VF Corporation Reports Q1 Fiscal 2026 Results with $1.76 Billion Revenue and Net Loss Reduction

VF Corporation reported its financial results for the first quarter of Fiscal 2026, revealing revenues of $1.76 billion, a slight decrease from $1.77 billion in the same period last year. The company experienced a 2% favorable impact from foreign currency, but this was offset by a decline in the Active segment, which saw revenues drop by 10% to $699.7 million. In contrast, the Outdoor segment reported an 8% increase in revenues to $812.5 million, aided by a 2% favorable foreign currency impact. The overall gross margin improved by 270 basis points to 53.9%, primarily due to favorable foreign currency impacts, higher quality inventory, and lower discounts.

The company recorded a net loss of $116.4 million, or $(0.30) per share, compared to a net loss of $152.0 million, or $(0.39) per share, in the prior year. The reduction in net loss per share was attributed to improved profitability in the Outdoor segment, although this was partially offset by higher restructuring charges related to the ongoing "Reinvent" transformation program and lower profitability in the Active segment. The total loss from continuing operations before income taxes was $126.6 million, down from $165.5 million in the previous year.

In terms of operational metrics, VF's total current assets increased to $4.38 billion as of June 2025, up from $4.35 billion a year earlier, driven by higher inventory levels. The company reported a significant increase in short-term borrowings, which rose to $392.9 million, reflecting the need for seasonal working capital. The total liabilities also increased to $8.86 billion, compared to $10.15 billion a year ago, primarily due to the rise in current liabilities. The company’s employee headcount remained stable, with no significant changes reported.

Strategically, VF has realigned its reportable segments, combining the Timberland and Timberland PRO brands into the Outdoor segment, which now also includes The North Face brand. This restructuring is part of the company's broader efforts to enhance brand management and operational performance. The company also completed the sale of its Supreme brand in October 2024, which has been classified as discontinued operations. Looking ahead, VF aims to generate between $500 million and $600 million in net operating income expansion by Fiscal 2028, as part of its ongoing transformation initiatives. The company continues to navigate challenges such as tariffs and changing consumer preferences while focusing on improving profitability and reducing leverage.