VF Corporation 舉行了 2024 財年第四季度電話會議,會議期間討論了前瞻性陳述以及 Reinvent 計劃、領導層變動、財務業績和品牌績效方面的最新進展。
該公司目前專注於推動成長、改善營運並恢復商業卓越。他們也討論了美洲地區的挑戰,並強調了歐洲和中國的成長機會。此外,他們還討論了償還債務和優化庫存管理的計劃。
正在就公司的品牌組合和分銷模式做出策略決策,重點是保持批發、數位和實體店之間的平衡。 VF 公司對未來成長表示樂觀,並可能考慮盡快恢復財務目標。
使用警語:中文譯文來源為 Google 翻譯,僅供參考,實際內容請以英文原文為主
Operator
Operator
Hello, and welcome to the VF Corporation Fourth Quarter 2024 Earnings Call. (Operator Instructions) As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to Vice President, Investor Relations, Allegra Perry. Please go ahead, Allegra.
您好,歡迎參加 VF 公司 2024 年第四季財報電話會議。 (操作員指示)謹此提醒,本次會議正在錄製中。現在我很高興將電話轉給投資者關係副總裁 Allegra Perry。請繼續,阿萊格拉。
Allegra Perry - VP of IR
Allegra Perry - VP of IR
Good afternoon, and welcome to VF Corporation's Fourth Quarter Fiscal 2024 Conference Call. Participants on today's call will make forward-looking statements. These statements are based on current expectations and are subject to uncertainties that could cause actual results to differ materially. These uncertainties are detailed in documents filed regularly with the SEC.
下午好,歡迎參加 VF Corporation 2024 財年第四季電話會議。今天電話會議的參與者將發表前瞻性聲明。這些陳述是基於目前的預期,並受到可能導致實際結果存在重大差異的不確定性的影響。這些不確定性在定期向 SEC 提交的文件中有詳細說明。
Unless otherwise noted, amounts referred to on today's call will be on an adjusted constant dollar basis, which we've defined in the press release that was issued this afternoon and which we use as lead numbers in our discussion because we believe they more accurately represent the true operational performance and underlying results of our business. You may also hear us refer to reported amounts, which are in accordance with U.S. GAAP. Reconciliations of GAAP measures to adjusted amounts can be found in the supplemental financial tables included in the press release, which identify and quantify all excluded items, and provide management's view of why this information is useful to investors.
除非另有說明,今天電話會議中提到的金額將以調整後的固定美元為基礎,我們在今天下午發布的新聞稿中對此進行了定義,並且我們在討論中將其用作主要數字,因為我們相信它們更準確地代表了我們業務的真實營運績效和基本成果。您可能也會聽到我們提到根據美國公認會計原則 (U.S. GAAP) 計算的報告金額。新聞稿中包含的補充財務表格可以找到 GAAP 衡量指標與調整金額的調整表,該表格確定並量化了所有排除項目,並提供了管理層對為何此資訊對投資者有用的看法。
Joining me on the call will be VF's President and Chief Executive Officer, Bracken Darrell; EVP, Chief Commercial Officer and President, Emerging Brands, Martino Scabbia Guerrini; and EVP and Chief Financial Officer, Matt Puckett. Following our prepared remarks, we'll open the call for questions.
與我一起參加電話會議的還有 VF 總裁兼執行長 Bracken Darrell;執行副總裁、商務長兼新興品牌總裁 Martino Scabbia Guerrini;執行副總裁兼財務長 Matt Puckett。在我們準備好的發言之後,我們將開始提問。
I'll now hand over to Bracken.
現在我將把任務交給布雷肯。
Bracken P. Darrell - President, CEO & Director
Bracken P. Darrell - President, CEO & Director
Thanks so much for joining us. I finished 10 months here, and we've made a lot of progress. I'll begin today with a deep dive on our Reinvent program and why I'm confident we'll position VF to return to strong, sustainable growth. Then I'll briefly touch on our financial results before turning it over to Martino and Matt.
非常感謝您加入我們。我在這裡度過了 10 個月,我們取得了巨大的進步。今天,我將首先深入探討我們的重塑計劃,以及為什麼我有信心讓 VF 恢復強勁、可持續的成長。然後我將簡要介紹我們的財務業績,然後再交給馬蒂諾和馬特。
Well, I've discussed Reinvent on our prior calls. I'd like to go a few layers deeper today so you can have a better understanding of how we're approaching this, the progress we've made so far and what's next. Almost everything is playing out as I expected it would when I took the role. We've taken the top management we needed to return to growth. Key organizational changes, leadership changes and strategic moves have largely been executed by the time we get to the end of my first year, and I feel really, really good about them.
嗯,我在之前的電話會議中討論過「重塑」。今天我想更深入地了解一下,以便您可以更好地了解我們如何解決這個問題、我們迄今為止的進展以及下一步的計劃。幾乎一切都按照我接手這個角色時的預期進行。我們已經任命了恢復成長所需的高階管理人員。到我第一年結束時,關鍵的組織變革、領導層變動和策略舉措已基本完成,我對它們感覺非常非常好。
Reinvent, which we introduced back in Q2, is fundamentally how we get back to strong growth. Some perceive this as a simple restructuring plan or tactical steps. It wasn't, and it isn't. Reinvent is a blueprint for transforming a company from declining to growing. It has 3 key phases running in parallel: reset, ignite and accelerate.
我們在第二季推出的「重塑」從根本上是我們恢復強勁成長的方式。有些人認為這是一個簡單的重組計劃或戰術步驟。過去不是,現在也不是。 Reinvent 是公司從衰退走向成長的藍圖。它有 3 個並行運行的關鍵階段:重置、點火和加速。
Reset is focused on a reset of the U.S. business, Vans, the cost base and the balance sheet. Ignite is about elevating how we show up in front of the customer. Here, our focus is on product design, innovation and merchandising, on commercial excellence and brand building. Our reset and ignite phases are occurring in parallel and, together, will set the stage for the third phase, which will be accelerating growth.
重置的重點是重置Vans美國業務、成本基礎和資產負債表。 Ignite 旨在提升我們在客戶面前的形象。在這裡,我們的重點是產品設計、創新和行銷、商業卓越和品牌建立。我們的重置和點燃階段是並行發生的,並且共同為第三階段奠定基礎,第三階段將加速成長。
Before I get into details on the reset phase, let me talk a little bit about people. No turnaround happens without a strong team, and I've spent an enormous amount of time on this particular area. You have a CEO with a demonstrated turnaround and long-term demonstrated growth experience, and we are adding superstar talent. Our new CHRO is the former CHRO of Salesforce, a company 50x larger than VF, who also happens to have deep retail and apparel experience. Our new Head of Strategy in Digital was a managing partner of BCG, and spent time at lululemon. Our new Head of Design was named by McKinsey and others as one of the top creative design leaders in the world.
在詳細介紹重置階段之前,讓我先談談人。沒有強大的團隊,就不可能有扭轉局面,而且我在這個特定領域花了大量的時間。您擁有一位具有出色的扭虧為盈和長期成長經驗的首席執行官,我們正在增加超級明星人才。我們的新人力資源長是 Salesforce 的前首席人力資源官,這家公司比 VF 大 50 倍,他也恰好擁有深厚的零售和服裝經驗。我們新任的數位策略主管是 BCG 的管理合夥人,並曾在 lululemon 工作。我們的新設計主管被麥肯錫和其他公司評為世界頂級創意設計領導者之一。
And we announced today, Paul Vogel is our new CFO. Paul brings a wide range of financial, operational and capital markets experience. We plan to announce very soon a new Vans President, and we're promoting strong internal talent, including Martino and our new Timberland President, Nina Flood. By the time I reached my 1-year anniversary at VF in July, we'll have almost completely changed the leadership of this company. I have great confidence that we have the right team in place to successfully drive VF's turnaround and long-term growth.
我們今天宣布,保羅沃格爾 (Paul Vogel) 擔任我們的新任財務長。 Paul 帶來了廣泛的金融、營運和資本市場經驗。我們計劃很快宣布新任 Vans 總裁,我們正在提拔強大的內部人才,包括 Martino 和新任 Timberland 總裁 Nina Flood。到 7 月我在 VF 工作一週年紀念日時,我們幾乎完全更換了這家公司的領導層。我非常有信心,我們擁有合適的團隊來成功推動 VF 的轉虧為盈和長期成長。
Now turning to an update on our key priorities under the Reset days I spoke about earlier. We're on track to deliver our $300 million cost savings target by the middle of the fiscal year, as previously discussed. We're also making progress on reducing debt and strengthening our balance sheet. In the fourth quarter, we delivered another significant reduction in inventories, bringing the total for the year down 23%, down over $500 million, which, in turn, enable us to reduce our net debt by another $540 million. We also generated over $1 billion in operating cash flow and more than $800 million in free cash flow, exceeding the only guidance we gave you earlier.
現在轉向我之前提到的重置日期間我們的關鍵優先事項的最新情況。如同先前所討論的,我們預計在本財年中期實現 3 億美元的成本節約目標。我們在減少債務和加強資產負債表方面也取得了進展。第四季度,我們再次大幅減少庫存,使全年庫存總量下降 23%,減少超過 5 億美元,這反過來又使我們的淨債務又減少了 5.4 億美元。我們還產生了超過 10 億美元的營運現金流和超過 8 億美元的自由現金流,超出了我們之前給您的唯一指引。
Our strategic portfolio review is complete, and we'll provide an update when we have more news to share. We've established the Americas regional platform, which is now fully in place and operational as part of the global commercial organization. Under Martino's strong leadership, we are already seeing signs of progress. With imported key processes for EMEA and APAC, the accuracy of our forecasting has dramatically improved, and Martino will talk through the actions we're taking to improve the Americas performance in more detail.
我們的策略性投資組合審查已經完成,當我們有更多消息要分享時,我們將提供更新。我們已經建立了美洲區域平台,該平台現已完全到位並作為全球商業組織的一部分投入運作。在馬蒂諾的強大領導下,我們已經看到了進展的跡象。透過導入歐洲、中東和非洲和亞太地區的關鍵流程,我們的預測準確性顯著提高,馬蒂諾將更詳細地討論我們為改善美洲表現所採取的行動。
Let me move to Vans. While overall financial results have not yet improved, we are deep in execution, and we are starting to see very early green shoots. I said you'd start to see the brand turn first in one channel or region, and it would spread to others. It started to happen, with DTC Europe positive in the quarter. The inventory reset actions are helping create a cleaner market in which to introduce new product. Our weeks of supply have come down with our partners in all 3 regions.
讓我搬到Vans去吧。雖然整體財務表現尚未改善,但我們正在深入執行,並開始看到早期的萌芽。我說你會開始看到該品牌首先在一個管道或地區轉變,然後它會傳播到其他管道或地區。隨著 DTC Europe 在本季的積極表現,這種情況開始發生。庫存重置行動有助於創造一個更乾淨的市場,以便推出新產品。我們這三個地區的合作夥伴的供應週數都減少了。
We're simplifying our product lineup and introducing a sustained level of investment in design and innovation. UltraRange Neo is performing well in the U.S. The Knu Skool, which launched when I first got here, is gaining strength behind enhanced marketing, has now become our second largest style globally. And the AVE 2.0, our newest and best skate shoe, has performed very well in the early months of its launch. You can expect more news here soon, too. This is part of our icon management strategy, which will also reduce reliance on core outcomes.
我們正在簡化我們的產品陣容,並在設計和創新方面進行持續的投資。 UltraRange Neo 在美國表現良好。我們最新、最好的滑板鞋 AVE 2.0 在推出的最初幾個月表現非常出色。您也可以很快在這裡期待更多消息。這是我們圖標管理策略的一部分,這也將減少對核心成果的依賴。
While the quarter remains in decline, we're seeing strong performance in our new products, and we have a cascaded product launches coming. We're also working to make our marketing efforts more effective. We're simplifying our storytelling. Our marketing has shifted to fewer, deeper campaigns. For example, we used to have 274 stories in one season. When you have 274 stories in 6 months, you're probably not telling any of them well. We've simplified it to a handful of powerful key stories, concentrating our investment. We're also rebalancing our marketing mix to drive higher ROI.
儘管本季仍處於下滑狀態,但我們看到新產品表現強勁,即將推出一系列產品。我們也致力於使我們的行銷工作更加有效。我們正在簡化我們的故事敘述。我們的行銷活動已轉向更少、更深入的活動。例如,我們過去一季有 274 個故事。當你在 6 個月內講了 274 個故事時,你可能沒有講好其中任何一個。我們將其簡化為幾個強大的關鍵故事,集中我們的投資。我們也重新平衡我們的行銷組合,以提高投資報酬率。
These changes are starting to show positive results. Now we're cutting through. Search is a good leading indicator. We're seeing Google Search trends move in the right direction for the first time in years. The last 3 months have improved compared to the previous 12. We don't only need to have simplification. We also need brand elevation to build brand equity and drive gross margin. We're leveraging our new OTW line as the pinnacle expression of the brand to drive energy and excitement. We're in the middle of a global series of events to bring together community, culture and fashion that will continue to unfold. That's how we get in the middle of cultural trends.
