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It has been about a month since the last earnings report for V.F. (VFC - Free Report) . Shares have lost about 8.8% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is V.F. due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for V.F. Corporation before we dive into how investors and analysts have reacted as of late.

V.F. Corp. Q1 Earnings Miss Estimates as Vans Wholesale WeighsV.F. Corporation posted first-quarter fiscal 2027 results, wherein the top and bottom lines missed the Zacks Consensus Estimate and declined year over year.

The company reported an adjusted loss of 27 cents per share for first-quarter fiscal 2027, wider than the year-ago loss of 25 cents. The figure also lagged the Zacks Consensus Estimate of a 22-cent loss.

Revenues declined 5.2% year over year to $1.669 billion and missed the consensus mark of $1.674 billion. Excluding Dickies, revenues rose 1% on a reported basis, supported by growth at The North Face, Timberland and Altra.

V.F. Corp.’s Q1 Revenue DetailsOn a regional basis, revenues in the Americas declined 4% year over year on a reported basis. EMEA revenues fell 7% as reported and 9% in constant currency. APAC revenues decreased 3% on a reported basis and 6% in constant currency. Overall, international revenues declined 4% year over year as reported and 7% in constant currency.

By channel, wholesale revenues fell 10% on a reported basis. Direct-to-consumer revenues were up 2% year over year on a reported basis and 1% on a constant-currency basis.

Revenues in the Outdoor segment improved 5% year over year on a reported basis (up 4% on a constant-currency basis) to $857 million. In the Active segment, revenues of $667 million declined 5% year over year on a reported basis and 6% on a constant-currency basis. Revenues in the All Other segment fell 42% year over year on a reported basis (down 42% on a constant-currency basis) to $145 million.

VF Corp.’s Gross Margin ExpandsThe company’s reported gross margin increased 100 basis points year over year to 54.9%. Adjusted gross margin excluding Dickies improved 10 basis points to 54.9%, indicating modest underlying progress after removing the divested brand’s prior-year contribution.

Reported selling, general and administrative expenses were $1 billion, representing 59.9% of revenues. Adjusted expenses were $1.012 billion, or 60.6% of revenues.

Financial Details of VFCV.F. Corp. ended the fiscal first quarter with cash and cash equivalents of $670 million, long-term debt of $3 billion and shareholders’ equity of $1.76 billion. Net debt was down $1.1 billion from the year-ago period.

What to Expect From VFC in FY27?VFC raised its fiscal 2027 revenue outlook to growth of 2% or better in constant currency from the prior guidance of 1-2%. The projection reflects expected growth at The North Face, Timberland and Altra, partly offset by a mid-single-digit decline at Vans, with Vans’ second-half revenues expected to improve to a decline of 2% or better year over year.

The company maintained its adjusted operating margin forecast of approximately 8%, supported by a higher adjusted gross margin and a lower adjusted SG&A rate. Free cash flow is still expected to be flat to higher than fiscal 2026’s $405 million, aided by year-over-year growth in operating cash flow. VFC anticipates ending fiscal 2027 with a leverage ratio of roughly 2.6x to 2.9x.

How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a downward trend in estimates review.

The consensus estimate has shifted -6.54% due to these changes.

VGM ScoresAt this time, V.F. has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for value investors.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, V.F. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Richard Carucci, Director, reported a direct purchase of 20,000 shares of VF Corporation (VFC +0.42%) in an SEC Form 4 filing.

Transaction summaryMetricValueTransaction value~$295,000Shares purchased20,000Post-transaction shares (directly held)356,215Post-transaction value$5.25 millionTransaction value based on SEC Form 4 weighted average purchase price ($14.73); post-transaction value based on Aug. 13, 2026, market close ($14.74).

Key questionsHow has this transaction affected the director's total equity position?
Richard Carucci increased his direct equity holdings to ~356,000 shares, which represents a 0.0906% ownership stake in the $5.8 billion apparel company.What was the market context for this execution?
The purchase at $14.73 per share occurred prior to the Aug. 14, 2026, market close, when shares were priced at $14.87.What are the firm's recent financial results as of the transaction date?
Denver-based VF Corporation reported trailing twelve-month revenue of $9.5 billion and net income of $274.2 million for the period ending Aug. 14, 2026.Company OverviewMetricValueShare Price (as of market close 2026-08-14)$14.87Market Capitalization$5.8 billionRevenue (TTM)$9.5 billionNet Income (TTM)$274.2 millionCompany SnapshotVF Corporation designs, sources, markets, and distributes a comprehensive portfolio of branded lifestyle apparel, footwear, and complementary products for men, women, and children, generating revenue through direct and wholesale distribution channels in global markets.The company operates through three primary business segments -- Outdoor, Active, and Work -- each serving distinct consumer needs and market opportunities, with revenue derived from the sale of branded products that leverage established intellectual property and consumer loyalty.VF Corporation serves a diverse customer base spanning retail consumers, wholesale partners, and institutional buyers across the Americas, Europe, and Asia-Pacific regions, targeting both premium and mainstream market segments through its portfolio of recognized lifestyle brands.VF Corporation is a multinational apparel and footwear manufacturer with a market capitalization of $5.8 billion and annual revenue of $9.5 billion TTM, positioning it as a significant player in the global consumer discretionary sector. The company maintains a diversified brand portfolio and geographic footprint that provides resilience across economic cycles while capitalizing on growing demand for branded lifestyle products in emerging markets. With 26,000 employees globally, VF Corporation leverages its operational scale and brand equity to maintain competitive advantages in product innovation, supply chain efficiency, and consumer engagement.

What this transaction means for investorsDirector Carucci's purchase of VFC stock is certainly worth investors' attention. While I wouldn't say the purchase alone acts as a reason to buy VF, it is a great vote of confidence to see that Carucci used his own money for the transaction. That said, he has a $5 million stake in the company, so this isn't a massive deal, so it might be best not to overreact to the news.

As for VF's actual operations, it is in the midst of a major turnaround, so Carucci's purchase could be viewed as a hint that they think things are trending in the right direction. The company sold the Supreme brand for $1.5 billion and Dickie's for $600 million and is laser-focused on paying down its $4 billion net debt. That said, VF still needs its main Vans brand to stabilize sales and profitability-wise, as the once-core unit saw sales decline by 8% last quarter.

However, VF's North Face and Timberland brands delivered single-digit growth, and the company's overall sales (minus Dickie's) have been positive or flat in each of the last four quarters -- so there are signs of success. While that's promising, I just can't get behind any apparel stocks at the moment. As a 38-year-old dad, I'm probably better suited not to invest in anything adjacent to fashion, even if VFC stock trades at a tempting 7.5 times EBITDA. If I were to consider the stock someday, I'd rather see the turnaround gain momentum, rather than try to find the perfect low point.

Josh Kohn-Lindquist has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Key Takeaways VF Corporation's Vans revenue fell 9% in constant currency, offsetting growth at other major brands.VF Corporation raised fiscal 2027 revenue guidance as Outdoor segment sales increased 5% year over year.Vans' direct-to-consumer gains show progress, but wholesale and international weakness remain challenges. VF Corporation (VFC - Free Report) shares have dropped 14.2% in the past month, keeping pressure on a turnaround that still depends heavily on stabilizing Vans. The brand's revenues fell 9% in constant currency in first-quarter fiscal 2027, as global wholesale declines outweighed continued growth in Vans Americas direct-to-consumer sales.

The setback matters because VFC's broader recovery is gaining traction elsewhere. The North Face, Timberland and Altra grew in the quarter, and management raised fiscal 2027 revenue guidance to 2% or better in constant currency. The key question is whether Vans can stop offsetting those gains.

Vans remains the clearest execution risk. Constant-currency revenues fell 4% in the Americas, 17% in Europe, the Middle East and Africa, and 15% in Asia-Pacific in the first quarter. Management expects another roughly 9% decline in the second quarter, leaving the first half near a 9% drop. It still expects full-year Vans revenues to decline at a mid-single-digit rate, with the third and fourth quarters down 2% or better combined as wholesale assortments refresh.

There are signs of progress inside the brand. Americas direct-to-consumer sales increased again, e-commerce gained and almost 60% of U.S. comparable stores were flat or growing. New versions of Authentic, Slip-On and Old Skool are generating sell-through. The problem is scale. Wholesale partners are carrying fewer of the newer products, and the recovery outside the Americas remains uneven.

The rest of VFC is providing a buffer. Outdoor segment revenues increased 5% year over year, with The North Face up 4% and Timberland up 3% in constant currency. The company also kept its adjusted operating margin target at about 8% for fiscal 2027. Net debt fell $1.1 billion year over year, while free cash flow improved about $75 million in the quarter, including roughly $50 million of tariff refunds.

VFC trades at 12.2X forward 12-month earnings per share, below the Zacks sub-industry's 14.7X. The earnings estimate for the current fiscal year has declined 2.7% in the past four weeks, leaving valuation support alongside a softer near-term earnings revision trend.

Image Source: Zacks Investment Research

Crocs, Inc. (CROX - Free Report) offers a useful casual-footwear comparison. Its second-quarter 2026 revenues reached a record $1.18 billion, while the Crocs Brand topped $1 billion in quarterly revenues even as HEYDUDE revenues declined 5.7%.

Under Armour, Inc. (UAA - Free Report) is another consumer-brand turnaround facing uneven demand. Its first-quarter fiscal 2027 revenues declined 3%, footwear revenues fell 8% and the company lowered its full-year revenue outlook to a mid-single-digit decline while maintaining its profitability outlook.

The near-term setup for VFC remains mixed. Growth at The North Face and Timberland, a lower cost base and lower debt show that the turnaround is broader than Vans, but the company still needs Vans wholesale and international trends to improve materially in the second half. Until that happens, the brand remains the biggest test of the recovery.

VFC currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Its VGM Score of B and Value Score of A point to favorable value characteristics, while the Growth Score of C is middling and the Momentum Score of F reflects weak near-term price trends. That mix supports a measured view while investors watch for clearer evidence that Vans is stabilizing.

V.F. Corporation remains rated Hold as I reassess its latest quarterly results. Deleveraging progress continues, but macro headwinds and weak consumer sentiment persist. Vans continues to drag on VFC's overall performance, impacting demand dynamics.

Premium Retail’s Stress Test Is Separating Winners From LosersV.F. NYSE: VFC raised its fiscal 2027 revenue outlook after reporting first-quarter sales and operating performance that exceeded its prior expectations, while also announcing a finance leadership transition.

The company said first-quarter revenue was approximately $1.7 billion, flat from a year earlier and ahead of its guidance for a low-single-digit decline. Adjusted operating loss was $95 million, which V.F. said was slightly better than expected due to stronger-than-anticipated revenue. Adjusted diluted loss per share was $0.27, compared with a loss of $0.25 a year earlier.

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Apparel Earnings Winners and Losers: Ralph Lauren Takes OffV.F. now expects fiscal 2027 revenue to increase by 2% or more, up from its prior outlook for 1% to 2% growth. The company maintained its expectation for an approximately 8% operating margin for the full year, free cash flow that is flat to higher than last year, and a year-end leverage ratio between 2.6 times and 2.9 times.

Finance leadership transition Chief Financial Officer Paul Vogel will step down, with Chief Operating Officer Abhishek Dalmia taking on a newly combined CFO and COO role. Vogel said he would work with Dalmia during the next quarter to support a smooth transition.

4 Cold-Weather Stocks to Buy as Winter Spending Heats UpVogel said the decision followed discussions about the time demands of the role, as his family has remained on the East Coast. He pointed to progress over the past two years, including lower debt, cost reductions, improved financial discipline and a return to full-year growth in fiscal 2026.

