Core Insights - VF Corporation reported Q1 2026 results with revenue of $1.76 billion and a non-GAAP loss per share of ($0.24), both exceeding analyst expectations slightly [1][2] - The company demonstrated improvements in gross margin, which increased to 54.1% from 51.2% year-over-year, and reduced net debt to $5.3 billion, down 20% from the previous year [2][11] - Despite operational progress, overall sales remained flat year-over-year, with specific brands like Vans continuing to struggle [1][7] Financial Performance - Non-GAAP EPS was ($0.24), better than the consensus estimate of ($0.25) and improved from ($0.35) in Q1 2025 [2] - Revenue was $1.76 billion, slightly above the expected $1.75 billion, but down 0.6% from $1.77 billion in Q1 2025 [2] - Non-GAAP operating loss was ($56 million), significantly better than the internal estimate range of ($125 million) to ($110 million) [5] Brand Performance - The North Face saw a 6% revenue increase, with direct-to-consumer sales up 7% year-over-year [7] - Timberland's revenue rose 11%, particularly strong in the Americas [7] - Vans experienced a 14% revenue decline, attributed to ongoing channel rationalization and store closures [7][9] Strategic Focus - VF's strategy emphasizes cost control, supply chain efficiency, and strengthening core brands, with a focus on direct-to-consumer expansion and international growth [4] - The transformation program, "Reinvent," aims to boost profitability and cash flow, especially in response to Vans' performance [6][4] Geographic Performance - Sales in the Americas fell 4%, while Europe, the Middle East, and Africa saw a 4% revenue increase in dollar terms [10] - Asia-Pacific revenue grew 4%, with strong international results for The North Face and Timberland balancing the pressure from Vans in the U.S. [10] Future Outlook - For Q2 FY2026, management projects revenue contraction between 4% and 2% in constant currency terms [13] - Adjusted operating income is forecasted to be between $260 million and $290 million for Q2 FY2026, indicating potential sequential improvement [13] - The company aims for positive free cash flow and further debt reduction, while facing risks related to weak traffic in the direct-to-consumer channel and global trade policies [14]

Core Insights - V.F. Corporation (VFC) reported a narrower-than-expected loss per share in Q1 fiscal 2026, with a sales beat and improved earnings year over year despite a dip in revenues [1][3][9] - The company is progressing with its Reinvent program, aiming for cost savings and improved operating profitability [1][13] Revenue Performance - VFC's net revenues for Q1 fiscal 2026 were $1.76 billion, surpassing the consensus estimate of $1.69 billion, with a year-over-year decline of approximately 2% in constant currency [3][4] - The North Face and Timberland brands continued to perform well, while Altra showed strong growth; however, Vans faced challenges due to channel rationalization [2][14] Segment Analysis - Revenues in the Outdoor segment increased by 8% year over year to $812.5 million, while the Active segment saw a decline of 10% to $699.7 million [7] - The All-Other segment reported a revenue increase of 4% year over year to $248.5 million [7] Financial Position - VFC ended Q1 with cash and cash equivalents of $642.4 million and long-term debt of $3.56 billion, with net debt down $1.4 billion from the previous year [8] - The company declared a quarterly dividend of 9 cents per share, payable on September 18, 2025 [8] Future Outlook - For Q2 fiscal 2026, VFC expects revenues to decline by 2% to 4% in constant currency, with adjusted operating income projected between $260 million and $290 million [12] - For the full fiscal 2026, VFC anticipates growth in adjusted operating income and cash flow, driven by strong performance from The North Face, Timberland, and Altra [13][14]

Part I [Financial Statements (Unaudited)](index=3&type=section&id=Item%201%20%E2%80%94%20Financial%20Statements%20(Unaudited)) This section presents VF Corporation's unaudited consolidated financial statements for the quarter ended June 28, 2025, including balance sheets, statements of operations, cash flows, and notes [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) As of June 28, 2025, total assets increased to $10.15 billion sequentially, while total liabilities rose to $8.86 billion, reflecting seasonal patterns and discontinued operations Consolidated Balance Sheet Summary (in thousands) | Account | June 2025 | March 2025 | June 2024 | | :--- | :--- | :--- | :--- | | **Total Current Assets** | $4,375,516 | $3,786,098 | $4,349,131 | | Inventories | $2,135,478 | $1,627,025 | $2,059,728 | | **Total Assets** | **$10,150,497** | **$9,377,536** | **$11,541,363** | | **Total Current Liabilities** | $3,439,639 | $2,697,853 | $4,408,974 | | Long-term debt | $3,560,990 | $3,425,650 | $3,940,668 | | **Total Liabilities** | **$8,858,214** | **$7,890,177** | **$10,153,458** | | **Total Stockholders' Equity** | **$1,292,283** | **$1,487,359** | **$1,387,905** | [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) For Q1 FY26, revenues were nearly flat at $1.76 billion, with a reduced operating loss of $86.6 million and a narrowed net loss per share of ($0.30) Q1 FY26 Statement of Operations Summary (in thousands, except per share amounts) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Revenues** | **$1,760,666** | **$1,769,060** | | Operating