VF falls on earnings miss despite revenue beat

Investing.com -- VF Corporation (NYSE: VFC) on Wednesday reported first quarter fiscal 2027 results that missed earnings expectations while revenue exceeded analyst estimates, sending shares down 6%.

The apparel and footwear company posted an adjusted loss of $0.27 per share, missing the analyst consensus of a $0.22 loss by $0.05. Revenue came in at $1.67 billion, beating the $1.64 billion estimate but declining 5% YoY. Excluding the divested Dickies brand, revenue rose 1% YoY, or flat in constant currency, ahead of the company’s guidance for a low-single digit decline in constant currency.

The North Face grew 6% YoY, while Vans declined 8% as growth in Americas direct-to-consumer was offset by wholesale declines. Timberland revenue increased 4% YoY.

Shares fell 6% following the results, reflecting investor concern over the wider-than-expected loss despite the revenue beat.

Adjusted operating loss excluding Dickies came in at $95 million, slightly better than the company’s guidance of $100 million. Gross margin reached 54.9%, up 100 basis points YoY. The company reduced net debt by $1.1 billion, or 20%, compared to the prior year.

"We had a solid start to the year, beating our revenue and operating income guidance," said CEO Bracken Darrell. "Given our overall Q1 performance and better visibility into the balance of the year, we are raising our FY’27 revenue guidance."

VF raised its full-year fiscal 2027 revenue outlook to growth of 2% or better in constant currency versus prior guidance of 1% to 2% growth. The company maintained its adjusted operating margin guidance of approximately 8% and expects free cash flow to be flat to up compared to $405 million in fiscal 2026.

The company also announced the appointment of Abhishek Dalmia as Chief Financial Officer and Chief Operating Officer. VF’s board declared a quarterly dividend of $0.09 per share, payable September 17, 2026.

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