"We're on track with the turnaround and could be more excited about what's coming next. Keep watching. We are well on our way to transforming V.F. and this quarter is another step in the right direction."
— Bracken P. Darrell
03Detailed Report
VFC
VF Corporation
Period
Q1 2026
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 25, 2026
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Executive Summary
VF Corporation (NYSE: VFC) experienced a challenging but strategically significant first quarter of fiscal 2026, reporting revenues of $1.76 billion, reflecting a 2% decrease year-over-year in constant dollars and flat in reported terms. Encouragingly, management is controlling costs effectively with gross margins improving by 200 basis points to 54.1%. Although the company incurred a net loss of $126.6 million, this was $50 million better than guidance, courtesy of strong performance in the North Face and Timberland brands. CEO Bracken Darrell outlined key growth opportunities and significant operational transformations underway, emphasizing a company commitment to returning to profitability and growth by investing strategically in product innovation and marketing.
Key Performance Indicators
Revenue
Decreasing
1.76B
QoQ: -17.87% | YoY: -7.69%
Net Income
Increasing
-126.59M
QoQ: 16.05% | YoY: 51.10%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue Performance: The reported revenue of $1.76 billion showed a flat trend compared to Q1 2025, but a decrease of 2% when adjusted for constant currency, beating guidance that anticipated a decline of 3% to 5%. North Face and Timberland displayed resilience, achieving 5% and 9% revenue growth, respectively, while Vans struggled with a 15% decline.
Profitability: Adjusted gross margin increased to 54.1%, reflecting strategic improvements in inventory management and lower discounting policies. The adjusted operating margin was negative 3.2%, an improvement of 270 basis points year-over-year despite the overall negative performance.
Cash Flow: The company reported a negative consolidated operating cash flow of -$145 million and a decline in free cash flow of $174 million, attributed mainly to timing shifts in working capital.
Balance Sheet Health: VF Corporation recorded total assets of $10.15 billion against total liabilities of $8.86 billion, maintaining a relatively healthy balance sheet with a reduction in net debt by $1.4 billion or 20% year-on-year, aided by cost-cutting initiatives.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
1.76B
-7.69%
-17.87%
Net Income
-126.59M
51.10%
16.05%
Key Financial Ratios
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