V.F. Corporation reported its first-quarter fiscal 2026 financial results for the period ended June 28, 2025. The company achieved flat consolidated revenues year-over-year at $1.76 billion, surpassing analyst estimates of $1.70 billion.
The adjusted net loss per share was $0.24, which was narrower than the analyst consensus estimate of a $0.33 loss. Gross margin expanded significantly by 270 basis points to 53.9%, driven by higher quality inventory and lower discounts.
Operating loss improved to $86.6 million from $123.0 million in the prior year. Net debt was reduced by $1.4 billion year-over-year, and inventories were down 4%.
The North Face brand grew 6% globally, and Timberland grew 11% globally, while Altra grew over 20%. Vans global revenues decreased 14%, with approximately 40% of this decline attributed to deliberate channel rationalization actions.
VFC anticipates an incremental annualized tariff impact of $250 million to $270 million, with $60 million to $70 million expected to negatively impact gross profit in fiscal 2026. However, the company is confident in fully offsetting these tariffs by fiscal 2027. For the full fiscal year 2026, VFC projects operating income and free cash flow to be up year-on-year. The Board of Directors declared a quarterly dividend of $0.09 per share.
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