V.F. Corporation (VFC) reported a narrower-than-expected loss per share of 24 cents for the first quarter of fiscal 2026, beating the Zacks Consensus Estimate of a loss of 35 cents. Revenues were approximately flat year over year at $1.76 billion, exceeding expectations of $1.69 billion. Meanwhile, the gross margin expanded 290 basis points to 54.1% due to better inventory quality and lower discounts.
While revenues in the Americas decreased by 4%, the company experienced growth in the EMEA and APAC regions, with reported revenues up by 4%. The Outdoor segment saw an 8% revenue increase, while the Active segment declined by 10%. VFC ended the quarter with $642.4 million in cash and short-term debt of $3.56 billion.
For Q2 of fiscal 2026, VFC expects a revenue decline of 2% to 4% in constant currency compared to the previous year. The company projects adjusted operating income to range between $260 million and $290 million for the upcoming quarter, with an increase in full-year operating income and cash flow anticipated.