這些變化開始顯現出正面的成果。現在我們正在突破。搜尋量是一個很好的領先指標。我們看到 Google 搜尋趨勢多年來首次朝著正確的方向發展。與前 12 個月相比,過去 3 個月已經有所改善。我們還需要品牌提升來建立品牌資產並提高毛利率。我們利用新的 OTW 系列作為品牌的巔峰表達,以激發活力和興奮。我們正在進行一系列全球活動,將社區、文化和時尚匯聚在一起,這些活動將繼續展開。這就是我們如何融入文化趨勢的方式。
After the tease in June '23 of Men's Paris Fashion Week, we officially launched OTW at Art Frieze in Los Angeles in February of this year, with an amazing installation to drive brand elevation. And just last week, we had an exciting event on the Shanghai Bund that generated huge interest in-person and on social media, staying tuned for more. We have a strong and data-driven approach now to improve our in-store execution. You'll see more as we will live across the year.
繼23年6月巴黎男裝週的預告之後,我們今年2月在洛杉磯Art Frieze正式推出了OTW,並以令人驚嘆的裝置來推動品牌提升。就在上週,我們在上海外灘舉辦了一場令人興奮的活動,引起了現場和社交媒體的巨大興趣,敬請關注更多資訊。我們現在擁有強大的數據驅動方法來提高店內執行力。隨著我們這一年的生活,你會看到更多。
I'm a big believer in testing, learning and scaling, and stores were a wonderful place to do it. We're testing a lot of things across regions and areas of visual merchandising, four-wall formats and SKU productivity that will scale across the globe over time. At Vans, we've moved from theory to action.
我堅信測試、學習和擴展,而商店是實現這些的絕佳場所。我們正在跨地區和領域測試視覺行銷、四牆格式和 SKU 生產力等方面的許多內容,這些內容將隨著時間的推移在全球範圍內擴展。在 Vans,我們已經從理論轉向行動。
Now let's talk about the North Face. Our core focus there has been investing in product, design and merchandising. Our key growth drivers include category expansion and a specific focus on trail and hike, women's and footwear. We're starting to elevate the brand through premium performance products.
現在我們來談談北臉。我們的核心重點是在產品、設計和行銷方面進行投資。我們主要的成長動力包括品類擴張以及對越野和遠足、女裝和鞋類的特別關注。我們開始透過優質的性能產品來提升品牌。
Our Pinnacle expression of the brand, Summit Series, is leading the way through brand campaigns and in-store activations across all marketplaces. This is connected to elevating our brand journey through new store designs, which are currently being tested and scaled across the globe. A few select examples of this is the Regent Street store experience, our new store format in Berlin and Singapore, and soon we'll have one in Shanghai. Our key global partners are fully involved in this initiative, too.
我們的 Pinnacle 品牌表達-Summit 系列,在所有市場的品牌活動和店內活動中處於領先地位。這與透過新的商店設計提升我們的品牌旅程有關,目前這些設計正在全球範圍內進行測試和擴展。這方面的一些精選範例是攝政街商店體驗,這是我們在柏林和新加坡的新商店模式,很快我們將在上海開設一家商店。我們的主要全球合作夥伴也充分參與了這項措施。
We'll talk more about the final phase, Accelerate, in the coming quarters, but it's too early to talk about it now. So what can you expect as we move into fiscal '25? While we're not ready to give specific quantitative guidance, I can tell you that you can expect things will be a little bit better sequentially each quarter, except for the first quarter, as we complete our channel inventory resets, and Matt will tell you more about that later.
我們將在接下來的幾個季度中更多地討論最後階段“加速”,但現在談論它還為時過早。那麼,當我們進入 25 財年時,您可以期待什麼?雖然我們還沒有準備好提供具體的定量指導,但我可以告訴您,隨著我們完成渠道庫存重置,您可以預期每個季度的情況都會有所好轉,第一季除外,馬特會告訴您稍後會詳細介紹。
To close my section, I'm more confident than ever about our plans and our execution. We will return the company to long-term profitable and sustainable growth. Now let me hand over to Martino, who will give an update on our go-to-market approach globally.
最後,我對我們的計劃和執行比以往任何時候都更有信心。我們將使公司恢復長期獲利和永續成長。現在讓我把時間交給馬蒂諾,他將介紹我們在全球範圍內進入市場的方法的最新情況。
Martino Scabbia Guerrini - Chief Commercial Officer & President of Emerging Brands
Martino Scabbia Guerrini - Chief Commercial Officer & President of Emerging Brands
Thank you, Bracken, and good day, everyone. Nice to speak to you again in my new role of Chief Commercial Officer of VF, where I oversee our newly created global commercial organization and our emerging brands.
謝謝你,布雷肯,大家好。很高興能以 VF 首席商務官的新身分再次與大家交談,我負責監督我們新創建的全球商業組織和新興品牌。
Today, I'm going to give you some additional details on our key priorities within this new operating model. These details will be primarily focused on the Americas, the region where we see the biggest incremental opportunities, and we stand to benefit the most from leveraging processes and tools that have led to commercial success in Europe and Asia.
今天,我將向您提供一些有關我們在這一新營運模式中的關鍵優先事項的更多詳細資訊。這些細節將主要集中在美洲,我們在該地區看到了最大的增量機會,我們將從利用在歐洲和亞洲取得商業成功的流程和工具中獲益最多。
Three key messages I want to leave you with. One, we're driving our integrated marketplace strategy with speed and agility and clear focus on our best wholesale partners. Two, we are elevating our retail execution in D2C, direct-to-consumer, across brick-and-mortar and digital. Three, we're driving commercial excellence through our operating model, scaling new capabilities and best practices across regions.
我想向您傳達三個關鍵訊息。第一,我們正在快速、敏捷地推動我們的綜合市場策略,並明確地關注我們最好的批發合作夥伴。第二,我們正在提升 D2C、直接面向消費者、實體和數位領域的零售執行力。第三,我們透過我們的營運模式推動商業卓越,在各個地區擴展新功能和最佳實踐。
First, integrated marketplace strategy. Integrated marketplace strategy is a holistic view across the channels to elevate our brand execution and capture consumer's engagement at every touch point. We see opportunities to perform better across wholesale and D2C. We're making clear choices, and we're executing intensely against those choices in each region and across the brands.
第一,整合市場策略。綜合市場策略是跨通路的整體視角,旨在提升我們的品牌執行力並在每個接觸點吸引消費者的參與。我們看到了在批發和 D2C 領域表現更好的機會。我們正在做出明確的選擇,我們正在每個地區和跨品牌的這些選擇上大力執行。
As the macro cycle adjusts and inventories return to normalized levels, an impeccable marketplace execution is critical to take back market share and drive growth across portfolio, starting from our Americas region, even more than anywhere else. We continue to see a strategic place for wholesale in our model, and we believe we can be much stronger with key strategic partners.
隨著宏觀週期的調整和庫存恢復到正常水平,完美的市場執行對於奪回市場份額並推動整個投資組合的成長至關重要,從美洲地區開始,甚至比其他任何地方都更重要。我們繼續看到批發在我們的模式中佔據戰略地位,我們相信,透過關鍵戰略合作夥伴,我們可以變得更加強大。
As we roll out our regional commercial model and transfer best practice across region, our immediate focus is on establishing a robust marketplace management processes in the Americas, supported by more agility in decision-making. These efforts are fairly focused on driving growth in short to medium term, but we expect them to also lead to higher tiers of distribution and less promotional approach to the marketplace and, in turn, more elevated brand positioning.
當我們推出區域商業模式並跨區域傳播最佳實踐時,我們的當務之急是在美洲建立強大的市場管理流程,並輔以更敏捷的決策。這些努力相當集中於推動中短期成長,但我們預期它們也將帶來更高層次的分銷和更少的市場促銷方式,進而提高品牌定位。
You've heard us talk about our global partnerships. We work with some of the best multi-brand retailers and partners in the business. They love our brands. They wanted to work with us to bring them to our consumers in a way which drives a deeper connection and build brand equity in the process.
您已經聽過我們談論我們的全球合作關係。我們與業內一些最好的多品牌零售商和合作夥伴合作。他們喜歡我們的品牌。他們希望與我們合作,以一種能夠推動更深層次的聯繫並在此過程中建立品牌資產的方式將它們帶給我們的消費者。
We are intensely focused on making this partnership tighter and more effective, adopting some of the processes that have made our business in Europe and Asia successful, such as cross-brand, key account governance execution. Over the last 8 months, we have invested significant time in the Americas, meeting our partners to create a strategic long-term frame and optimize our common commercial priorities. It is starting to yield results.
我們高度重視使這種合作關係更加緊密和有效,採用了一些使我們在歐洲和亞洲業務取得成功的流程,例如跨品牌、大客戶治理執行。在過去 8 個月中,我們在美洲投入了大量時間,與我們的合作夥伴會面,以建立長期策略框架並優化我們共同的商業優先事項。它開始產生成果。
Second, brand elevation and retail execution. We are moving fast across all areas of our new commercial organizations. In our direct-to-consumer environment, we're definitely under-executed in Americas relative to Europe and Asia in terms of commercial performance as well as retail excellence. As an example, we are adopting a more consistent and dynamic regional approach to our retail fleet optimization, a faster pace of retail innovation through new formats and rolling out consumer-facing omni-channel capabilities.
其次,品牌提升和零售執行力。我們正在新商業組織的所有領域快速發展。在我們直接面向消費者的環境中,相對於歐洲和亞洲,我們在美洲的商業表現和零售卓越性方面肯定表現不佳。例如,我們正在採用更一致和動態的區域方法來優化我們的零售車隊,透過新業態加快零售創新步伐,並推出面向消費者的全通路功能。
As we focus on elevating our brands, we're bringing retail execution and in-store experiences to the forefront. We need great designs and the right merchandising decisions to show up consistently across the retail environment, with the right mix of global and local relevance, and we need operational excellence and agile trading capabilities.
當我們專注於提升我們的品牌時,我們將零售執行和店內體驗帶到了最前沿。我們需要出色的設計和正確的行銷決策,以便在整個零售環境中始終如一地展示,並具有全球和本地相關性的正確組合,並且我們需要卓越的營運和敏捷的交易能力。
We are seeing success with some of our new store concepts, for example, The North Face in London, Vans in Shanghai, Timberland in Tokyo. And we've taken a hard look on how e-commerce digital experience connects and expands through the physical expression of our brands.
我們看到一些新概念店取得了成功,例如倫敦的 The North Face、上海的 Vans、東京的 Timberland。我們認真研究了電子商務數位體驗如何透過我們品牌的實體表達進行連結和擴展。
Third and finally, excellent commercial execution. As we ignite growth across business models, direct and partners, digital and physical, we are removing silos and barriers that get in the way of effective commercial execution. Through our commercial platforms, we are integrating trading execution, marketing and demand creation and planning discipline to drive the business and optimize the use of our inventory across all channels.
第三,也是最後一點,出色的商業執行力。隨著我們推動跨直接和合作夥伴、數位和實體業務模式的成長,我們正在消除阻礙有效商業執行的孤島和障礙。透過我們的商業平台,我們正在整合交易執行、行銷、需求創造和規劃規則,以推動業務發展並優化所有管道的庫存使用。
Analytical capabilities and more power in size will also contribute to our ability to be demand-driven across the whole marketplace. This improves our ability to predict with more accuracy where the business is headed and, in fact, we have now hit our internal forecast in the Americas for 5 consecutive months. We are seeing cleaner inventory positions at our brands following also the select reset actions. And more importantly, we're driving specific VF-wide growth initiatives with our key accounts in all the regions.
分析能力和更大的規模也將有助於我們在整個市場上實現需求驅動的能力。這提高了我們更準確地預測業務發展方向的能力,事實上,我們現在已經連續 5 個月達到了美洲的內部預測。在採取選擇性重置行動後,我們看到我們品牌的庫存狀況更加乾淨。更重要的是,我們正在與所有地區的主要客戶一起推動整個 VF 範圍內的特定成長計畫。
Last but not least, we are the proud owners of several emerging brands, delivering substantial total sales and accretive operating margins. There are some real jewels here. And in our new operating model, these are now managing an even more entrepreneurial dynamic way to catch market and category opportunities and create the best version into a bigger future play. So we're making progress at every step, focusing on improving our operations and returning to drive commercial excellence and best brand execution.
最後但並非最不重要的一點是,我們自豪地擁有多個新興品牌,實現了可觀的總銷售額和不斷增加的營業利潤。這裡有一些真正的珠寶。在我們新的營運模式中,這些公司現在正在管理一種更具創業活力的方式來捕捉市場和品類機會,並為更大的未來發展創造最佳版本。因此,我們每一步都在取得進展,專注於改善我們的運營,並返回推動商業卓越和最佳品牌執行。
Thank you for the time. I'll now hand over to Matt.
謝謝你的時間。現在我將把工作交給馬特。
Matthew H. Puckett - CFO
Matthew H. Puckett - CFO
Thanks, Martino, and good afternoon, everyone. My plan today is to give you a high-level overview of fiscal '24, a more in-depth review of Q4 results and highlight some themes for our key areas of focus and some guardrails for fiscal '25.
謝謝馬蒂諾,大家下午好。我今天的計劃是向您提供 24 財年的高層次概述、對第四季度業績的更深入回顧,並重點介紹我們重點關注領域的一些主題以及 25 財年的一些護欄。
We closed out our fiscal year having made further progress on the initial phase of Reinvent. And even though our fiscal year '24 P&L results remain difficult, with revenue down 11% and adjusted earnings per share of $0.74, we delivered against our near-term balance sheet and cash flow objectives. We exceeded our free cash flow guidance, largely driven by lower working capital, namely inventory, with $804 million generated for the year, which I'll cover in more detail in a minute.
