VF(VFC) - 2026 Q1 - Quarterly Results

Executive Summary & Highlights 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 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] CEO Commentary 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] - 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] - 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] Q2 FY2026 and Full-Year Financial Outlook 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 This section details VF Corporation's dividend declaration, company overview, and webcast information Dividend Declaration 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][7] - The dividend is payable on September 18, 2025, with a record date of September 10, 2025[7] About VF Corporation 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] - The company is dedicated to providing innovative products and creating sustainable long-term value for employees, communities, and shareholders[8] Webcast Information 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] - The call will be webcast live and an archived version will be available on ir.vfc.com[6] Financial Reporting Disclosures & Definitions This section outlines VF Corporation's financial reporting policies, segment changes, and definitions for key GAAP and non-GAAP metrics Financial Presentation Disclosures 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] - Definitions of "Reported Amounts" and "Constant Currency Amounts" or "Constant Currency," with the latter excluding the impact of foreign currency translation[9] - Definitions of "Continuing Operations" and "Discontinued Operations" (Supreme), with results based on continuing operations unless otherwise noted[9] - Definition of "Adjusted Amounts," which exclude costs related to the Reinvent transformation plan[9] - "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] Change in Reportable Segments 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] - An "All Other" category was established for operating segments not meeting separate disclosure quantitative thresholds[10] - Prior period segment data for each quarter of FY2025 has been restated to reflect this change[10] Discontinued Operations - Supreme 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] - Supreme's assets, liabilities, operating results, and cash flows are all presented as discontinued operations[11] Constant Currency - Excluding the Impact of Foreign Currency 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] - This aims to provide a framework for assessing business performance without considering the impact of exchange rate fluctuations[12] - The calculation involves translating current period operating results reported in non-U.S. dollar currencies at comparable prior period average exchange rates[31] Adjusted Amounts - Excluding Reinvent Impact 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] - In Q1 FY2026, Reinvent-related costs were approximately $31 million, negatively impacting loss per share by $0.06[13] - Management believes these non-GAAP measures are useful for evaluating the business, providing supplemental information on underlying business trends and ongoing operating performance[14] Supplemental Financial Information 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) 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] - Reinvent generated a net tax benefit of $6.8 million in Q1 FY2026[20] - Total Reinvent-related restructuring charges amounted to $207.6 million, with most restructuring actions completed by the end of Q1 FY2026[20] Reconciliation of GAAP to Non-GAAP Measures (Q1 FY2025) 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] - Reinvent generated a net tax benefit of $4.1 million in Q1 FY2025[25] - 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] Reportable Segment Information (Constant Currency) 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] Forward-Looking Statements & Risks This section addresses forward-looking statements, outlining various risks and uncertainties that could cause actual results to differ materially from expectations Forward-Looking Statements 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] - 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][16] - VF assumes no obligation to publicly update or revise any forward-looking statements, except as required by law[15] Contact Information This section provides contact details for VF Corporation's investor relations and media inquiries Investor and Media Contacts This section provides contact information for VF Corporation's investor relations and media inquiries - Investor contact: Allegra Perry, email: ir@vfc.com[17] - Media contact: Colin Wheeler, email: corporate_communications@vfc.com[17]