Workrite®. Divesting these labels and others further focused our portfolio on a carefully curated group of outdoor and activity-basedlifestyle brands that are strongly positioned for direct-to-consumer (DTC) growth and international expansion. We've always considered the active management of our brand portfolio a differentiating advantage. And moving forward, we'll continue to make M&A a priority for capital allocation. Our goal remains to strategically and dynamically manage our portfolio to maximize exposure to the most attractive tailwind parts of the marketplace and leverage VF's brand-buildingand operational strengths to generate synergies and operating efficiencies.
2. INVESTING IN ASIA: During FY22, we completed the transition of our Asia Product Supply Hub from Hong Kong to Singapore and our brands' regional center of operations from Hong Kong to Shanghai. This move to Shanghai specifically has enhanced our teams' focus on product relevance and brand connections with Chinese consumers. By embracing emerging channels, elevating store formats and optimizing omnichannel integration, our brands are strengthening the ways we serve consumers in this fast-moving market. Despite the disruption to the Chinese economy and slower growth in FY22, particularly in the fourth quarter while a significant portion of the market was under COVID-19 restrictions, we continue to see long-term growth opportunities across the region. Consumer interest in our core categories is growing and we're committed to continued expansion in China and across Asia-Pacific.
3. ELEVATING DIRECT CHANNELS: Consumers are at the heart of everything we do. Therefore, it's critical that we drive consumer understanding, engagement and long-term loyalty across brands, channels and regions. We continue to deploy initiatives that respond to consumer needs across our owned digital platforms and store networks. This consumer- driven mindset is a key investment priority across our business and is expected to support

Letter to Shareholders and Stakeholders

continued growth from our DTC channels. In FY22, our DTC business increased 31%, including a 10-percentage point revenue growth contribution from the Supreme® acquisition, and now represents 46% of VF's total revenue, while our DTC Digital business accounts for 20%.

4. ACCELERATING OUR BUSINESS MODEL TRANSFORMATION: Every day, we work to become more consumer-minded, retail-centricand hyper-digitalin all we do. In FY22, we advanced the digitization of our go-to-marketprocesses, with the goal to reduce the time it takes to bring product to market, simplify the sell-inprocess and improve the flow, frequency and newness of product assortments. Our Consumer Data, Insights & Analytics team delivered new capabilities that have enabled our brands to understand their consumers at a deeper level and provide more personalized experiences. We continued to evolve and improve our e-commerceplatforms to create a more seamless and compelling online shopping experience, resulting in improved top- and bottom-linegrowth. And importantly, we continued improving how we work in order to increase speed, efficiency and collaboration. Moving forward, we will maintain a sharp focus on doing what's needed to win in a competitive, dynamic and digitally driven marketplace.

LEADING WITH PURPOSE

During the year, we published our fourth Sustainability & Responsibility report, "Made for Change," which reflects our resolve to lead VF with purpose and drive progress in our focus areas of people, planet and product. In FY22, we made headway toward our ambitious science-based targets and established new commitments related to worker development, gender parity, carbon emissions, waste and plastic reduction, responsible sourcing of materials, recycled and regenerative supply chains, and chemicals.

We also released our third annual profile on Inclusion, Diversity, Equity & Action (IDEA), which defines the strategic pillars that drive VF's IDEA goals. Additionally, we publicly committed to two aspirational employee representation goals: our desire to achieve, by 2030, gender parity globally at the director level and above, and 25% representation of Black, Indigenous and people of color (BIPOC) at the director level and above in the United States. In FY22, we made progress toward both aspirational goals, with those who identify as women comprising 42% of the director level and above population globally and BIPOC associates representing 18% of the director level and above population in the United States.6 Through this focused commitment, we will continue to evolve our employee base to better align with and serve our diverse and global consumers.