Loss | ($86,609) | ($123,020) | | Loss from Continuing Operations | ($116,408) | ($152,027) | | Loss from Discontinued Operations | $— | ($106,859) | | **Net Loss** | **($116,408)** | **($258,886)** | | **Net Loss Per Share - Diluted** | **($0.30)** | **($0.67)** | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash used by operating activities increased to $145.5 million in Q1 FY26, while financing activities provided $339.0 million, primarily from short-term borrowings Q1 FY26 Cash Flow Summary (in thousands) | Activity | Three Months Ended June 2025 | Three Months Ended June 2024 | | :--- | :--- | :--- | | Cash used by operating activities | ($145,460) | ($30,714) | | Cash used by investing activities | ($49,013) | ($9,035) | | Cash provided (used) by financing activities | $338,955 | ($37,444) | | **Net change in cash** | **$216,859** | **($37,015)** | [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail segment realignment, the Supreme brand sale as discontinued operations, and revenue disaggregation by channel and geography - In Q1 FY26, VF realigned its reportable segments. The 'Outdoor' segment now includes The North Face and Timberland. The 'Active' segment includes Vans, Kipling, Eastpak, and Jansport. Prior period results have been recast[30](index=30&type=chunk)[75](index=75&type=chunk) - The Supreme brand business was sold on October 1, 2024, and its results are reported as discontinued operations. The sale resulted in a final after-tax loss of **$126.6 million**[31](index=31&type=chunk)[45](index=45&type=chunk)[46](index=46&type=chunk) Revenues by Channel (Q1 2025, in thousands) | Channel | Outdoor | Active | All Other | Total | | :--- | :--- | :--- | :--- | :--- | | Wholesale | $456,831 | $392,423 | $175,252 | $1,024,506 | | Direct-to-consumer | $352,210 | $301,029 | $67,424 | $720,663 | | Royalty | $3,425 | $6,235 | $5,837 | $15,497 | | **Total** | **$812,466** | **$699,687** | **$248,513** | **$1,760,666** | - The 'Reinvent' transformation program incurred restructuring charges of **$17.5 million** in Q1 2025, bringing cumulative charges to **$207.6 million** since inception. Actions were substantially complete at the end of the quarter[104](index=104&type=chunk)[105](index=105&type=chunk)[117](index=117&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202%20%E2%80%94%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 FY26 financial results, noting flat revenues, improved gross margin, and progress on the 'Reinvent' transformation program - Overall revenues remained flat at **$1.8 billion**, with a **2% favorable foreign currency impact**. A decline in the Active segment was offset by growth in the Outdoor segment[119](index=119&type=chunk)[121](index=121&type=chunk) - Gross margin increased by **270 basis points to 53.9%**, primarily due to favorable foreign currency impacts, higher quality inventory, and lower discounts[122](index=122&type=chunk)[123](index=123&type=chunk) - The 'Reinvent' transformation program aims to generate **$500.0 million to $600.0 million** in net operating income expansion by Fiscal 2028 compared to Fiscal 2024[116](index=116&type=chunk) [Information by Reportable Segment](index=30&type=section&id=Information%20by%20Reportable%20Segment) The Outdoor segment's revenue grew 8% to $812.5 million, while the Active segment's revenue declined 10% to $699.7 million, primarily due to Vans Segment Revenue Performance (Q1 2025 vs Q1 2024, in millions) | Segment | Revenues - 2025 | Revenues - 2024 | Change | | :--- | :--- | :--- | :--- | | Outdoor | $812.5 | $753.6 | +7.8% | | Active | $699.7 | $776.7 | -9.9% | Segment Profit (Loss) Performance (Q1 2025 vs Q1 2024, in millions) | Segment | Profit (Loss) - 2025 | Profit (Loss) - 2024 | | :--- | :--- | :--- | | Outdoor | ($42.3) | ($72.9) | | Active | $56.8 | $71.5 | - The North Face brand revenues grew **6%**, driven by Europe and Asia-Pacific, while Timberland revenues grew **11%** across all regions[136](index=136&type=chunk)[137](index=137&type=chunk) - Vans brand global revenues decreased **14%**, impacted by deliberate strategic actions including exiting value-channel wholesale customers and closing unprofitable retail stores in the Americas[140](index=140&type=chunk)[141](index=141&type=chunk) [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) Working capital decreased to $935.9 million, and the net debt to total capital ratio increased to 80.5%, with a focus on leverage reduction - Cash used by operating activities increased to **$145.5 million** from **$30.7 million** YoY, mainly due to increased net cash used for working capital to support inventory purchases[158](index=158&type=chunk)[159](index=159&type=chunk) - As of June 2025, VF had **$350.0 million** in borrowings under its **$2.25 billion** Global Credit Facility, with approximately **$1.9 billion** remaining available[167](index=167&type=chunk) - The company's capital deployment priorities are focused on reducing leverage and reinvesting cost savings to drive growth, with no share repurchases made during the quarter[162](index=162&type=chunk)[163](index=163&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=35&type=section&id=Item%203%20%E2%80%94%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company reports no significant changes in market risk exposures compared to its Fiscal 2025 Form 10-K disclosures - There have been no significant