VF Corporation (NYSE:VFC) stock tumbled Wednesday after the apparel maker reported mixed first-quarter results, as a wider-than-expected adjusted loss overshadowed a revenue beat and a higher full-year sales outlook.

VF Corp. Reports Mixed First-Quarter Results

The company reported an adjusted loss of 27 cents per share, wider than analysts’ expectations for a loss of 22 cents. Revenue fell 5% year over year to $1.67 billion, beating the consensus estimate of $1.64 billion.

Excluding Dickies, revenue increased 1% from a year earlier and was flat on a constant-currency basis, outperforming the company’s guidance for a low-single-digit constant-currency decline.

Adjusted gross margin, excluding Dickies, expanded 10 basis points to 54.9%, while adjusted operating loss, excluding Dickies, narrowed to $95 million, better than the company’s guidance for a $100 million loss.

VF also announced leadership changes, appointing Abhishek Dalmia as chief financial officer and chief operating officer, effective Aug. 1. He succeeds Paul Vogel, who will step down as executive vice president and chief financial officer and transition to an advisory role to support the handover of responsibilities.

The North Face, Timberland Drive Growth

Global direct-to-consumer sales increased 2% year over year, or 5% on a constant-currency basis excluding Dickies, reflecting continued strength in the company’s retail business.

Revenue in the Americas declined 4% year over year. Excluding Dickies, however, regional revenue rose 4% in constant currency, supported by growth across both direct-to-consumer and wholesale channels.

The North Face posted 6% revenue growth, or 4% on a constant-currency basis, driven by strong demand in the Americas and its direct-to-consumer business.

Timberland revenue increased 4%, or 3% in constant currency, led by strength in the Americas.

Vans remained a weak spot, with revenue falling 8% year over year, or 9% in constant currency, as wholesale demand continued to soften.

VF Corp. Raises Revenue Outlook

Despite raising its full-year revenue outlook, VF Corp. CEO Bracken Darrell struck a cautious tone on the quarter, telling investors, “We’re not going to pretend that this quarter was great. It wasn’t.”

He said first-quarter results merely exceeded internal expectations and stressed that the company’s confidence stems from improved visibility into the second half, where management expects stronger performance, particularly at Vans.

VF expects fiscal 2027 revenue to exceed $9.53 billion, above the analyst consensus estimate of $9.50 billion.

The company also raised its full-year constant-currency revenue growth outlook to at least 2%, up from previous guidance of 1% to 2% growth.

VF reaffirmed expectations for an adjusted operating margin of about 8% and said it expects free cash flow to be flat to higher than last year’s $405 million.

Following the results, Needham analyst Tom Nikic maintained a Buy rating while lowering his price forecast to $21 from $25.

VFC Price Action: VF shares were down 18.19% at $14.93 at the time of publication on Wednesday, according to Benzinga Pro data.

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