VF Corporation (NYSE:VFC) saw its stock surge 16.94% in pre-market trading on Wednesday after reporting fiscal first-quarter 2026 earnings that beat Wall Street expectations, offering encouraging signs that its business overhaul is gaining traction.
The apparel and footwear conglomerate—owner of brands like The North Face, Vans, and Timberland—posted an adjusted quarterly loss of $0.24 per share for the three months ending June 28. That result came in well above analysts’ forecast of a $0.33 per-share loss. Revenue reached $1.76 billion, slightly above the consensus estimate of $1.7 billion, holding steady year over year, though dipping 2% when measured in constant currency.
Performance was weighed down by ongoing weakness in the Vans brand, where sales dropped 14% year-over-year amid continued efforts to streamline distribution channels. However, excluding Vans, total revenue rose 6%, or 5% on a constant currency basis. The North Face and Timberland continued to show resilience, and Altra experienced notable growth.
“We performed ahead of our expectations and guidance in Q1’26, improving our top-line trend versus last year to flat while delivering a much stronger bottom line,” said Bracken Darrell, President and CEO of VF Corp. “As I pass the two-year mark in my role as CEO, we are on track with VF’s transformation. We are lowering costs, improving margins, reducing debt and transforming the organization.”
The company posted an adjusted operating loss of $56 million, considerably better than its projected loss range of $110 million to $125 million. Adjusted gross margin improved by 290 basis points compared to the same period last year.
Looking ahead to the second quarter of fiscal 2026, VF expects revenue to decline by 2% to 4% on a constant currency basis, while adjusted operating income is forecast to land between $260 million and $290 million. For the full year, the company anticipates stronger free cash flow, operating income, and cash flow compared to fiscal 2025.
In addition, VF’s Board of Directors approved a quarterly dividend of $0.09 per share, to be paid on September 18, 2025, to shareholders on record as of September 10, 2025.
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