VF Corp chose to spend ahead of revenue on marketing and direct-to-consumer investment this quarter, widening its adjusted loss even as sales beat guidance: a wager that only pays off if Vans wholesale turns in the second half as management now expects.
VF Corp shares fell as much as 9.1 percent in premarket trading Wednesday, even after the owner of Vans, Timberland and The North Face beat its first quarter revenue guidance and raised its full year growth outlook. Investors instead focused on a wider than expected adjusted loss and a Vans wholesale business that is still shrinking faster than its direct to consumer channel is recovering.
Reinvesting restructuring savings to accelerate growth
VF deliberately stepped up marketing and direct to consumer spending in the first half, choosing to reinvest structural savings from its Reinvent restructuring program rather than bank them. Chief Executive Bracken Darrell called it the start of “a year of acceleration,” and the company used the stronger than expected quarter to lift full year constant currency revenue guidance to 2 percent or better, up from 1 to 2 percent.
| VF Corp — Income statement | |||
| Q1, three months ended June 27 (€ millions)* | |||
| 2026 | 2025 | Change | |
| Revenue | 1,465.7 | 1,545.9 | -5.2% |
| Cost of goods sold | 660.6 | 712.6 | -7.3% |
| Gross profit | 805.2 | 833.4 | -3.4% |
| Selling, general and administrative expenses | 878.1 | 909.3 | -3.4% |
| Operating loss | -72.9 | -76.0 | -4.1% |
| Net loss | -85.3 | -102.2 | -16.5% |
| Diluted loss per share (€) | -0.22 | -0.26 | -16.7% |
Source: VF Corp Q1 fiscal 2027 earnings release and condensed consolidated statement of operations, July 29, 2026. GAAP basis. *Converted from USD at 0.878, mid-market rate July 29, 2026. Negative change values on loss lines indicate a narrower loss versus the prior year, not a decline.
Vans remains the drag that will not quit.
Global sales fell 8 percent as reported, or 9 percent in constant currency, as Americas direct to consumer growth was more than offset by a much steeper wholesale decline. Management was blunt: sell through at retail is not nearly as weak as the headline number suggests, and much of the gap reflects wholesale partners destocking ahead of new orders rather than falling demand.
VF argues that product newness, including a Souvenir Asphalt Old Skool drop that reportedly sold out in half an hour, will eventually bring wholesale buyers back.
| VF Corp — Revenue by brand | ||||
| Q1, three months ended June 27 (€ millions)* | ||||
| 2026 | 2025 | Change | Change (C$) | |
| The North Face | 518.8 | 489.4 | 6.0% | 4.0% |
| Vans | 403.7 | 437.2 | -8.0% | -9.0% |
| Timberland | 233.7 | 224.0 | 4.0% | 3.0% |
| Other brands† | 309.6 | 395.3 | -22.0% | 4.0%‡ |
| VF Corp revenue | 1,465.7 | 1,545.9 | -5.0% | -7.0% |
Source: VF Corp Q1 fiscal 2027 earnings release, supplemental financial information, July 29, 2026. †Other brands include Altra, icebreaker, Napapijri, Smartwool, Kipling, Eastpak and JanSport. ‡Constant-currency change ex Dickies; the reported -22.0% reflects Dickies’ absence from the current-year base following its November 2025 sale. *Converted from USD at 0.878, mid-market rate July 29, 2026.
The core business held steady, with Altra posting the strongest growth.
The North Face grew 6 percent as reported, or 4 percent in constant currency, led by the Americas region and its direct to consumer channel. Timberland grew 4 percent, or 3 percent in constant currency, aided by an unplanned marketing boost when the boot became a visual shorthand for New York during the Knicks’ championship run.
Altra, the trail and road running brand VF has said it expects to become a billion dollar name over time, again grew by double digits. Regionally, the Americas rose 4 percent excluding Dickies in constant currency, while EMEA fell 7 percent and APAC declined 1 percent. Management said Asia is likely to remain muted for another year or two amid stronger local competition.
The CFO transition adds a second layer of uncertainty.
Paul Vogel is stepping down after two years in the role. Chief Operating Officer Abhishek Dalmia will take over in a combined chief financial officer and chief operating officer position. Leadership change mid restructuring is rarely welcomed by institutional investors regardless of the stated rationale, and the timing, alongside the earnings miss, compounded Wednesday’s sell off.
For FY2027, VF now guides to revenue growth of 2 percent or better in constant currency, adjusted operating margin of about 8 percent, free cash flow flat to up versus last year’s $405 million, and a year end leverage ratio of 2.6 to 2.9 times.
