Q1'27
Filed Jul 29, 2026VF CORPORATION DELIVERED FIRST QUARTER FISCAL 2027 AHEAD OF GUIDANCE Raises full year revenue outlook to +2% or better C$ vs. LY
VF reported revenue and adjusted operating income excluding Dickies ahead of its stated Q1 guidance and raised FY'27 constant-currency revenue guidance. The reported revenue decline, operating loss, Vans wholesale weakness and lower adjusted operating margin temper the result.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | (5%) | – | (5%) vs. LY |
| Revenue excluding Dickies®non-GAAP | +1% | – | +1% vs. LY or flat C$ |
| Global DTC performanceGAAP | +2% | – | +2% vs. LY |
| Global DTC performance excluding Dickies®non-GAAP | +5% | – | +5% C$ |
| Americas region revenueGAAP | (4%) | – | (4%) vs. LY |
| Americas region revenue excluding Dickies®non-GAAP | +4% | – | +4% C$ |
| Operating income (loss)GAAP | ($83M) | – | down 10 bps vs. LY |
| Operating marginGAAP | (5.0%) | – | down 10 bps vs. LY |
| Adjusted operating income (loss) excluding Dickies®non-GAAP | ($95M) | – | – |
| Adjusted operating margin excluding Dickies®non-GAAP | (5.7%) | – | down 210 bps vs. LY |
| Gross marginGAAP | 54.9% | – | up 100 bps vs. LY |
| Adjusted gross margin excluding Dickies®non-GAAP | 54.9% | – | up 10 bps vs. LY |
| Reinvent costs (benefits)non-GAAP | approximately ($11) million | – | – |
| Impact of Reinvent costs (benefits) on GAAP earnings per shareGAAP | $0.02 | – | – |
| Net debt reductionother | $1.1B | – | down $1.1B or (20%) vs. LY |
| Net debt excluding lease liabilities reductionother | $1.1B | – | down $1.1B or (27%) vs. LY |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| The North Face®Led by the Americas region and DTC channel. | not reported | – | +6% vs. LY or +4% C$ |
| Vans®Continued growth in Americas DTC was more than offset by Wholesale declines. | not reported | – | (8%) vs. LY or (9%) C$ |
| Timberland®Driven by the Americas. | not reported | – | +4% vs. LY or +3% C$ |
FY'27 outlook
- Revenue+2% or better C$ vs. LY
- NoteAdjusted OM of approximately 8%
- NoteFree cash flow flat to up vs. LY of $405M
- NoteFYE'27 leverage ratio of 2.6x to 2.9x
- NoteRevenue performance excludes Dickies® in FY'26 and includes 53rd week in FY'27
- NoteFree cash flow guidance excludes $100M net impact of pension termination in FY'26 and any net impact from tariff refunds in FY'27
Capital returns
- VF’s Board of Directors declared a quarterly dividend of $0.09 per share.
- The dividend will be payable on September 17, 2026, to shareholders of record at the close of business on September 10, 2026.
What drove it
- Revenue excluding Dickies® was +1% vs. LY or flat C$, ahead of guidance of down low-single digits C$ vs. LY.
- Global DTC was +2% vs. LY or +5% C$ excluding Dickies®.
- The North Face® and Timberland® grew, while Altra® was cited as delivering another quarter of growth.
- Gross margin was 54.9%, up 100 bps vs. LY.
- VF raised FY'27 revenue guidance based on Q1 performance and better visibility into the balance of the year.
Concerns
- Reported revenue was (5%) vs. LY.
- Vans® was (8%) vs. LY or (9%) C$, as wholesale declines more than offset Americas DTC growth.
- Adjusted operating margin excluding Dickies® was (5.7%), down 210 bps vs. LY.
- VF reported an operating loss of ($83M) and adjusted operating loss excluding Dickies® of ($95M).
What to watch
- Whether Vans® Wholesale improves significantly in the second half of the year, as management expects.
- Execution against FY'27 revenue guidance of +2% or better C$ vs. LY.
- Progress toward adjusted OM of approximately 8%.
- Free cash flow performance relative to FY'26 free cash flow of $405M and FYE'27 leverage of 2.6x to 2.9x.
- Execution by Abhishek Dalmia in his newly expanded role as Chief Financial Officer and Chief Operating Officer.
Balance sheet and cash flow
- Net debt down $1.1B or (20%) vs. LY.
- Net debt excluding lease liabilities down $1.1B or (27%) vs. LY.
- FY'27 free cash flow is guided flat to up vs. LY of $405M.
- FYE'27 leverage ratio is guided at 2.6x to 2.9x.
Analysis
VF opened FY'27 with revenue excluding Dickies® up +1% versus last year, or flat on a constant-currency basis, ahead of its guidance for a down low-single-digit constant-currency result. Reported revenue was (5%) versus last year, reflecting the inclusion of Dickies® in continuing operations through its November 12, 2025 sale in the prior-year period. Global DTC remained positive at +2% versus last year, or +5% C$ excluding Dickies®, and the Americas was +4% C$ excluding Dickies®.
Brand performance remained uneven. The North Face® grew +6% versus last year, or +4% C$, led by the Americas and DTC. Timberland® rose +4%, or +3% C$, driven by the Americas, and management also cited Altra® as delivering growth. Vans® declined (8%) versus last year, or (9%) C$, because growth in Americas DTC was more than offset by global wholesale declines. Management expects Vans® Wholesale to improve significantly in the second half.
Profitability remains a central issue. VF reported operating income (loss) of ($83M) and an operating margin of (5.0%), down 10 bps versus last year. Adjusted operating income (loss) excluding Dickies® was ($95M), slightly ahead of guidance of ($100M), but the corresponding adjusted operating margin was (5.7%), down 210 bps. Gross margin was comparatively constructive at 54.9%, up 100 bps, while adjusted gross margin excluding Dickies® was also 54.9%, up 10 bps.
Balance-sheet progress continued, with net debt down $1.1B, or (20%), versus last year, and net debt excluding lease liabilities down $1.1B, or (27%). The Board authorized a quarterly dividend of $0.09 per share. Management raised FY'27 revenue guidance to +2% or better C$ versus last year from the prior +1% to +2% C$ range cited in the release, while maintaining targets for adjusted OM of approximately 8%, free cash flow flat to up versus last year's $405M, and a FYE'27 leverage ratio of 2.6x to 2.9x.
Management, verbatim
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.
Bracken Darrell, President and CEO
Regarding our CFO transition announced today, I would like to thank Paul for his partnership, leadership and contributions to VF. Looking ahead, I’m excited for Abhishek to step into his newly expanded role of Chief Financial Officer and Chief Operating Officer. He is a proven leader with deep knowledge of our business and our industry, and I am confident he is well positioned to drive strong execution against our key financial and operational priorities.
Bracken Darrell, President and CEO
Not in the filing
stated, not guessed- Dollar revenue for Q1'27 and the comparable prior-year period
- Revenue by brand, region, channel and segment in dollars
- Gross profit in dollars
- GAAP net income (loss)
- Adjusted net income (loss)
- GAAP earnings per share
- Adjusted earnings per share
- Operating cash flow
- Actual free cash flow
- Capital expenditures and software purchases
- Cash and cash equivalents balance
- Total debt balance
- Net debt balance
- Lease liabilities balance
- Share repurchases
- Quarter-over-quarter comparisons for reported operating metrics
- Prior-year absolute values for operating income, margins and gross margins
- FY'27 gross-margin, operating-expense and tax-rate guidance
- A separately provided previous release outlook for formal guidance comparison
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.