VF Corporation (VF Corp (VFC)) shares took a beating Wednesday after the apparel giant behind The North Face, Timberland, and Vans reported a mixed bag of first-quarter results. The headline numbers weren't pretty: an adjusted loss of 27 cents per share, wider than the 22-cent loss analysts had braced for. But revenue came in at $1.67 billion, beating the $1.64 billion consensus, even as it fell 5% from a year ago.
Strip out Dickies, which VF is in the process of selling, and the picture improves a bit. Revenue excluding Dickies actually rose 1% year over year, and was flat on a constant-currency basis — better than the company's own guidance for a low-single-digit decline. Adjusted gross margin, excluding Dickies, ticked up 10 basis points to 54.9%, and the adjusted operating loss narrowed to $95 million, beating the guided $100 million loss.
VF also announced a leadership shuffle: Abhishek Dalmia will take over as chief financial officer and chief operating officer on August 1, replacing Paul Vogel, who will step down as EVP and CFO and move into an advisory role to ease the transition.
The North Face and Timberland Shine, Vans Falters
The North Face continued its strong run, with revenue up 6% (4% in constant currency), driven by demand in the Americas and its direct-to-consumer channel. Timberland also posted solid gains, with revenue rising 4% (3% in constant currency), again led by strength in the Americas.
Vans, however, remains the problem child. Revenue at the sneaker brand fell 8% year over year (9% in constant currency), as wholesale demand continued to soften. Global direct-to-consumer sales overall rose 2% year over year (5% excluding Dickies), showing that VF's retail strategy is working even if wholesale channels are under pressure.
Regionally, the Americas saw a 4% revenue decline, but excluding Dickies, revenue in the region actually grew 4% in constant currency, supported by both direct-to-consumer and wholesale channels.
CEO Bracken Darrell: 'We're Not Going to Pretend This Quarter Was Great'
Despite the revenue beat and a raised full-year outlook, CEO Bracken Darrell didn't sugarcoat things. "We're not going to pretend that this quarter was great. It wasn't," he told investors. He noted that first-quarter results merely exceeded internal expectations, and that the company's confidence comes from better visibility into the second half, where management expects stronger performance — particularly at Vans.
VF raised its fiscal 2027 revenue outlook to over $9.53 billion, above the analyst consensus of $9.50 billion. The company also lifted its full-year constant-currency revenue growth forecast to at least 2%, up from previous guidance of 1% to 2%. It reaffirmed expectations for an adjusted operating margin of about 8% and said free cash flow should be flat to higher than last year's $405 million.
Following the results, Needham analyst Tom Nikic maintained a Buy rating but lowered his price target to $21 from $25.
VFC Price Action: VF shares were down 18.19% at $14.93 at the time of publication Wednesday.
