Revenue Performance: The reported revenue of $1.76 billion showed a flat trend compared to Q1 2025, but a decrease of 2% when adjusted for constant currency, beating guidance that anticipated a decline of 3% to 5%. North Face and Timberland displayed resilience, achieving 5% and 9% revenue growth, respectively, while Vans struggled with a 15% decline.
Profitability: Adjusted gross margin increased to 54.1%, reflecting strategic improvements in inventory management and lower discounting policies. The adjusted operating margin was negative 3.2%, an improvement of 270 basis points year-over-year despite the overall negative performance.
Cash Flow: The company reported a negative consolidated operating cash flow of -$145 million and a decline in free cash flow of $174 million, attributed mainly to timing shifts in working capital.
Balance Sheet Health: VF Corporation recorded total assets of $10.15 billion against total liabilities of $8.86 billion, maintaining a relatively healthy balance sheet with a reduction in net debt by $1.4 billion or 20% year-on-year, aided by cost-cutting initiatives.