US holding company and owner of brands like The North Face, Timberland and Vans, VF Corp forecasts revenues in Q1, FY26 to decline between 3 per cent-5 per cent. The company expects adjusted operating loss to range between $110 million and $125 million, significantly higher than the average analyst estimate of a $73 million loss.
In FY25, VF Corp registered a 4 per cent decline in net sales to $9.5 billion as against $9.92 billion in the previous fiscal year.
Marking a significant improvement in profitability, the company’s operating profit increased to $303.77 million during the year as against an operating loss of $143.93 million in 2024.
Performance among its diverse brand portfolio remained mixed. Revenues of its brand The North Face increased by 1 per cent to $3.70 billion while revenues of the brand Vans declined by 16 per cent to $2.35 billion. Timberland’s revenue rose by 3 per cent to $1.61 billion, while Dickies’ turnover contracted by 12 per cent to $542.1 million.
Geographically, the Americas region struggled with a 7 per cent decrease, totaling $4.83 billion. EMEA (Europe, Middle East, and Africa) also saw a decline of 3 per cent, reaching $3.25 billion. The APAC (Asia-Pacific) region was more stable, posting a 1 per cent increase to $1.42 billion.
In Q4, FY25 which concluded on March 29, VF Corp. fell short of revenue estimates. Concerns over tariffs introduced by the Trump administration led many retailers to scale back orders, resulting in a 5 per cent decline in revenue to $2.14 billion, below analysts' projections of $2.18 billion. The company reported an operating loss of $73 million, though its adjusted operating profit was $22 million.
Bracken Darrell, President and CEO, VF Corp, states, the company’s sales in Q4 aligned with its forecasts and, excluding Vans, showed an increase over the previous year, primarily driven by The North Face and Timberland. The company is well positioned to deal with the increasing volatility in the macroeconomic environment. The actions it takes will enable brands to return to growth and VF to generate solid and sustainable value, he adds.
