VF Corp (NYSE: VFC) shares climbed sharply in premarket trading Wednesday after the apparel giant delivered its first full-year revenue growth in three years and issued a bullish outlook for fiscal 2027. The owner of The North Face, Vans, and Timberland reported fourth-quarter revenue of $2.17 billion, exceeding the $2.13 billion consensus estimate from Wall Street analysts.
The company's adjusted earnings came in flat compared to the prior year, but that was still better than the 1-cent loss analysts had projected. VF's stock rose 8.2% to $18.11 ahead of the market open, signaling investor confidence in CEO Bracken Darrell's turnaround strategy.
Turnaround Progress
Darrell, who took the helm in 2023, has been working to revitalize the Vans brand, reduce debt, and ensure that growth at The North Face and Timberland can offset weaknesses elsewhere in the portfolio. The fiscal 2026 results, covering the period ended March 28, showed total revenue of $9.61 billion, a 1% increase year-over-year. Excluding the divested Dickies brand, revenue grew 4%.
Gross margin improved by 130 basis points to 54.8%, while adjusted operating income, excluding Dickies, reached $650 million. The company also made significant progress in deleveraging, cutting its leverage ratio to 3.1 times from 4.1 times a year earlier.
Mixed Brand Performance
Brand results were mixed but showed notable improvement. The North Face posted a 12% revenue gain in the fourth quarter, while Timberland rose 8%. Vans, the key swing factor for the company, saw a 1% decline in overall revenue, though management noted that the brand is now growing in the Americas direct-to-consumer channel. Darrell described the quarter as VF's "strongest revenue performance since I joined VF," adding that Vans is "starting to show momentum."
Fiscal 2027 Guidance
Looking ahead, VF provided guidance for fiscal 2027, projecting constant-currency revenue growth of 1% to 2%. The company expects an adjusted operating margin of around 8% and free cash flow at or above the $405 million reported for fiscal 2026. The board also declared a quarterly dividend of 9 cents per share, payable on June 18 to shareholders of record as of June 10.
However, the company cautioned that risks remain, including potential demand shifts, tariff impacts, geopolitical uncertainties, raw material costs, changing fashion trends, and margin pressures. The sustainability of Vans' recovery in the Americas and the broader consumer spending environment will be key factors to watch.
Market Context
The upbeat results come amid a volatile period for apparel stocks. Nike shares gained Monday after a six-day losing streak, while VF and Levi Strauss traded unevenly Tuesday during a broader market selloff. VF's guidance provides investors with a clearer view of the company's standalone trajectory, separate from broader consumer discretionary trends. Management will discuss the results in detail during a conference call scheduled for 8 a.m. ET. Investors will be watching closely to determine whether VF has successfully transitioned from a cost-cutting narrative to a genuine growth story, or if the company has merely bought itself another quarter of breathing room.