我們在重塑的初始階段取得了進一步進展,結束了本財年。儘管我們的 24 財年損益表結果仍然很困難,收入下降了 11%,調整後每股收益為 0.74 美元,但我們還是實現了近期資產負債表和現金流目標。我們超越了自由現金流指引,這主要是由於營運資本(即庫存)下降,今年產生了 8.04 億美元,我將在稍後詳細介紹。
Now turning to our fourth quarter results, which were largely in line with our expectations. Throughout Q4, we continue to take proactive measures to improve our operating performance and strengthen our business and balance sheet, while implementing additional actions as part of the Reinvent transformation program. We advanced the work against the strategic portfolio review, which is now complete and are on track with our plans to continue paying down debt and strengthening our balance sheet.
現在轉向我們第四季的業績,這在很大程度上符合我們的預期。在整個第四季度,我們繼續採取積極措施來提高我們的營運績效並加強我們的業務和資產負債表,同時實施更多行動作為重塑轉型計畫的一部分。我們推進了戰略投資組合審查的工作,該審查現已完成,並正在按照我們繼續償還債務和加強資產負債表的計劃進行。
While the underlying financial results from Q4 remain challenging, there was a slight sequential improvement relative to last quarter. And importantly, we've seen some encouraging developments stemming from the recent actions we have taken.
儘管第四季度的基本財務業績仍充滿挑戰,但與上季相比略有改善。重要的是,我們最近採取的行動取得了一些令人鼓舞的進展。
Now let's unpack the performance, starting with the areas we guided on, inventory, cash flow and liquidity, where we delivered stronger results than anticipated. First, on inventory, where we made significant progress in the quarter, a direct benefit of our ongoing efforts to clean up the marketplace and operate with a more efficient level of inventories across each of our businesses. Inventory declined by 23% in the quarter versus last year, ahead of our expectations with double-digit declines across each of the 4 largest brands. We're also seeing an improvement in the level and health of our inventories with our wholesale partners.
現在讓我們來分析業績,從我們指導的領域開始,庫存、現金流和流動性,我們在這些領域取得了比預期更好的結果。首先,在庫存方面,我們在本季度取得了重大進展,這是我們持續努力清理市場並在每個業務中以更有效的庫存水準運作的直接好處。本季庫存較去年下降 23%,超出我們的預期,四大品牌均出現兩位數下降。我們也看到批發合作夥伴的庫存水準和健康狀況有所改善。
Turning to the highlight of our financial results, cash flow. As Bracken mentioned, during the fiscal year, we generated over $1 billion in operating cash flow and $800 million of free cash flow, ahead of our $600 million guidance. This result allowed us to continue making progress against one of our biggest priorities, reducing debt as we ended fiscal year '24 with net debt of about $5.3 billion, down approximately $540 million versus last year. The free cash flow beat was largely driven by lower working capital, primarily inventory as we were able to bring those levels down more quickly than projected. Liquidity at the end of the year was approximately $2.65 billion.
談到我們財務表現的亮點—現金流。正如 Bracken 所提到的,在本財年,我們產生了超過 10 億美元的營運現金流和 8 億美元的自由現金流,超出了 6 億美元的指引。這一結果使我們能夠繼續在我們最重要的優先事項之一上取得進展,即減少債務,截至 24 財年結束時,我們的淨債務約為 53 億美元,比去年減少了約 5.4 億美元。自由現金流的成長主要是由於營運資本(主要是庫存)下降所致,因為我們能夠比預期更快地降低這些水準。年末流動性約26.5億美元。
Now moving on to a review of the Q4 P&L. During the quarter, revenue was down 13%, including a little more than 2 points of impact from reset actions and right in line with our expectations, largely driven by the U.S. wholesale performance, which as expected, weighed on results across our brand portfolio. This compares with Q3 revenue of minus 17%, which also included a similar impact from reset actions.
現在繼續回顧第四季的損益表。本季度,收入下降了13%,其中包括重置行動帶來的略多於2 個百分點的影響,這與我們的預期相符,這主要是受到美國批發業績的推動,正如預期的那樣,這對我們整個品牌組合的表現造成了壓力。相較之下,第三季營收為負 17%,其中也包括重置操作帶來的類似影響。
Turning to the performance by region. Relative to the Americas, our international business remains more resilient, down 4% for the quarter as the APAC region continued to grow and as anticipated, the run rate in Europe improved relative to Q3. The Americas region was down 23% in the quarter, as anticipated, a similar trend to Q3 as a continued cautious posture from our wholesale partners and our actions to further reduce inventories in the channel, particularly in the U.S., weighed heavily on results.
轉向按地區劃分的表現。相對於美洲,我們的國際業務仍然更具彈性,由於亞太地區持續成長,本季下降了 4%,而且正如預期的那樣,歐洲的運作率相對第三季有所改善。正如預期的那樣,美洲地區本季下降了23%,與第三季的趨勢類似,因為我們的批發合作夥伴持續採取謹慎態度,以及我們進一步減少通路庫存(尤其是在美國)的行動,對業績產生了嚴重影響。
The DTC channel, although delivering a better performance to wholesale, was down low double digits in the quarter, driven by Vans. The North Face direct-to-consumer was slightly positive.
DTC 通路雖然為批發業務帶來了更好的業績,但在 Vans 的推動下,該季度的業績出現了兩位數的低點下滑。 The North Face 直接面向消費者的表現略顯正面。
Performance in the EMEA region sequentially improved to down 5% in the quarter, driven by growth in the DTC channel across most brands, including growth in The North Face, Vans and Timberland, led by our brick-and-mortar channel, which overall grew mid-single digits in the region. While wholesale is still negative, there was an improvement in run rate relative to last quarter, partly reflecting the normalization of delivery timing, which distorted the year-on-year comparison in Q3.
歐洲、中東和非洲地區的業績在本季環比下降了5%,這主要得益於大多數品牌DTC 通路的成長,其中包括The North Face、Vans 和Timberland 的成長,而實體通路的整體成長帶動了The North Face、Vans 和Timberland 的成長該地區的中個位數。雖然批發仍然為負,但運行率相對上季度有所改善,部分反映了交貨時間的正常化,這扭曲了第三季的同比比較。
Lastly, the APAC region was up 2% with all brands we distribute in the market growing, except for Vans and Dickies, reflecting their ongoing turnarounds. Growth was led by continued strong momentum at The North Face and ongoing growth in Timberland. Importantly as well, direct-to-consumer for the region was up high single digits. While Greater China remained strong, up 10%, declines in Southeast Asia and Korea pulled down the performance of the region overall.
最後,亞太地區成長了 2%,我們在該市場分銷的所有品牌都在成長(Vans 和 Dickies 除外),這反映了它們持續的扭虧為盈。 The North Face 的持續強勁勢頭和 Timberland 的持續成長帶動了成長。同樣重要的是,該地區的直接面向消費者成長了高個位數。儘管大中華區依然強勁,成長了 10%,但東南亞和韓國的下滑拉低了該地區的整體表現。
Looking at the performance by brand. The North Face was down 5% in the quarter, as expected. Starting with the positives. DTC was up 7% globally for the brand, reflecting positive growth across all 3 regions. And we continue to see outperformance in the APAC region growing 15%, driven by greater China growth of up almost 30% and partly offset by the onetime impact of returns in the Australia and New Zealand market to shift our model from a distributor to a direct business.
從品牌的表現來看。如預期,The North Face 本季下跌 5%。從正面的方面開始。該品牌的 DTC 在全球範圍內增長了 7%,反映出所有 3 個地區的積極成長。我們繼續看到,在大中華區成長近30% 的推動下,亞太地區的業績表現優異,成長了15%,並且部分被澳洲和紐西蘭市場回報的一次性影響所抵消,因為我們的模式從分銷商轉變為直接經銷商業。
While the cold weather season had a slow start, outerwear had a good quarter and overall was up mid-single digits for the year as underlying sales through across the business remains solid. The global performance, however, was impacted by the larger wholesale pressure we outlined last quarter, which is primarily contained to the Americas and which will continue to weigh on results over the next couple of quarters.
雖然寒冷季節的開局緩慢,但外套季度表現良好,由於整個業務的基本銷售依然強勁,全年整體銷量實現中個位數增長。然而,全球業績受到我們上季度概述的更大批發壓力的影響,這種壓力主要集中在美洲,並將繼續影響未來幾季的業績。
Vans revenue declined 27% in the quarter, in line with our expectations and reflecting the impact of the previously contemplated inventory reset actions, net of 4-point negative impact on the top line, similar to Q3. While both DTC and wholesale were down on a global basis, it's worth noting that DTC in Europe grew in the quarter, reflecting the brand's relatively stronger position in those markets and the benefits it has been deriving from the regional platform.
本季 Vans 營收下降 27%,符合我們的預期,並反映了先前考慮的庫存重置行動的影響,扣除對營收的 4 個百分點的負面影響,與第三季類似。雖然DTC 和批發在全球範圍內均有所下降,但值得注意的是,歐洲的DTC 在本季度有所增長,反映出該品牌在這些市場中相對較強的地位以及它從區域平台中獲得的收益。
Timberland was down 14%, including about a 6-point negative impact from reset actions in the U.S. wholesale marketplace, with sequential improvement on last quarter, reflecting growth in both Europe and in Asia, where the brand continues to resonate and where the go-to-market execution has been more consistent and effective. The issues largely rest with the business in the Americas, which continues to be challenged, and where the wholesale channel is significantly pressured because of reduced order books and ongoing soft sell-out trends.
Timberland 下跌14%,其中包括美國批發市場重置行動帶來的約6 個百分點的負面影響,上季度環比有所改善,反映了歐洲和亞洲的增長,該品牌在歐洲和亞洲繼續引起共鳴,並在這些地區走紅。這些問題主要在於美洲業務,該業務繼續面臨挑戰,由於訂單減少和持續的銷售疲軟趨勢,批發通路承受著巨大壓力。
Dickies was down 15%, have similar drivers and regional trends the last quarter, as we continue to refocus the brand on our core workwear consumer and business. Americas continue to see soft sellout trends across the marketplace. And in APAC, we continue to reposition the business and adjust inventory levels with our partners.
Dickies 下降了 15%,上個季度有類似的驅動因素和區域趨勢,因為我們繼續將品牌重點重新放在我們的核心工作服消費者和業務上。美洲市場持續呈現疲軟的銷售趨勢。在亞太地區,我們繼續與合作夥伴重新定位業務並調整庫存水準。
Supreme delivered another strong quarter, with sales up low double digits in Q4, reflecting a good start to the spring season and further validation of the global-wide strategy, with the continued strong performance in Korea as well as the late quarter store opening in Shanghai.
Supreme 再次迎來強勁的季度表現,第四季度銷售額實現兩位數低位增長,反映出春季的良好開局以及全球戰略的進一步驗證,韓國市場的持續強勁表現以及上海季度末的新店開業。
Moving down the P&L. Adjusted gross margin declined 120 basis points in the quarter to 48.4%, but that's not the full story nor the most important takeaway. The story really is that we were able to more quickly reduce inventories and drive higher free cash flow than anticipated, and as a result, saw a more significant near-term impact on gross margin than expected.
損益表向下移動。本季調整後毛利率下降 120 個基點至 48.4%,但這並不是故事的全部,也不是最重要的結論。事實上,我們能夠比預期更快地減少庫存並推動更高的自由現金流,因此,對毛利率的短期影響比預期更顯著。
To unpack the details explaining the basis point change versus last year, favorable channel and regional mix benefits and lower product costs were more than offset by a number of areas, including negative foreign currency transaction impact and several factors directly connected to the intentional reset actions, namely a continued elevated level of promotion and clearance activity as part of our effort to reduce inventory levels and reset the marketplace to a healthier level and mix, as well as higher inventory reserves, most notably at Dickies.
為了詳細解釋與去年相比的基點變化,有利的通路和區域組合效益以及較低的產品成本被許多領域所抵消,包括負面的外匯交易影響以及與有意重置行動直接相關的幾個因素,即持續提高促銷和清倉活動水平,作為我們努力降低庫存水平、將市場重置為更健康的水平和組合以及更高庫存儲備的努力的一部分,尤其是在Dickies。
Importantly, excluding impacts from reset actions and the associated inventory reserves, which were more than 200 basis points, gross margin would have been up about 100 basis points versus last year, inclusive of the negative foreign currency impact.
重要的是,排除重置行動和相關庫存儲備的影響(超過 200 個基點),毛利率將比去年增長約 100 個基點,其中包括負面外匯影響。
SG&A was down slightly, reflecting lower volume-related spending and incremental savings from the Reinvent program, which will accelerate as we move into fiscal '25, partly offset by incentive compensation timing versus last year and modest spend increases in our key investment areas, along with comping prior year benefits in SG&A, primarily associated with gains on asset sales. As a result of the lower revenue, SG&A deleveraged in the quarter by about 650 basis points. Adjusted operating margin decreased 770 basis points to a negative 2.1% and adjusted earnings per share was minus $0.32.
SG&A 略有下降,反映了與數量相關的支出減少以及Reinvent 計劃帶來的增量節省,隨著我們進入25 財年,該計劃將加速,與去年相比,激勵性薪酬時間和我們關鍵投資領域的適度支出增加部分抵消了這一點。由於營收下降,SG&A 在本季去槓桿化了約 650 個基點。調整後營業利益率下降 770 個基點至負 2.1%,調整後每股盈餘為負 0.32 美元。
Now I'd like to provide a brief update on the progress we've made on cost savings connected to Reinvent, where I'll build on some of the updates you heard from Bracken earlier in the call. We delivered about $80 million in gross savings this year versus our target, including about $40 million in fiscal Q4, primarily driven by head count reductions and supply chain savings. We remain on track to deliver at least $300 million in annualized savings, which we expect to be fully in place on a forward run rate basis by the middle of fiscal year '25.
