VF Corp. Raises Fiscal 2027 Sales Outlook as Outdoor Growth Offsets Vans

VF Corporation VFC raised its fiscal 2027 constant-currency revenue outlook to growth of 2% or better, up from its previous 1-2% range, after first-quarter performance exceeded management’s revenue and operating-income expectations. The upgrade signals improving visibility across much of the portfolio, but investors still need to assess whether strength in Outdoor and smaller brands can compensate for a Vans recovery that remains incomplete.

Crocs, Inc. CROX offers a useful casual-footwear comparison. Its second-quarter 2026 revenues reached a record $1.18 billion, while the Crocs Brand topped $1 billion in quarterly revenues even as HEYDUDE revenues declined 5.7%.

Under Armour, Inc. UAA is another consumer-brand turnaround facing uneven demand. Its first-quarter fiscal 2027 revenues declined 3%, footwear revenues fell 8% and the company lowered its full-year revenue outlook to a mid-single-digit decline while maintaining its profitability outlook.

VFC's Q1 Beat Supports the Higher Outlook

First-quarter revenues, excluding Dickies, were flat in constant currency, better than management’s expectation for a low-single-digit decline. Adjusted operating loss excluding Dickies came to $95 million compared withs guidance for roughly $100 million, providing another reason for management to become more constructive on full-year revenue.

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VFC Outdoor Growth Anchors the Revenue Raise

Outdoor segment revenues increased 5% year over year, with The North Face up 4% in constant currency and Timberland up 3%. Outdoor also showed channel breadth, as reported DTC revenue increased 9% and wholesale rose 3%, reinforcing the segment’s role as VFC’s principal growth engine while Vans remains under pressure.

VFC Still Needs Vans to Improve in the Second Half

Vans revenue fell 9% in constant currency in the first quarter, and management expects a roughly similar decline in the second quarter. The full-year outlook assumes a meaningful improvement thereafter, with Vans expected to decline by a mid-single-digit rate for fiscal 2027 and combined third and fourth-quarter revenues expected to fall 2% or better as wholesale assortments refresh.

VFC's Broader Portfolio Adds Support

The guidance increase is not resting solely on The North Face and Timberland. Altra grew at a double-digit rate, Smartwool also posted double-digit growth, and JanSport and Kipling contributed to improved packs performance, while DTC revenues excluding Dickies increased 5% in constant currency. That broader participation reduces VFC’s dependence on a rapid Vans rebound to generate companywide growth.

VFC Keeps Margin and Leverage Goals Intact

VFC maintained its fiscal 2027 adjusted operating-margin target of about 8% despite continued investment in marketing and DTC initiatives. Management also continues to expect free cash flow to be flat to higher than fiscal 2026’s $405 million and year-end leverage of 2.6-2.9 times, making profitability and balance-sheet execution important confirmations of the stronger revenue outlook.

VFC's Scores Temper the Guidance Upside

VFC carries a Zacks Rank #3 (Hold), suggesting the improved outlook has not yet translated into a clearly favorable near-term earnings signal. Its Value Score of A and VGM Score of B offer support, but the Growth Score of C and Momentum Score of F underscore why investors may still want evidence that Vans’ second-half improvement and VFC’s margin targets are materializing. 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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