“I remain confident in the company, the strategy, the progress we are making,” Vogel said. “In fact, I leave this role with great confidence in where VF is headed.”

Dalmia said his focus in the expanded position would include capital discipline, portfolio returns and balancing growth, profitability and cash generation. CEO Bracken Darrell said the combined finance and operations role would support the company’s ongoing transformation and focus on total shareholder value.

Brand performance and outlook The North Face posted 4% revenue growth in the first quarter, exceeding V.F.’s expectation for a flat quarter. Darrell said growth was led by transitional outerwear, shells and equipment, while the Ultima Version Two footwear launch had a strong debut across regions.

The company expects The North Face to be flat to slightly higher in the second quarter, primarily due to wholesale timing, and expects full-year growth to be roughly in line with the brand’s growth rate in fiscal 2026. V.F. also cited upcoming initiatives including its U.S. Ski & Snowboard Team apparel partnership and a planned update to its Nuptse product line.

Timberland revenue increased 3% in the quarter, with both direct-to-consumer and wholesale channels growing globally. The Americas rose 10%. The six-inch premium boot remained the principal growth driver, while boat shoes also performed strongly across regions, according to Darrell.

Vogel said Timberland’s quarterly growth was reduced by roughly three percentage points due to the conflict in the Middle East and work involving one of the company’s distributors. Dalmia said V.F. expects those pressures to be less significant in the second quarter. The company expects Timberland’s full-year growth to be broadly in line with last year’s growth rate.

Vans revenue declined 9% globally in the first quarter, and V.F. expects a similar decline in the second quarter. However, Darrell said the company is seeing improvement in direct-to-consumer operations, particularly in the U.S., where nearly 60% of comparable stores were flat to growing in the quarter. E-commerce has shown accelerated growth, he said.

Wholesale remains weaker than direct-to-consumer performance at Vans, although Darrell said discussions with wholesale partners support expectations for an improvement in the second half. V.F. expects Vans revenue to decline about 9% in the first half but to be down 2% or better in the second half, resulting in a mid-single-digit decline for the full year.

The company said several Vans product launches and collections have generated strong consumer response, including growth in Authentic and Slip-On styles and strong sell-through for Old Skool releases. Darrell said V.F. intends to bring more differentiated and refreshed product into wholesale channels as it works to translate product momentum into broader sales.

Outside its three largest brands, V.F. cited Altra as a growth opportunity. Darrell said road running has become larger than trail running for Altra in recent quarters, despite the brand historically being stronger in trail running. He reiterated the company’s view that Altra can become a billion-dollar-plus brand over time.

Margins, cash flow and regional trends Adjusted gross margin was 54.9%, slightly above the prior year. Vogel said unfavorable foreign exchange reduced the quarter’s margin by 140 basis points. He also said there was no incremental tariff advantage or disadvantage in the first quarter compared with the prior-year period.

SG&A expense increased year over year as V.F. invested in marketing, direct-to-consumer operations and other brand-building activity. Vogel said the company’s $225 million in structural SG&A savings since fiscal 2024 remain embedded in the business, with the company choosing to reinvest from a lower fixed-cost base.

By region, Americas revenue rose 4%, while Europe, Middle East and Africa revenue fell 7% and Asia-Pacific revenue declined 1%. Darrell said the company expects Asia-Pacific performance to remain comparatively muted in the near term, noting strong competition and a need for more innovation in the region.

Direct-to-consumer revenue increased 5% during the quarter, while wholesale revenue declined 4%. Inventories, excluding Dickies and foreign exchange effects, fell 4%. Net debt declined $1.1 billion, or 20%, from a year earlier, and free cash flow improved by approximately $75 million, including about $50 million of tariff refunds.

V.F. reiterated its medium-term targets of an operating-margin exit run rate of at least 10% in fiscal 2028, which it clarified would mean 10% or better for the full fiscal 2029 year, and a leverage ratio of 2.5 times or better by fiscal 2028.

About V.F. (NYSE:VFC)VF Corporation, commonly branded as VF, is a global apparel and footwear company that develops, markets and distributes a diverse portfolio of consumer brands. Its offerings span outdoor and action sports apparel, footwear and accessories under marquee names such as The North Face, Vans, Timberland, Dickies, JanSport and Smartwool. Through a “house of brands” strategy, VF leverages the unique heritage and design expertise of each label to serve distinct lifestyle and performance segments.

Founded in 1899 in Pennsylvania as the Reading Glove and Mitten Manufacturing Company, VF evolved through a series of acquisitions and strategic expansions to become a leading player in the global apparel industry.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Posted by Defense World Staff on Jul 30th, 2026

V.F. Corporation (NYSE:VFC – Get Free Report) shares gapped down before the market opened on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $18.25, but opened at $16.04. V.F. shares last traded at $14.8590, with a volume of 5,780,597 shares.

The textile maker reported ($0.27) EPS for the quarter, missing the consensus estimate of ($0.22) by ($0.05). V.F. had a return on equity of 21.05% and a net margin of 2.65%.The business had revenue of $1.67 billion during the quarter, compared to analyst estimates of $1.64 billion. During the same period in the previous year, the firm earned ($0.24) earnings per share. The firm’s revenue was down 5.2% compared to the same quarter last year.

V.F. Dividend Announcement The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 17th. Shareholders of record on Thursday, September 10th will be paid a $0.09 dividend. The ex-dividend date of this dividend is Thursday, September 10th. This represents a $0.36 dividend on an annualized basis and a yield of 2.4%. V.F.’s payout ratio is currently 56.25%.

More V.F. News Here are the key news stories impacting V.F. this week:

Positive Sentiment: V.F. raised its fiscal 2027 revenue outlook to growth of 2% or better while maintaining an approximately 8% operating-margin target, supporting the company’s broader turnaround strategy. VF raises FY 2027 revenue outlook Positive Sentiment: First-quarter revenue of approximately $1.67 billion topped the roughly $1.64 billion analyst consensus, while the company highlighted margin improvement and lower net debt as progress in its recovery. V.F. Corp. Q1 earnings analysis Neutral Sentiment: V.F. declared a quarterly dividend of $0.09 per share, payable September 17 to shareholders of record September 10. The dividend provides ongoing income, but does not offset the earnings disappointment. Neutral Sentiment: Needham lowered its price target from $25 to $21 but retained a Buy rating, implying analysts still see potential upside if the turnaround improves. V.F. analyst and earnings update Negative Sentiment: Adjusted loss widened to $0.27 per share from $0.24 a year earlier, missing the $0.22 consensus estimate. The company’s revenue also declined 5.2% year over year. V.F. reports Q1 loss Negative Sentiment: Vans was the main weakness, with disappointing wholesale performance weighing on sales and undermining investor confidence in the brand’s recovery. Vans weighs on V.F. sales Negative Sentiment: The CFO transition added uncertainty, while unusually heavy put-option activity signaled increased bearish hedging around the earnings report. Analyst Ratings Changes A number of brokerages have recently weighed in on VFC. UBS Group lowered their target price on V.F. from $20.00 to $18.00 and set a “neutral” rating for the company in a research note on Thursday, May 21st. Wall Street Zen downgraded shares of V.F. from a “buy” rating to a “hold” rating in a research report on Sunday, July 12th. Needham & Company LLC decreased their price objective on shares of V.F. from $25.00 to $21.00 and set a “buy” rating on the stock in a report on Wednesday. Barclays lowered their price objective on shares of V.F. from $25.00 to $24.00 and set an “overweight” rating for the company in a research report on Thursday, May 21st. Finally, Truist Financial dropped their target price on shares of V.F. from $18.00 to $15.00 and set a “hold” rating for the company in a research note on Thursday, May 21st. Two investment analysts have rated the stock with a Strong Buy rating, four have given a Buy rating, twelve have given a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $18.58.

Get Our Latest Stock Analysis on V.F.

Insider Activity at V.F. In other news, Director Richard Carucci bought 30,000 shares of the company’s stock in a transaction dated Tuesday, June 9th. The stock was bought at an average price of $17.17 per share, for a total transaction of $515,100.00. Following the completion of the transaction, the director directly owned 336,043 shares in the company, valued at $5,769,858.31. The trade was a 9.80% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at the SEC website. Company insiders own 1.54% of the company’s stock.

Hedge Funds Weigh In On V.F. Several hedge funds have recently added to or reduced their stakes in the company. Hillsdale Investment Management Inc. bought a new position in shares of V.F. in the 1st quarter valued at $3,209,000. Russell Investments Group Ltd. lifted its position in shares of V.F. by 14.0% during the 4th quarter. Russell Investments Group Ltd. now owns 659,773 shares of the textile maker’s stock worth $11,930,000 after buying an additional 81,006 shares during the last quarter. Fiduciary Alliance LLC boosted its stake in V.F. by 10.3% in the fourth quarter. Fiduciary Alliance LLC now owns 647,496 shares of the textile maker’s stock valued at $11,707,000 after buying an additional 60,619 shares in the last quarter. Entropy Technologies LP acquired a new stake in V.F. in the first quarter valued at about $815,000. Finally, Captrust Financial Advisors boosted its stake in V.F. by 28.0% in the fourth quarter. Captrust Financial Advisors now owns 90,873 shares of the textile maker’s stock valued at $1,643,000 after buying an additional 19,880 shares in the last quarter. Institutional investors own 86.84% of the company’s stock.

V.F. Stock Performance The company has a debt-to-equity ratio of 1.90, a current ratio of 1.84 and a quick ratio of 1.21. The stock has a market cap of $5.90 billion, a P/E ratio of 23.51, a PEG ratio of 1.27 and a beta of 1.56. The stock has a 50-day simple moving average of $16.89 and a 200-day simple moving average of $18.08.

V.F. Company Profile (Get Free Report)

VF Corporation, commonly branded as VF, is a global apparel and footwear company that develops, markets and distributes a diverse portfolio of consumer brands. Its offerings span outdoor and action sports apparel, footwear and accessories under marquee names such as The North Face, Vans, Timberland, Dickies, JanSport and Smartwool. Through a “house of brands” strategy, VF leverages the unique heritage and design expertise of each label to serve distinct lifestyle and performance segments.

Founded in 1899 in Pennsylvania as the Reading Glove and Mitten Manufacturing Company, VF evolved through a series of acquisitions and strategic expansions to become a leading player in the global apparel industry.

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Shares of VF Corporation (VFC -17.37%) were taking a dive today after the diversified apparel company reported another wide loss in its first-quarter earnings report.

As of 2:29 p.m. ET, the stock was down 18.8% on the news.

Image source: Getty Images.

VF's struggles continue VF reported a 5% decline in revenue to $1.67 billion, ahead of estimates at $1.64 billion. Excluding Dickies, which VF sold last November, revenue was up 1%.

Vans continued to struggle, with revenue down 8%, while The North Face, which is now its largest brand, reported 6% revenue growth. Timberland sales were up 4%.

On the bottom line, VF reported an adjusted operating loss of $95 million, excluding Dickies, which compared to a $59.8 million loss from Dickies in the quarter a year ago.

On a per-share basis, adjusted loss per share widened from $0.25 to $0.27, which was worse than the consensus at $0.22.

The company also announced a CFO transition, saying that COO Abhishek Dalmia would now also serve as CFO, replacing Paul Vogel.

Despite the loss and the sell-off in the stock, CEO Bracken Darrell struck an optimistic tone, saying, "We had a solid start to the year, beating our revenue and operating income guidance." He also said Vans' global wholesale was a source of weakness, but said that would improve in the second half of the year.

Today's Change

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What's next for VF VF actually raised full-year guidance slightly, calling for currency-neutral revenue growth of 2%, compared with its earlier guidance of 1%-2%, and it continued to see an adjusted operating margin of 8%.

