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VFC Releases First Quarter Fiscal 2026 Financial Results

Bracken Darrell, President and CEO, said: “We performed ahead of our expectations and guidance in Q1’26, improving our top-line trend versus last year to flat (-2% C$) while delivering a much stronger bottom line. The North Face® and Timberland® sustained their positive momentum while Altra® grew strongly. Vans® was impacted by channel rationalization actions, as we strengthen the business to return to healthy, sustainable growth.

As I pass the two-year mark in my role as CEO, we are on track with VF’s transformation. We are lowering costs, improving margins, reducing debt and transforming the organization. We have reset the table and soon will move to growth. That is what we are all here for and what the entire organization is now focused on. We are as confident as ever in our plans to transform VF and return the company to long-term growth, in revenue and in profit.

Q1’26 Financial Review

• • • Revenue of $1.8B, flat vs. LY or (2%) C$
      • Revenue above guidance
      • Wholesale timing shift into Q1’26 from Q2’26 benefited revenue by 2% or 1% C$
      • Excluding Vans®, total revenue was +6% vs. LY or +5% C$
      • Global strength at The North Face® and Timberland®, while Vans® was (14%) vs. LY or (15%) C$, impacted by channel rationalization actions
    • Adjusted operating loss significantly beat guidance
      • Operating loss of ($87M); adjusted operating loss of ($56M), significantly better than guidance of ($125M) to ($110M)
      • Operating margin of (4.9%), up 210bps vs. LY, and adjusted operating margin of (3.2%), up 270bps vs. LY
      • Gross margin up 270bps vs. LY and adjusted gross margin up 290bps vs. LY
      • SG&A dollars up 1% vs. LY and adjusted SG&A dollars flat vs. LY
    • EPS (loss) of ($0.30), adjusted EPS of ($0.24)
      • Earnings (loss) per share (EPS) of ($0.30) vs. Q1’25 ($0.39), adjusted EPS of ($0.24) vs. Q1’25 ($0.35)
      • Net interest expense of ($41M); effective tax rate of 8.0% and adjusted effective tax rate of 3.5%
    • Net debt down $1.4B or (20%) vs. LY
      • Net debt excluding lease liabilities down $1.4B or (27%) vs. LY

• • • VANS
    • excluding the impact of channel rationalization actions, revenue down high-single digits vs. LY
    • DTC impacted by the closure of non-strategic stores and lower traffic across regions; key EMEA cities outperforming
    • Americas sell-out trends positive in non-value wholesale doors
    • Sales from new products are growing, with momentum from Super Lowpro, Curren Caples Skate and OTW®, more than offset by declines in the icons
    • Strong consumer engagement and reach driven by Lil Uzi partnership, Pinnacle bookings at Paris Fashion Week, and the return of Vans Warped Tour