A report published on May 23, 2025, stated that V.F. Corporation is 'on the verge of bankruptcy' and 'risks insolvency' without a rapid turnaround of its operations. The report characterized VFC as a 'fallen angel' of the U.S. stock market.
The report highlighted that fiscal year 2025 revenue was down 4.2%, and free cash flow was half of the previous year's already poor performance. The North Face and Timberland brands showed sluggish growth of 1% and 3%, respectively, while Vans and Dickies plunged 16% and 12%.
Geographically, the decline was most pronounced in North America, with sales down 7%, and Europe and the Middle East saw sales fall 3%. Despite $1.8 billion in debt reduction this year from the Supreme sale and real estate divestitures, the company still holds $3.4 billion in long-term debt, excluding operating leases. Dividends and share buybacks are on hold.
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