現在,我想簡要介紹一下我們在與 Reinvent 相關的成本節約方面所取得的進展,其中我將基於您之前在電話會議中從 Bracken 那裡聽到的一些更新內容進行闡述。與我們的目標相比,我們今年實現了約 8000 萬美元的總節省,其中包括第四財季約 4000 萬美元,這主要是由於人員減少和供應鏈節省所致。我們仍有望實現至少 3 億美元的年度節省,我們預計到 25 財年中期,按照遠期運行率,這些節省將完全到位。
In Q4, we booked an additional $55 million in charges, of which $16 million were noncash. Including the charges recorded in Q3, the full year total was about $105 million, of which $35 million were noncash. We now expect the total charges associated with Reinvent to be approximately $130 million to $150 million.
第四季度,我們額外預訂了 5,500 萬美元的費用,其中 1,600 萬美元是非現金費用。包括第三季記錄的費用在內,全年總額約 1.05 億美元,其中 3,500 萬美元為非現金。我們現在預計與 Reinvent 相關的總費用約為 1.3 億至 1.5 億美元。
As previously stated, we intend to reinvest a portion of the savings oriented towards our biggest brands and opportunities and specifically focused on the areas of product design and innovation and brand building. To date, the reinvestment has been limited, as expected, and we anticipate this will accelerate as we move into fiscal '25 and beyond.
如前所述,我們打算將部分節省的資金再投資於我們最大的品牌和機會,特別關注產品設計和創新以及品牌建立領域。迄今為止,再投資正如預期的那樣受到限制,我們預計隨著進入 25 財年及以後,再投資將會加速。
If I sum up fiscal '24, it can be characterized by a significant amount of transformative actions that we've proactively implemented to adjust the operating model and rationalize and optimize our cost structure, reset the marketplace and begin improving the health and the trajectory of the business. While we're not issuing P&L guidance now, I wanted to provide some guardrails specific to Q1 and context relative to our cash flow outlook for fiscal '25.
如果我總結 24 財年,它的特點是我們主動實施了大量變革行動,以調整營運模式、合理化和優化我們的成本結構、重置市場並開始改善健康狀況和發展軌跡。雖然我們現在不發布損益指引,但我想提供一些特定於第一季的護欄以及與我們 25 財年現金流前景相關的背景。
First, revenue remain challenged in the near term, particularly in Q1. We expect the results to be comparable to Q4 when excluding the impact of reset actions that occurred during that time frame. Specific to gross margins, which, across much of the year, should benefit from more fundamental tailwinds and headwinds, in Q1, we expect year-over-year margin erosion as we work through the residual excess inventory resulting from the cleanup actions we've taken over the last 2 quarters. This will largely be contained to sellout in the clearance channels, including our own outlets.
首先,短期內收入仍面臨挑戰,尤其是第一季。我們預計,排除該時間範圍內發生的重置操作的影響後,結果將與第四季度相當。具體到毛利率,在今年的大部分時間裡,毛利率應該會受益於更基本的順風和逆風,在第一季度,我們預計,隨著我們清理清理行動所產生的剩餘過剩庫存,我們預計利潤率將年減。這很大程度上將受到清關管道(包括我們自己的專賣店)的售罄影響。
We expect to generate approximately $600 million in cash available for financing activities from free cash flow plus the proceeds from noncore asset sales. It's worth explaining that the lower level of cash generated as compared to fiscal '24 is a result of less working capital benefit, in particular, when considering this last year included over $500 million benefit from inventory reductions. We expect to end the year with liquidity of at least $2 billion, which contemplates the payment of the $1 billion term loan due in December.
我們預計將透過自由現金流加上非核心資產出售收益產生約 6 億美元的現金,可用於融資活動。值得解釋的是,與 24 財年相比,產生的現金水準較低,是由於營運資本收益減少,特別是考慮到去年包括來自庫存減少的超過 5 億美元的收益。我們預計到年底流動性至少為 20 億美元,其中考慮到支付 12 月到期的 10 億美元定期貸款。
As this is my last earnings call with VF, I wanted to take a minute to close with a thank you. I've truly enjoyed the time I spent getting to know and work with all of you over the years, and in particular, the last 3 in the role of CFO. And I can tell you that I've learned a great deal from our interactions.
由於這是我最後一次參加 VF 的財報電話會議,我想用一分鐘的時間來表達感謝。我真的很享受這些年來與你們所有人的了解和合作,特別是在擔任財務長的最後三年。我可以告訴你,我從我們的互動中學到了很多。
While the business is not yet where I know it has the potential to be and will get to, I'm confident that the priorities we've set and the actions we've implemented, particularly in the last few quarters since Bracken has taken the helm as CEO, will position this great company for a very bright future. And I look forward to watching the continued evolution of VF.
雖然業務尚未達到我所知道的有潛力和將會達到的水平,但我相信我們設定的優先事項和我們實施的行動,特別是自 Bracken 採取行動以來的最後幾個季度作為首席執行官,他將帶領這家偉大的公司走向光明的未來。我期待看到 VF 的持續發展。
With that, I'll hand it over to the operator, and we'll take your questions.
這樣,我會將其交給接線員,我們將回答您的問題。
Operator
Operator
(Operator Instructions) Our first question is coming from Michael Binetti from Evercore ISI.
(操作員說明)我們的第一個問題來自 Evercore ISI 的 Michael Binetti。
Michael Charles Binetti - Senior MD
Michael Charles Binetti - Senior MD
Let me ask, Bracken, you spoke to Vans' Europe DTC turning positive. Can you just help us maybe connect the dots in that market a little bit more? I know you like that as a leading indicator. You said this is happening with the inventory cleaned up that DTC turned positive. Is it safe to say that inventories in the wholesale channel there also had to be clean for that to happen in direct-to-consumer? And if so, are there any signs of improvements in the forward season order books from wholesale that we can look to or thoughts that we can -- anything we can maybe think about as far as order book stabilizing, similar to DTC as the -- I'm trying -- I guess, I'm trying to think, are there reasons to think the rebuild there will be more uneven between the channels? Or is DTC -- do you see some evidence that DTC could be a leading indicator than wholesale?
讓我問一下,Bracken,你曾與 Vans 的歐洲 DTC 進行過交談,結果轉為陽性。您能幫我們把這個市場的各點連結起來嗎?我知道您喜歡將其作為領先指標。你說這種情況是在庫存清理後發生的,DTC 轉為正值。可以肯定地說,批發通路的庫存也必須乾淨,才能直接面對消費者嗎?如果是這樣,我們可以關注或認為我們可以考慮的遠期批發訂單簿是否有任何改善的跡象——就訂單簿穩定而言,我們可以考慮的任何事情,類似於DTC——我正在嘗試——我想,我正在嘗試思考,是否有理由認為重建後頻道之間會更加不平衡?或者是 DTC——您是否看到一些證據表明 DTC 可能是比批發更領先的指標?
Bracken P. Darrell - President, CEO & Director
Bracken P. Darrell - President, CEO & Director
Okay. Yes, just to start. Thank you, Michael, and great to hear from you. Yes, I do think -- as I think I mentioned in the last call, and I mentioned in the opening today, I do think that turnaround start in one channel or one part of the world and then they start to spread, not virally but systematically, and I think that's what we're seeing now in Europe.
好的。是的,只是開始。謝謝你,邁克爾,很高興收到你的來信。是的,我確實認為——正如我在上次電話會議中提到的,以及我今天在開場白中提到的,我確實認為這種轉變始於一個管道或世界的一個地方,然後它們開始傳播,不是病毒式傳播,而是系統性地,我認為這就是我們現在在歐洲看到的情況。
I'm going to let Martino answer the specific question about Europe and DTC versus wholesale. But I think you can generally say that I think we're seeing -- we're going to see wholesale come pretty quickly there, but DTC is already positive. Go ahead, Martino.
我將讓 Martino 回答有關歐洲、DTC 與批發的具體問題。但我認為你一般可以說,我認為我們正在看到——我們將看到批發很快就會出現,但 DTC 已經是積極的。繼續吧,馬蒂諾。
Martino Scabbia Guerrini - Chief Commercial Officer & President of Emerging Brands
Martino Scabbia Guerrini - Chief Commercial Officer & President of Emerging Brands
Yes. Thank you, Bracken. Michael, nice to hear from you. I think D2C, Vans' direct-to-consumer in Europe has definitely improved, and it's simply driven by focus on experience, a bit of newness starting to get traction and definitely a better assortment mix that allowed a much stronger conversion from consumers. So that was a little bit offset by traffic that may remain challenging, but we really see an improved engagement with the brand.
是的。謝謝你,布雷肯。邁克爾,很高興收到你的來信。我認為D2C,Vans 在歐洲的直接面向消費者的方式肯定有所改善,這只是由於對體驗的關注、一點新鮮感開始受到關注以及肯定是更好的品種組合而推動的,這使得消費者的轉換率大大提高。因此,這被可能仍然具有挑戰性的流量所抵消,但我們確實看到了與品牌的互動有所改善。
At the same time, we have better inventories in the marketplace, as we discussed. And definitely, we see search trends improving, and we see a better opportunity to win with our partners that are really interested in the Vans brand. They love the brand. They want to engage with the brand, and they want to win again together with us. So we've been, I think, creating the conditions to now work against that opportunity.
同時,正如我們所討論的,我們在市場上擁有更好的庫存。當然,我們看到搜尋趨勢有所改善,我們看到了更好的機會與對 Vans 品牌真正感興趣的合作夥伴一起獲勝。他們喜歡這個品牌。他們希望與品牌互動,並希望與我們一起再次獲勝。所以我認為,我們現在一直在創造條件來抓住這個機會。
Bracken P. Darrell - President, CEO & Director
Bracken P. Darrell - President, CEO & Director
Yes. And if I can just add. I think it is a good leading indicator because we were never as overloaded in the channels in Europe as we were in the Americas, which meant the cleanup in Americas didn't need to happen in Europe the same way.
是的。如果我可以添加的話。我認為這是一個很好的領先指標,因為我們在歐洲的頻道從未像在美洲那樣超載,這意味著美洲的清理不需要以同樣的方式在歐洲進行。
Operator
Operator
Next question is coming from Laurent Vasilescu from BNP Paribas.
下一個問題來自法國巴黎銀行的 Laurent Vasilescu。
Laurent Andre Vasilescu - Research Analyst
Laurent Andre Vasilescu - Research Analyst
Bracken, I'd love to ask about The North Face. I know Nicole is not on the call tonight. But in the press release, it says ongoing wholesale weakness in the U.S. Can you maybe just give a little bit of framework around there? How do we think about -- I know you're not guiding by brand or by revenues for the company, but how do we think about North Face overall for this coming year?
Bracken,我想問有關 The North Face 的情況。我知道妮可今晚不接電話。但在新聞稿中,它表示美國持續批發疲軟。我們如何看待——我知道您不是以品牌或公司收入為指導,但我們如何看待來年的 North Face 整體情況?
Bracken P. Darrell - President, CEO & Director
Bracken P. Darrell - President, CEO & Director
Yes. The overall -- the ongoing wholesale weakness is especially true in the U.S. and in the kind of winter apparel products. So I think that's very relevant. I'm going to let -- I'm going to start to let Martino take a lot of these regional questions, and by brand, so I'll let you take this.
是的。總體而言,持續的批發疲軟在美國和冬季服裝產品中尤其如此。所以我認為這非常相關。我將讓--我將開始讓馬蒂諾回答很多這些區域問題,並且按品牌劃分,所以我會讓你回答這個問題。
Martino Scabbia Guerrini - Chief Commercial Officer & President of Emerging Brands
Martino Scabbia Guerrini - Chief Commercial Officer & President of Emerging Brands
Yes. I think one comment about, honestly, our performance overall in the Americas region, and specifically in the wholesale channel, I think has been one of our key challenges. You probably know the number that we lost there. But also, this is our biggest [information] opportunity. And TNF can -- North Face can definitely lead into that.
是的。老實說,我認為關於我們在美洲地區,特別是批發管道的整體表現的評論是我們的主要挑戰之一。你可能知道我們在那裡丟失了多少號碼。而且,這是我們最大的[資訊]機會。 TNF 可以-North Face 絕對可以實現這一目標。
The brand, specifically, has now the opportunity to double down on the stronger partnership that we are really focused to reset and actually strategically frame for the future in the Americas wholesale market. So I would say, it's a bit of a common opportunity or issue so far in the Americas region across brands and the opportunity for The North Face to really leverage into their strength, to have a more relevant and more diversified and a more segmented play into the American distribution, including also higher tiers of the distribution.
具體來說,該品牌現在有機會加倍加強更強大的合作夥伴關係,我們真正專注於重新建立這種合作關係,並為美洲批發市場的未來制定戰略框架。所以我想說,這是迄今為止美洲地區各品牌的一個共同機會或問題,也是 The North Face 真正發揮自身優勢的機會,可以在市場上進行更相關、更多元化和更細分的競爭美國發行版,還包括更高等級的發行版。
Laurent Andre Vasilescu - Research Analyst
Laurent Andre Vasilescu - Research Analyst
Very helpful, Martino.
非常有幫助,馬蒂諾。
Bracken P. Darrell - President, CEO & Director
Bracken P. Darrell - President, CEO & Director
We're not guiding, Laurent, certainly not by brand or by region of the world. But I continue to be very bullish about The North Face. I think it's a great brand, great position. We have a lot of awesome products out and coming, and we're going to continue to invest at the same kind of rate in both product and brand building.
