Denver-based VF Corp. got a little breathing room Wednesday after a better-than-expected start to its new fiscal year, even as its most troubled brand continued dragging on the broader turnaround. The owner of The North Face, Vans and Timberland raised its full-year revenue outlook, but investors still sent the stock sharply lower.
VF reported first-quarter revenue of $1.67 billion, with revenue excluding the sold Dickies brand up 1% year over year. According to VF Corporation’s earnings release, the company lifted its fiscal 2027 revenue outlook from growth of 1% to 2% to growth of 2% or better in constant currency, while keeping its adjusted operating-margin target near 8%.
The numbers were still hardly a victory lap. VF CEO Bracken Darrell told investors the quarter “was better than our expectations,” but shares fell 17% after the report and closed Wednesday at $15.08, as The Denver Gazette reported.
North Face And Timberland Keep Carrying VF
The company’s outdoor brands delivered the clearest signs of momentum. The North Face grew 6% from a year earlier, while Timberland rose 4%; Vans, meanwhile, declined 8%, according to VF’s results.
Vans’ Americas direct-to-consumer business continued to grow, but that was overwhelmed by declines in global wholesale, the company said. VF expects wholesale performance to improve substantially in the second half of the year, a promise that now sits at the center of its recovery story.
Debt Is Lower, But The Turnaround Remains Fragile
VF said net debt fell 20% from roughly $5.3 billion to $4.3 billion compared with the same period last year. That progress follows a restructuring push that included hundreds of job cuts, the closure of a Virginia distribution center and the sale of Dickies and Supreme, moves The Denver Gazette detailed.
The quarter builds on the company’s first full-year revenue gain in three years, a milestone Hoodline previously covered. But with Vans still shrinking and the company posting a first-quarter operating loss, VF’s latest forecast looks more like cautious progress than a full comeback.
VF Names New Finance Chief
VF also announced that CFO Paul Vogel is stepping down to spend more time with his family on the East Coast. Abhishek Dalmia, who had served as the company’s chief operating officer, will take over as both chief financial officer and chief operating officer, with more than 25 years of experience spanning Boston Consulting Group, lululemon and Dell Technologies, according to The Denver Gazette.
