Key Takeaways
- VF Corp. shares tumbled in premarket trading Wednesday as the clothing maker’s sales forecast was worse than expected.
- Sales for the first quarter of fiscal 2026 are expected to decline 3% to 5%, while analysts had forecast a small increase.
- The North Face, Vans, and Timberland parent said it is “exploring strategic pricing actions” among its responses to tariffs.
Shares of VF Corp. (VFC) sank 12% in premarket trading Wednesday after the parent of apparel brands’ current-quarter sales outlook came in well worse than estimates.
The North Face, Vans, and Timberland parent said it expects fiscal 2026 first-quarter revenue to be down 3% to 5% year-over-year, while analysts surveyed by Visible Alpha had expected it to rise 0.1%. VF Corp. also sees an adjusted operating loss of $110 million to $125 million, far wide than projections of $50.3 million.
VF Corp.’s fiscal 2025 fourth-quarter revenue came in at $2.14 billion, narrowly below estimates, while its adjusted loss per share of $0.13 was in line with forecasts.
VF Corp. ‘Exploring Strategic Pricing Actions,’ Other Responses to Tariffs
CEO Bracken Darrell said the company is “well-positioned to navigate increased volatility in the macro environment,” and said its brands are expected to return to growth. The company said it is “accelerating production and shipments into the U.S.” while many tariffs are temporarily paused, and is also working to optimize its supply chain and “exploring strategic price actions.”
The company said less than 2% of its products come from China, with its four largest import countries being Vietnam, Bangladesh, Indonesia, and Cambodia. Some 85% of its imports come from southeast Asia, Central America, and South America.
Shares had lost roughly a third of their value this year entering Wednesday.
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