勞倫特,我們不是按品牌或世界地區進行指導。但我還是非常看好 The North Face。我認為這是一個偉大的品牌,偉大的地位。我們有許多很棒的產品即將問世,我們將繼續以同樣的速度在產品和品牌建立上進行投資。
Laurent Andre Vasilescu - Research Analyst
Laurent Andre Vasilescu - Research Analyst
Very helpful. And then, Matt, if I heard correctly, I think you said you expect you're going to pay down the $1 billion tranche in December. Should we assume refinancing of the $750 million that comes due in April? And if so, how should we think about interest expense for fiscal year '25? I don't know if you can kind of give us some guardrails for the audience on that front.
很有幫助。然後,馬特,如果我沒聽錯的話,我想你說過你預計將在 12 月支付 10 億美元。我們是否應該假設對 4 月到期的 7.5 億美元進行再融資?如果是這樣,我們應該如何考慮 25 財年的利息支出?我不知道你能否在這方面為觀眾提供一些護欄。
Matthew H. Puckett - CFO
Matthew H. Puckett - CFO
Yes, you want me to take that one, Bracken?
是的,你想讓我拿那個嗎,布雷肯?
Bracken P. Darrell - President, CEO & Director
Bracken P. Darrell - President, CEO & Director
Yes, why don't you go ahead.
是的,為什麼不繼續呢?
Matthew H. Puckett - CFO
Matthew H. Puckett - CFO
Yes. So yes, what I said in the prepared remarks, there was that we can -- we'll end the year with more than $2 billion of liquidity, which contemplates the paydown of $1 billion in December, right? So that's going to come from -- we've got a little bit of excess cash on the balance sheet coming into the year. We're going to generate quite a bit of cash. We kind of talked about what that is. And then, quite honestly, a little bit of an increase in short-term borrowings that we would kind of fund with and pay back pretty quickly with just some cash from the business. So that's the assumptions there.
是的。所以,是的,我在準備好的發言中說過,我們可以——我們將在年底擁有超過 20 億美元的流動性,其中考慮到 12 月還清 10 億美元,對嗎?所以這將來自——今年我們的資產負債表上有一點多餘的現金。我們將產生大量現金。我們討論過那是什麼。然後,老實說,短期借款會增加一點,我們會用這些資金提供資金,並很快用來自企業的一些現金償還。這就是那裡的假設。
And I think you're right. I mean, if you start to do the math, it gets pretty difficult to see the $750 million not needing to be refinanced, barring other actions, which, obviously, we're aggressively looking at some other things, right? And we talked about the strategic portfolio review is now complete, and obviously, ongoing work there associated with that. So -- but I think you have the math right. The other thing on interest, it will be modestly lower year-over-year, but not dramatically so.
我認為你是對的。我的意思是,如果你開始算一下,你會發現這 7.5 億美元不需要再融資是相當困難的,除非採取其他行動,顯然,我們正在積極考慮其他一些事情,對吧?我們談到戰略投資組合審查現已完成,顯然,與之相關的正在進行的工作。所以——但我認為你的數學是正確的。另一方面,利息將同比小幅下降,但不會大幅下降。
Bracken P. Darrell - President, CEO & Director
Bracken P. Darrell - President, CEO & Director
And if I could just add. And Matt said it, but we don't have any intention to refinance any of that.
如果我可以補充一下的話。馬特也這麼說過,但我們無意為其中的任何事情提供再融資。
Operator
Operator
Next question today is coming from Simeon Siegel from BMO Capital Markets.
今天的下一個問題來自 BMO 資本市場的 Simeon Siegel。
Simeon Avram Siegel - MD and Senior Retail & Services Analyst
Simeon Avram Siegel - MD and Senior Retail & Services Analyst
Matt, just want, again, wish you best of luck in the next chapter. Bracken, just a follow-up on the last one. Nice to hear about the positivity around North Face. Just maybe higher level, how do you think about the North Face revenue decline? How do they differ from Vans? Like any thoughts on just diagnosing the depth of any potential declines there would probably be helpful?
馬特,再次祝你在下一章好運。布雷肯,只是上一篇的後續。很高興聽到 North Face 周圍的正面情緒。也許更高層次,您如何看待 North Face 收入下降?它們與 Vans 有何不同?就像任何關於診斷任何潛在下降深度的想法可能會有幫助嗎?
And then I'm sorry if I missed it, did you give North Face's wholesale sell-in versus sell-through? Just trying to think through what the challenge at U.S. wholesale North Face versus its growth tells you about the brand and how people are seeing it.
如果我錯過了,我很抱歉,你是否給了 North Face 的批發銷售與銷售情況?只要想想美國批發商 North Face 所面臨的挑戰及其成長,就能告訴你關於這個品牌以及人們如何看待它的訊息。
Bracken P. Darrell - President, CEO & Director
Bracken P. Darrell - President, CEO & Director
I'm going to take the first one, and I'm going to let Matt handle the second one. But I'd say, overall, I feel very good about The North Face. So I think we're in quite a different position from Vans. The growth in The North Face in general is not concentrated in a few styles. It's really broad-based, and we've got a very strong portfolio. We have strong dynamics across the world in The North Face, and we're very strong in China. .
我要處理第一個,我要讓馬特處理第二個。但我想說,總的來說,我對 The North Face 感覺非常好。所以我認為我們與 Vans 的處境完全不同。總的來說,The North Face 的成長並不集中在少數幾個款式上。它的基礎非常廣泛,我們擁有非常強大的產品組合。 The North Face 在全球擁有強大的活力,在中國也非常強大。 。
But I think in general, we're in a -- we have a lot of share gain opportunity over time. The underlying sellout continues to be strong, 7% this quarter, and it's been strong and strong around the world, by the way. So I think we're in a really different position. We had that question last quarter, and we said you'll see DTC continue to be stronger than it has been. Matt, do you want to answer that question about sellout versus sell-through in The North Face?
但我認為總的來說,隨著時間的推移,我們有很多份額成長的機會。潛在的銷售量持續強勁,本季達到 7%,順便說一句,這種銷售量在全球範圍內都非常強勁。所以我認為我們的處境非常不同。上個季度我們就提出了這個問題,我們說過您會看到 DTC 繼續比以前更強大。 Matt,您想回答有關 The North Face 售罄與售罄的問題嗎?
Matthew H. Puckett - CFO
Matthew H. Puckett - CFO
Yes. I think, I mean, what I would say is sellout has generally been pretty good, right? I said in my comments that outerwear, overall, across the year was good and growing and that was across channels. Another factor here is we've talked a lot about reset. There's really no real reset actions happening in The North Face because inventories at wholesale we're in a pretty good place. And we sold in less this year, right?
是的。我想,我的意思是,我想說的是,銷售情況總體來說相當不錯,對吧?我在評論中表示,總體而言,外套全年表現良好,並且不斷增長,而且是跨渠道的。這裡的另一個因素是我們已經談論了很多關於重置的內容。 The North Face 確實沒有發生真正的重置行動,因為我們的批發庫存處於非常好的位置。今年我們的銷量減少了,對嗎?
The fall order books were down. We said that from the very beginning of the year. Some of that is the continued residual kind of challenges we had from disappointing the marketplace a couple of seasons ago, right? And so we need to build back credibility in terms of on-time deliveries and sell-through, et cetera, that is happening. And obviously, as we look forward into future seasons, we'll start to see the benefit of some of those things.
秋季訂單下降。我們從今年年初就這麼說了。其中一些是我們在幾個季度前讓市場失望而持續面臨的殘餘挑戰,對吧?因此,我們需要在按時交貨和銷售等方面重建可信度。顯然,當我們展望未來的季節時,我們將開始看到其中一些事情的好處。
Bracken P. Darrell - President, CEO & Director
Bracken P. Darrell - President, CEO & Director
If I could just add one more thing. I mean, also, it's just hard not to -- it's hard not to bring up the Americas' operating model in the past in the context of any of our brands, and that's certainly true in The North Face. So we underperformed in the Americas in general for several years, many years.
如果我能再增加一件事就好了。我的意思是,在我們的任何品牌中,很難不提起過去美洲的營運模式,The North Face 確實如此。因此,我們在美洲地區的表現多年來一直表現不佳。
So as we bring that operating model -- and I'm really bullish on that, too. I think, over time, it's really going to take hold, and we'll see a pretty dramatic improvement in The North Face in the Americas. So don't expect it this quarter or next quarter, but it's going to come.
因此,當我們引入這種營運模式時,我也非常看好這一點。我認為,隨著時間的推移,它確實會紮根,我們將看到 The North Face 在美洲的顯著改善。因此,不要指望這個季度或下個季度會出現這種情況,但它總是會到來。
Simeon Avram Siegel - MD and Senior Retail & Services Analyst
Simeon Avram Siegel - MD and Senior Retail & Services Analyst
Best of luck to you, Matt.
祝你好運,馬特。
Matthew H. Puckett - CFO
Matthew H. Puckett - CFO
Thanks, Simeon.
謝謝,西蒙。
Operator
Operator
Next question is coming from Brooke Roach from Goldman Sachs.
下一個問題來自高盛的布魯克·羅奇。
Brooke Siler Roach - Research Analyst
Brooke Siler Roach - Research Analyst
I wanted to follow up on the inventory and marketplace cleanup actions that you've taken, including SKU count reductions in both DTC and wholesale. Will that initiative be complete at the end of the first quarter? And as a result, how are you thinking about the puts and takes to gross margin between promotion, pricing and mix relative to other items that might be driving your gross margin for the year?
我想跟進你們所採取的庫存和市場清理行動,包括 DTC 和批發中 SKU 數量的減少。該計劃會在第一季末完成嗎?因此,相對於其他可能推動今年毛利率的項目,您如何考慮促銷、定價和組合之間的毛利率的看跌期權和賣出期權?
Bracken P. Darrell - President, CEO & Director
Bracken P. Darrell - President, CEO & Director
Thank you, Brooke. And great to hear from you. I'm going to make a high-level comment, but going to hand it off to Matt. Yes, generally speaking, those actions are going to be complete by the end of the first quarter, but not the -- we may or may not be fully complete on selling through the rest of that inventory that we brought back, which is what Matt referenced in his opening remarks. Matt, do you want to finish that?
謝謝你,布魯克。很高興收到你的來信。我將發表高級別評論,但將其交給馬特。是的,一般來說,這些行動將在第一季末完成,但不是——我們可能會也可能不會完全完成我們帶回的其餘庫存的銷售,這就是馬特所說的他在開場白中提到了這一點。馬特,你想完成這個嗎?
Matthew H. Puckett - CFO
Matthew H. Puckett - CFO
Yes, for sure. So I'll just be -- I'll be pretty definitive. We're largely done, Brooke, with the actual reset actions, meaning getting the marketplace, the full-price marketplace clean, right? So getting inventory out of the system, obviously, selling through and clearing through excesses through the season as well. So that's in a pretty good place. We will have a residual impact at a minimum through the first quarter fairly meaningfully, as we sell through some of that inventory that we pulled out of the full-price channels, right? We're going to sell through that in clearance channels, largely in our own outlets, right? And so that's kind of the story there.
是肯定的。所以我會非常確定。布魯克,我們基本上已經完成了實際的重置行動,這意味著讓市場、全價市場變得乾淨,對嗎?因此,顯然,要從系統中清除庫存,並在整個季節內進行銷售和清理過剩產品。所以這是一個非常好的地方。我們將在第一季產生相當有意義的殘餘影響,因為我們透過從全價通路中撤出的一些庫存進行銷售,對吧?我們將透過清倉管道進行銷售,主要是在我們自己的商店,對吧?這就是那裡的故事。
But looking beyond that and you think about kind of that -- the puts and takes of margin into fiscal '25 and kind of through the year, there are several things to consider. I mean mix benefits will continue. They'll be less than they were in fiscal '24 would be the expectation as wholesale in the Americas generally improves a bit across time. Product costs are not going to be an issue. If anything, they could be slightly down on a full year basis in fiscal '25.
但除此之外,你還會想到 25 財年以及全年的保證金看跌選擇權和賣出選擇權,有幾件事情需要考慮。我的意思是混合效益將持續下去。預計它們將低於 24 財年的水平,因為隨著時間的推移,美洲的批發市場總體會有所改善。產品成本不會成為問題。如果有什麼不同的話,那就是 25 財年的全年業績可能會略有下降。
Foreign currency, which has been a meaningful headwind, will be less so. It will still be a bit of a headwind, but not to the degree that it has been. And then, of course, you've got the impact of the actions themselves. We're going to be cleaner from an inventory standpoint. Marketplace appears to be cleaner. Hard to know exactly what the marketplace will do and what consumers will do across the year. But certainly, we're coming into the year cleaner. So those are the key things, I think, to pay attention to.
外幣一直是個巨大的阻力,但現在的阻力將會減弱。它仍然會有點逆風,但不會達到以前的程度。然後,當然,你會受到行動本身的影響。從庫存的角度來看,我們將變得更加乾淨。市場似乎更加乾淨。很難確切地知道全年市場會做什麼以及消費者會做什麼。但可以肯定的是,我們即將迎來更乾淨的一年。所以我認為這些都是需要關注的關鍵事情。
Bracken P. Darrell - President, CEO & Director
Bracken P. Darrell - President, CEO & Director
Yes. If I could just add one last comment. I think the way to think about it is this chapter -- as Matt said, this chapter on reset. Resetting the marketplace for Vans is largely done, yes? We just got the residual effects of selling through what we brought back through our own outlets.