However, that wasn't enough to please investors, who also seemed to be surprised by the CFO change. Still, given the comment on the Vans sales in the second half, the sell-off in the apparel sector seems exaggerated.

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Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

V.F. (VFC - Free Report) reported $1.67 billion in revenue for the quarter ended June 2026, representing a year-over-year decline of 5.2%. EPS of -$0.27 for the same period compares to -$0.24 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $1.67 billion, representing a surprise of -0.29%. The company delivered an EPS surprise of -22.73%, with the consensus EPS estimate being -$0.22.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how V.F. performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Geographic Revenue- Americas: $895.5 million versus $940.14 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -4.5% change.Geographic Revenue- Asia-Pacific/APAC: $262.7 million versus $266.9 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -3.4% change.Geographic Revenue- Europe/EMEA: $511.1 million versus $503.14 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -7.3% change.Revenue- Outdoor: $856.98 million compared to the $836.22 million average estimate based on five analysts. The reported number represents a change of +5.5% year over year.Revenue- Active: $667.3 million versus the five-analyst average estimate of $659.39 million. The reported number represents a year-over-year change of -4.6%.Revenue- All Other: $145.1 million compared to the $158.69 million average estimate based on four analysts.Revenue by Brand- The North Face: $590.9 million versus $568.31 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +6% change.Revenue by Brand- Vans: $459.8 million versus $467.17 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -7.7% change.Revenue by Brand- Timberland: $266.1 million versus $258.7 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +4.3% change.Revenue by Channel- Wholesale: $931 million compared to the $966.51 million average estimate based on two analysts. The reported number represents a change of -9.1% year over year.Revenue by Channel- Direct-To-Consumer (DTC): $738.4 million compared to the $719.19 million average estimate based on two analysts. The reported number represents a change of +2.5% year over year.Segment profit (loss)- Active: $47.41 million compared to the $50.59 million average estimate based on three analysts.View all Key Company Metrics for V.F. here>>>

Shares of V.F. have returned +9.4% over the past month versus the Zacks S&P 500 composite's +1.9% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.

DENVER--(BUSINESS WIRE)--VF Corporation Delivered First Quarter Fiscal 2027 Ahead Of Guidance.

In the latest close session, V.F. (VFC - Free Report) was down 3.73% at $16.53. This move lagged the S&P 500's daily loss of 1.21%. Meanwhile, the Dow experienced a drop of 0.97%, and the technology-dominated Nasdaq saw a decrease of 2.15%.

Prior to today's trading, shares of the maker of brands such as Vans, North Face and Timberland had lost 0.29% was narrower than the Consumer Discretionary sector's loss of 0.92% and lagged the S&P 500's gain of 0.42%.

Market participants will be closely following the financial results of V.F. in its upcoming release. The company plans to announce its earnings on July 29, 2026. The company is expected to report EPS of -$0.22, up 8.33% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.68 billion, down 4.85% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.1 per share and a revenue of $9.53 billion, indicating changes of +34.15% and -0.78%, respectively, from the former year.

Any recent changes to analyst estimates for V.F. should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. V.F. is holding a Zacks Rank of #4 (Sell) right now.

In the context of valuation, V.F. is at present trading with a Forward P/E ratio of 15.61. This denotes a discount relative to the industry average Forward P/E of 16.35.

It is also worth noting that VFC currently has a PEG ratio of 1.19. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Textile - Apparel industry stood at 2.26 at the close of the market yesterday.

The Textile - Apparel industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 182, placing it within the bottom 27% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

Premium consumer brands, once a stable bet even in times of market volatility, are no longer quite so insulated from broader economic pressures. Investors have increasingly begun to separate companies, favoring those with true pricing power and brand momentum over those that have struggled as demand has weakened amid slower discretionary spending, inflation, tariff uncertainty, and other factors.

Still, a Deloitte survey of luxury executives found that just over two-thirds (66.9%) expected revenues to stay stable or grow throughout 2026, a suggestion that investors may be cautiously optimistic for the sector. However, it's likely that any recovery in the space will be lumpy and more pronounced in some companies than others. For investors, the question becomes which firms are emerging as winners and losers in the premium retail stock wars.

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Deckers Looks Good Heading Into EarningsDeckers Outdoor Today

$97.79 -4.68 (-4.57%)

As of 02:44 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$78.91▼

$126.50P/E Ratio13.89

Price Target$121.11

Deckers Outdoor Corp. NYSE: DECK, the company behind brands like UGG, HOKA, and Teva, heads into its next earnings report with strong momentum, even as shares have zig-zagged up and down throughout much of 2026. The company's revenue trajectory is strong, as its fiscal 2026 revenue (for the year ended March 31, 2026) climbed by 10% and earnings per share (EPS) grew by 11% year over year (YOY).

HOKA and UGG, in particular, are distinguishing themselves, posting excellent revenue growth, strong demand, innovations to product lines, and improving brand recognition and loyalty. HOKA has been successful in gaining market share in the premium running footwear space. At the same time, UGG is a solid cash generator for Deckers, and its expansion outside of winter boots means more relevance for customers throughout the year. At the same time, Deckers has done well managing inventory, maintaining gross margin, and seeking out opportunities for international growth.

Analysts are somewhat mixed on DECK shares, with nine calling the stock a Buy but a majority assigning 13 Holds and two Sells. At the same time, Wall Street sees some 18% in potential upside and more than 10% in projected earnings growth in the coming year.

Lululemon's Pressures Are Significant, Increasing Risk for Investorslululemon athletica Today

LULU

lululemon athletica

$111.08 -2.29 (-2.02%)

As of 02:44 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$104.44▼

$225.98P/E Ratio8.96

Price Target$148.35

Athletic apparel firm lululemon athletica NASDAQ: LULU is more of a mixed bag. The firm retains excellent brand recognition in the premium athletic space, and revenue growth in China has been a bright spot (Q1 2026 revenue for China increased by 30% YOY).

However, at the same time, LULU stock has suffered as sales growth in the United States has slowed. In the latest quarter, for example, sales increased by just 4.3% YOY and North American revenue declined by 3% over the same period. Margins are seeing pressure from tariffs and higher operating costs, among other factors, and management sees continued declines in this area for Q2. Perhaps worst of all, the firm trimmed its full-year revenue outlook and now anticipates either flat YOY or even down marginally compared to 2025. To make matters worse, some recent product launches have been met with mixed reviews, and pressure continues to grow from competitors.

Still, it may not be time to write LULU off completely. With a new CEO coming on board later in the year, the company has an opportunity to correct its path. With shares down some 46% year to date (YTD), some analysts see a potential floor in sight. Despite a Reduce rating overall, LULU shares have a consensus price target indicating about 31% in possible upside. However, the company will need to make some serious improvements on execution, revenue, margin, and its U.S. business in order to avoid becoming a value trap.

VFC Struggles to Right the Ship as Investors FleeV.F. Today

$16.47 -0.70 (-4.08%)

As of 02:44 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$11.10▼

$22.27Dividend Yield2.19%

P/E Ratio25.73

Price Target$18.58

Known for brands including The North Face and Vans, VF Corp. NYSE: VFC seems to be stuck in the process of turning around. Weak performance for some of its key brands, compressed margins, and surging debt have all weighed on the company, making shares stagnate in the process. While Vans—one of the company's flagships—is in the midst of a turnaround, it remains incomplete based on a 5% YOY global sales decline in the latest quarter. Still, the U.S. recovery is underway and could lead to renewed performance in other regions.

While VF institutes cost-cutting measures, attempts to simplify its portfolio, and leans on the strength of the relatively resilient North Face brand, significant risks remain for this company. An overall Hold rating across Wall Street seems more than justified here. Investors might use the opportunity to bail on VFC shares—indeed, this has already been happening, as the stock saw a 22.4% increase in short interest over the past month.

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In the latest close session, V.F. (VFC - Free Report) was up +1.45% at $16.77. The stock outpaced the S&P 500's daily gain of 0.42%. Elsewhere, the Dow saw an upswing of 0.29%, while the tech-heavy Nasdaq appreciated by 0.29%.

Coming into today, shares of the maker of brands such as Vans, North Face and Timberland had lost 5.49% in the past month. In that same time, the Consumer Discretionary sector gained 0.02%, while the S&P 500 gained 2.2%.

The upcoming earnings release of V.F. will be of great interest to investors. The company's earnings report is expected on July 29, 2026. It is anticipated that the company will report an EPS of -$0.22, marking a 8.33% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $1.68 billion, indicating a 4.85% downward movement from the same quarter last year.

VFC's full-year Zacks Consensus Estimates are calling for earnings of $1.1 per share and revenue of $9.52 billion. These results would represent year-over-year changes of +34.15% and -0.88%, respectively.

Investors might also notice recent changes to analyst estimates for V.F. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, V.F. is carrying a Zacks Rank of #3 (Hold).

In terms of valuation, V.F. is currently trading at a Forward P/E ratio of 15.03. Its industry sports an average Forward P/E of 15.73, so one might conclude that V.F. is trading at a discount comparatively.

Investors should also note that VFC has a PEG ratio of 1.33 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Textile - Apparel industry held an average PEG ratio of 2.14.

The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 191, finds itself in the bottom 23% echelons of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

V.F. (VFC - Free Report) closed the most recent trading day at $17.37, moving +2.42% from the previous trading session. This change outpaced the S&P 500's 0.05% loss on the day. Meanwhile, the Dow lost 0.09%, and the Nasdaq, a tech-heavy index, lost 0.24%.

Heading into today, shares of the maker of brands such as Vans, North Face and Timberland had lost 5.41% over the past month, lagging the Consumer Discretionary sector's loss of 2.34% and the S&P 500's loss of 1.42%.

Market participants will be closely following the financial results of V.F. in its upcoming release. On that day, V.F. is projected to report earnings of -$0.22 per share, which would represent year-over-year growth of 8.33%. In the meantime, our current consensus estimate forecasts the revenue to be $1.68 billion, indicating a 4.85% decline compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $1.1 per share and revenue of $9.52 billion, which would represent changes of +34.15% and -0.88%, respectively, from the prior year.

Any recent changes to analyst estimates for V.F. should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 3.13% lower. At present, V.F. boasts a Zacks Rank of #3 (Hold).

In terms of valuation, V.F. is currently trading at a Forward P/E ratio of 15.42. This expresses a premium compared to the average Forward P/E of 15.39 of its industry.

One should further note that VFC currently holds a PEG ratio of 1.37. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Textile - Apparel stocks are, on average, holding a PEG ratio of 2.14 based on yesterday's closing prices.

The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 154, which puts it in the bottom 37% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

V.F. (VFC - Free Report) closed at $17.97 in the latest trading session, marking a +1.87% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 1.65%. At the same time, the Dow added 0.92%, and the tech-heavy Nasdaq gained 3.07%.

Coming into today, shares of the maker of brands such as Vans, North Face and Timberland had gained 5.76% in the past month. In that same time, the Consumer Discretionary sector gained 1.52%, while the S&P 500 gained 0.48%.

The upcoming earnings release of V.F. will be of great interest to investors. On that day, V.F. is projected to report earnings of -$0.22 per share, which would represent year-over-year growth of 8.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.68 billion, down 4.85% from the year-ago period.

VFC's full-year Zacks Consensus Estimates are calling for earnings of $1.1 per share and revenue of $9.52 billion. These results would represent year-over-year changes of +34.15% and -0.88%, respectively.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for V.F. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 3.7% lower. At present, V.F. boasts a Zacks Rank of #3 (Hold).

In terms of valuation, V.F. is currently trading at a Forward P/E ratio of 16.04. This signifies no noticeable deviation in comparison to the average Forward P/E of 16.04 for its industry.

