V.F. Corporation

VF reported first-quarter revenue of approximately $1.7 billion, flat year over year and ahead of guidance. Adjusted gross margin was 54.9%, up slightly versus last year, and adjusted operating loss was $95 million; adjusted loss per share was $0.27 versus $0.25 in Q1 last year. By brand, The North Face grew 4%, Vans fell 9%, and Timberland rose 3%; by region, the Americas were up 4%, EMEA down 7%, and APAC down 1%, while DTC grew 5% and wholesale declined 4%. For the full year, VF raised revenue guidance to 2% or better, kept operating margin at approximately 8%, expects free cash flow to be flat to up versus last year, and reiterated year-end leverage of 2.6x to 2.9x. For Q2, management expects revenue growth to be approximately in line with Q1 and operating income broadly in line with last year; The North Face is expected to be flat to slightly up, Vans down about 9%, and gross margin to be up versus last year.

Bracken Darrell framed the quarter as a solid start that improved visibility into the second half, saying VF is now expecting a year of acceleration, albeit modest. He emphasized brand-specific progress, especially The North Face’s stronger-than-expected quarter and Timberland’s continued strength, while describing Vans as still early in its turnaround but showing real green shoots in DTC and product reception. His tone was upbeat and more confident on the back half, but he also acknowledged APAC remains muted and Vans wholesale still needs to catch up.

Paul Vogel highlighted that Q1 adjusted gross margin reached 54.9%, with 140 basis points of FX pressure masking the underlying rate, and said SG&A stepped up because the company is deliberately reinvesting to drive growth. He noted $225 million of structural SG&A savings since fiscal 2024 remain in the run rate, Q1 adjusted operating loss was $95 million, adjusted EPS loss was $0.27, inventories excluding Dickies and FX were down 4%, net debt was down $1.1 billion or 20% year over year, and free cash flow rose about $75 million, including about $50 million of tariff refund benefit. He reiterated the tax rate was about 11% in Q1 and expected to remain in the low 30s for the full year.

Analysts pressed on Vans, especially the gap between strong DTC and weaker wholesale. Management said wholesale was “a lot weaker” than DTC, that sell-through is better than shipments suggest because of destocking, and that better visibility with wholesale partners gives them confidence in a stronger second half; they expect Vans revenue to be down about 9% in the first half and down 2% or better in the second half. Other questions focused on margins and SG&A: management said the 8% operating margin target is not at risk, that the mix of improvement should come more from gross margin than SG&A leverage, and that discretionary brand-building spend is being made in the first half. There was also discussion of luxury brands borrowing Vans styles, with management saying it is flattering and supportive of brand heat but that they do not plan to raise prices this year.