VF Corperation Returns To Revenue Growth For The Full Year In FY’26
VF delivered another quarter of revenue growth in Q4’26, led by the Americas region as Vans® Americas Direct-to-Consumer (DTC) returned to growth and reinstates annual guidance effective FY’27: expecting another year of growth and ~8% adjusted operating margin
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% 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.”
Returned to growth for the full year in FY’26 with expanding margins and reduced debt
- Revenue +1% vs. LY
- Revenue ex Dickies® +4% vs. LY or +1% C$
- Recall Dickies® was sold during Q3’26
- FY’26 gross margin (GM) of 54.8%, up 130 bps vs. LY
- Adjusted GM ex Dickies® of 55.2%, up 110 bps vs. LY
- FY’26 operating income (OI) of $577M and operating margin (OM) of 6.0%, up 280 bps vs. LY
- Adjusted OI ex Dickies® of $650M and adjusted OM ex Dickies® of 7.0%, up 110 bps vs. LY
- FY’26 free cash flow1 of $405M, up over $90M vs. LY
- FYE’26 leverage ratio of 3.1x vs. LY of 4.1x, and vs. FYE’24 of 5.1x
- Q4’26 revenue growth driven by momentum in the Americas; Q4’26 OI ahead of guidance
- Revenue +1% vs. LY
- Revenue ex Dickies® +8% vs. LY or +3% C$, ahead of guidance of flat to +2% C$ vs. LY
- Strongest revenue performance in three years (C$, ex Dickies®)
- Americas region +2% vs. LY; ex Dickies® +10% C$, the region’s highest growth since Q1’23
- The North Face® +12% vs. LY or +7% C$, with the Americas +17% vs. LY or +16% C$
- Vans® (1%) vs. LY or (5%) C$, with a return to growth in Americas DTC
- Timberland® +8% vs. LY or +2% C$
- Q4’26 OI of $62Me
Reinstating annual guidance effective FY’27 with continued growth and expanding margins
- Revenue +1% to +2% C$ vs. LY3
- Adjusted OM of approximately 8%
- Free cash flow flat to up vs. LY1 of $405M
- FYE’27 leverage ratio of 2.6x to 2.9x
