VF Corporation (NYSE: VFC) shares plummeted 18.19% to $14.93 on Wednesday after the apparel giant reported a wider-than-expected adjusted loss for the first quarter of fiscal 2027. While the company beat revenue estimates and raised its full-year sales outlook, the disappointing bottom-line performance overshadowed the top-line resilience, prompting CEO Bracken Darrell to admit that the quarter "wasn't great."
The company reported an adjusted loss of 27 cents per share, exceeding the consensus estimate for a loss of 22 cents. Total revenue declined 5% year over year to $1.67 billion, surpassing the consensus estimate of $1.64 billion. Excluding the Dickies brand, revenue increased 1% from the prior year and remained flat on a constant-currency basis, outperforming internal guidance which projected a low-single-digit constant-currency decline.
Brand Performance and Regional Trends
Growth was driven by premium outdoor brands, while value-oriented segments struggled. The North Face posted 6% revenue growth, or 4% on a constant-currency basis, fueled by strong demand in the Americas and its direct-to-consumer business. Timberland revenue increased 4%, or 3% in constant currency, also led by strength in the Americas. Conversely, Vans remained a weak spot, with revenue falling 8% year over year, or 9% in constant currency, as wholesale demand softened.
Global direct-to-consumer sales increased 2% year over year, rising 5% on a constant-currency basis excluding Dickies. In the Americas, total revenue declined 4% year over year; however, excluding Dickies, regional revenue rose 4% in constant currency, supported by growth across both direct-to-consumer and wholesale channels.
| Metric |
Value |
YoY Change |
Constant Currency |
| Revenue (Total) |
$1.67 billion |
-5% |
- |
| Revenue (Ex-Dickies) |
N/A |
+1% |
Flat |
| The North Face Revenue |
N/A |
+6% |
+4% |
| Timberland Revenue |
N/A |
+4% |
+3% |
| Vans Revenue |
N/A |
-8% |
-9% |
Margins and Guidance
Excluding Dickies, adjusted gross margin expanded 10 basis points to 54.9%. Adjusted operating loss, excluding Dickies, narrowed to $95 million, better than the company’s guidance for a $100 million loss. Looking ahead, VF raised its full-year constant-currency revenue growth outlook to at least 2%, up from previous guidance of 1% to 2%. The company expects fiscal 2027 revenue to exceed $9.53 billion, above the analyst consensus estimate of $9.50 billion. VF reaffirmed expectations for an adjusted operating margin of about 8% and expects free cash flow to be flat to higher than last year’s $405 million.
Leadership Changes
VF announced significant leadership changes effective Aug. 1, appointing Abhishek Dalmia as chief financial officer and chief operating officer. He succeeds Paul Vogel, who will step down as executive vice president and chief financial officer to transition into an advisory role to support the handover of responsibilities.
What the Numbers Show
The divergence between top-line and bottom-line performance highlights structural margin pressures within specific segments. While premium brands like The North Face and Timberland delivered consistent growth, the inability to offset the decline in Vans and the exclusion of Dickies from core metrics suggests ongoing integration challenges. The widening adjusted loss despite a revenue beat indicates that cost structures or mix shifts are currently eroding profitability faster than sales growth can compensate, validating the cautious tone adopted by management regarding the first quarter.
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