We can also see that VFC currently has a PEG ratio of 1.42. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Textile - Apparel industry had an average PEG ratio of 2.11.

The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 88, finds itself in the top 37% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

DENVER--(BUSINESS WIRE)--VF Corporation (NYSE: VFC) today reported financial results for its fourth quarter (Q4'26) ended March 28, 2026, and the Company's Board of Directors authorized a quarterly per share dividend of $0.09. These financial results are also reflected in a presentation available on the Investor Relations website at ir.vfc.com.

Bracken Darrell, President and CEO, said: “For the first time in three years, we returned to a full year of growth and expect to keep growing in FY'27. We also significantly expanded margins and reduced our leverage ratio by a full turn vs. LY. In the fourth quarter, we delivered our strongest revenue performance since I joined VF. Both The North Face® and Timberland® continued to deliver global growth. Vans® is starting to show momentum with a return to growth in Americas DTC for the first time in over four years. We remain on track to achieve our medium-term targets, an exit run rate of 10% operating margin in FY'28 and a leverage ratio of 2.5x or lower by FY'28. This has been a strong year for VF and I'm excited about the momentum we are building.”

Disclosed Q4’26 and FY'26 figures are shown on both reported and adjusted excluding Dickies® (“ex Dickies®”) bases

Returned to growth for the full year in FY'26 with expanding margins and reduced debt

Revenue +1% vs. LY Revenue ex Dickies® +4% vs. LY or +1% C$ Recall Dickies® was sold during Q3'26 FY'26 gross margin (GM) of 54.8%, up 130 bps vs. LY Adjusted GM ex Dickies® of 55.2%, up 110 bps vs. LY FY'26 operating income (OI) of $577M and operating margin (OM) of 6.0%, up 280 bps vs. LY Adjusted OI ex Dickies® of $650M and adjusted OM ex Dickies® of 7.0%, up 110 bps vs. LY FY'26 free cash flow1 of $405M, up over $90M vs. LY FYE'26 leverage ratio of 3.1x vs. LY of 4.1x, and vs. FYE'24 of 5.1x Q4’26 revenue growth driven by momentum in the Americas; Q4’26 OI ahead of guidance

Revenue +1% vs. LY Revenue ex Dickies® +8% vs. LY or +3% C$, ahead of guidance of flat to +2% C$ vs. LY Strongest revenue performance in three years (C$, ex Dickies®) Americas region +2% vs. LY; ex Dickies® +10% C$, the region's highest growth since Q1'23 The North Face® +12% vs. LY or +7% C$, with the Americas +17% vs. LY or +16% C$ Vans® (1%) vs. LY or (5%) C$, with a return to growth in Americas DTC Timberland® +8% vs. LY or +2% C$ Q4'26 OI of $62M Adjusted OI ex Dickies® of $54M, ahead of guidance of $10M to $30M; normalized2 OI within guidance range Reinstating annual guidance effective FY'27 with continued growth and expanding margins

Revenue +1% to +2% C$ vs. LY3 Adjusted OM of approximately 8% Free cash flow flat to up vs. LY1 of $405M FYE'27 leverage ratio of 2.6x to 2.9x 1 Excludes $100M net impact of pension termination in FY'26
2 Normalized for tariff receivable and offsetting charges, including restructuring costs
3 Revenue performance excludes Dickies® in FY'26

Webcast Information

VF management will host its fourth quarter Fiscal 2026 conference call beginning at approximately 8:00 a.m. ET today. The conference call will be broadcast live via the Internet, accessible at ir.vfc.com. For those unable to listen to the live broadcast, an archived version will be available at the same location.

Dividend Declared

VF’s Board of Directors declared a quarterly dividend of $0.09 per share. This dividend will be payable on June 18, 2026, to shareholders of record at the close of business on June 10, 2026.

About VF

VF Corporation is a portfolio of leading outdoor and active brands, including The North Face®, Vans®, and Timberland®. VF is committed to providing consumers with innovative products that are rooted in performance and elevated design, while delivering sustainable and long-term value for its employees, communities, and shareholders. For more information, please visit vfc.com.

Financial Presentation Disclosure

All per share amounts are presented on a diluted basis. This release refers to “reported” (R$) and “constant dollar” (C$) or “constant currency” amounts, terms that are described under the heading below “Constant Currency - Excluding the Impact of Foreign Currency.” Unless otherwise noted, “reported” and “constant dollar” or “constant currency” amounts are the same, and amounts will be as “reported” unless otherwise specified. This release also refers to “continuing” and “discontinued” operations amounts, which are concepts described under the heading “Discontinued Operations - Supreme.” Unless otherwise noted, results presented are based on continuing operations. This release also refers to results “excluding Dickies®” and “Adjusted excluding Dickies”, which are described under the heading “Dickies Divestiture”. This release also refers to “adjusted” amounts, a term that is described under the heading “Adjusted Amounts - Excluding Reinvent, Transaction and Deal Related Activities, Pension Settlement Charges, Pension Excise Tax and Non-cash Impairment Charge”. Unless otherwise noted, “reported” and “adjusted” amounts are the same. VF operates and reports using a 52/53 week fiscal year ending on the Saturday closest to March 31 of each year. This release refers to VF's fourth quarter of Fiscal 2026 as Q4'26, and similarly Q4'25 denotes VF's fourth quarter of Fiscal 2025, etc. VF defines “free cash flow” as cash flow from continuing operations less capital expenditures and software purchases and defines “net debt” as long-term debt, the current portion of long-term debt, short-term borrowings, and operating lease liabilities, less cash and cash equivalents per VF's consolidated balance sheet and defines “leverage” as net debt to adjusted earnings before interest, taxes, depreciation and amortization (“EBITDA”), which excludes operating lease cost. See the supplemental financial information included with this release for a calculation of adjusted EBITDA, including a reconciliation to the nearest U.S generally accepted accounting principles (“GAAP”) financial measure.

Change in Reportable Segments

VF realigned its reportable segments in the first quarter of Fiscal 2026. VF's updated reportable segments are Outdoor and Active. We have included an “All Other” category for the remaining operating segments that do not meet the quantitative threshold to be disclosed as a separate reportable segment. VF's financial results in this release reflect the new segments for all periods presented.

Dickies Divestiture

On September 15, 2025, VF entered into a definitive agreement with Bluestar Alliance LLC to sell the Dickies® brand business (“Dickies”) and on November 12, 2025, VF completed the sale of Dickies. “Reported” amounts present VF's Fiscal 2026 results in accordance with GAAP and include Dickies results in continuing operations through the date of sale, as the Dickies sale did not qualify for discontinued operations presentation under GAAP. References to results “excluding Dickies®” and “Adjusted excluding Dickies” exclude the results of Dickies for all periods presented. VF believes this non-GAAP presentation provides investors with useful information regarding VF’s current business trends and performance of VF’s operations, post the closing of the sale of Dickies.

Discontinued Operations - Supreme

On July 16, 2024, VF entered into a definitive Stock and Asset Purchase Agreement with EssilorLuxottica S.A. to sell the Supreme® brand business (“Supreme”). On October 1, 2024, VF completed the sale of Supreme. Accordingly, the company has reported the related held-for-sale assets and liabilities as assets and liabilities of discontinued operations and included the operating results and cash flows of the business in discontinued operations for all periods presented, through the date of sale.

Constant Currency - Excluding the Impact of Foreign Currency

This release refers to “reported” amounts in accordance with GAAP, which include translation and transactional impacts from foreign currency exchange rates. This release also refers to both “constant dollar” and “constant currency” amounts, which exclude the impact of translating foreign currencies into U.S. dollars. Reconciliations of GAAP measures to constant currency amounts are presented in the supplemental financial information included with this release, which identifies and quantifies all excluded items, and provides management’s view of why this information is useful to investors.

Adjusted Amounts - Excluding Reinvent, Transaction and Deal Related Activities, Pension Settlement Charges, Pension Excise Tax and Non-cash Impairment Charge

The adjusted amounts in this release exclude costs related to Reinvent, VF's transformation program. Costs, including restructuring charges and project-related costs, were approximately ($8) million in the fourth quarter of Fiscal 2026 and $44 million in Fiscal 2026.

The adjusted amounts in this release exclude transaction and deal related activities associated with the divestiture of Dickies, including expenses and the final pre-tax gain on sale. Total transaction and deal related activities included expenses of approximately $10 million in Fiscal 2026 and a final pre-tax gain on sale of approximately $127 million in Fiscal 2026, which included a reduction to the gain to reflect working capital adjustments of approximately $12 million in the three months ended March 2026.

The adjusted amounts in this release exclude non-cash pension settlement charges of approximately $158 million in the fourth quarter of Fiscal 2026 and $192 million in Fiscal 2026. The pension settlement charges related to the termination of the U.S. qualified plan, which was completed as of the end of Fiscal 2026.

The adjusted amounts in this release exclude pension excise tax of approximately $25 million in the fourth quarter of Fiscal 2026 and in Fiscal 2026, related to the termination of the U.S. qualified plan.

The adjusted amounts in this release exclude a non-cash impairment charge related to the Napapijri reporting unit goodwill of approximately $31 million in Fiscal 2026.

Combined, the above items negatively impacted earnings per share by $0.30 during the fourth quarter of Fiscal 2026 and $0.20 during Fiscal 2026. All adjusted amounts referenced herein exclude the effects of these amounts.

Reconciliations of measures calculated in accordance with GAAP to adjusted amounts are presented in the supplemental financial information included with this release, which identifies and quantifies all excluded items, and provides management’s view of why this information is useful to investors. The company does not provide a reconciliation of forward-looking measures where the company believes such a reconciliation would imply a degree of precision and certainty that could be confusing to investors and is unable to reasonably predict certain items contained in the GAAP measures without unreasonable efforts. This is due to the inherent difficulty of forecasting the timing or amount of various items that have not yet occurred and are out of the company's control or cannot be reasonably predicted. For the same reasons, the company is unable to address the probable significance of the unavailable information.