changes in VF's market risk exposures from the disclosures in the Fiscal 2025 Form 10-K[183](index=183&type=chunk) [Controls and Procedures](index=35&type=section&id=Item%204%20%E2%80%94%20Controls%20and%20Procedures) The CEO and CFO concluded that disclosure controls and procedures were effective, with no material changes to internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[184](index=184&type=chunk) - No changes in internal control over financial reporting occurred during the last fiscal quarter that have materially affected or are likely to materially affect such controls[185](index=185&type=chunk) Part II [Legal Proceedings](index=35&type=section&id=Item%201%20%E2%80%94%20Legal%20Proceedings) The company reports no material changes to legal proceedings or environmental proceedings exceeding the $1 million reporting threshold - There have been no material changes to legal proceedings since the Fiscal 2025 Form 10-K[187](index=187&type=chunk) [Risk Factors](index=36&type=section&id=Item%201A%20%E2%80%94%20Risk%20Factors) The company states that no material changes have occurred regarding the risk factors previously disclosed in its Fiscal 2025 Form 10-K - No material changes have occurred regarding the risk factors previously disclosed in the Fiscal 2025 Form 10-K[191](index=191&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=36&type=section&id=Item%202%20%E2%80%94%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) VF Corporation made no common stock repurchases during Q1 FY26, with $2.5 billion remaining under authorization, prioritizing leverage reduction - The company made no repurchases of its Common Stock during the first quarter of fiscal 2026[192](index=192&type=chunk)[193](index=193&type=chunk) - Approximately **$2.5 billion** remains available for future repurchases under the authorized program[163](index=163&type=chunk)[193](index=193&type=chunk) [Other Information](index=36&type=section&id=Item%205%20%E2%80%94%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the three months ended June 28, 2025 - No director or officer adopted or terminated a Rule 10b5-1 trading plan during the quarter[194](index=194&type=chunk) [Exhibits](index=37&type=section&id=Item%206%20%E2%80%94%20Exhibits) This section lists filed exhibits, including an amendment to the Revolving Credit Agreement and CEO/CFO certifications - Key exhibits filed include Amendment No. 5 to the Revolving Credit Agreement and CEO/CFO certifications[196](index=196&type=chunk)

Core Insights - V.F. Corporation (VFC) reported a revenue of $1.76 billion for the quarter ended June 2025, reflecting a year-over-year decline of 7.7% and an EPS of -$0.24, an improvement from -$0.33 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate of $1.69 billion by 3.96%, while the EPS surprised positively by 31.43% compared to the consensus estimate of -$0.35 [1] Financial Performance - The company's shares returned +1.3% over the past month, underperforming the Zacks S&P 500 composite's +3.4% change [3] - VFC holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3] Geographic Revenue Breakdown - Americas: $937.6 million, below the average estimate of $951.6 million, with a year-over-year decline of 10.3% [4] - Europe: $551.3 million, exceeding the estimate of $495.87 million, with a slight year-over-year decline of 0.3% [4] - Asia-Pacific: $271.8 million, below the estimate of $278.36 million, with a year-over-year decline of 12.2% [4] Revenue by Segment - Outdoor: $812.47 million, slightly below the estimate of $832.32 million, with a year-over-year increase of 2.8% [4] - Active: $699.69 million, above the estimate of $691.15 million, but reflecting a significant year-over-year decline of 25.7% [4] Revenue by Brand - The North Face: $557.4 million, exceeding the estimate of $523.34 million, with a year-over-year increase of 6.3% [4] - Vans: $498 million, above the estimate of $472.72 million, but showing a year-over-year decline of 14.4% [4] - Timberland: $255.1 million, surpassing the estimate of $230.92 million, with a year-over-year increase of 11.2% [4] Revenue by Channel - Direct-To-Consumer: $720.7 million, below the estimate of $748.72 million, with a year-over-year decline of 18% [4] Segment Profit (Loss) - Active: $56.84 million, below the estimate of $66.22 million [4] - Outdoor: $-42.27 million, better than the estimate of $-78.77 million [4]

Financial Data and Key Metrics Changes - The company reported Q1 revenue of $1.8 billion, flat on a reported basis and down 2% year-over-year in constant dollars, which was better than the guidance of down 3% to down 5% [31][32] - Adjusted gross margin increased by 200 basis points to 54.1%, driven by higher quality inventory and lower discounts [34] - Adjusted loss per share was $0.24 compared to $0.35 in Q1 of the previous year [35] Business Line Data and Key Metrics Changes - Vans revenue decreased by 15%, with 40% of the decline attributed to channel rationalization actions [12][33] - The North Face grew by 5%, with strong performance in footwear and bags, aiming for higher growth rates in the future [14][32] - Timberland's revenue increased by 9%, reflecting growth across all regions and channels [16][33] Market Data and Key Metrics Changes - The APAC region grew by 4%, while the Americas and EMEA regions saw declines of 3% and 2%, respectively [33] - Excluding Vans, the Americas region was up 3% year-over-year [33] Company Strategy and Development Direction - The company is focused on transforming its operations, improving cost structures, and aiming for growth after two years of resetting [9][11] - A unified product and marketing engine is being built across brands globally, with a focus on premiumization and improved inventory management [10][29] - The company aims to reduce leverage to below 2.5 times by fiscal 2028 while investing in growth [10][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in turning the company back into a growth entity despite current macroeconomic challenges [6][9] - The anticipated impact of tariffs is expected to negatively affect gross profit by $60 million to $70 million in fiscal 2026, but management believes they can mitigate these impacts [38][39] - The company is optimistic about the upcoming back-to-school season and plans to invest more in marketing [110] Other Important Information - The company has changed its segment reporting to better reflect key areas of focus across brands [43] - The company is pursuing a $1.5 billion asset-backed revolving loan to enhance liquidity and flexibility [42] Q&A Session Summary Question: What were the expectations for the Warp Tour and its impact? - Management expected modest impact initially but saw enormous demand with tickets selling out quickly, indicating strong engagement and merchandise sales [49][52] Question: Can you clarify the $60 million to $70 million gross profit impact from tariffs? - Management confirmed that this impact is mostly in the back half of the year and will be offset through pricing and other actions [57][58] Question: What are the long-term views on gross margin improvement? - Management sees opportunities for gross margin improvement across all brands, particularly through premiumization and better product mix [66][70] Question: How do you expect unit volumes to be affected by price increases? - Management indicated that unit volumes might decrease in line with price increases, but the overall impact is uncertain due to industry-wide effects [78][79] Question: What is the outlook for free cash flow and net debt? - Management expects free cash flow to be up year-over-year despite fluctuations in quarterly performance, and net debt is anticipated to decline [118][120]

Financial Data and Key Metrics Changes - Q1 revenue was $1.8 billion, flat on a reported basis and down 2% year over year in constant dollars, which was better than the guidance of down 3% to down 5% [31][36] - Adjusted gross margin increased by 200 basis points to 54.1%, driven by higher quality inventory and lower discounts [34] - Adjusted loss per share was $0.24 compared to $0.35 in Q1 of the previous year [35] Business Line Data and Key Metrics Changes - Vans revenue decreased by 15%, with 40% of the decline attributed to channel rationalization actions [11][33] - The North Face grew by 5%, with strong performance in footwear and bags, aiming for higher growth in the future [13][32] - Timberland's revenue increased by 9%, reflecting growth across all channels [15][33] Market Data and Key Metrics Changes - APAC region grew by 4%, while the Americas and EMEA regions were down 3% and 2%, respectively [33] - Excluding Vans, the Americas region was up 3% year over year [33] Company Strategy and Development Direction - The company is focused on transforming into a growth-oriented organization, with significant cost reductions and improvements in operational efficiency [7][10] - Plans to enhance product and marketing strategies across brands globally, aiming for a unified approach [8][9] - The company is committed to reducing leverage to below 2.5 times by fiscal 2028 [9][42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the turnaround strategy, emphasizing the importance of growth and the potential for each brand [10][28] - The anticipated impact of tariffs is expected to negatively affect gross profit by $60 million to $70 million in fiscal 2026, but management believes they can mitigate this through pricing and sourcing actions [39][41] - The company expects operating income to be up year over year in fiscal 2026, despite tariff impacts [41] Other Important Information - The company has made changes to segment reporting to better reflect key areas of focus across brands [44] - The return of the Vans Warp Tour was highlighted as a significant marketing initiative, with strong ticket sales and brand engagement [25][26] Q&A Session Summary Question: What were the expectations for the Vans Warp Tour and its impact? - Management expected modest impact initially but saw enormous demand with sold-out events and significant merchandise sales [50][53] Question: Can you clarify the $60 million to $70 million gross profit impact from tariffs? - The impact is primarily in the back half of the year, and management is working on offsetting this through pricing and other actions [58][59] Question: What are the long-term views on gross margin improvement? - Management sees opportunities for gross margin improvement across all brands, particularly through premiumization strategies [67][70] Question: How will unit volumes be affected by price increases due to tariffs? - Management expects a one-to-one relationship between price increases and unit volume declines, but believes it could be slightly better due to industry-wide impacts [78][80] Question: What is the outlook for free cash flow and net debt? - Management expects free cash flow to be up year over year, with net debt anticipated to decline as they work towards their leverage targets [121][123]

