S&P trims VF

S&P said it lowered its ratings for VF Corp. and its senior unsecured notes to BBB from BBB+.

The agency noted VF’s fiscal 2023 earnings failed to meet S&P’s base-case forecast, with free operating cash flow of negative $917 million and leverage near 4x.

“The current weakening of consumer demand for discretionary products, retailer inventory realignment, and foreign exchange and inflationary headwinds continue to pressure VF's performance. The company ended fiscal 2023 with sales down 2% and EBITDA margin weakening by 370 basis points, reflecting a heavy promotional environment from lower demand and an attempt to clear excess inventory. We now project leverage to remain above 3x through the end of fiscal 2024 before declining below 3x in fiscal 2025,” S&P said in a press release.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.