VF Corporation Announces Wider Than Expected Q1 2026 Loss
Denver, Wednesday, 30 July 2025.
VF Corporation faced a larger loss in Q1 FY26 with an adjusted EPS of $0.24. Despite challenges, sales for North Face and Timberland grew, while Vans’ sales dropped. Revenue slightly exceeded projections.
Financial Performance Overview
VF Corporation (NYSE: VFC) reported a larger-than-expected loss for the first quarter of fiscal 2026, with an adjusted earnings per share (EPS) of ($0.24), a significant improvement from the same quarter in the previous fiscal year when adjusted EPS was ($0.35) [1][2]. The company also reported an operating loss of ($56 million), a figure that favorably surprised analysts who had forecasted a loss in the range of $110 million to $125 million [2].
Revenue Dynamics
The company’s revenue was reported at $1.8 billion, which remains unchanged from the previous year’s figure, although it exceeded expectations given the anticipated 3% to 5% decline in constant currency terms [1][3]. Notably, while Vans reported a 14% drop in sales, the North Face and Timberland brands delivered solid performances, seeing sales improvements of 6% and 11%, respectively [2][3].
Market Reactions and Strategies
Following the release of its financial results, VF Corporation’s stock rose this morning by nearly 10% as investors responded positively to the narrower-than-expected loss and revenue figures [4]. VF Corporation’s management attributed the performance to its ongoing transformation efforts, which included cost reduction measures and strategic initiatives designed to enhance brand strength and improve operational efficiency [2][5].
Future Projections and Challenges
Looking forward, VF Corporation has projected a 2% to 4% revenue decline for the second quarter of fiscal 2026 when evaluated in constant currency terms [5]. The company’s long-term plans include further channel rationalization and new product initiatives, particularly within the Vans brand, to offset declines experienced this quarter [1][3]. Additionally, VF Corporation continues to focus on reducing its debt as part of its broader transformation strategy [5].