VF Corporation returns to revenue growth in fiscal year 2026

The US-based apparel company VF Corporation reported financial results for its fourth quarter ended March 28, 2026, marking a return to full-year revenue growth alongside expanded margins and reduced debt. The company's board of directors authorized a quarterly per share dividend of 0.09 dollars, payable on June 18, 2026, to shareholders of record at the close of business on June 10, 2026.

For the twelve months ended March 2026, total revenues reached 9.61 billion dollars under GAAP, up 1 percent compared to the previous year. Excluding the Dickies brand, which was sold during the third quarter of fiscal year 2026 (FY26), full-year revenue grew 4 percent reported to 9.30 billion dollars, or 1 percent in constant currency.

Full-year gross margin stood at 54.8 percent, up 130 basis points, while adjusted gross margin excluding Dickies reached 55.2 percent, up 110 basis points.

Full-year operating income reached 577 million dollars with an operating margin of 6 percent, up 280 basis points. On an adjusted basis excluding Dickies, operating income was 650 million dollars with an adjusted operating margin of 7 percent, reflecting a 110 basis point increase.

Strong fourth quarter performance driven by the Americas

During the fourth quarter of fiscal year 2026 (Q426), total revenues rose 1 percent to 2.17 billion dollars. Excluding Dickies, revenue grew 8 percent reported, or 3 percent in constant currency, outperforming the company's prior guidance of flat to plus 2 percent in constant currency. This represented the strongest quarterly revenue performance for the business in three years on a constant currency basis excluding Dickies.

The revenue acceleration was led by the Americas region, which recorded a 2 percent growth or a 10 percent increase in constant currency excluding Dickies, marking its highest growth rate since the first quarter of fiscal year 2023.

Performance by key brands during the fourth quarter included:

The North Face grew 12 percent reported, or 7 percent in constant currency, supported by a 17 percent revenue increase in the Americas;

Timberland grew 8 percent reported, or 2 percent in constant currency;

Vans declined 1 percent reported, or 5 percent in constant currency, though its Americas direct-to-consumer (D2C) business returned to growth for the first time in over four years.

Fourth quarter operating income was 62 million dollars under GAAP. Adjusted operating income excluding Dickies reached 54 million dollars, exceeding the guided range of 10 million dollars to 30 million dollars.

Strategic transitions and future guidance

The fiscal year was characterized by portfolio optimization, notably the completed sales of the Dickies brand in November 2025 and the Supreme brand in October 2024, the latter being reported under discontinued operations. The group also realigned its reportable segments into Outdoor and Active categories starting in the first quarter of fiscal year 2026.

Bracken Darrell, chief executive officer of VF Corp, noted that the company achieved a full year of growth for the first time in three years, alongside margin expansion and a leverage ratio reduction of a full turn compared to the previous year. Darrell added that Vans is showing momentum through the turnaround of its Americas D2C channel and confirmed the company remains on track to achieve its medium-term targets, which include an exit run rate of a 10 percent operating margin and a leverage ratio of 2.5 times or lower by fiscal year 2028.

Effective fiscal year 2027 (FY27), VF Corp has reinstated annual guidance. The company expects revenue to increase between 1 percent and 2 percent in constant currency compared to the fiscal year 2026 revenue excluding Dickies. It targets an adjusted operating margin of approximately 8 percent.