VF Corp. brands The North Face and Timberland post higher Q4 sales

Both VF Corp. businesses reported higher revenues in the final period ended March 31 as the parent addressed the potential impact of tariffs and the work it’s doing to turnaround its overall business.

The North Face reported a 4 percent constant-currency increase in Q4 sales to $834.5 million with the brand’s global Dtc business increasing by 9 percent, which included double-digit growth in the EMEA and the Americas. Outerwear was a standout and footwear continued to grow in all regions, the company said. Americas’ ecommerce traffic was driven by the 40^th anniversary campaign for the Mountain Jacket. The brand’s FY25 sales inched up 1 percent to $3.7 billion for the 12 months.

At Timberland, Q4 revenues grew by 13 percent on a constant-currency basis to $376.0 million and were up 4 percent for the FY at $1.61 billion. Wholesale and Dtc sales each increased globally in the final period as lower discounts drove higher margins. Besides the 6” Premium Boot, the Stone Street and Mt. Maddsen also performed well.

Overall, VF sharply reduced its quarterly operating loss in Q4 to a loss of $72.9 million versus a loss of $373.4 million in the year-ago period. The net loss was $150.3 million against a loss of $418.3 million. Total revenues slipped by 5 percent to $2.14 billion from $2.25 billion, but gross margin improved by 560 basis points to 53.4 percent. In constant currency terms, EMEA sales fell by 2 percent to $812.3 million. Total inventories declined by 4 percent, or $71 million, from the year-ago period.

The group has initiated a multi-pronged strategy to address the potential impact of tariffs on its various segments. The actions include stronger cost management, pricing changes, and possible sourcing shifts for key products. VF estimates the current unmitigated impact of tariffs on all its business at about $150 million, with most of the impact occurring in H2 of FY26, which began on April 1.

Although VFC shares closed down by 15.8 percent after the earnings’ announcement, the company is moving is proceeding with efforts to strengthen its overall business. Actions being taken include everything from cost-cutting to a massive debt reduction over the past 12 months. The group is guiding for year-over-year operating income growth in FY26 and higher free cash flow than the $313 million generated in FY25.