Forward-looking Statements

Certain statements included in this release are “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are made based on VF’s expectations and beliefs concerning future events impacting VF and therefore involve several risks and uncertainties. Words such as “will,” “anticipate,” “believe,” “estimate,” “expect,” “should,” and “may” and other words and terms of similar meaning or use of future dates may be used to identify forward-looking statements, however, the absence of these words or similar expressions does not mean that a statement is not forward-looking. All statements regarding VF’s plans, objectives, projections and expectations relating to VF’s operations or financial performance, and assumptions related thereto, are forward-looking statements. Forward-looking statements are not guarantees, and actual results could differ materially from those expressed or implied in the forward-looking statements. VF undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Potential risks and uncertainties that could cause the actual results of operations or financial condition of VF to differ materially from those expressed or implied by forward-looking statements include, but are not limited to: the level of consumer demand for apparel, footwear, equipment, and accessories; disruption to VF’s distribution system; changes in global economic conditions and the financial strength of VF’s consumers and customers, including as a result of current inflationary pressures; fluctuations in the price, availability and quality of raw materials and finished products, including as a result of tariffs and geopolitical conflicts; disruption and volatility in the global capital and credit markets; VF’s response to changing fashion trends, evolving consumer preferences and changing patterns of consumer behavior; VF’s ability to maintain the image and value of its brands, including through investment in brand building and product innovation; intense competition from online retailers and other direct-to-consumer business risks; increasing pressure on margins; fluctuations in sales and operating income due to the seasonal nature of its business; retail industry changes and challenges; VF's ability to execute its turnaround program, “The VF Way” operating principles, and other business priorities, including measures to grow revenue and expand margins, streamline and right-size its cost base and strengthen the balance sheet while reducing leverage; VF’s ability to successfully establish a global commercial organization, and identify and capture efficiencies in its business model; any inability of VF or third parties on which it relies to maintain the strength and security of information technology systems; the fact that VF’s facilities and systems, and those of third parties on which it relies, are frequent targets of cyberattacks of varying levels of severity, and may in the future be vulnerable to such attacks, and any inability or failure by VF or such third parties to anticipate or detect data or information security breaches or other cyberattacks, could result in data or financial loss, reputational harm, business disruption, damage to VF’s relationships with customers, consumers, employees and third parties on which it relies, litigation, regulatory investigations, enforcement actions or other negative impacts; any inability by VF or third parties on which it relies to properly collect, use, manage and secure business, consumer and employee data and comply with privacy and security regulations; VF’s ability to adopt new technologies, including artificial intelligence, in a competitive and responsible manner; foreign currency fluctuations; stability of VF’s vendors' manufacturing facilities and VF's ability to establish and maintain effective supply chain capabilities; continued use by VF’s suppliers of ethical business practices; VF’s ability to accurately forecast demand for products; actions of activist and other shareholders; VF’s ability to recruit, develop or retain key executive or employee talent or successfully transition executives; changes in the availability and cost of labor; VF’s ability to protect trademarks and other intellectual property rights; possible goodwill and other asset impairment; maintenance by VF’s licensees and distributors of the value of VF’s brands; VF’s ability to execute acquisitions and dispositions, integrate acquisitions and manage its brand portfolio; VF’s ability to execute, and realize benefits, successfully, or at all, from the completed sale of the Dickies® brand; business resiliency in response to natural or man-made economic, public health, cyber, political or environmental disruptions, including any potential effects from changes in tariffs and international trade policy, or a U.S. federal government shutdown; changes in tax laws and additional tax liabilities; legal, regulatory, political, economic, and geopolitical risks, including those related to the current conflicts in Europe, the Middle East and Asia and tensions between the U.S. and China; changes to laws and regulations; adverse or unexpected weather conditions, including any potential effects from climate change; VF’s indebtedness and its ability to obtain financing on favorable terms, if needed, could prevent VF from fulfilling its financial obligations; VF’s ability to pay and declare dividends or repurchase its stock in the future; climate risks and increased focus on environmental, social and governance issues; VF’s ability to execute on its sustainability strategy and achieve its sustainability-related targets; risks arising from the widespread outbreak of an illness or any other communicable disease, or any other public health crisis; litigation, regulatory proceedings, or any other claims asserted against VF; and tax risks associated with the spin-off of the Jeanswear business completed in 2019. More information on potential factors that could affect VF’s financial results is included from time to time in VF’s public reports filed or furnished with the U.S. Securities and Exchange Commission (SEC), including VF’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Forms 8-K.

VF CORPORATION

Supplemental Financial Information

Reconciliation of Select GAAP Measures to Non-GAAP Measures - Three and Twelve Months Ended March 2026

(Unaudited)

(In thousands, except per share amounts)

Three Months Ended March 2026

As Reported under GAAP

Reinvent (a)

Impairment, Pension Settlement Charges and Pension Excise Tax (b)

Transaction and Deal Related Activities (c)

Adjusted

Less: Adjusted Contribution from Dickies (d)

Adjusted Excluding Dickies

Revenues

$

2,166,034

$

—

$

—

$

—

$

2,166,034

$

—

$

2,166,034

Gross profit

1,221,928

—

—

—

1,221,928

—

1,221,928

Percent

56.4

%

56.4

%

56.4

%

Selling, general and administrative expenses

1,160,424

7,634

—

—

1,168,058

—

1,168,058

Percent

53.6

%

53.9

%

53.9

%

Operating income

61,504

(7,634

)

—

—

53,870

—

53,870

Percent

2.8

%

2.5

%

2.5

%

Diluted loss per share from continuing operations (e)

(0.30

)

(0.01

)

0.29

0.03

0.00

0.00

0.00

Twelve Months Ended March 2026

As Reported under GAAP

Reinvent (a)

Impairment, Pension Settlement Charges and Pension Excise Tax (b)

Transaction and Deal Related Activities (c)

Adjusted

Less: Adjusted Contribution from Dickies (d)

Adjusted Excluding Dickies

Revenues

$

9,605,207

$

—

$

—

$

—

$

9,605,207

$

309,255

$

9,295,952

Gross profit

5,261,715

4,257

—

—

5,265,972

136,662

5,129,310

Percent

54.8

%

54.8

%

55.2

%

Selling, general and administrative expenses

4,654,430

(39,473

)

—

(10,194

)

4,604,763

125,428

4,479,335

Percent

48.5

%

47.9

%

48.2

%

Operating income

576,569

43,730

30,716

10,194

661,209

11,235

649,974

Percent

6.0

%

6.9

%

7.0

%

Diluted earnings per share from continuing operations (e)

0.64

0.08

0.43

(0.32

)

0.84

0.02

0.82

Notes:

(a) Costs related to Reinvent, VF's transformation program, including restructuring charges and project-related costs, were ($7.6) million and $43.7 million in the three and twelve months ended March 2026, respectively. These costs related primarily to severance and employee-related benefits and expenses related to the engagement of a consulting firm to support VF's transformation journey. VF entered into a contract with a consulting firm during the second quarter of Fiscal 2025, with services under the contract substantially completed in the third quarter of Fiscal 2026. In addition to payment for services, the contract includes contingent fees tied to increases in VF's stock price through June 2027. Expenses related to the contract, including contingent fees, were ($4.1) million and $21.2 million in the three and twelve months ended March 2026, respectively. Reinvent resulted in a net tax expense of $1.8 million and a net tax benefit of $10.0 million in the three and twelve months ended March 2026, respectively.

The Company incurred $205.0 million in total restructuring charges in connection with Reinvent. Substantially all restructuring actions were completed at the end of the first quarter of Fiscal 2026. Total fees associated with the contract with the consulting firm could be up to $146.0 million, with $75.0 million of the fees contingent on increases to VF’s stock price through June 2027.

(b) VF recognized a non-cash impairment charge related to the Napapijri reporting unit goodwill of $30.7 million during the twelve months ended March 2026.

Non-cash pension settlement charges of $158.1 million and $192.1 million were recorded in the other income (expense), net line item during the three and twelve months ended March 2026, respectively, related to the termination of the U.S. qualified plan, which was completed as of the end of Fiscal 2026.

Pension excise tax of $25.1 million was recorded in the other income (expense), net line item during the three and twelve months ended March 2026, related to the termination of the U.S. qualified plan.

The impairment, pension settlement charges and pension excise tax resulted in a net tax benefit of $68.9 million and $78.3 million in the three and twelve months ended March 2026, respectively.

(c) Transaction and deal related activities include costs associated with the divestiture of Dickies, which totaled $10.2 million for the twelve months ended March 2026. Additionally, the activities include a working capital adjustment of $11.9 million as a reduction to the pre-tax gain on sale related to the divestiture of Dickies and a $127.2 million final pre-tax gain on sale related to Dickies, which were recorded in the other income (expense), net line item in the Consolidated Statements of Operations in the three and twelve months ended March 2026, respectively. The transaction and deal related activities resulted in a net tax benefit of $1.8 million and $7.7 million in the three and twelve months ended March 2026, respectively.

(d) The “Adjusted Contribution from Dickies” column represents the operating results of Dickies for the twelve months ended March 2026 on an adjusted basis. This column excludes transaction and deal related costs as described above. The adjusted contribution from Dickies resulted in a net tax expense of $3.3 million for the twelve months ended March 2026.

(e) Amounts shown in the table have been calculated using unrounded numbers. The diluted earnings (loss) per share impacts were calculated using 391,371,000 and 395,875,000 weighted average common shares for the three and twelve months ended March 2026, respectively.

Non-GAAP Financial Information

The financial information above has been presented on a GAAP basis, on an adjusted basis, which excludes the impact of Reinvent, an impairment charge, pension settlement charges, pension excise tax, and transaction and deal related activities, and on an adjusted basis excluding Dickies, which also excludes the operating results of Dickies on an adjusted basis. These adjusted presentations provides non-GAAP measures and are not based on any comprehensive set of accounting rules or principles. Management believes these measures provide investors with useful supplemental information regarding VF's underlying business trends and the performance of VF's ongoing operations and are useful for period-over-period comparisons of such operations.

Management uses the above financial measures internally in its budgeting and review process and, in some cases, as a factor in determining compensation. While management believes that these non-GAAP financial measures are useful in evaluating the business, this information should be considered as supplemental in nature and should be viewed in addition to, and not in lieu of or superior to, VF's operating performance measures calculated in accordance with GAAP. In addition, these non-GAAP financial measures may not be the same as similarly titled measures presented by other companies. These measures should be used to evaluate the Company's results of operations only in conjunction with the corresponding GAAP measures.

VF CORPORATION

Supplemental Financial Information

Reconciliation of Select GAAP Measures to Non-GAAP Measures - Twelve Months Ended March 2026

(Unaudited)

(In thousands, except per share amounts)

Twelve Months Ended March 2026

Operating income - as reported under GAAP

$

576,569

Adjustments to operating income:

Reinvent (a)

43,730

Impairment charge (b)

30,716

Transaction and deal related activities (c)

10,194

Adjusted operating income

661,209

Other income (expense), net - as reported under GAAP

(86,608

)

Adjustments to other income (expense), net:

Reinvent (d)

(531

)

Pension settlement charges and pension excise tax (e)

217,156

Transaction and deal related activities (f)

(127,211

)

Adjusted other income (expense), net

2,806

Depreciation, amortization and other asset write-downs - as reported

280,529

Adjustments to depreciation, amortization and other asset write-downs:

Reinvent (g)

(2,837

)

Transaction and deal related activities (h)

(10,079

)

Adjusted depreciation, amortization and other asset write-downs

267,613

Operating lease cost

411,339

Adjusted EBITDA

$

1,342,967

Notes:

(a) Costs related to Reinvent, VF's transformation program, including restructuring charges and project-related costs, which totaled $43.7 million. These costs related primarily to severance and employee-related benefits and expenses related to the engagement of a consulting firm to support VF's transformation journey.

(b) Non-cash impairment charge related to the Napapijri reporting unit goodwill of $30.7 million.

(c) Transaction and deal related activities include costs associated with the divestiture of Dickies, which totaled $10.2 million.

(d) Curtailment gains of $0.5 million, related to Reinvent, recorded within the other income (expense), net line item related to employee exits from an international plan resulting from restructuring actions.

(e) Non-cash pension settlement charges of $192.1 million and pension excise tax of $25.1 million were recorded in the other income (expense), net line item related to the termination of the U.S. qualified plan, which was completed as of the end of Fiscal 2026.

(f) Transaction and deal related activities include the final pre-tax gain related to the divestiture of Dickies of $127.2 million, which was recorded in the other income (expense), net line item.

(g) Asset impairments and write-downs of $2.8 million related to Reinvent.

(h) Asset impairments and write-downs of $10.1 million associated with the divestiture of Dickies.

Non-GAAP Financial Information

The financial information above has been presented on a GAAP basis and on an adjusted basis, which excludes the impact of Reinvent, an impairment charge, pension settlement charges, pension excise tax, transaction and deal related activities, depreciation, amortization and other asset write-downs, and operating lease cost. The adjusted presentation and adjusted EBITDA provide non-GAAP measures. Management uses these measures in calculating VF’s net debt leverage ratio, which is a key ratio used by management, investors and rating agencies to assess our ability to meet our debt obligations.

