V.F. (VFC) Q4 2026 earnings summary

Executive summary

• Achieved full-year revenue growth for the first time in three years, with Q4'26 revenue up 1% year-over-year (3% in constant currency), surpassing guidance and marking the strongest quarterly performance in recent history.

• Operating margin expanded to 7% in FY2026, up 220 basis points from FY2024, with Q4'26 operating income at $54M–$62M and adjusted OI ex Dickies® at $650M.

• Net debt reduced from $5.8B to $2.7B over three years, with leverage ratio improved to 3.1x at FYE'26 from 5.1x at FYE'24, targeting 2.5x or less by FY2028.

• Strong brand performance: The North Face® and Timberland® delivered global growth; Vans® returned to growth in Americas DTC.

Financial highlights

• Q4'26 revenue: $2.17B (+1% vs. LY); FY'26 revenue: $9.61B (+1% vs. LY); Q4 revenue grew 3% year-over-year, surpassing guidance.

• Q4'26 operating income: $54M–$62M; FY'26 operating income: $577M (6.0% margin), up 280 bps; adjusted OI ex Dickies®: $650M (7.0% margin).

• FY'26 gross margin: 54.8% (+130bps); adjusted gross margin ex Dickies®: 55.2% (+110bps); Q4: 56.4%, up 240 bps.

• Free cash flow for FY'26: $405M, up over $90M year-over-year; $505M reported including pension benefit.

• Net inventories down 16% year-over-year; cash dividends of $35M paid in Q4'26.

Outlook and guidance

• FY'27 revenue expected to grow 1–2% in constant currency, with adjusted operating margin around 8% and medium-term target of 10% by FY'28.

• Vans expected to decline mid-single digits for FY'27, improving from -11% in FY'26; The North Face®, Timberland®, and Altra® to continue growth.

• Q1 FY'27 revenue expected to be down low single digits due to timing shifts and macro headwinds.

• Free cash flow for FY'27 projected flat to up versus $405M in FY'26, despite $100M higher CapEx.

• Leverage ratio targeted at 2.6x–2.9x by FYE'27.