VF Corporation raises revenue forecast after solid first quarter

The US apparel group VF Corporation (VF Corp) experienced a decline in revenue in the first quarter of the 2026/27 fiscal year, but it managed to exceed expectations. The parent company of brands such as The North Face, Vans and Timberland subsequently raised its full-year revenue forecast on Wednesday.

In the three months to June 27, group revenue amounted to 1.67 billion dollars. This represented a 5 percent decrease compared to the prior-year quarter. However, analysts had anticipated greater losses. Adjusted for currency fluctuations, revenue fell by 7 percent. Excluding contributions from the Dickies brand, which was sold in November, the company reported that group revenue increased by 1 percent and remained constant on a currency-neutral basis.

The North Face and Timberland continue to show solid growth

The North Face and Timberland brands once again achieved solid growth. Revenue for The North Face increased by 6 percent (up 4 percent on a constant currency basis) to 590.9 million dollars. Timberland reported a 4 percent increase (up 3 percent on a constant currency basis) to 266.1 million dollars.

The struggling Vans label saw a decline of 8 percent (down 9 percent on a constant currency basis) to 459.8 million dollars. The combined revenues of the group's smaller brands shrank by 22 percent to 352.6 million dollars due to the sale of Dickies.

The group also made progress in its earnings, largely due to a higher gross margin. The operating loss was reduced by 4 percent to 83.1 million dollars, slightly exceeding management's forecasts. The reported net loss, which stood at 116.4 million dollars in the prior-year quarter, decreased to 97.2 million dollars. This figure was, however, higher than analysts had previously expected.

Abhishek Dalmia to become new CFO

CEO Bracken Darrell acknowledged the overall “solid start to the year”. In light of the surprisingly positive revenue performance, management raised the corresponding forecast for the full year. Adjusted for currency effects and contributions from the Dickies brand, growth of 2 percent or more is now expected. Previously, an increase of 1 to 2 percent had been forecast.

The group also announced a change in a key position. Chief financial officer (CFO) Paul Vogel will step down from his position at the end of the month. His successor, Abhishek Dalmia, will take over on August 1. Dalmia will retain his current role as chief operating officer (COO) and will assume a dual role in management.