Financial Performance - Revenue was $1.8 billion, flat compared to last year, or down 2% in constant dollars[15] - Net debt decreased by $1.4 billion, a 20% reduction compared to last year[16] - Excluding lease liabilities, net debt decreased by $1.4 billion, a 27% reduction compared to last year[16] - Adjusted operating loss significantly beat guidance[15] - Loss per share (EPS) was ($0.30), with an adjusted EPS of ($0.24)[15] Brand Performance - The North Face revenue increased by 6%, or 5% in constant dollars[25] - Vans revenue decreased by 14%, or 15% in constant dollars, impacted by channel rationalization actions[25] - Timberland revenue increased by 11%, or 9% in constant dollars[25] - Other Brands revenue increased by 4%, or 2% in constant dollars, with Altra growing over 20%[25, 41] Outlook - Q2'26 revenue is expected to decrease by 4% to 2% in constant dollars[18] - Q2'26 adjusted operating income is projected to be between $260 million and $290 million[18]

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) This section provides an overview of VF Corporation's Q1 FY2026 performance, CEO commentary, and financial outlook for Q2 FY2026 and the full fiscal year [Q1 FY2026 Performance Overview](index=1&type=section&id=Q1%2726%20Performance%20Overview) VF Corporation exceeded Q1 FY2026 expectations with flat reported revenue, a 2% constant currency decline, and stronger profitability, driven by The North Face® and Timberland® while Vans® was impacted by channel rationalization Q1 FY2026 Key Financial Metrics | Metric | Amount/Percentage | | :-------------------------------- | :---------- | | Revenue | $1.8 billion | | Revenue YoY Change (Reported) | Flat | | Revenue YoY Change (Constant Currency) | (2%) | | Revenue (Excluding Vans®) YoY Change (Reported) | +6% | | Revenue (Excluding Vans®) YoY Change (Constant Currency) | +5% | | Vans® Revenue YoY Change (Reported) | (14%) | | Vans® Revenue YoY Change (Constant Currency) | (15%) | | Adjusted Operating Loss | ($56 million) | | Adjusted Operating Loss Guidance | ($125 million) to ($110 million) | | Adjusted Operating Margin | (3.2%) | | Adjusted Operating Margin YoY Change | +270bps | | Adjusted Gross Margin YoY Change | +290bps | | Adjusted Loss Per Share (EPS) | ($0.24) | | Prior Year Adjusted Loss Per Share (Q1 FY2025) | ($0.35) | | Net Debt YoY Decrease | $1.4 billion or (20%) | | Net Debt Excluding Lease Liabilities YoY Decrease | $1.4 billion or (27%) | - The North Face® and Timberland® demonstrated strong global performance, while Vans® was affected by channel rationalization measures[5](index=5&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Bracken Darrell highlighted that VF Corporation surpassed Q1 FY2026 expectations with improved revenue trends and significantly enhanced profitability, affirming the company's on-track transformation to drive long-term growth - The company exceeded Q1 FY2026 expectations and guidance, showing improved revenue trends and significantly enhanced profitability[2](index=2&type=chunk) - The North Face® and Timberland® maintained positive momentum, Altra® showed strong growth, and Vans® is strengthening its business through channel rationalization for healthy, sustainable growth[2](index=2&type=chunk) - The company is on track with its transformation, focusing on cost reduction, margin expansion, debt reduction, and organizational reshaping, confident in achieving long-term revenue and profit growth[3](index=3&type=chunk) [Q2 FY2026 and Full-Year Financial Outlook](index=1&type=section&id=Financial%20Outlook%20%28Q2%2726%20%26%20FY%2726%29) VF Corporation anticipates Q2 FY2026 revenue to decline by 4% to 2% (constant currency) with adjusted operating income between $260 million and $290 million, while expecting full-year increases in free cash flow, adjusted operating income, and operating cash flow Q2 FY2026 and Full-Year Financial Outlook | Metric | Q2 FY2026 Outlook | Full-Year FY2026 Outlook | | :-------------------------------- | :--------------------- | :----------------- | | Revenue YoY Change (Constant Currency) | (4%) to (2%) | - | | Adjusted Operating Income | $260 million to $290 million | Increase YoY | | Free Cash Flow | - | Increase YoY | | Operating Cash Flow | - | Increase YoY | [Corporate Information & Actions](index=2&type=section&id=Corporate%20Information%20%26%20Actions) This section details VF Corporation's dividend declaration, company overview, and webcast information [Dividend Declaration](index=2&type=section&id=Dividend%20Declaration) VF Corporation's Board of Directors authorized a quarterly dividend of $0.09 per share, payable on September 18, 2025, to shareholders of record as of September 10, 2025 - The Board of Directors authorized a quarterly dividend of **$0.09 per share**[1](index=1&type=chunk)[7](index=7&type=chunk) - The dividend is payable on September 18, 2025, with a record date of September 10, 2025[7](index=7&type=chunk) [About VF Corporation](index=2&type=section&id=About%20VF%20Corporation) VF Corporation is a portfolio of leading outdoor, active, and workwear brands, including The North Face®, Vans®, Timberland®, and Dickies®, committed to delivering innovative products and creating sustainable long-term value - VF Corporation