V.F. Corporation (VFC) investor relations material

Portfolio review and brand divestiture

• Annual portfolio reviews are ongoing, with no initial plans to sell Dickies, but an attractive unsolicited offer led to the sale, prioritizing focus on core brands like Vans, The North Face, Timberland, and Altra.

• Dickies was lower in strategic priority and unlikely to receive significant investment, so the sale will improve leverage ratios and enable debt reduction.

• The transaction was not driven by performance issues and aligns with long-term strategic goals, not short-term results.

Financial strategy and debt management

• Sale proceeds from Dickies will be used to pay down debt, reducing the need to draw on the asset-based lending facility and saving on interest expenses.

• The asset-based lending facility was established for security and flexibility, not out of necessity.

Macroeconomic outlook and tariff mitigation

• Medium-term targets are not heavily dependent on economic conditions, with the U.S. consumer remaining resilient.

• Tariff impacts are being offset through cost reductions, strategic pricing, and some plant relocations, with full mitigation expected by next year.

• Pricing actions are strategic and gradual due to long supply chains, with a conservative approach to price elasticity.

• Exposure to de minimis tariffs is minimal.