VF Corp beats Q1 revenue estimates, raises FY27 outlook

Overview

• U.S. apparel group reported fiscal Q1 revenue down 5% yr/yr, beating analyst expectations

• Adjusted loss per share for fiscal Q1 missed analyst expectations

• Company raised full-year revenue outlook to at least 2% growth

Outlook

• VF Corp raises FY27 revenue outlook to +2% or better C$ vs. LY

• Company expects FY27 adjusted operating margin of approximately 8%

• VF Corp sees FY27 free cash flow flat to up vs. LY of $405 mln

Result Drivers

• BRAND PERFORMANCE - The North Face, Timberland and Altra delivered growth, with The North Face up 6% and Timberland up 4% yr/yr, led by the Americas and DTC channels

• VANS WEAKNESS - Vans revenue fell 8% yr/yr, with growth in Americas DTC more than offset by declines in global wholesale

• AMERICAS STRENGTH - Americas region revenue ex Dickies grew 4% in constant currency, with growth across both channels

Company press release: ID:nBw52Hf7ra

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 9 "strong buy" or "buy", 12 "hold" and 3 "sell" or "strong sell"

• The average consensus recommendation for the apparel accessories peer group is "buy."

• Wall Street's median 12-month price target for VF Corp is $18.00, about 1.4% above its July 28 closing price of $18.25

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 16 three months ago

Reuters Recommended Reads

• July 28 - Rocky Brands Q2 profit beats on on tariff refunds, strong demand

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• July 28 - Kering's H1 revenue edges past estimates on Gucci improvement, North America demand

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)