While management believes these non-GAAP financial measures are useful for the above purpose, this information should be considered as supplemental in nature and should be viewed in addition to, and not in lieu of or superior to, VF's operating performance measures calculated in accordance with GAAP. In addition, these non-GAAP financial measures may not be the same as similarly titled measures presented by other companies.

Three Months Ended March 2025

As Reported

under GAAP

Reinvent (a)

Impairment Charges (b)

Transaction and Deal Related Activities (c)

Adjusted

Less: Adjusted Contribution from Dickies (d)

Adjusted Excluding Dickies

Revenues

$ 2,143,771

$ —

$ —

$ —

$ 2,143,771

$ 139,272

$ 2,004,499

Gross profit

1,142,456

1,560

—

—

1,144,016

60,741

1,083,275

Percent

53.3%

53.4%

54.0%

Selling, general and administrative expenses

1,177,101

(54,674)

—

—

1,122,427

55,134

1,067,293

Percent

54.9%

52.4%

53.2%

Operating income (loss)

(72,887)

56,234

38,242

—

21,589

5,607

15,982

Percent

(3.4%)

1.0%

0.8%

Diluted earnings (loss) per share from continuing operations (e)

(0.39)

0.16

0.10

0.00

(0.13)

0.01

(0.14)

Twelve Months Ended March 2025

As Reported

under GAAP

Reinvent (a)

Impairment Charges (b)

Transaction and Deal Related Activities (c)

Adjusted

Less: Adjusted Contribution from Dickies (d)

Adjusted Excluding Dickies

Revenues

$ 9,504,691

$ —

$ —

$ —

$ 9,504,691

$ 542,065

$ 8,962,626

Gross profit

5,083,865

1,972

—

—

5,085,837

233,467

4,852,370

Percent

53.5%

53.5%

54.1%

Selling, general and administrative expenses

4,690,850

(160,672)

—

(490)

4,529,688

206,738

4,322,950

Percent

49.4%

47.7%

48.2%

Operating income

303,773

162,644

89,242

490

556,149

26,730

529,419

Percent

3.2%

5.9%

5.9%

Diluted earnings per share from continuing operations (e)

0.18

0.36

0.20

0.00

0.74

0.06

0.67

Notes:

(a) Costs related to Reinvent, VF's transformation program, including restructuring charges and project-related costs, were $56.2 million and $162.6 million in the three and twelve months ended March 2025, respectively. These costs related primarily to severance and employee-related benefits and expenses related to the engagement of a consulting firm to support VF's transformation journey. VF entered into a contract with a consulting firm during the second quarter of Fiscal 2025, with services under the contract substantially completed in the third quarter of Fiscal 2026. In addition to payment for services, the contract includes contingent fees tied to increases in VF's stock price through June 2027. Expenses related to the contract, including contingent fees, were $16.4 million and $76.4 million in the three and twelve months ended March 2025, respectively. Reinvent resulted in a net tax expense of $5.5 million and a net tax benefit of $21.2 million in the three and twelve months ended March 2025, respectively.

(b) VF recognized a non-cash goodwill impairment charge related to the Icebreaker reporting unit of $38.2 million during the three months ended March 2025. During the twelve months ended March 2025, VF recognized non-cash impairment charges related to the Dickies indefinite-lived trademark intangible asset and Icebreaker reporting unit goodwill of $51.0 million and $38.2 million, respectively. The impairment charges resulted in a net tax benefit of $10.5 million in the twelve months ended March 2025. Because Dickies is not considered a discontinued operation, the impairment is considered an adjustment to derive the Adjusted non-GAAP measure.

(c) Transaction and deal related activities reflect activities associated with the review of strategic alternatives for the Global Packs business, consisting of the Kipling®, Eastpak® and JanSport® brands, which totaled $0.5 million for the twelve months ended March 2025. The transaction and deal related activities resulted in a net tax benefit of $0.1 million in the twelve months ended March 2025.

(d) The “Adjusted Contribution from Dickies” column represents the operating results of Dickies for the three and twelve months ended March 2025 on an adjusted basis. This column excludes a non-cash impairment charge as described above. The adjusted contribution from Dickies resulted in a net tax expense of $1.5 million and $5.6 million for the three and twelve months ended March 2025, respectively.

(e) Amounts shown in the table have been calculated using unrounded numbers. The diluted earnings (loss) per share impacts were calculated using 389,605,000 and 392,571,000 weighted average common shares for the three and twelve months ended March 2025, respectively.

Non-GAAP Financial Information

The financial information above has been presented on a GAAP basis, on an adjusted basis, which excludes the impact of Reinvent, impairment charges and transaction and deal related activities, and on an adjusted basis excluding Dickies, which also excludes the operating results of Dickies on an adjusted basis. These adjusted presentations provides non-GAAP measures and are not based on any comprehensive set of accounting rules or principles. Management believes these measures provide investors with useful supplemental information regarding VF's underlying business trends and the performance of VF's ongoing operations and are useful for period-over-period comparisons of such operations.

Management uses the above financial measures internally in its budgeting and review process and, in some cases, as a factor in determining compensation. While management believes that these non-GAAP financial measures are useful in evaluating the business, this information should be considered as supplemental in nature and should be viewed in addition to, and not in lieu of or superior to, VF's operating performance measures calculated in accordance with GAAP. In addition, these non-GAAP financial measures may not be the same as similarly titled measures presented by other companies. These measures should be used to evaluate the Company's results of operations only in conjunction with the corresponding GAAP measures.

VF CORPORATION

Supplemental Financial Information

Reportable Segment Information - Constant Currency Basis

(Unaudited)

(In thousands, except per share amounts)

Three Months Ended March 2026

As Reported
under GAAP

Adjust for Foreign

Currency Exchange

Constant Currency

Revenues:

Outdoor segment

$

1,339,839

$

(66,250

)

$

1,273,589

Active segment

588,695

(25,342

)

563,353

All Other

237,500

(12,059

)

225,441

Total revenues

$

2,166,034

$

(103,651

)

$

2,062,383

Segment profit (loss):

Outdoor segment

$

175,004

$

(11,158

)

$

163,846

Active segment

(14,921

)

(2,096

)

(17,017

)

Total segment profit

160,083

(13,254

)

146,829

Corporate and other expenses (a)

(321,613

)

1,077

(320,536

)

Interest expense, net

(26,803

)

(825

)

(27,628

)

“All Other” profit

25,004

(1,232

)

23,772

Loss from continuing operations before income taxes

$

(163,329

)

$

(14,234

)

$

(177,563

)

Diluted net loss per share change from continuing operations

21

%

(8

%)

13

%

(a) A reduction to the gain on the sale of Dickies to reflect final working capital adjustments of $11.9 million was recorded in the other income (expense), net line item in the Consolidated Statement of Operations for the three months ended March 2026. In addition, pension settlement charges of $158.1 million and excise taxes of $25.1 million related to the termination of the U.S. qualified plan were recorded in the other income (expense), net line item in the Consolidated Statement of Operations for the three months ended March 2026.

Constant Currency Financial Information

VF is a global company that reports financial information in U.S. dollars in accordance with GAAP. Foreign currency exchange rate fluctuations affect the amounts reported by VF from translating its foreign revenues and expenses into U.S. dollars. These rate fluctuations can have a significant effect on reported operating results. As a supplement to our reported operating results, we present constant currency financial information, which is a non-GAAP financial measure that excludes the impact of translating foreign currencies into U.S. dollars. We use constant currency information to provide a framework to assess how our business performed excluding the effects of changes in the rates used to calculate foreign currency translation. Management believes this information is useful to investors to facilitate comparison of operating results and better identify trends in our businesses.

To calculate foreign currency translation on a constant currency basis, operating results for the current year period for entities reporting in currencies other than the U.S. dollar are translated into U.S. dollars at the average exchange rates in effect during the comparable period of the prior year (rather than the actual exchange rates in effect during the current year period).

These constant currency performance measures should be viewed in addition to, and not in lieu of or superior to, our operating performance measures calculated in accordance with GAAP. The constant currency information presented may not be comparable to similarly titled measures reported by other companies.

VF CORPORATION

Supplemental Financial Information

Reportable Segment Information - Constant Currency Basis

(Unaudited)

(In thousands, except per share amounts)

Twelve Months Ended March 2026

As Reported
under GAAP

Adjust for Foreign
Currency Exchange

Constant Currency

Revenues:

Outdoor segment

$

5,741,792

$

(169,273

)

$

5,572,519

Active segment

2,720,967

(66,627

)

2,654,340

All Other

1,142,448

(30,554

)

1,111,894

Total revenues

$

9,605,207

$

(266,454

)

$

9,338,753

Segment profit:

Outdoor segment

$

841,200

$

(29,973

)

$

811,227

Active segment

103,043

(8,354

)

94,689

Total segment profit

944,243

(38,327

)

905,916

Impairment of goodwill

(30,716

)

—

(30,716

)

Corporate and other expenses (a)

(511,815

)

2,094

(509,721

)

Interest expense, net

(148,743

)

(2,298

)

(151,041

)

“All Other” profit

88,249

(3,335

)

84,914

Income from continuing operations before income taxes

$

341,218

$

(41,866

)

$

299,352

Diluted earnings per share change from continuing operations

265

%

(52

%)

213

%

(a) A final pre-tax gain on the sale of Dickies of $127.2 million was recorded in the other income (expense), net line item in the Consolidated Statement of Operations for the twelve months ended March 2026. In addition, pension settlement charges of $192.1 million and excise taxes of $25.1 million related to the termination of the U.S. qualified plan were recorded in the other income (expense), net line item in the Consolidated Statement of Operations for the twelve months ended March 2026.

Constant Currency Financial Information

VF is a global company that reports financial information in U.S. dollars in accordance with GAAP. Foreign currency exchange rate fluctuations affect the amounts reported by VF from translating its foreign revenues and expenses into U.S. dollars. These rate fluctuations can have a significant effect on reported operating results. As a supplement to our reported operating results, we present constant currency financial information, which is a non-GAAP financial measure that excludes the impact of translating foreign currencies into U.S. dollars. We use constant currency information to provide a framework to assess how our business performed excluding the effects of changes in the rates used to calculate foreign currency translation. Management believes this information is useful to investors to facilitate comparison of operating results and better identify trends in our businesses.

To calculate foreign currency translation on a constant currency basis, operating results for the current year period for entities reporting in currencies other than the U.S. dollar are translated into U.S. dollars at the average exchange rates in effect during the comparable period of the prior year (rather than the actual exchange rates in effect during the current year period).

These constant currency performance measures should be viewed in addition to, and not in lieu of or superior to, our operating performance measures calculated in accordance with GAAP. The constant currency information presented may not be comparable to similarly titled measures reported by other companies.

V.F. (VFC - Free Report) reported break-even quarterly earnings per share versus the Zacks Consensus Estimate of a loss of $0.02. This compares to a loss of $0.13 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +100.00%. A quarter ago, it was expected that this maker of brands such as Vans, North Face and Timberland would post earnings of $0.43 per share when it actually produced earnings of $0.58, delivering a surprise of +34.88%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

V.F., which belongs to the Zacks Textile - Apparel industry, posted revenues of $2.17 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 1.77%. This compares to year-ago revenues of $2.14 billion. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

V.F. shares have lost about 7.4% since the beginning of the year versus the S&P 500's gain of 7.4%.

What's Next for V.F.?While V.F. has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for V.F. was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #1 (Strong Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.17 on $1.72 billion in revenues for the coming quarter and $1.14 on $9.55 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Textile - Apparel is currently in the top 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, Vince Holding Corp. (VNCE - Free Report) , is yet to report results for the quarter ended April 2026.