是的。如果我能添加最後一條評論就好了。我認為思考這個問題的方法是這一章——正如馬特所說,這一章是關於重置的。 Vans 市場的重置已經基本完成,是嗎?我們只是透過我們自己的商店帶回來的東西進行銷售,從而獲得了剩餘的影響。
Operator
Operator
Your next question is coming from Matthew Boss from JPMorgan.
您的下一個問題來自摩根大通的馬修·博斯。
Matthew Robert Boss - MD & Senior Analyst
Matthew Robert Boss - MD & Senior Analyst
Bracken, I wanted to pick up maybe where you just left off. So on Vans, what actions do remain as part of the reset phase? Or where do you see us today versus the potential bottom at Vans? How do you feel about inventory on hand? And just what's the time line to scale some of the new product innovation that you cited in your remarks?
布雷肯,我想從你剛剛停下來的地方繼續前進。那麼在 Vans 上,重置階段還保留哪些操作呢?或者你認為我們今天的情況與 Vans 潛在的底部相比如何?您對現有庫存有何看法?您在演講中提到的一些新產品創新的擴展時間表是什麼?
Bracken P. Darrell - President, CEO & Director
Bracken P. Darrell - President, CEO & Director
No, I'm really excited about the new product innovation that's happening. We -- going back into, what, my opening remarks, we launched the Knu Skool very early in my tenure at the company. And through really strong marketing and a great product, it's now the #2 style. So I think it shows that we can launch a new style and turn it into a strong franchise almost out of the gate.
不,我對正在發生的新產品創新感到非常興奮。我們-回到我的開場白,我們在我任職公司的早期就推出了 Knu Skool。透過強大的行銷和出色的產品,它現在已成為第二大風格。所以我認為這表明我們可以推出一種新風格,並將其變成一個強大的特許經營權,幾乎可以立即實現。
We just recently launched AVE 2.0, which is the best skate shoes that's ever been made, I believe, certainly our best skate shoe ever, and it's done very, very well out of the gate. It's a niche product that's really focused on skaters. But stay tuned because we're going to have news on that for everybody soon.
我們最近剛推出了 AVE 2.0,這是有史以來最好的滑板鞋,我相信,當然也是我們有史以來最好的滑板鞋,而且它一開始就做得非常非常好。這是一款真正專注於滑冰者的小眾產品。但請繼續關注,因為我們很快就會為大家帶來這方面的消息。
So I feel good about the steps we're taking, but there's so much more ahead of us and so much more we can do. You asked, do I feel like we're at the bottom? I feel like we're either at the bottom or super close. I really do believe we're going to -- I can see the turn ahead through the tunnel. I'm not going to sit here and predict a quarter for you, but I can see it coming.
因此,我對我們正在採取的步驟感到滿意,但我們還有很多事情要做,我們可以做很多事情。你問我,我感覺我們已經跌入谷底了嗎?我覺得我們要么處於底部,要么非常接近。我真的相信我們會——我可以透過隧道看到前方的轉彎。我不會坐在這裡為你預測一個季度的情況,但我可以預見它的到來。
I love the fact that we're -- we -- DTC was positive in Europe this quarter. That's a great sign. Google Search trends, much better now than they were in the last 3 months versus last 12 months. Again, things can wobble when you're looking at external data, but that feels good. So I think there's some real green shoots here.
我喜歡這樣一個事實:我們——我們——DTC 本季在歐洲表現良好。這是一個很好的跡象。 Google 搜尋趨勢,現在比過去 3 個月和過去 12 個月好得多。同樣,當您查看外部數據時,事情可能會不穩定,但這感覺很好。所以我認為這裡已經出現了一些真正的萌芽。
Matthew Robert Boss - MD & Senior Analyst
Matthew Robert Boss - MD & Senior Analyst
Great. And then maybe just a follow-up. Across the organization, what holes currently remain in terms of different leadership positions still to fill?
偉大的。然後也許只是後續行動。在整個組織中,不同領導職位目前還有哪些漏洞需要填補?
Bracken P. Darrell - President, CEO & Director
Bracken P. Darrell - President, CEO & Director
I think we talked about my leadership position in the opening, and I'm super excited about that. I have to say, I'm really proud and excited. So we've been able to attract somebody like Brent Hyder, who came from Salesforce. He was the CHRO there. The company is 25x larger than ours. He's a unicorn. We had such a strong background in the retail industry that preceded his time at Salesforce.
我想我們在開幕式上討論了我的領導地位,我對此感到非常興奮。我不得不說,我真的很自豪和興奮。因此,我們吸引了像來自 Salesforce 的 Brent Hyder 這樣的人。他是那裡的首席人力資源長。該公司比我們大 25 倍。他是一隻獨角獸。在他加入 Salesforce 之前,我們在零售業就擁有深厚的背景。
And then we've attracted Abhishek Dalmia, who came from -- he's sitting across from me, I'm looking at him. He came from BCG but spent time at lululemon, really has extremely strong background in this industry. His primary focus was the apparel and footwear industry at BCG for 7 or 8 years.
然後我們吸引了阿布舍克·達爾米亞(Abhishek Dalmia),他來自——他坐在我對面,我看著他。他來自BCG,但曾在lululemon工作過,在這個行業確實有非常深厚的背景。他在 BCG 工作了七、八年,主要關注的是服裝和鞋類產業。
So -- and I could go on and on. So I'm really excited about the people we brought in here. We've got -- there are several jobs that we're filling right now. So the Americas President role, for example, will be an internal promotion, and we're really excited about him, and he's going in there. We announced today that we'll have new Vans Pres coming in. So you're never completely finished when it comes to people because there's always some people coming in and some people going out, and I feel really good about where we are.
所以——我可以繼續說下去。所以我對我們引入這裡的人感到非常興奮。我們現在正在填補幾個職位空缺。例如,美洲總裁的角色將是內部晉升,我們對他感到非常興奮,他將進入那裡。我們今天宣布,我們將推出新的 Vans Pres。
Operator
Operator
Next question is coming from Dana Telsey from Telsey Advisory Group.
下一個問題來自 Telsey Advisory Group 的 Dana Telsey。
Dana Lauren Telsey - CEO & Chief Research Officer
Dana Lauren Telsey - CEO & Chief Research Officer
Bracken, as you think about the portfolio restructuring and how I think, as you mentioned, turning over nothing to sacred cow, so to speak. Where are you in that process? What does it look like? And when do you think we'll have an update on any particular changes?
布雷肯,當你考慮投資組合重組時,以及我的想法,正如你所提到的,可以這麼說,不把任何東西交給神聖的牛。在這個過程中你處於什麼位置?它是什麼樣子的?您認為我們什麼時候會收到任何特定變更的最新消息?
Bracken P. Darrell - President, CEO & Director
Bracken P. Darrell - President, CEO & Director
Yes. Thanks for the question. I was hoping I'd get this one. First of all, I just have to say I feel so lucky that we're sitting here with such incredibly rich assortment of brands to deal with, which gives us great optionality. The portfolio review is complete. And so we're acting.
是的。謝謝你的提問。我本來希望我能得到這個。首先,我必須說,我感到很幸運,我們坐在這裡,有如此豐富的品牌可供選擇,這給了我們很大的選擇。投資組合審查已完成。所以我們正在行動。
We made a decision not to share what we're acting on or what we might be doing publicly, but you can believe completely that we are acting, and we have optionality there. So we're -- we have multiple directions to go. I don't -- I can't give you a time frame when we'll be -- when you'll see those actions come out, but we will -- obviously, we're going to announce them when they do. But I feel very good about where we are and very good about the review.
我們決定不公開分享我們正在採取的行動或我們可能正在採取的行動,但您可以完全相信我們正在採取行動,並且我們有選擇權。所以我們——我們有多個方向要走。我不知道——我不能給你一個時間框架——當你看到這些行動出現時,但我們會——顯然,當它們出現時我們會宣布它們。但我對我們所處的位置感覺非常好,並且對評論也非常滿意。
Dana Lauren Telsey - CEO & Chief Research Officer
Dana Lauren Telsey - CEO & Chief Research Officer
And just following up on that. When you think about the channels of distribution, wholesale, digital and your own physical store base in digital and your physical store base, what are you seeing there? And is the store base going to stay at the same level? What's your view and the capital allocation to it?
並繼續跟進。當您考慮分銷、批發、數位管道以及您自己的數位實體商店基地和實體商店基地時,您在那裡看到了什麼?商店數量會維持在同一水平嗎?您對此有何看法以及資本配置?
Bracken P. Darrell - President, CEO & Director
Bracken P. Darrell - President, CEO & Director
First, they're all 3 super critical. And I would not prioritize one over the other. They each play a different role. And I think the mistake that's -- that could be made and probably hasn't made in our industry is to swing the pit in one direction or another. I think, boy, you don't know if you're winning if you're not in wholesale because you might just be winning in a private room. And if you're only in wholesale, you're not taking advantage of the amazing brand strength you have.
首先,他們都非常關鍵。我不會優先考慮其中之一。他們各自扮演著不同的角色。我認為我們這個行業可能犯的錯誤,也可能沒有犯的錯誤,就是把坑朝一個方向或另一個方向擺動。我想,孩子,如果你不是批發的話,你不知道你是否會贏,因為你可能只是在私人房間裡贏。如果您只從事批發業務,那麼您就無法利用您擁有的令人驚嘆的品牌實力。
We're lucky because we have a very balanced distribution model between our own brick-and-mortar -- bricks-and-mortar and online DTC and, of course, wholesale. We have not done as good a job on wholesale. We have not done as good a job in our own retail, especially in the Americas, as we could have.
我們很幸運,因為我們在自己的實體店(實體店和線上 DTC,當然還有批發)之間擁有非常平衡的分銷模式。我們在批發方面做得不好。我們在自己的零售業,特別是在美洲,做得還不夠好。
And we are ending stores. We've probably done about 115 stores over the last 2 years in Vans. We'll probably drop another 40 this year. So we're aggressively -- but that's a 20% reduction in total fleet, if I've got that right, Matt. So we're pretty aggressively managing the store count there, but I think they're really smart decisions. And do you want to add anything, Martino?
我們正在關閉商店。過去 2 年我們在 Vans 開設了大約 115 家商店。今年我們可能還會再減少 40 個。因此,我們正在積極採取行動,但馬特,如果我沒記錯的話,機隊總數將減少 20%。因此,我們非常積極地管理那裡的商店數量,但我認為這是一個非常明智的決定。你想補充什麼嗎,馬蒂諾?
Martino Scabbia Guerrini - Chief Commercial Officer & President of Emerging Brands
Martino Scabbia Guerrini - Chief Commercial Officer & President of Emerging Brands
I think what is important is the integrated marketplace view, how holistically we're going to look at the channels and the consumer journey and how we're going to try to be a better version of ourselves anywhere. I think I spoke about a fully integrated approach to wholesale, a stronger partnership with the winners globally, and I think a more dynamic elevation in our stores, with new formats, new concepts, testing, adopting and then scale across regions.
我認為重要的是整合的市場視角,我們將如何全面地看待通路和消費者旅程,以及我們將如何在任何地方努力成為更好的自己。我想我談到了一種完全整合的批發方法,與全球獲勝者建立了更牢固的合作夥伴關係,我認為我們的商店更具活力,透過新的格式、新的概念、測試、採用,然後跨地區擴展。
So when I speak about testing in Shanghai and then adopted maybe into Europe or elevating our flagships first in Europe and adopted into -- adopted in, sorry, in the future in U.S., that I think the agility and the opportunity that we have more than ever. And to Bracken's point, we have 2 legs in the way we're going to walk and hopefully run, and it's really half and half, this wholesale and direct to consumer and know the best way that we can innovate within.
因此,當我談到在上海進行測試,然後可能在歐洲採用,或者首先在歐洲提升我們的旗艦產品,然後在美國採用,抱歉,未來,我認為我們擁有的敏捷性和機會不僅僅是曾經。就布雷肯的觀點而言,我們走路和跑步的方式有兩條腿,實際上是一半一半,這種批發和直接面向消費者,並且知道我們可以在其中進行創新的最佳方式。
Operator
Operator
Your next question today is coming from Lorraine Hutchinson from Bank of America.
今天你們的下一個問題來自美國銀行的洛琳‧哈欽森 (Lorraine Hutchinson)。
Lorraine Corrine Maikis Hutchinson - MD in Equity Research
Lorraine Corrine Maikis Hutchinson - MD in Equity Research
Wanted to follow up on the $600 million of the cash flow target. What exactly is included in that? Does that suggest sale of the Packs business? Anything else? Just wondering what noncore assets you had planned when you put that $600 million together.
想要跟進6億美元的現金流目標。其中到底包含了什麼?這是否意味著要出售 Packs 業務?還要別的嗎?只是想知道當您將這 6 億美元放在一起時,您計劃了哪些非核心資產。
Matthew H. Puckett - CFO
Matthew H. Puckett - CFO
Lorraine, the $600 million is free cash flow plus a little bit of benefit from noncore asset sales. It's not brand sales at all. So these are physical assets. We said we were eliminating our aviation program. A little bit of that got done in fiscal '24. Most of that will occur in '25 in terms of the sell-off of those assets, a couple of smaller things, a building is part of that. But most of the $600 million in probably 90% range is kind of free cash flow, and there's a little bit coming from sales of assets.