owns leading brands such as The North Face®, Vans®, Timberland®, and Dickies®[8](index=8&type=chunk) - The company is dedicated to providing innovative products and creating sustainable long-term value for employees, communities, and shareholders[8](index=8&type=chunk) [Webcast Information](index=2&type=section&id=Webcast%20Information) VF management will host a Q1 FY2026 conference call at 8:00 a.m. ET, which will be webcast live and archived on ir.vfc.com - The Q1 FY2026 conference call will be held at 8:00 a.m. ET[6](index=6&type=chunk) - The call will be webcast live and an archived version will be available on ir.vfc.com[6](index=6&type=chunk) [Financial Reporting Disclosures & Definitions](index=2&type=section&id=Financial%20Reporting%20Disclosures%20%26%20Definitions) This section outlines VF Corporation's financial reporting policies, segment changes, and definitions for key GAAP and non-GAAP metrics [Financial Presentation Disclosures](index=2&type=section&id=Financial%20Presentation%20Disclosures) This section defines key financial reporting conventions, including diluted per share amounts, reported and constant currency amounts, the distinction between continuing and discontinued operations (Supreme), and adjusted amounts (excluding Reinvent), also defining "Free Cash Flow" and "Net Debt" - All per share amounts are presented on a diluted basis[9](index=9&type=chunk) - Definitions of "Reported Amounts" and "Constant Currency Amounts" or "Constant Currency," with the latter excluding the impact of foreign currency translation[9](index=9&type=chunk) - Definitions of "Continuing Operations" and "Discontinued Operations" (Supreme), with results based on continuing operations unless otherwise noted[9](index=9&type=chunk) - Definition of "Adjusted Amounts," which exclude costs related to the Reinvent transformation plan[9](index=9&type=chunk) - "Free Cash Flow" is defined as cash flow from continuing operations less capital expenditures and software purchases; "Net Debt" is defined as long-term debt, current portion of long-term debt, short-term borrowings, and operating lease liabilities less cash and cash equivalents[9](index=9&type=chunk) [Change in Reportable Segments](index=2&type=section&id=Change%20in%20Reportable%20Segments) Effective Q1 FY2026, VF Corporation realigned its reportable segments into "Outdoor" and "Active," establishing an "All Other" category for operating segments not meeting separate disclosure thresholds, with prior period segment data for FY2025 restated to reflect this change - Effective Q1 FY2026, reportable segments were realigned into "Outdoor" and "Active"[10](index=10&type=chunk) - An "All Other" category was established for operating segments not meeting separate disclosure quantitative thresholds[10](index=10&type=chunk) - Prior period segment data for each quarter of FY2025 has been restated to reflect this change[10](index=10&type=chunk) [Discontinued Operations - Supreme](index=2&type=section&id=Discontinued%20Operations%20-%20Supreme) VF Corporation completed the sale of its Supreme® brand business on October 1, 2024, with Supreme-related assets, liabilities, operating results, and cash flows presented as discontinued operations until the sale date - VF Corporation completed the sale of its Supreme® brand business on October 1, 2024[11](index=11&type=chunk) - Supreme's assets, liabilities, operating results, and cash flows are all presented as discontinued operations[11](index=11&type=chunk) [Constant Currency - Excluding the Impact of Foreign Currency](index=2&type=section&id=Constant%20Currency%20-%20Excluding%20the%20Impact%20of%20Foreign%20Currency) Constant currency amounts are non-GAAP financial measures that exclude the impact of foreign currency exchange on U.S. dollar translation, providing a framework to assess business performance without currency fluctuations, calculated by translating current period operating results reported in non-U.S. dollar currencies at comparable prior period average exchange rates - Constant currency amounts are non-GAAP measures that exclude the impact of foreign currency exchange on U.S. dollar translation[12](index=12&type=chunk) - This aims to provide a framework for assessing business performance without considering the impact of exchange rate fluctuations[12](index=12&type=chunk) - The calculation involves translating current period operating results reported in non-U.S. dollar currencies at comparable prior period average exchange rates[31](index=31&type=chunk) [Adjusted Amounts - Excluding Reinvent Impact](index=3&type=section&id=Adjusted%20Amounts%20-%20Excluding%20Reinvent%20Impact) Adjusted amounts are non-GAAP measures that exclude costs related to the Reinvent (VF transformation plan), including restructuring and project-related expenses, providing investors with useful supplemental information on VF's underlying business trends and ongoing operating performance - Adjusted amounts exclude costs related to the Reinvent transformation plan, including restructuring expenses and project-related fees[13](index=13&type=chunk) - In Q1 FY2026, Reinvent-related costs were approximately **$31 million**, negatively impacting loss per share by **$0.06**[13](index=13&type=chunk) - Management believes these non-GAAP measures are useful for evaluating the business, providing supplemental information on underlying business trends and ongoing operating