This company is expected to post quarterly loss of $0.19 per share in its upcoming report, which represents a year-over-year change of +48.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Vince Holding Corp.'s revenues are expected to be $63.05 million, up 8.8% from the year-ago quarter.

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Key Takeaways Pre-Markets Up After Tuesday's Light SellingTarget, Lowe's & TJX All Beat on Q1 EarningsNVIDIA Expected to Have Grown 118% on Earnings in Q1 Wednesday, May 20th, 2026

Pre-market futures are up this morning, filling in some holes from Tuesday’s session that closed in the red. Major indexes are fighting back to all-time-high levels (on the S&P 500 and Nasdaq) last week, but are still working off the slide ahead of Monday’s open. The Dow is up +181 points, the S&P 500 is +29, the Nasdaq is +209 points and small-cap Russell 2000 is +17 at this hour.

Meanwhile, spot oil prices have relaxed from yesterday, $101 per barrel (/bbl) on WTI and $108/bbl on Brent crude, even as Iran ratchets up its war rhetoric this morning. Iran has reportedly permitted the transit of three dozen ships over the past day out of the Strait of Hormuz, but it’s unclear whether these ships are also passing the U.S. blockade at the Gulf of Oman. Gasoline here at home continues to climb in price per gallon: $4.56 nationwide, up +43% year over year.

Big Morning for Retail Earnings: TGT, LOW, TJX & More
Target (TGT - Free Report) posted impressive Q1 results this morning, beating earnings estimates by 30 cents per share — $1.71, for a +21.4% positive earnings surprise — on $25.44 billion in revenues, up +4% from expectations. The department store major saw its strongest comps in four years. However, the future looks somewhat muted, as higher gasoline prices are already having an impact on its middle-class shopper. For more on TGT’s earnings, click here.

Home improvement center Lowe’s (LOW - Free Report) also outperformed expectations in its Q1 report this morning, with earnings of $3.03 per share +2.4% higher than the Zacks consensus and revenues of $23.08 billion narrowly surpassing projections by +0.62%, but up nicely from the $20.93 billion in the year-ago quarter. Zacks Strategist Bryan Hayes gives his take on LOW’s earnings here.

The TJX Companies (TJX - Free Report) — parent of T.J. Maxx, Marshall’s and Home Goods, and with a market cap well over 2x that of Target’s — posted a strong +18% earnings beat to $1.19 per share ($0.92 reported a year ago) on revenues of $14.32 billion outpacing expectations by +2.3%. Shares are up +3.7% on the news, pushing the stock into positive territory year to date. For more on TJX’s earnings, click here.

Vans, Timberland and The North Face parent V.F. Corp. (VFC - Free Report) is also out with quarterly results ahead of today’s open. Flat earnings for fiscal Q4 beat expectations of -$0.02 (and the year-ago loss per share of -$0.13) on $2.17 billion in revenues, +1.77% higher than estimates. Shares had been up on the news, but are sliding ahead of the open. For more on VFC’s earnings, click here.

NVIDIA Reports After the Close Today
It’s the Big Kahuna of yet-to-report earnings results — even bigger than Walmart (WMT - Free Report) on Thursday morning: NVIDIA (NVDA - Free Report) , the chip giant that has positioned itself perfectly for the boom in AI infrastructure investment. Expectations are typically awesome: +118.5% earnings growth on +78.7% growth in revenues from a year ago. NVIDIA has also outperformed estimates in each of the past three quarters.

Questions or comments about this article and/or author? Click here>>

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Published in consumer-discretionary consumer-staples e-commerce earnings retail

4 Cold-Weather Stocks to Buy as Winter Spending Heats UpV.F. NYSE: VFC executives said the apparel and footwear company ended fiscal 2026 with improving sales trends, wider margins and lower leverage, while reinstating annual guidance for fiscal 2027.

President and CEO Bracken Darrell said the company “finished this year strong” and exceeded its fourth-quarter guidance. He said VF returned to full-year sales growth for the first time in three years and that 70% of the company’s portfolio is now growing, compared with 43% in fiscal 2024 when including Dickies.

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3 Retail Stocks That Desperately Need a Tariff Break“Our portfolio is getting healthier,” Darrell said, adding that operating margin expanded to 7% in fiscal 2026, up 220 basis points from fiscal 2024. He also pointed to balance-sheet progress, saying net debt excluding lease liabilities fell from $5.8 billion to $2.7 billion over three years, while leverage declined from 5.1 times to 2 times on that basis.

Fourth-Quarter Sales Beat Expectations EVP and CFO Paul Vogel said fourth-quarter revenue was $2.2 billion, up 3% from a year earlier and above the company’s guidance for flat to 2% growth. He said wholesale demand, led by The North Face, helped drive the stronger-than-expected performance.

3 Stocks Gaining Traction in Their Turnaround StoriesBy brand, The North Face revenue rose 7%, led by double-digit growth in the Americas. Vans declined 5%, in line with expectations, including about a 2-point benefit from earlier wholesale orders. Timberland rose 2%, marking its sixth consecutive quarter of growth.

By region, the Americas grew 10% in the quarter and 3% for the full year. EMEA declined 5% as the company navigated regional macroeconomic headwinds, while APAC rose 1% on demand across The North Face and Timberland. Direct-to-consumer sales rose 2%, and wholesale increased 3%.

Gross margin in the quarter rose 240 basis points to 56.4%, helped by a roughly $50 million net benefit tied to tariff receivables and offsetting charges following a Supreme Court ruling related to certain tariff refunds. Vogel said normalized gross margin was roughly flat from a year earlier. Adjusted earnings per share were $0, compared with a loss of $0.14 in the prior-year quarter.

Vans Shows DTC Improvement in the Americas Darrell said Vans remains a key focus of the turnaround. While global Vans revenue was down 5% in the fourth quarter, he said Americas direct-to-consumer sales grew 5%, with the region representing more than half of the total Vans business.

“This is where we said the recovery would start,” Darrell said, adding that Americas DTC momentum should eventually show up in other parts of the business. He said Vans’ e-commerce business in the Americas returned to growth in the third quarter and that product newness is building across the assortment.

Darrell highlighted strong consumer response to Pearlized product drops and said the Authentic silhouette grew 80% from a year earlier. Slip-Ons and apparel also returned to growth in the quarter. He said Vans is using a social-first, culture-led marketing strategy, including its Off The Wall campaign anchored around the Authentic.

During the question-and-answer session, Darrell said wholesale sell-through is not yet as strong as DTC because of channel mix and the company’s ability to drive traffic to its own digital platforms. He said DTC performance is a “good harbinger” for wholesale as products roll through the broader network over time.

The North Face, Timberland and Altra Continue Growth The North Face grew 7% in the quarter, with Darrell citing broad-based category growth and a 16% increase in the Americas. He said softshells and fleece were key drivers in apparel, while footwear delivered its fifth consecutive quarter of double-digit growth.

Darrell also noted The North Face’s newly announced multi-year strategic partnership with the U.S. Ski & Snowboard Team. Under the agreement, The North Face will serve as exclusive performance apparel sponsor for athletes at major events, including World Cup events and the Winter Olympic Games, through at least 2034.

Timberland grew 2% in the quarter. Darrell said direct-to-consumer sales increased 8%, helped by full-price stores, while wholesale was slightly lower because of reduced distressed sales. He said the six-inch premium boot remains a key driver and that boat shoes are growing across all regions.

Altra posted 45% revenue growth in the quarter, its fifth consecutive quarter of double-digit growth, and grew more than 30% for the full year, with revenue surpassing $270 million. Darrell said Altra has a differentiated product in a large addressable market and “can be a billion-dollar-plus brand over time.”

Cost Discipline and Margin Targets Remain Central EVP and COO Abhishek Dalmia said VF is two years into a four-year transformation plan focused on gross margin expansion, SG&A control and top-line growth. He said gross margin improved from 51.6% in fiscal 2024, including Dickies, to 55.2% in fiscal 2026. About 100 basis points came from the Dickies divestiture, while the rest came from product mix, targeted pricing, markdown improvements and other operational work.

Dalmia said VF has removed more than $225 million of sustained SG&A savings since fiscal 2024, excluding Dickies, through organizational simplification, DTC and distribution efficiencies, and digital and technology optimization. He said the company is also investing in product development and marketing, with more spending shifted toward media that directly reaches consumers.

Vogel said inventories declined 11% in constant currency, and inventory days were down year over year. Net debt was down approximately $800 million from last year, or 16%, following repayment of a €500 million maturity. Year-end leverage improved to 3.1 times, down one full turn from last year.

Fiscal 2027 Guidance Reinstated For fiscal 2027, VF expects constant-dollar revenue growth of 1% to 2% and operating margin of approximately 8%. Vogel said the guidance includes expected growth at The North Face, Timberland and Altra, while Vans is expected to decline in the mid-single digits, an improvement from an 11% decline in fiscal 2026 and a 15% decline in fiscal 2025.

The company expects first-quarter revenue to decline in the low single digits and anticipates an operating loss of about $100 million, roughly $40 million worse than the prior year. Vogel said the first quarter is a small period for the company and that the outlook reflects investment in Altra and DTC, as well as wholesale timing shifts.

VF expects the Middle East conflict to reduce fiscal 2027 revenue by about 100 basis points, while a 53rd week is expected to add about 0.5 percentage point to growth. Vogel said the company is assuming tariffs return at the end of July and expects a potential $70 million to $80 million negative gross-margin impact, though management said mitigation actions are expected to offset nearly all of that in fiscal 2027.

Free cash flow is expected to be flat to up versus fiscal 2026 when excluding the $100 million cash benefit from pension termination activity. VF also expects year-end leverage between 2.6 times and 2.9 times, with a medium-term goal of 2.5 times or less by fiscal 2028.

Darrell clarified that VF’s operating margin target is an exit run rate of 10% in fiscal 2028, rather than a full-year fiscal 2028 margin. “The conversation inside this company has shifted from turnaround to growth,” Dalmia said.

About V.F. NYSE: VFCVF Corporation, commonly branded as VF, is a global apparel and footwear company that develops, markets and distributes a diverse portfolio of consumer brands. Its offerings span outdoor and action sports apparel, footwear and accessories under marquee names such as The North Face, Vans, Timberland, Dickies, JanSport and Smartwool. Through a “house of brands” strategy, VF leverages the unique heritage and design expertise of each label to serve distinct lifestyle and performance segments.

Founded in 1899 in Pennsylvania as the Reading Glove and Mitten Manufacturing Company, VF evolved through a series of acquisitions and strategic expansions to become a leading player in the global apparel industry.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

Should You Invest $1,000 in V.F. Right Now?Before you consider V.F., you'll want to hear this.

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V.F. Corporation (VFC) Q4 2026 Earnings Call Transcript

On May 22, 2026, VF Corp VFC shares rose 3.2% to a current price of $16.70. This price movement comes amid a 52-week trading range of $11.06 to $22.27, highlighting significant volatility over the past year.

GF Value™ verdict: Current price of $16.70 is 5.7% overvalued compared to a GF Value™ estimate of $15.80.GF Score™: 72/100, indicating an above-average potential for long-term returns.Most notable signal: Momentum Rank of 10/10, suggesting strong recent price performance. Is VFC Overvalued or Undervalued? The current price of VF Corp VFC at $16.70 is slightly above the GF Value™ estimate of $15.80, making the stock 5.7% overvalued. This valuation indicates a lack of margin of safety for new investors, as the stock is priced higher than its intrinsic value according to GuruFocus' assessment. The GF Valuation label categorizes VFC as fairly valued, but the overvaluation signals potential risks if the company's performance does not meet market expectations. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.

