V.F. Corporation VFC posted fourth-quarter fiscal 2026 results, wherein top and bottom lines beat the Zacks Consensus Estimate and improved year over year.
Net sales of $2,166 million beat the consensus mark of $2,128 million by 1.8%, and increased 1% year over year. The company reported breakeven earnings, against the consensus estimate of a loss of 2 cents a share. In the prior-year quarter, it reported a loss of 13 cents per share.
V.F. Corporation Price, Consensus and EPS Surprise
V.F. Corporation price-consensus-eps-surprise-chart | V.F. Corporation Quote
V.F. Corp. witnessed clear momentum in the Americas. Results were led by continued global gains at The North Face and Timberland, while Vans remained softer overall but began to show early signs of improvement, highlighted by a return to growth in the Americas' direct-to-consumer business. The bottom line improved versus last year, reflecting the company’s ongoing transformation efforts and tighter execution, and management pointed to further progress in strengthening the balance sheet and reducing leverage as it heads into fiscal 2027.
V.F. Corp.’s Q4 Revenue Details
On a regional basis, revenues in the Americas rose 2% year over year on a reported basis. In the EMEA region, revenues were up 1% on a reported basis and down 9% on a constant-currency basis. Revenues in the APAC region were flat on a reported basis but down 4% on a constant-currency basis. International revenues grew 2% year over year on a reported basis but were down 7% on a constant-currency basis.
Channel-wise, wholesale revenues fell 1% on a reported basis. Direct-to-consumer revenues were up 4% year over year on a reported basis and down 1% on a constant-currency basis. Our model estimated the wholesale revenues to fall 1.1% and direct-to-consumer revenues to rise 3.9% year over year.
Revenues in the Outdoor segment improved 11% year over year on a reported basis (up 5% on a constant-currency basis) to $1,339 million. In the Active segment, revenues of $588.6 million declined 1% year over year on a reported basis and 6% on a constant-currency basis. Revenues in the All Other segment fell 29% year over year on a reported basis (down 33% on a constant-currency basis) to $237.5 million.
Financial Details of VFC
V.F. Corp. ended the fiscal year with cash and cash equivalents of $823.9 million, long-term debt of $3.52 billion and shareholders’ equity of $1.85 billion. Net debt was down $0.8 billion from the year-ago period.
What to Expect From VFC in FY27?
For fiscal 2027, VFC expects revenues to increase 1-2% year over year in constant currency, supported by continued growth at The North Face, Timberland and Altra, while Vans is projected to decline in the mid-single digits with trends improving in the second half versus the first. Management also noted that first-quarter fiscal 2027 revenues are expected to be down in the low single digits.
The company projected an adjusted operating margin of about 8% for fiscal 2027, driven by a higher adjusted gross margin and a lower adjusted SG&A rate versus last year. Free cash flow is expected to be flat to up from fiscal 2026’s $405 million, with operating cash flow also improving year over year. VFC anticipates ending fiscal 2027 with a leverage ratio of roughly 2.6x to 2.9x.
The Zacks Rank #3 (Hold) company's shares have gained 0.8% in the past six months against the industry’s 6.9% decline.
VFC Stock's Price Performance
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