洛林,這 6 億美元是自由現金流加上非核心資產出售的一點收益。這根本不是品牌銷售。所以這些都是有形資產。我們說過我們正在取消我們的航空計劃。其中一小部分已在 24 財政年度完成。其中大部分將在 25 年發生,包括出售這些資產,還有一些較小的事情,一棟大樓就是其中的一部分。但這 6 億美元中的大部分(約 90%)都是自由現金流,還有一點來自資產出售。
Bracken P. Darrell - President, CEO & Director
Bracken P. Darrell - President, CEO & Director
If I could double that -- I'll take a comment to say we have been extremely aggressive about consolidating space about, as Matt said, exiting the expensive aircraft program that we had and should not have in the context of a turnaround like this. So you can bet we're going to be out of these planes and the hangar pretty quickly now as we enter the new fiscal year. We've -- even where we could release space, we have pooled our space together.
如果我能加倍的話——我會發表評論說,正如馬特所說,我們一直非常積極地整合空間,退出我們在這樣的轉變背景下擁有的、不應該擁有的昂貴的飛機項目。所以你可以打賭,隨著我們進入新的財政年度,我們很快就會離開這些飛機和機庫。我們甚至在可以釋放空間的地方,也將我們的空間集中在一起。
So for example, we've dropped 2 floors in our Denver office to really bring people together. We'll probably release that and get some benefit from that, but the real focus is to get the culture moving in a fast, intense, urgent way where people are in the office and running into each other so creativity can happen, and that sense of urgency can be felt across the company.
例如,我們在丹佛辦公室降低了兩層樓,以真正將人們聚集在一起。我們可能會發布它並從中受益,但真正的重點是讓文化以一種快速、激烈、緊迫的方式發展,讓人們在辦公室裡互相碰面,這樣創造力就會發生,這種感覺整個公司都感受到了緊迫感。
And we're doing that across all of our sites. We're moving from 2 buildings to 1 building here in Costa Mesa, where I am today, at Vans. So it's a generalized practice, and you can feel the energy returning.
我們正在所有網站上這樣做。我們將從科斯塔梅薩的 2 棟大樓搬到 1 棟大樓,也就是我今天在 Vans 工作的地方。所以這是一個普遍的練習,你可以感受到能量的回歸。
Lorraine Corrine Maikis Hutchinson - MD in Equity Research
Lorraine Corrine Maikis Hutchinson - MD in Equity Research
Great. And then, Bracken, I think you mentioned that you don't have any intention of refinancing the debt. Would that imply brand sales would come ahead of the $750 million maturity?
偉大的。然後,布雷肯,我想你提到你無意為債務再融資。這是否意味著品牌銷售額將在 7.5 億美元到期之前實現?
Bracken P. Darrell - President, CEO & Director
Bracken P. Darrell - President, CEO & Director
Yes.
是的。
Operator
Operator
Next question today is coming from Bob Drbul from Guggenheim.
今天的下一個問題來自古根漢的鮑勃·德布爾。
Robert Scott Drbul - Senior MD
Robert Scott Drbul - Senior MD
Bracken, I was wondering if you could just talk a little bit more about your decision to bring in Paul Vogel, sort of what attracted you to him as a candidate? And then, I guess, the other thing is, can you just give us an update on what you're seeing with Supreme and sort of the outlook there that you might be willing to share?
布拉肯,我想知道你是否可以多談談你引進保羅·沃格爾的決定,是什麼吸引你選擇他作為候選人?然後,我想,另一件事是,你能否向我們介紹一下你對 Supreme 的看法以及你可能願意分享的前景?
Bracken P. Darrell - President, CEO & Director
Bracken P. Darrell - President, CEO & Director
Yes, I'll start with Supreme. Supreme continues to be a strong performer. We don't report those public -- those numbers transparently publicly, but you can bet they look good. We feel really good about them. The team is executing very well. I'm really proud of their performance. And this quarter, they opened -- we got a little piece of Shanghai in the period and a quarter of Seoul. So we're up to -- it's a very low store count with very high sales per store, and it's just performing very well. And I have said, I've learned a lot from the Supreme team and what I think that we can do throughout the rest of the year.
是的,我將從 Supreme 開始。 Supreme 仍然表現強勁。我們不會公開報告這些數字——這些數字是公開透明的,但你可以打賭它們看起來不錯。我們對他們感覺很好。團隊執行得非常好。我對他們的表現感到非常自豪。這個季度,他們開業了——我們得到了上海的一小部分和首爾的四分之一。所以我們要做的是——商店數量非常少,但每家商店的銷售額非常高,而且表現非常好。我說過,我從 Supreme 團隊那裡學到了很多東西,我認為我們在今年剩下的時間裡可以做些什麼。
Paul, we went through a very broad and deep slate of candidates across multiple industries and multiple parts of the world to really get to Paul Vogel, and I feel very good about him. I think the best CFOs are -- have a strong backbone or tough, but they also have EQ, and especially that's super important in the context of the transformation and culture, like we're going through here.
保羅,我們在多個行業和世界多個地區考察了非常廣泛和深入的候選人名單,才能真正找到保羅·沃格爾,我對他感覺非常好。我認為最好的財務長是——有堅強的脊梁或堅韌,但他們也有情緒智商,尤其是在我們正在經歷的轉型和文化背景下,這一點非常重要。
So I especially like Paul because he does have that. He started in finance. He went through IR. He didn't spend a good solid length of time at a lot of transition and change at Spotify and worked under one of the top and most respected CFOs in Silicon Valley, Netflix and then Spotify, Barry McCarthy. And Barry had extended at Peloton after that, but he really is a super CFO by every account, and he really trained Paul. So the combination of all those things and then just Paul's interpersonal skills really took him straight to the top.
所以我特別喜歡保羅,因為他確實有這一點。他從金融開始。他通過了IR。他並沒有在 Spotify 花很長的時間進行大量的轉型和變革,而是在矽谷、Netflix 和後來的 Spotify 頂級和最受尊敬的財務長之一 Barry McCarthy 的領導下工作。在那之後,巴里在 Peloton 續約了,但從各方面來看,他確實是一位超級財務官,而且他確實訓練了保羅。因此,所有這些因素的結合,再加上保羅的人際交往能力,真的讓他直接登上了頂峰。
Operator
Operator
Next question today is coming from Paul Lejuez from Citigroup.
今天的下一個問題來自花旗集團的 Paul Lejuez。
Paul Lawrence Lejuez - MD & Senior Analyst
Paul Lawrence Lejuez - MD & Senior Analyst
Within that free cash flow guidance, can you talk about how you plan to manage inventory and working capital, whether you're assuming a benefit from inventory this year or are you just too low at this point? Also, I'm not sure if I missed it, but did you say what the CapEx was? And if you could give that number and just how it breaks down on spend?
在自由現金流指導中,您能否談談您計劃如何管理庫存和營運資金,無論您是假設今年會從庫存中受益還是目前的水平太低?另外,我不確定我是否錯過了它,但你有說資本支出是多少嗎?您是否可以給出這個數字以及它如何細分為支出?
Matthew H. Puckett - CFO
Matthew H. Puckett - CFO
Yes. So we didn't say anything specific about inventory. We made a lot of progress in fiscal '24. Actually, we got further than we thought we would get in terms of bringing those levels down, which is a tribute to across the organization to both on that -- on the kind of the supply side as well as kind of getting it sold through and managed in the marketplace. So kudos to the team. So we end the year in a much better place than when we began the year and probably little better than we thought we would be.
是的。所以我們沒有透露任何有關庫存的具體資訊。我們在 24 財年取得了很大進展。事實上,在降低這些水平方面,我們比我們想像的要走得更遠,這是整個組織對供應方面以及銷售方面的貢獻。所以對團隊表示敬意。因此,我們在今年結束時的情況比年初要好得多,但可能比我們想像的好不了多少。
I'd be remiss if I said we still didn't have some opportunity, and we expect to continue to bring it down. But it will be pretty modest next year, at least, in our assumptions. So I'd say kind of low to mid-single-digit decline in inventory is what we're thinking about. So a much more modest impact next year from an overall working capital relative to inventory. CapEx, we didn't say, but it won't be so different from where we've been.
如果我說我們仍然沒有機會,而且我們希望繼續把它擊倒,那我就失職了。但至少在我們的假設中,明年的增幅將相當溫和。所以我想說,我們正在考慮庫存的低至中個位數下降。因此,明年整體營運資本相對於庫存的影響要小得多。資本支出,我們沒有說,但它不會與我們之前的情況有太大不同。
Paul Lawrence Lejuez - MD & Senior Analyst
Paul Lawrence Lejuez - MD & Senior Analyst
How about the breakdown on that CapEx in stores, new stores, maintenance? Anything you could share?
商店、新商店、維護方面的資本支出細分情況如何?有什麼可以分享的嗎?
Matthew H. Puckett - CFO
Matthew H. Puckett - CFO
Yes. So I'm not going to give you numbers, but I will say, percentage-wise, it is a little bit more focused toward consumer-facing, right, in terms of stores and both new stores as well as refreshment and remodeling of the current store base.
是的。所以我不會給你數字,但我會說,從百分比來看,它更注重面向消費者,對吧,在商店和新商店以及更新和改造方面目前的店鋪基地。
Operator
Operator
Next question is coming from Adrienne Yih from Barclays.
下一個問題來自巴克萊銀行的 Adrienne Yih。
Adrienne Eugenia Yih-Tennant - MD, Senior eCommerce & Brand Retailing Analyst
Adrienne Eugenia Yih-Tennant - MD, Senior eCommerce & Brand Retailing Analyst
Great. Matt, thanks for all your help over the years and best of luck. So my first question, Bracken, is for you on inventory. When you -- oftentimes, when you take a kind of big cut at inventory, you kind of take a broad-brush approach. Obviously, TNF was cleaner. How much in style or SKU reduction has been done? And how did you strategically kind of go through that -- the different categories? And then, Matt, any notion to the forecast for the end of FY '25 a leverage ratio? Or how should we think about net debt, I guess, excluding asset sales?
偉大的。馬特,感謝您多年來的幫助,祝您好運。布雷肯,我的第一個問題是關於庫存的。當你——通常,當你大幅削減庫存時,你會採取一種粗略的方法。顯然,TNF 更乾淨。款式或 SKU 減少了多少?您是如何策略性地經歷不同的類別?然後,馬特,對 25 財年末槓桿率的預測有什麼想法嗎?或者我想我們應該如何考慮不包括資產出售的淨債務?
Bracken P. Darrell - President, CEO & Director
Bracken P. Darrell - President, CEO & Director
Thank you very much, Adrienne. I'll start with the inventory cut. I would say, it was pretty surgical. Our inventory reduction really talks -- especially when you talk about the inventory in the channel, we really -- our real focus here was to clear out the channel of some of the older icons so we have room for progressive products to flow in -- our newer products to flow in, like Knu Skool. And so I think that's going to serve us super well over the next coming quarters. Matt, do you want to add -- answer the second part of that question?
非常感謝你,艾德麗安。我將從削減庫存開始。我想說,這簡直就是外科手術。我們的庫存減少確實很有意義——尤其是當你談論渠道中的庫存時,我們真的——我們真正的重點是清理一些舊圖標的渠道,以便我們有空間讓先進的產品流入——我們的新產品不斷湧入,例如Knu Skool。因此,我認為這將在接下來的幾個季度為我們提供非常好的服務。馬特,你想補充一下──回答這個問題的第二部分嗎?
Matthew H. Puckett - CFO
Matthew H. Puckett - CFO
Yes. Nothing on leverage. We haven't given a number there and aren't prepared to do that. But you could probably do the math yourself relative to the net debt, but it's going to be down a few hundred million based on, I'll call it, the base plan, which doesn't include any brand asset sales. But as Bracken indicated, ultimately, that's not our plan. Our plan is to ensure that we're positioned to pay off that $750 million, which is due in April and, obviously, could be paid in March with no penalty as well.
是的。沒有槓桿作用。我們還沒有給出具體數字,也不準備這樣做。但你可能可以自己計算一下相對於淨債務的數字,但根據我稱之為基本計劃的數字,它會減少幾億,其中不包括任何品牌資產銷售。但正如布雷肯所指出的,最終這不是我們的計劃。我們的計劃是確保我們有能力償還 4 月到期的 7.5 億美元,顯然,可以在 3 月支付,而且無需支付任何罰款。
Operator
Operator
Your next question is coming from Jonathan Komp from Baird.
您的下一個問題來自貝爾德 (Baird) 的喬納森康普 (Jonathan Komp)。
Jonathan Robert Komp - Senior Research Analyst
Jonathan Robert Komp - Senior Research Analyst
If I could just follow up on the $600 million cash outlook for the year. I know you've talked about embedding sequential improvements in the top line. Could I ask if that outlook implies getting back to growth at some point for total revenue during the year at some point?
如果我能跟進今年 6 億美元的現金前景就好了。我知道您已經討論過在營收中嵌入連續改進。我能否問一下,這種前景是否意味著年內總收入會在某個時候恢復成長?
And then just separately, one follow-up, Bracken, I don't know if you and Paul have talked or have a view given the discussion about the improving predictability and forecasting ability. Is there a point in the near future you're thinking about as the right timing to reinstill broader financial targets?
然後單獨,一位跟進者,Bracken,我不知道你和 Paul 是否就提高可預測性和預測能力的討論進行過交談或有什麼看法。您是否認為在不久的將來某個時間點是重新制定更廣泛的財務目標的最佳時機?
Bracken P. Darrell - President, CEO & Director
Bracken P. Darrell - President, CEO & Director
Okay. Let me answer the first one first. I'm going to effectively dodge your question about it. This is how we go positive. We did see sequential improvements. I hope they're sequential and that they're consistent across the year. But I think, generally speaking, when you look across the year, you're going to see us get better and better. I will not answer your question about whether we're going to be -- that's going to show a positive number by the end of the year, but we'll come back to that. I'm pretty optimistic about the business in general, and you can feel it. I hope you can feel it.
