For FY26 ended March 28, VF’s revenue increased 1 per cent year on year (YoY). Excluding Dickies, which was sold during the third quarter, revenue rose 4 per cent, or 1 per cent in constant currency. Gross margin stood at 54.8 per cent, up 130 basis points from the previous year, while adjusted gross margin excluding Dickies reached 55.2 per cent, up 110 basis points.
VF Corporation has returned to growth in FY26, with revenue up 1 per cent and ex-Dickies revenue rising 4 per cent.
Margins expanded, operating income reached $577 million, and leverage improved to 3.1x.
Q4 revenue rose 1 per cent, led by Americas momentum, The North Face and Timberland growth, while VF reinstated FY27 guidance for continued growth and higher margins.
“For the first time in three years, we returned to a full year of growth and expect to keep growing in FY27. We also significantly expanded margins and reduced our leverage ratio by a full turn vs LY,” said Bracken Darrell, president and CEO of VF Corporation.
The operating income for the year was $577 million, with operating margin improving 280 basis points to 6 per cent. Adjusted operating income excluding Dickies stood at $650 million, with adjusted operating margin of 7 per cent, up 110 basis points. Free cash flow increased by more than $90 million to $405 million, excluding the $100 million net impact of pension termination.
The North Face and Timberland lead growth
In the fourth quarter (Q4), revenue rose 1 per cent YoY. Excluding Dickies, revenue increased 8 per cent, or 3 per cent in constant currency, ahead of the company’s guidance of flat to 2 per cent growth. VF said this marked its strongest revenue performance in three years on a constant-currency, ex-Dickies basis.
The Americas region drove the quarterly performance, with reported revenue up 2 per cent YoY. Excluding Dickies, Americas revenue rose 10 per cent in constant currency, marking the region’s highest growth since the first quarter of FY23.
Among key brands, The North Face grew 12 per cent YoY, or 7 per cent in constant currency, with Americas revenue up 17 per cent, or 16 per cent in constant currency. Timberland revenue increased 8 per cent, or 2 per cent in constant currency. Vans declined 1 per cent on a reported basis and 5 per cent in constant currency, though the brand returned to growth in Americas direct-to-consumer for the first time in more than four years.
VF reported fourth-quarter operating income of $62 million. Adjusted operating income excluding Dickies was $54 million, ahead of guidance of $10 million to $30 million.
“In the fourth quarter, we delivered our strongest revenue performance since I joined VF. Both The North Face and Timberland continued to deliver global growth. Vans is starting to show momentum with a return to growth in Americas DTC for the first time in over four years,” added Darrell.
He further said the company remained on track to achieve its medium-term targets, including an exit run rate of 10 per cent operating margin in FY28 and a leverage ratio of 2.5x or lower by FY28. He added that FY26 had been a strong year for VF, with encouraging momentum building across the business.
FY27 guidance points to continued growth
For FY27, VF has reinstated annual guidance and expects revenue to grow 1-2 per cent in constant currency compared with the prior year, excluding Dickies from FY26. The company expects adjusted operating margin of around 8 per cent, free cash flow to be flat to up from FY26’s $405 million, and year-end leverage ratio of 2.6x to 2.9x.
Fibre2Fashion News Desk (SG)
