V.F. (VFC) Q4 2025 earnings summary

Executive summary

• Q4 revenue was $2.1–$2.14 billion, down 3%–5% year-over-year, in line with guidance, reflecting strategic actions and ongoing brand turnaround efforts.

• Adjusted operating income exceeded guidance, reaching $22 million, driven by the Reinvent program and cost discipline.

• Gross margin improved to 53.3%–53.4%, up 550–560 basis points year-over-year, due to lower material costs, reduced distressed sales, and higher quality inventory.

• Net debt reduced by $1.8 billion (over 25%) year-over-year, with leverage down a full turn to 4.1x.

• Released Q4 and FY25 financial results for the period ended March 29, 2025.

Financial highlights

• Q4 revenue: $2.1–$2.14 billion, down 3%–5% year-over-year; second half of the year was flat after a 7% decline in the first half.

• Adjusted operating margin reached 1%, up 400 basis points year-over-year.

• Adjusted loss per share improved to -$0.13 from -$0.30 in Q4 last year.

• Inventories decreased by 4% ($71 million) year-over-year.

• Free cash flow was $313 million, or $401 million including asset sales.

Outlook and guidance

• No full-year guidance provided, but operating and free cash flow (excluding asset sales) are expected to increase year-over-year.

• Q1 revenue expected to decline 3%–5% on a constant dollar basis, with Q1 operating loss projected between $110 million and $125 million.

• Gross margin in Q1 will benefit from fewer discounts and FX; SG&A expected to be flat to down slightly.

• Q1 interest expense expected at ~$40 million; effective tax rate projected at 13%–14%.

• Leverage on operating margin not expected in Q1, but margin expansion anticipated for fiscal 2026.