好的。我先回答第一個問題。我將有效地迴避你的問題。這就是我們積極向上的方式。我們確實看到了連續的改進。我希望它們是連續的,並且全年保持一致。但我認為,總的來說,當你回顧這一年時,你會看到我們變得越來越好。我不會回答你關於我們是否會在今年年底前顯示出正數的問題,但我們會回到這個問題。總的來說,我對這個行業非常樂觀,你也能感覺到。我希望你能感覺到。
In terms of reinstating guidance, Paul and I have talked about a lot of things, not that one. We talked about that in his early interviews. I think we all like the idea of reinstating guidance. We've now got 5 consecutive months of predictability relative to where we were in the past. I mean, really, it's a big change.
在恢復指導方面,保羅和我討論了很多事情,但不是這一點。我們在他早期的採訪中談到了這一點。我認為我們都喜歡恢復指導的想法。與過去相比,我們現在已經連續 5 個月保持可預測性。我的意思是,真的,這是一個很大的改變。
I also feel good about the steps we're taking across the business to really improve the overall performance and make future improvement on top of this predictability a reality. So stay tuned. I don't think we're too far away, but we're not ready to do that.
我還對我們在整個業務中採取的措施感到滿意,這些措施真正提高了整體績效,並使未來在這種可預測性之上的改進成為現實。所以請繼續關注。我不認為我們距離太遠,但我們還沒有準備好這樣做。
Operator
Operator
Next question is coming from Ike Boruchow from Wells Fargo.
下一個問題來自富國銀行的 Ike Boruchow。
Irwin Bernard Boruchow - MD and Senior Specialty Retail Analyst
Irwin Bernard Boruchow - MD and Senior Specialty Retail Analyst
Matt, just a couple of quick ones. Just like CapEx, I think you said kind of similar as historical or something like that. Is it kind of the same response for D&A as well?
馬特,只是幾個快速的。就像資本支出一樣,我認為您所說的類似於歷史或類似的東西。 D&A 是否也有相同的反應?
Matthew H. Puckett - CFO
Matthew H. Puckett - CFO
D&A will be a little bit lower because there were some onetime write-offs in fiscal '24 that probably won't repeat to the same degree. But it will be closer to where we were if you look back to kind of fiscal '23, I would suggest.
D&A 會稍微低一些,因為 24 財年有一些一次性沖銷,但可能不會達到相同程度的重複。但我建議,如果你回顧 23 財年,它會更接近我們的水平。
Irwin Bernard Boruchow - MD and Senior Specialty Retail Analyst
Irwin Bernard Boruchow - MD and Senior Specialty Retail Analyst
Got it. Okay. And then I know you're not going to give an exact number, but maybe just looking at Q4 -- Q4's gross margin decline as kind of giving us context. The way you're kind of talking about the clearance activity needed in the first quarter, it sounds like it's going to be a larger erosion sequentially versus 4Q. Is there anybody to put context around how much impact we should expect, however you'd like to answer that?
知道了。好的。然後我知道您不會給出確切的數字,但也許只是看看第四季度——第四季度的毛利率下降,以此為我們提供背景資訊。從您談論第一季所需的清倉活動的方式來看,聽起來與第四季度相比,這將是一個更大的侵蝕。有沒有人可以說明我們應該預期會產生多大的影響,但是您想回答這個問題嗎?
And then my question, just to follow that one up is, after the first quarter, like are you "clean"? Like do you think the gross margins can start to flatten out? Or is there more work to be done even after the first quarter?
然後我的問題是,在第一季之後,你「乾淨」了嗎?您認為毛利率會開始趨於平緩嗎?或者說第一季之後還有更多工作要做嗎?
Bracken P. Darrell - President, CEO & Director
Bracken P. Darrell - President, CEO & Director
So Matt, before you answer that, maybe I'm going to add another question because I want to get this out and make sure this discussion is there about Q1. Why don't you give a general overview of Q1, Matt, since we set up those guardrails to be open, the ones we closed on?
所以馬特,在你回答這個問題之前,也許我會添加另一個問題,因為我想把這個問題弄清楚並確保這個討論是關於第一個問題的。馬特,既然我們將那些護欄設置為開放的,而我們關閉了那些護欄,那麼你為什麼不對第一季進行總體概述呢?
Matthew H. Puckett - CFO
Matthew H. Puckett - CFO
Yes. So the 2 things we talked about, right, revenue and margins, let me just give you a little bit more color there. I think that will be helpful for everybody. We said top line, similar to Q4, excluding the reset, right? So we reported down 13%, reset a couple of points. So that will give you a sense there. I think, I would say, there's a couple of things to remember as you think about that. It's the smallest quarter of the year, has a little bit more outsized exposure to the Americas region from a penetration standpoint. Americas is kind of 55% of business in the first quarter and a little less than 50% even in the most recent quarter, right?
是的。所以我們討論的兩件事,收入和利潤,讓我給你更多的資訊。我認為這對每個人都有幫助。我們說了頂行,類似 Q4,不包括重置,對吧?所以我們報告下降了 13%,重置了幾點。這會給你一種感覺。我認為,我想說,當你思考這個問題時,有幾件事需要記住。這是一年中最小的季度,從滲透率的角度來看,美洲地區的風險敞口更大一些。美洲第一季的業務佔比為 55%,即使在最近一個季度也略低於 50%,對吧?
So there's that. Remember, the spring '24 wholesale order books, which impacted fiscal '24 Q4 will kind of comparably impact Q1. Order books are written across the season, right? So the implications for Q4 extend into Q1. We'd have a little bit of a different expectation as we look into latter parts of the year and future seasons. And then we're comping a really big growth number in the APAC region last year, which was nearly 20%, as kind of post-COVID reopenings, where there was some pent-up demand in the marketplace.
所以就是這樣。請記住,影響 24 年第四財季的 24 年春季批發訂單簿也會對第一季產生類似的影響。訂單簿是跨季節寫的,對嗎?因此,第四季的影響延伸到第一季。當我們展望今年下半年和未來的季節時,我們將有一些不同的期望。然後我們比較了去年亞太地區的成長數字,接近 20%,這是新冠疫情後的重新開放,市場上存在一些被壓抑的需求。
We're planning over conservatively, and the 2-year stack for the region will still be double digits, but much more modest in terms of our expectations in the short term. So a little bit of color there to help you, I think, understand why we think the thing -- why we think, overall, it looks the same on the surface for Q1, but there are some factors. Gross margin, I'll just tell you, it will be down relatively similar to what it was in Q4 from a year-over-year point of view. I think that's the simplest way to think about it and probably gives you everything you need.
我們正在保守地進行規劃,該地區的兩年堆疊仍將是兩位數,但就我們的短期預期而言要溫和得多。因此,我認為,這裡的一些顏色可以幫助您理解為什麼我們認為這個問題 - 為什麼我們認為,總體而言,第一季的表面看起來是一樣的,但有一些因素。我只想告訴你,從同比的角度來看,毛利率將與第四季的水平相對相似。我認為這是最簡單的思考方式,並且可能為您提供所需的一切。
Operator
Operator
Our final question today is coming from Sam Poser from Williams Trading.
我們今天的最後一個問題來自威廉斯貿易公司的 Sam Poser。
Samuel Marc Poser - Senior Research Analyst
Samuel Marc Poser - Senior Research Analyst
I think we've covered almost everything. I guess you've chosen -- it sounds to me, one, you've chosen the brands you want to potentially sell. The Packs issue has been going on for a while. So is there any update there?
我想我們已經涵蓋了幾乎所有內容。我想你已經選擇了——在我看來,第一,你已經選擇了你想要潛在銷售的品牌。包問題已經持續了一段時間了。那麼那裡有更新嗎?
And two, as far as thinking about how the expenses fall away in the year-over-year expenses in the first quarter, just to complete the whole picture there, can you, Matt, maybe help us with that? And sorry to see you go.
第二,考慮到第一季的年比支出如何下降,只是為了完成整個情況,馬特,你能幫助我們嗎?很遺憾看到你離開。
Bracken P. Darrell - President, CEO & Director
Bracken P. Darrell - President, CEO & Director
Let me start with the Packs, and then I'll hand it back to Matt on the expenses. On Packs, what I would say about -- the update I'll give you on Packs is, wow, Packs is really a good business. It continues to perform very well at the top and bottom line. And we have made our decisions in the portfolio review and Packs is for sale. We have optionality in our review. So that's all I would really say. Matt, do you want to answer that -- do you want to answer the question?
讓我從包包開始,然後我會把費用交給馬特。關於 Packs,我要說的是——我將向您提供的關於 Packs 的最新消息是,哇,Packs 確實是一項好生意。它在營收和利潤方面繼續表現出色。我們已經在投資組合審查中做出了決定,並且 Packs 正在出售。我們的審查有選擇性。這就是我真正要說的。馬特,你想回答這個問題嗎?
Matthew H. Puckett - CFO
Matthew H. Puckett - CFO
Yes. So for SG&A, we're starting to see reductions, right? And we saw a little bit in Q4. Actually, fiscal '24 spend was down about 3% on a constant dollar basis. So we're seeing reductions. The benefits of the actions we're taking around cost savings, we've gotten something that's coming in terms of, let's say, an acceleration of that as we move in and through fiscal '25. So I think that's one thing. But remember, some of that is going to hit gross margin, not -- so not all of it's SG&A, probably more like 85%, 90% of it will hit SG&A. .
是的。那麼對於SG&A,我們開始看到減少,對吧?我們在第四季度看到了一些。事實上,24 財年支出以美元不變匯率計算下降了約 3%。所以我們看到了減少。我們圍繞著成本節約採取的行動所帶來的好處,我們已經得到了一些好處,比如說,隨著我們進入並貫穿 25 財年,這一點將會加速。所以我認為這是一回事。但請記住,其中一些會影響毛利率,所以並非全部都是 SG&A,可能更像是 85%、90% 會影響 SG&A。 。
And we're going to reinvest. We've talked about 1/4 to 1/3 or maybe a little bit higher than that, depending on circumstance and our confidence in the places that we're looking to reinvest. So we're going to start seeing that be more meaningful as we look forward and get more kind of more certain in terms of those directions. We've got incentive compensation, that is a headwind, and other inflationary factors, whether it's compensation, merit, things like that, certainly inflationary factors in our stores and our distribution centers.
我們將進行再投資。我們討論過 1/4 到 1/3,或者可能比這個高一點,這取決於具體情況以及我們對我們尋求再投資的地方的信心。因此,當我們展望未來並在這些方向上變得更加確定時,我們將開始看到這變得更有意義。我們有激勵性薪酬,這是一個逆風,還有其他通膨因素,無論是薪酬、績效或類似的東西,當然還有我們商店和配送中心的通膨因素。
So there's -- there are several puts and takes, but the underlying cost savings program will accelerate, and we're really focused on rightsizing and driving the SG&A down -- the underlying SG&A down to an appropriate level, given where we are from a business standpoint, and at the same time, looking to reinvest. And I think that's the intent of the program as we started it, and that remains exactly where we are.
因此,有一些調整和調整,但基本的成本節約計劃將會加速,而且我們真正專注於調整規模並降低 SG&A 下降 -- 考慮到我們所處的階段,基本的 SG&A 下降到適當的水平。 ,同時尋求再投資。我認為這就是我們啟動該計劃時的意圖,並且這仍然是我們目前的情況。
Operator
Operator
We've reached the end of our question-and-answer session. I'd like to turn the floor back over to Bracken for any further or closing comments.
我們的問答環節已經結束。我想將發言權交還給布雷肯,以徵求進一步的意見或結束意見。
Bracken P. Darrell - President, CEO & Director
Bracken P. Darrell - President, CEO & Director
Thank you. Thank you, Sam. I just want to say 3 things or 4 things. I am super excited about the team here. I'm even more excited about the actions because they've already happened, and they're ongoing. And it's great to see green shoes start to come through in some of these areas we've been talking about. So I think those are a good indication of what's to come.
謝謝。謝謝你,山姆。我只想說3件事或4件事。我對這裡的團隊感到非常興奮。我對這些行動感到更加興奮,因為它們已經發生了,而且還在繼續。很高興看到綠色鞋子開始出現在我們一直在談論的一些領域。所以我認為這些很好地預示了即將發生的事情。
I do want to just close on Matt.. This is, as we said, it's his last earnings call. Matt, Paul will be an excellent. And I would really like to take the opportunity to thank you for your really terrific contributions, over 23 years of service to VF. And we will always be grateful for all the years you've worked here and how dedicated you've been, the positive impact you've had from start to finish. And it will be felt -- that will be felt way beyond your tenure, Matt. So thank you, and thanks to all of you for joining the call.
我確實想結束馬特的演講。馬特、保羅都會很出色。我真的想藉此機會感謝您為 VF 服務超過 23 年所做的傑出貢獻。我們將永遠感謝您在這裡工作的這些年、您的奉獻精神以及您自始至終所產生的積極影響。馬特,人們會在你的任期之外感受到這種感覺。謝謝大家,也謝謝大家加入這次電話會議。
Operator
Operator
Thank you. That does conclude today's teleconference. You may disconnect your line at this time, and have a wonderful day. We thank you for your participation today.
謝謝。今天的電話會議到此結束。此時您可以斷開線路,度過美好的一天。我們感謝您今天的參與。