VF Corporation (NYSE:VFC) shares fell around 6% on Wednesday after the apparel and footwear company reported a wider-than-expected quarterly loss, despite delivering revenue ahead of Wall Street forecasts and raising its full-year sales outlook.
The company reported an adjusted loss of $0.27 per share for the first quarter of fiscal 2027, compared with analysts’ expectations for a loss of $0.22 per share.
Revenue totalled $1.67 billion, exceeding the consensus estimate of $1.64 billion, although it declined 5% from the same period a year earlier.
Excluding the divested Dickies business, revenue increased 1% year over year, or remained flat on a constant currency basis, outperforming the company’s previous guidance for a low-single-digit decline in constant currency.
Brand Performance Remains Mixed
The North Face continued to deliver solid growth during the quarter, with revenue increasing 6% from the prior year.
Vans reported an 8% decline in revenue as growth in the Americas direct-to-consumer business was more than offset by weaker wholesale sales.
Meanwhile, Timberland posted a 4% year-over-year increase in revenue.
Profitability Improves Despite Quarterly Loss
Adjusted operating loss, excluding the divested Dickies business, was $95 million, slightly better than the company’s guidance of approximately $100 million.
Gross margin improved by 100 basis points from the prior year to 54.9%, reflecting continued progress in profitability.
VF also strengthened its balance sheet during the quarter, reducing net debt by $1.1 billion, or 20%, compared with a year earlier.
Chief Executive Officer Bracken Darrell said: “We had a solid start to the year, beating our revenue and operating income guidance. Given our overall Q1 performance and better visibility into the balance of the year, we are raising our FY’27 revenue guidance.”
Company Raises Revenue Outlook
Following the stronger-than-expected revenue performance, VF increased its fiscal 2027 sales forecast.
The company now expects constant currency revenue growth of 2% or more for the full year, compared with its previous guidance of between 1% and 2% growth.
VF maintained its adjusted operating margin target of approximately 8% and continues to expect free cash flow to be flat or higher than the $405 million generated during fiscal 2026.
New Finance Chief Appointed
VF also announced the appointment of Abhishek Dalmia as its new Chief Financial Officer and Chief Operating Officer.
In addition, the company’s board declared a quarterly dividend of $0.09 per share, payable on September 17, 2026.
VF Corporation stock price
