Companies

VF Corp raises full-year revenue guidance despite continued Vans weakness

Jul 31, 2026 United States

The US-based company has raised its revenue guidance for the 2027 fiscal year after exceeding its own expectations in the first quarter. However, Vans remains a weak spot for the group

“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”, said Bracken Darrell, President and CEO.

First-Quarter Results

In the first quarter of the 2027 financial year, which ended in June, VF Corp reported a total revenue of 1.67 billion US dollars, reflecting a 5% decrease compared to the same period in the previous financial year. Excluding Dickies, which was sold in November 2025, revenue increased by 1% year-on-year (or remained unchanged in constant currency), outperforming guidance for a low single-digit decline in constant currency.

During the quarter, The North Face recorded a 6% year-on-year increase in reported revenue (a 4% increase in constant currency), driven by growth in the Americas and direct-to-consumer sales. Timberland’s revenue increased by 4% year-on-year (3% in constant currency) thanks to growth in the Americas.

However, Vans remains a weak spot for the company. Its revenue declined by 8% (9% in constant currency) as continued DTC growth in the Americas was offset by weaker wholesale performance.

VF Corp reported an operating loss of 83 million US dollars, equivalent to a negative operating margin of 5.0%, which is 10 basis points lower than in the first quarter of the 2026 financial year. Excluding Dickies, the adjusted operating loss was 95 million US dollars, which is slightly better than the expected loss of 100 million US dollars. Meanwhile, the adjusted operating margin was -5.7%, which is down by 210 basis points year-on-year.

The company’s gross margin improved by 100 basis points compared to the same period last year, reaching 54.9%. Excluding Dickies, the adjusted gross margin was also 54.9%, which is an increase of 10 basis points compared with the previous year.

Meanwhile, net debt decreased by 1.1 billion US dollars (20%) compared with the previous year. Excluding lease liabilities, net debt fell by a further 1.1 billion US dollars, representing a 27% year-on-year reduction.

Full-Year Outlook

“Given our overall Q1 performance and better visibility into the balance of the year, we are raising our FY’27 revenue guidance”, announced Bracken Darrell.

VF Corp now expects revenue growth of at least 2% in constant currency, up from its previous forecast of between 1% and 2%. The company has also reaffirmed its expectation of an adjusted operating margin of around 8%.

The US-based company also announced that it has appointed Abhishek Dalmia as 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”, concluded Darrell.

Image Credits: vans.com

United States Companies Footwear Quarter Results Results Timberland Vans VF Corp