V.F. Q1 Earnings Call Highlights

V.F. raised its fiscal 2027 revenue-growth outlook to 2% or more after first-quarter revenue of about $1.7 billion exceeded expectations. The company maintained its targets for an approximately 8% operating margin, flat-to-higher free cash flow and year-end leverage of 2.6–2.9 times. Brand performance was mixed: The North Face revenue rose 4% and Timberland increased 3%, while Vans declined 9%. V.F. expects Vans to remain weak in the first half but improve to a roughly 2% or better decline in the second half as product launches and direct-to-consumer trends gain traction. CFO Paul Vogel will step down , with COO Abhishek Dalmia assuming a combined CFO and COO role. V.F. also reported a 20% year-over-year reduction in net debt and reiterated its longer-term goals of a 10% or better operating margin and leverage of 2.5 times or less.

V.F. NYSE: VFC raised its fiscal 2027 revenue outlook after reporting first-quarter sales and operating performance that exceeded its prior expectations, while also announcing a finance leadership transition. The company said first-quarter revenue was approximately $1.7 billion, flat from a year earlier and ahead of its guidance for a low-single-digit decline. Adjusted operating loss was $95 million, which V.F. said was slightly better than expected due to stronger-than-anticipated revenue. Adjusted diluted loss per share was $0.27, compared with a loss of $0.25 a year earlier.

V.F. now expects fiscal 2027 revenue to increase by 2% or more, up from its prior outlook for 1% to 2% growth. The company maintained its expectation for an approximately 8% operating margin for the full year, free cash flow that is flat to higher than last year, and a year-end leverage ratio between 2.6 times and 2.9 times.

Chief Financial Officer Paul Vogel will step down, with Chief Operating Officer Abhishek Dalmia taking on a newly combined CFO and COO role. Vogel said he would work with Dalmia during the next quarter to support a smooth transition.

Vogel said the decision followed discussions about the time demands of the role, as his family has remained on the East Coast. He pointed to progress over the past two years, including lower debt, cost reductions, improved financial discipline and a return to full-year growth in fiscal 2026. “I remain confident in the company, the strategy, the progress we are making,” Vogel said. “In fact, I leave this role with great confidence in where VF is headed.”

Dalmia said his focus in the expanded position would include capital discipline, portfolio returns and balancing growth, profitability and cash generation. CEO Bracken Darrell said the combined finance and operations role would support the company’s ongoing transformation and focus on total shareholder value.

The North Face posted 4% revenue growth in the first quarter, exceeding V.F.’s expectation for a flat quarter. Darrell said growth was led by transitional outerwear, shells and equipment, while the Ultima Version Two footwear launch had a strong debut across regions. The company expects The North Face to be flat to slightly higher in the second quarter, primarily due to wholesale timing, and expects full-year growth to be roughly in line with the brand’s growth rate in fiscal 2026. V.F. also cited upcoming initiatives including its U.S. Ski & Snowboard Team apparel partnership and a planned update to its Nuptse product line. Timberland revenue increased 3% in the quarter, with both direct-to-consumer and wholesale channels growing globally. The Americas rose 10...