As a result of the current unprecedented period of uncertainty, including the unknown duration and overall impact of the COVID-19 coronavirus outbreak, VF Corporation (NYSE: VFC) on March 23, 2020, announced additional actions to preserve financial liquidity and flexibility in order to successfully manage its business operations.
Drawdown of Revolving Credit Facility
As previously disclosed, VF maintains a USD 2.25 billion senior unsecured revolving credit facility that expires in December 2023. In an abundance of caution and as a proactive, precautionary measure, VF elected to draw down USD 1 billion from its revolving credit facility. The draw down strengthens VF’s cash position and effectively funds the company’s expected working capital requirements through the first half of fiscal 2021. After the draw down, VF expects to have approximately USD 1.5 billion of cash on hand and approximately USD 1 billion remaining under the revolving credit facility.
VF also retains access to a commercial paper program which allows for borrowings up to USD 2.25 billion for short-term, seasonal working capital requirements and general corporate purposes.
Full Year Fiscal 2020 Earnings Outlook Update
As a result of the disruption and uncertainty caused by the COVID-19 coronavirus outbreak, VF is withdrawing its adjusted fiscal 2020 outlook provided on January 23, 2020 and is not providing an updated outlook at this time. More information will be provided during the company’s fourth quarter fiscal 2020 conference call in May 2020.
Founded in 1899, VF Corporation is one of the world’s largest apparel, footwear and accessories companies connecting people to the lifestyles, activities and experiences they cherish most through a family of iconic outdoor, active and workwear brands including Vans®, The North Face®, Timberland® and Dickies®. Our purpose is to power movements of sustainable and active lifestyles for the betterment of people and our planet. We connect this purpose with a relentless drive to succeed to create value for all stakeholders and use our company as a force for good.