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]
V.F. Corp Gears Up for Q1 Earnings Amid Vans Restructuring Pressures