Investors may need to exercise caution, as overvalued stocks can be more susceptible to price corrections. While VFC has shown solid performance over the past year with a 40.5% increase, its recent decline of 22.5% over the past month suggests heightened volatility and uncertainty surrounding its future performance.

How Does VFC's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 26.5x 28.6x Forward P/E 15.6x N/A VFC's current P/E (TTM) of 26.5x is below its 5-year median P/E of 28.6x, indicating that the stock is trading at a discount relative to its historical valuation. The forward P/E of 15.6x suggests potential for improved earnings, which may further support the stock price. However, this P/E analysis aligns with the GF Value™ verdict of being slightly overvalued, suggesting that while the stock may be historically cheaper, current market conditions may not justify a higher price.

What Does VFC's GF Score™ Tell Us? Metric Rating GF Score™ 72 Financial Strength 5/10 Profitability 6/10 Growth 3/10 Valuation 7/10 Momentum 10/10 The GF Score™ of 72/100 indicates that VF Corp ranks above average compared to its peers. The strongest area is its Momentum rank, which is at the maximum of 10/10, reflecting recent strong price performance. However, the Growth rank of 3/10 is concerning, as it indicates challenges in expanding its business. Financial Strength at 5/10 suggests a moderate ability to meet obligations, while Valuation at 7/10 indicates a reasonable price relative to its financial performance.

What Are Insiders Doing with VFC Stock? There have been no insider transactions in the last three months for VF Corp VFC . This lack of activity may suggest that insiders are not making significant moves in response to the current market conditions, which could be interpreted as a sign of uncertainty or a wait-and-see approach. Investors often look for insider buying as a bullish signal, so the absence of transactions may not be positive.

What This Means for Investors Based on the GF Value™ assessment, VF Corp VFC is currently overvalued at $16.70 relative to its estimated fair value of $15.80. While the company shows strong momentum and an above-average GF Score™, the lack of insider activity and the recent decline in stock price suggest that investors should proceed with caution.

For the complete analysis, visit the VF Corp VFC stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is VFC's GF Score™?

VFC's GF Score™ is 72/100, indicating it ranks above average, suggesting potential for higher long-term returns.

Is VFC overvalued or undervalued?

VFC is currently overvalued, with a GF Value™ estimate of $15.80 compared to its market price of $16.70.

What is VFC's P/E ratio?

VFC's P/E (TTM) is 26.5x, which is below its 5-year median of 28.6x, indicating it is trading at a discount relative to its historical valuation.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.

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Stock to Watch: V.F. (VFC - Free Report) Based in Greensboro, NC, V.F. Corporation designs, manufactures and markets branded apparel and related products in the United States and internationally. Its product line consists of denim and casual tops, bottoms, backpacks, book bags, luggage, outdoor gear, skateboard-inspired footwear and apparel, surf-inspired footwear and apparel, women’s lingerie, occupational apparel, licensed sports apparel, athletic apparel and fashion sportswear. The company markets its products through specialty stores, department stores, national chains and mass merchants along with licensees and distributors.

VFC is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 14.87; value investors should take notice.

For fiscal 2027, four analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.03 to $1.12 per share. VFC boasts an average earnings surprise of +47.5%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, VFC should be on investors' short list.

Key Takeaways lululemon's Power of Three X2 targets product innovation, guest experience and global expansion.LULU says Mainland China trends are strong, aided by the Chinese New Year shift into the quarter.lululemon flags soft North America demand and heavier markdowns, tariffs and SG&A spending, squeezing margins. lululemon athletica inc. (LULU - Free Report) is likely to witness a bottom-line decline when it reports first-quarter fiscal 2026 results on Jun. 4, after market close. The Zacks Consensus Estimate for fiscal first-quarter revenues is pegged at $2.4 billion, indicating 2.6% growth from the year-ago quarter's reported figure.

The consensus estimate for the company's fiscal first-quarter earnings is pegged at $1.67 per share, suggesting a 35.8% decline from the year-ago quarter’s actual. Earnings estimates have moved down by a penny in the past seven days.

The Vancouver-based company has been reporting steady earnings outcomes, as evident from its bottom-line surprise trends in the past several quarters. lululemon has a trailing four-quarter earnings surprise of 7.9%, on average. Given its positive record, the question is, can LULU maintain the momentum?

Earnings WhispersOur proven model does not conclusively predict an earnings beat for LULU this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

lululemon has an Earnings ESP of -6.40% and a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here.

Key Insights on Trends to Define LULU’s Q1 Resultslululemon continues to benefit from the progress with its Power of Three X2 growth strategy. The plan focuses on three key growth drivers — product innovation, guest experience and market expansion. LULU is expected to deliver solid revenue growth in the fiscal first quarter through product innovation, enhanced guest experience and aggressive international expansion under the plan.

International markets, led by Mainland China, continue to post outsized growth, while the men’s category is gaining share. Digital investments are strengthening the omnichannel ecosystem and disciplined store expansion is supporting brand visibility. On the last reported quarter’s earnings call, the company noted that trends in Mainland China have been strong in the first quarter of fiscal 2026, driven by a shift of the Chinese New Year into the quarter.

On the last reported quarter’s earnings call, the company continued to make steady progress in executing its action plan, with a clear emphasis on improving the sales quality in North America by driving a higher mix of full-price transactions. The company noted that early signs of traction are encouraging, supported by product launches and a series of recent brand activations that are helping to re-energize consumer engagement.

For the first quarter of fiscal 2026, management anticipates net revenues of $2.4-$2.43 billion, indicating 1-3% year-over-year growth. Revenues for China Mainland are likely to increase 25-30% and the Rest of World is expected to rise in the mid-teens. EPS for the fiscal first quarter is expected to be $1.63-$1.68, whereas it reported EPS of $2.60 in the prior-year quarter. Our model predicts revenues for the China Mainland business to increase 25% year over year for the first quarter of fiscal 2026.

However, LULU faces near-term pressure from soft North America demand and significant margin contraction. Higher markdowns, tariffs and SG&A investments weighed on profitability, while cautious guidance signals slower growth and continued operating margin pressure.

North America, lululemon’s largest and most mature market, has been witnessing a softness due to uneven traffic trends and increasingly cautious consumer spending, particularly in discretionary categories. The impact has been most visible in the women’s category, a core driver of the brand’s North American business. Slower momentum in North America limits consolidated growth and raises concerns about market saturation. Increased promotional activity across the broader apparel space has also intensified competition, making it harder to drive full-price sales. Until demand stabilizes and traffic improves, North America is likely to remain a drag on near-term revenue growth.

For the first quarter of fiscal 2026, the company expects North America revenues to decline in the mid-single digits. Revenues in the United States are expected to decline in the mid-single digits, while revenues in Canada are expected to track slightly slower. Our model predicts revenues for the Americas business to decline 4.9% year over year for the fiscal first quarter, with a 6.2% fall in the United States and a 0.1% rise in Canada.

lululemon’s margins are expected to remain under pressure in the to-be-reported quarter due to higher product costs, increased markdowns, unfavorable channel mix and tariff pressures. Management indicated that elevated promotional activity, particularly in North America, is expected to have weighed on the merchandise margin as the company worked to clear slower-moving inventory. Higher freight, input and supply-chain costs also contributed to the decline, limiting leverage despite revenue growth.

On its last reported quarter’s earnings call, management projected a 380-bps year-over-year decline in the gross margin in the fiscal first quarter due to higher tariff rates, and investments in store openings, optimizations and the distribution network. Increased tariffs are expected to create a headwind of 290 bps on the gross margin, with 110 bps of offsets. Markdowns are projected to rise 30 bps year over year. Though full-price selling has improved from fourth-quarter fiscal 2025, the company expects markdowns to decline beginning in the second half. We expect adjusted gross profit to decline 4.2% in the fiscal first quarter, with a 380 bps dip in the gross margin.

For the first quarter of fiscal 2026, management anticipates SG&A, as a percentage of sales, to deleverage 330 bps year over year, driven in part by the timing of brand activations, including the BNP Paribas Open, the Milan Olympics and Studio. With a greater concentration of events planned in the first half of the year, the company expects additional pressure from discrete costs related to the proxy contest, as well as the reintroduction of expenses reduced last year, particularly in store labor hours and incentive compensation. The company also plans to continue investing in growth initiatives and IT infrastructure.

LULU expects the first-quarter fiscal 2026 operating margin to contract 710 bps year over year. We expect SG&A costs to rise 11.1% in the fiscal first quarter, resulting in a 710-bps decline in the operating margin.

LULU’s Price Performance & Valuationlululemon’s shares have exhibited a downtrend in the past three months, losing 25.6% compared with the industry’s fall of 10.1%. The company has also underperformed the Zacks Consumer Discretionary sector’s decline of 6.1% and the S&P 500’s growth of 10%.

lululemon’s YTD Performance
Image Source: Zacks Investment Research

The LULU stock has underperformed V.F. Corporation (VFC - Free Report) , which has declined 8.1% in the past three months. The stock also lagged Ralph Lauren Corporation (RL - Free Report) and PVH Corp. (PVH - Free Report) , which have rallied 6.2% and 44.5%, respectively, in the same period.

At its current price of $131.04, the LULU stock trades 12.4% above its 52-week low of $116.63 and 61.5% below its 52-week high of $340.25.

From the valuation standpoint, the company trades at a forward 12-month P/E multiple of 10.38X, below the industry average of 17.38X.

Image Source: Zacks Investment Research

Investment Thesislululemon is navigating a challenging retail backdrop, with inflation, elevated interest rates and softer discretionary spending weighing on consumer behavior. Premium and luxury categories, particularly in the Americas, remain under pressure, while tariffs present an additional headwind. Despite these near-term challenges, the company continues to execute against its long-term growth strategy.

Momentum is supported by lululemon’s Power of Three ×2 strategy, which focuses on doubling revenues through three key pillars: international expansion, growth in the men’s business and deeper digital engagement. This diversified approach is helping the company offset macro pressures while pursuing meaningful structural growth opportunities.

International markets remain key growth drivers, with China central to lululemon’s plan to scale global revenues. Combined with ongoing digital investments and continued expansion in men’s apparel, the company appears well-positioned to build resilience and create long-term value.

ConclusionNo matter how the stock responds to the upcoming first-quarter fiscal 2026 results, lululemon’s disciplined execution and strong brand equity continue to support its long-term outlook. Progress under the Power of Three ×2 strategy, led by international expansion, digital engagement and momentum in the men’s category, provides meaningful growth avenues.

However, near-term challenges, including softer demand in the Americas, tariff-related cost pressures and margin deleverage, are likely to weigh on lululemon’s upcoming results. Given these offsetting factors, investors may prefer to stay cautious and wait for clearer signs of demand stabilization in North America before turning more constructive on the stock. For existing shareholders, the long-term strategy provides a basis for staying the course.

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The Style Scores are broken down into four categories:

Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.

Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.

VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.

How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.

#1 (Strong Buy) stocks have produced an unmatched +23.7% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.

Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.

A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: V.F. (VFC - Free Report) Based in Greensboro, NC, V.F. Corporation designs, manufactures and markets branded apparel and related products in the United States and internationally. Its product line consists of denim and casual tops, bottoms, backpacks, book bags, luggage, outdoor gear, skateboard-inspired footwear and apparel, surf-inspired footwear and apparel, women’s lingerie, occupational apparel, licensed sports apparel, athletic apparel and fashion sportswear. The company markets its products through specialty stores, department stores, national chains and mass merchants along with licensees and distributors.

VFC is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 15.46; value investors should take notice.

Five analysts revised their earnings estimate upwards in the last 60 days for fiscal 2027. The Zacks Consensus Estimate has increased $0.01 to $1.10 per share. VFC boasts an average earnings surprise of +47.5%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, VFC should be on investors' short list.