performance[14](index=14&type=chunk) [Supplemental Financial Information](index=5&type=section&id=Supplemental%20Financial%20Information) This section provides reconciliations of GAAP to non-GAAP financial measures for Q1 FY2026 and Q1 FY2025, along with reportable segment information on a constant currency basis [Reconciliation of GAAP to Non-GAAP Measures (Q1 FY2026)](index=5&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures%20%28Q1%2726%29) This section reconciles GAAP to adjusted non-GAAP measures for the three months ended June 2025, primarily excluding Reinvent transformation plan costs totaling $30.8 million, which impacted gross profit, operating loss, and diluted net loss per share from continuing operations Q1 FY2026 GAAP to Adjusted Financial Data (Three Months Ended June 2025) | Metric | GAAP Reported Amount (in thousands) | Reinvent Adjustment (in thousands) | Adjusted Amount (in thousands) | | :-------------------------------- | :----------- | :----------- | :----------- | | Revenue | $1,760,666 | $— | $1,760,666 | | Gross Profit | $949,002 | $4,282 | $953,284 | | Gross Margin | 53.9% | | 54.1% | | Operating Loss | ($86,609) | $30,782 | ($55,827) | | Operating Loss Margin | (4.9%) | | (3.2%) | | Diluted Net Loss Per Share from Continuing Operations | ($0.30) | $0.06 | ($0.24) | - Reinvent-related costs for Q1 FY2026 totaled **$30.8 million**, primarily comprising severance, employee benefits, and consulting firm fees[20](index=20&type=chunk) - Reinvent generated a net tax benefit of **$6.8 million** in Q1 FY2026[20](index=20&type=chunk) - Total Reinvent-related restructuring charges amounted to **$207.6 million**, with most restructuring actions completed by the end of Q1 FY2026[20](index=20&type=chunk) [Reconciliation of GAAP to Non-GAAP Measures (Q1 FY2025)](index=6&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures%20%28Q1%2725%29) This section reconciles GAAP to adjusted non-GAAP measures for the three months ended June 2024, excluding Reinvent plan costs of $17.8 million and transaction-related activities of $0.5 million Q1 FY2025 GAAP to Adjusted Financial Data (Three Months Ended June 2024) | Metric | GAAP Reported Amount (in thousands) | Reinvent Adjustment (in thousands) | Transaction and Transaction-Related Activities (in thousands) | Adjusted Amount (in thousands) | | :-------------------------------- | :----------- | :----------- | :----------------- | :----------- | | Revenue | $1,769,060 | $— | $— | $1,769,060 | | Gross Profit | $905,678 | $412 | $— | $906,090 | | Gross Margin | 51.2% | | | 51.2% | | Operating Loss | ($123,020) | $17,849 | $490 | ($104,681) | | Operating Loss Margin | (7.0%) | | | (5.9%) | | Diluted Net Loss Per Share from Continuing Operations | ($0.39) | $0.04 | $— | ($0.35) | - Reinvent-related costs for Q1 FY2025 totaled **$17.8 million**, primarily including severance and employee benefits[25](index=25&type=chunk) - Reinvent generated a net tax benefit of **$4.1 million** in Q1 FY2025[25](index=25&type=chunk) - Transaction and transaction-related activity costs for Q1 FY2025 were **$0.5 million**, associated with the strategic alternatives review for the Global Packs business (Kipling®, Eastpak®, and JanSport® brands)[25](index=25&type=chunk) [Reportable Segment Information (Constant Currency)](index=7&type=section&id=Reportable%20Segment%20Information%20%28Constant%20Currency%29) This section presents Q1 FY2026 segment financial information on a constant currency basis, adjusting for foreign currency exchange impacts, with the Outdoor segment reporting $800.4 million in constant currency revenue and a $41.541 million constant currency profit loss, and the Active segment reporting $692.4 million in constant currency revenue and a $55.282 million constant currency profit Q1 FY2026 Segment Revenue (Constant Currency, Three Months Ended June 2025) | Segment | GAAP Reported Amount (in thousands) | Foreign Currency Exchange Adjustment (in thousands) | Constant Currency Amount (in thousands) | | :-------------- | :----------- | :----------- | :----------- | | Outdoor Segment | $812,466 | ($12,025) | $800,441 | | Active Segment | $699,687 | ($7,269) | $692,418 | | All Other | $248,513 | ($3,587) | $244,926 | | Total Revenue | $1,760,666 | ($22,881) | $1,737,785 | Q1 FY2026 Segment Profit (Constant Currency, Three Months Ended June 2025) | Segment | GAAP Reported Amount (in thousands) | Foreign Currency Exchange Adjustment (in thousands) | Constant Currency Amount (in thousands) | | :-------------- | :----------- | :----------- | :----------- | | Outdoor Segment | ($42,270) | $729 | ($41,541) | | Active Segment | $56,838 | ($1,556) | $55,282 | | Total Segment Profit | $14,568 | ($827) | $13,741 | - Under constant currency, the pre-tax loss from continuing operations was **($127.834 million)**; diluted net loss per share from continuing operations changed by **23%**[29](index=29&type=chunk) [Forward-Looking Statements & Risks](index=3&type=section&id=Forward-Looking%20Statements%20%26%20Risks) This section addresses forward-looking statements, outlining various risks and uncertainties that could cause actual results to differ materially from expectations [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section contains forward-looking statements based on VF's expectations and beliefs, involving numerous risks and uncertainties, including consumer demand, global economic conditions, supply