FY24 Outlook

• The company withdraws its previous FY24 revenue and earnings guidance and updates its free cash flow projection:
  • Free cash flow for FY24 is expected to be approximately $600 million compared to the previous guidance of approximately $900 million
• The following factors are now assumed to significantly impact revenue and profit negatively in 2H'FY24
  • Vans' performance is not anticipated to improve in 2H'FY24
  • A more difficult US wholesale environment
• Reinvent will likely result in charges including cash and non-cash items

Matt Puckett, CFO, said: "Despite pockets of continued strong performance throughout the first half and solid profit margins in the second quarter, it's not enough and we are not making sufficient progress at Vans or in the US. Our transformation plan, Reinvent, directly addresses these areas in particular and importantly, commits to lowering our cost structure by $300 million. Through this effort and our ongoing evaluation of all aspects of our business, we remain laser-focused on cash generation and debt reduction, with the intent to return to growth, drive higher ROIC and reduce leverage."