VF Corp.’s sales and earnings in the fiscal fourth quarter ended March 31 topped guidance due to momentum in the Americas, helping the company return to annual growth for the first time in three years. In the fourth quarter on a currency-neutral (C$) basis, sales grew 7 percent at The North Face and 2 percent at Timberland. Vans declined 5 percent but the Americas returned to growth in the quarter.

VF also reinstated annual guidance, predicting adjusted operating profits will expand 8 percent in the current fiscal year, with sales ahead 1 percent to 2 percent.

Earnings in the fourth quarter were break-even on an adjusted basis, topping analysts’ consensus target calling for a loss of 1 cent. Revenues of $2.16 billion were in line with the consensus estimate of $2.13 billion.

Bracken Darrell, president and CEO, said: “For the first time in three years, we returned to a full year of growth and expect to keep growing in FY’27. We also significantly expanded margins and reduced our leverage ratio by a full turn vs. LY. In the fourth quarter, we delivered our strongest revenue performance since I joined VF. Both The North Face and Timberland continued to deliver global growth. Vans is starting to show momentum with a return to growth in Americas DTC for the first time in over four years. We remain on track to achieve our medium-term targets, an exit run rate of 10 percent operating margin in FY’28 and a leverage ratio of 2.5x or lower by FY’28. This has been a strong year for VF and I’m excited about the momentum we are building.”

Disclosed Q4’26 and FY’26 figures are shown on both reported and adjusted excluding Dickies (“ex Dickies”) bases

Returned to growth for the full year in FY’26 with expanding margins and reduced debt

  • Revenue +1 percent vs. LY
    • Revenue ex Dickies +4 percent vs. LY or +1 percent C$
    • Dickies was sold during Q3’26
  • FY’26 gross margin (GM) of 54.8 percent of revenue, up 130 basis point (bps) vs. LY
    • Adjusted GM ex Dickies of 55.2 percent, up 110 bps vs. LY
  • FY’26 operating income (OI) of $577 million and operating margin of 6.0 percent, up 280 bps vs. LY
    • Adjusted OI ex Dickies of $650 million and adjusted operating margin ex Dickies of 7.0 percent, up 110 bps vs. LY
  • FY’26 free cash flow of $405 million, up over $90 million vs. LY
  • FYE’26 leverage ratio of 3.1x vs. LY of 4.1x, and vs. FYE’24 of 5.1x

Q4’26 revenue growth driven by momentum in the Americas; Q4’26 OI ahead of guidance

  • Revenue +1 percent vs. LY
    • Revenue ex Dickies +8 percent vs. LY or +3 percent C$, ahead of guidance of flat to +2 percent C$ vs. LY
    • Strongest revenue performance in three years (C$, ex Dickies)
    • Americas region +2 percent vs. LY; ex Dickies +10 percent C$, the region’s highest growth since Q1’23
    • The North Face +12 percent vs. LY or +7 percent C$, with the Americas +17 percent vs. LY or +16 percent C$
    • Vans (1 percent) vs. LY or (5 percent) C$, with a return to growth in Americas DTC
    • Timberland +8 percent vs. LY or +2 percent C$
  • Q4’26 OI of $62 million
    • Adjusted operating income ex Dickies of $54 million, ahead of guidance of $10 million to $30 million; normalized operating income was within guidance range

Reinstating annual guidance effective FY’27 with continued growth and expanding margins

  • Revenue +1 percent to +2 percent C$ vs. LY3
  • Adjusted operating margin of approximately 8 percent
  • Free cash flow flat to up vs. LY1 of $405 million
  • FYE’27 leverage ratio of 2.6x to 2.9x

Image courtesy The North Face