Dive Brief:
- VF Corp. reported revenue of $1.8 billion for the first quarter of its 2026 fiscal year, flat compared to the same period last year, according to an earnings presentation Wednesday.
- The results were above the Vans owner’s expectations, which projected a revenue decline of between 3% and 5% for the period. CEO Bracken Darrell attributed the company’s performance to positive momentum at The North Face and Timberland, which grew by 6% and 11%, respectively.
- Vans still remains a pain point, with revenue at the skatewear brand declining 14% in Q1. The results were impacted by “channel rationalization actions” as the company looks to return the brand to growth, Darrell said in the release. Analysts for both Evercore and Jefferies said the drop at Vans wasn’t as bad as expected.
Dive Insight:
Without the impact of Vans, VF said its overall revenue for the quarter would have grown 6%.
The better-than-expected results come as VF makes progress on its transformation program, dubbed Project Reinvent, which was introduced in October 2023. In the years since, the company has named several new executives, launched new campaigns for Vans, and laid off hundreds of people.
In Wednesday’s release, Darrell said the company was confident in its plans to return VF to long-term growth, both in revenue and in profit.
“As I pass the two-year mark in my role as CEO, we are on track with VF's transformation,” Darrell said. “We are lowering costs, improving margins, reducing debt and transforming the organization. We have reset the table and soon will move to growth. That is what we are all here for and what the entire organization is now focused on.”
VF quarterly revenue since Q1 2023
The Americas region — the company’s largest by revenue — has been a focal point in VF’s transformation plan, which called for bolstering sales and execution in North America. During Q1, revenue in the region fell 4%.
Revenue in the region consisting of Europe, the Middle East and Africa grew by 4%, and revenue in the Asia Pacific region also grew by 4%.
Meanwhile, VF’s DTC channel fell 3%, while wholesale grew 1%.
VF’s other brands division, which includes Icebreaker and Smartwool, grew 4% year over year. Running shoe brand Altra grew more than 20%, which the company said was driven by recent launches of franchise styles and market share gains in the road and trail running categories. VF didn’t give specific revenue figures for its other brands, although the company said declines at Dickies were “slightly moderating.”
In Q2, VF expects revenue to fall between 2% and 4%.
