V.F. (VFC) Q1 2027 earnings summary

Executive summary

• Q1'27 revenue was $1.67 billion, down 5% year-over-year due to the Dickies divestiture and lower Active segment sales, but exceeded guidance on an ex-Dickies basis, with growth in The North Face, Timberland, and Altra.

• The North Face grew 6% globally, Timberland rose 4%, and Vans declined 8%-9% globally, with DTC channels outperforming wholesale.

• Net loss narrowed to $97.2 million ($0.25 per share), driven by lower restructuring charges and net interest expense.

• Leadership transition: Abhishek Dalmia appointed as CFO and COO, succeeding Paul Vogel.

• Quarterly dividend of $0.09 per share declared, payable in September 2026.

Financial highlights

• Gross margin improved to 54.9%, up 100 bps year-over-year, aided by the Dickies sale, price increases, and lower product costs.

• Adjusted operating loss was $95 million; operating margin was (5.0)%.

• Adjusted loss per share was $0.27; effective tax rate was approximately 9.1%-11%.

• Inventories (ex Dickies and FX) down 4%, net debt down $1.1 billion (20%) year-over-year.

• Free cash flow up $75 million year-over-year, including $49-$50 million in tariff refunds.

Outlook and guidance

• FY'27 revenue outlook raised to +2% or better constant currency, up from prior +1% to +2%.

• Adjusted operating margin expected at approximately 8%.

• Free cash flow projected flat to up versus last year’s $405 million.

• Year-end leverage ratio expected between 2.6x and 2.9x.

• The North Face and Timberland full-year growth expected in line with last year; Vans to improve, with second half down 2% or better.