VF Corporation Raises Fiscal 2027 Revenue Outlook to 2% Growth or Better After Q1 Beat

VF Corporation, the U.S. apparel group behind Vans and The North Face, reported financial results for its first quarter of Fiscal 2027, ended June 27, 2026. Revenue and operating income both came in ahead of guidance, prompting the company to raise its full-year revenue outlook.

First-quarter revenue totaled approximately $1.67 billion, representing a 5% decline on a reported basis compared with the prior year. Excluding the results of Dickies, which VF sold in November 2025, revenue increased 1% and was flat on a constant-currency basis. The result exceeded the company’s previous guidance for a low-single-digit decline.

Summary

Vans Revenue Falls 8% as Wholesale Weakness Offsets Americas DTC Growth

Vans revenue declined 8% year over year and 9% on a constant-currency basis. The brand continued to deliver growth through its direct-to-consumer business in the Americas, but the gains were more than offset by declines across its global wholesale channel.

Bracken Darrell, President and CEO of VF Corporation, said: “We had a solid start to the year, beating our revenue and operating income guidance. The North Face®, Timberland® and Altra® delivered another quarter of growth; and Vans® Americas DTC continued to grow but was more than offset by declines in global Wholesale. We expect Vans® Wholesale to improve significantly in the second half of the year. Given our overall Q1 performance and better visibility into the balance of the year, we are raising our FY’27 revenue guidance.”

The North Face, meanwhile, recorded a 6% year-over-year increase in revenue, or 4% on a constant-currency basis, led by growth in the Americas and the DTC channel. Timberland revenue rose 4%, or 3% on a constant-currency basis, driven by the Americas.

Global DTC revenue increased 2% year over year. Excluding Dickies, it rose 5% on a constant-currency basis, helping support VF’s overall performance during the quarter.

VF Raises Full-Year Outlook as Net Debt Falls by $1.1 Billion

VF now expects Fiscal 2027 revenue to increase by 2% or better on a constant-currency basis, compared with its previous forecast of 1% to 2% growth. The comparison excludes Dickies from Fiscal 2026 and includes the 53rd week in Fiscal 2027.

The company continues to project an adjusted operating margin of approximately 8% and expects free cash flow to be flat to higher compared with $405 million in the prior year. Its year-end leverage ratio is forecast to range between 2.6 and 2.9 times.

VF reported an operating loss of $83 million for the first quarter, with an operating margin of negative 5.0%. Adjusted operating loss excluding Dickies was $95 million, slightly better than the company’s guidance for a $100 million loss. Gross margin improved by 100 basis points year over year to 54.9%.

The company also continued to strengthen its financial position. Net debt decreased by $1.1 billion, or 20%, from the prior year. Excluding lease liabilities, net debt fell 27%.

Abhishek Dalmia Appointed CFO and COO

VF also announced the appointment of Abhishek Dalmia as Chief Financial Officer and Chief Operating Officer. Effective August 1, 2026, he will serve as Executive Vice President and CFO while continuing in his role as COO, overseeing the company’s strategy, transformation, supply chain and digital teams.

Current CFO Paul Vogel will step down from the position on the same date and move into an advisory role to support the transition of responsibilities.

VF’s Board of Directors also declared a quarterly dividend of $0.09 per share, payable on September 17, 2026, to shareholders of record at the close of business on September 10.

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