Companies

VF Corp reports improved performance in fiscal 2026

May 22, 2026 United States

The US-based company has reported an improved performance in the fiscal year 2026, supported by strong momentum in the fourth quarter at The North Face and Timberland

“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”, said Bracken Darrell, President and CEO of the company.

In the twelve months ending in March, VF Corporation reported an increase in revenue of 1%, reaching 9.61 billion US dollars compared to fiscal year 2025. Gross margin also improved year-on-year by 130 basis points to 54.8%. During this period, operating income increased to 577 million US dollars, with an operating margin of 6.0% being achieved.

The company also strengthened its balance sheet, with free cash flow rising to 405 million US dollars, while its leverage ratio fell from 4.1x to 3.1x year-on-year.

Fourth-Quarter Results

The full-year performance was supported by a strong fourth quarter. “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”, Bracken Darrell highlighted.

In the fourth quarter, VF Corp reported a revenue of 2.17 billion US dollars, marking its strongest quarterly revenue performance in three years. This figure represents an annual increase of 1%, or by 8% excluding Dickies. Growth was led by the Americas region, with revenue up by 2%, or by 10% on a constant currency basis when Dickies is excluded.

Compared to the fourth quarter of the 2025 fiscal year, The North Face delivered the strongest brand performance, with revenue rising by 12%, including 17% growth in the Americas. Meanwhile, Timberland’s revenue rose by 8%. Although Vans sales declined by 1%, the brand returned to growth in direct-to-consumer sales in the Americas.

The company’s fourth-quarter operating income reached 62 million US dollars, while adjusted operating income, excluding Dickies, came in at 54 million US dollars, ahead of the guidance range of 10 to 30 million US dollars.

Fiscal 2027 Outlook

For the 2027 financial year, VF Corporation has reinstated its annual guidance, forecasting constant currency revenue growth between 1% and 2%, and an adjusted operating margin of around 8%.

The company also expects free cash flow to remain stable or increase from the 405 million US dollars recorded in fiscal 2026, while aiming to reduce its leverage ratio further to between 2.6x and 2.9x by the end of the year.

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