chain stability, and geopolitical risks, which could cause actual results to differ materially - Forward-looking statements involve numerous risks and uncertainties, and actual results may differ materially from expectations[15](index=15&type=chunk) - Key risks include consumer demand, global economic conditions, raw material prices, fashion trends, competition, execution of the Reinvent transformation plan, IT system security, data privacy, adoption of new technologies (including AI), foreign currency fluctuations, supply chain stability, labor costs, intellectual property protection, acquisitions and dispositions, business resilience, changes in tax laws, debt levels, ability to pay dividends, climate change, public health crises, and geopolitical risks (such as conflicts in Europe, the Middle East, Asia, and U.S.-China tensions)[15](index=15&type=chunk)[16](index=16&type=chunk) - VF assumes no obligation to publicly update or revise any forward-looking statements, except as required by law[15](index=15&type=chunk) [Contact Information](index=4&type=section&id=Contact%20Information) This section provides contact details for VF Corporation's investor relations and media inquiries [Investor and Media Contacts](index=4&type=section&id=Investor%20and%20Media%20Contacts) This section provides contact information for VF Corporation's investor relations and media inquiries - Investor contact: Allegra Perry, email: ir@vfc.com[17](index=17&type=chunk) - Media contact: Colin Wheeler, email: corporate_communications@vfc.com[17](index=17&type=chunk)

Market Overview - The S&P 500 and Nasdaq reached intra-day record highs but closed in the red, with the Dow down 204 points (-0.46%), S&P 500 down 18 points (-0.30%), Nasdaq down 80 points (-0.38%), and Russell 2000 down 13 points (-0.61%) [1] - Trade deals are progressing but lack the strength to drive the market higher, with Q2 earnings showing some weaknesses outside of Big Tech [2] Federal Reserve Policy - A new announcement on Fed policy is expected, with the current interest rate of 4.25-4.50% likely to remain unchanged for the fifth consecutive FOMC meeting [3] - Some analysts anticipate dissent among Fed members regarding the need for rate cuts despite current unemployment at +4.1% and inflation at +2.7% [3] Earnings Reports - **Starbucks (SBUX)**: Reported Q3 earnings of $0.50 per share, missing the consensus of $0.65, attributed to a one-time charge of $0.11. Revenues were $9.50 billion, exceeding expectations of $9.30 billion. Same-store sales fell -2% compared to a -1.3% consensus [4][5] - **Visa (V)**: Reported earnings of $2.98 per share, beating expectations of $2.86, with revenues of $10.2 billion surpassing the $9.87 billion forecast. Despite strong performance, shares fell -3% in after-hours trading [6] - **Booking Holdings (BKNG)**: Reported Q2 earnings of $55.40 per share, exceeding the $50.59 estimate, with revenues of $6.8 billion above the $6.56 billion consensus. Gross bookings reached $46.7 billion [7] - **Mondelez (MDLZ)**: Reported earnings of $0.73 per share, beating estimates by $0.05, with revenues of $8.98 billion exceeding the $8.88 billion expectation. The company faced challenges from rising cocoa prices and tariffs [8] Upcoming Market Events - The earnings season is expected to peak with reports from major companies like Microsoft and Meta Platforms, along with others such as Ford and Qualcomm [9] - Private-sector payroll data from ADP is anticipated, with a consensus of +64K jobs for July, following a previous decline of -33K [10] - Q2 GDP is projected to rebound to +2.3% from Q1's -0.5%, influenced by tariff policies and economic outlook improvements [10]

Core Insights - V.F. Corporation (VFC) is expected to report a year-over-year decline in both revenue and earnings for the first quarter of fiscal 2026, with revenues estimated at $1.7 billion, reflecting an 11.2% decrease from the previous year [1][9] Revenue Performance - The consensus estimate for VFC's loss is set at 34 cents per share, slightly wider than the 33 cents reported in the same quarter last year [2] - Management anticipates a revenue decline of 3-5% on a constant currency basis, primarily due to brand-specific challenges and reduced consumer traffic [3] - Vans brand performance is expected to mirror a 20% decline seen in the previous quarter, significantly impacting overall revenue [4] Operational Challenges - The fiscal first quarter is typically the smallest for VFC and is heavily influenced by Vans' performance, with ongoing strategic resets and store closures affecting results [3][4] - Foreign exchange fluctuations are also expected to negatively impact revenue, adding further pressure [5] Margin and Cost Structure - Despite revenue challenges, gross margin is projected to remain strong due to lower input costs, fewer promotions, and an improved inventory mix, which previously led to a 560 basis-point improvement in gross margin [6][9] - Operating loss is expected to be between $110 million and $125 million for the first quarter, with SG&A expenses forecasted to be flat or slightly down year-over-year due to cost-saving measures [6] Stock Valuation - VFC's stock is currently trading at a forward price-to-earnings ratio of 13.87, which is higher than the industry average of 11.49 [10] - Over the past three months, VFC's shares have increased by 8.2%, outperforming the industry growth of 1.1% [11]