🔹 Revenue: $1.76B (Est. $1.70B) 🟢; FLAT YoY or DOWN -2% Constant Currency
🔹 Adj. EPS: ($0.24) (Est. ($0.33)) 🟢
🔹 Adj. Operating Loss: ($56M) vs. guide of ($125M) to ($110M); 🟢
🔹 Adj. Operating Margin: -3.2%; UP +270 bps YoY
🔹 Adj. Gross Margin: UP +290 bps YoY
🔹 SG&A: FLAT YoY (Adjusted)
🔹 Net Debt: DOWN -$1.4B or -20% YoY
Q1 Segments (YoY):
🔹 The North Face®: STRONG growth
🔹 Timberland®: POSITIVE momentum
🔹 Vans®: DOWN -14% YoY (channel rationalization)
🔹 Altra®: STRONG growth
🔹 Excluding Vans®, Total Revenue: UP +6% YoY
Guidance:
Q2 FY26
🔹 Revenue: DOWN -4% to -2% Constant Currency
🔹 Adj. Operating Income: $260M–$290M
FY26 Outlook
🔹 Free Cash Flow: UP YoY (includes tariff impact)
🔹 Adj. Operating Income: UP YoY
🔹 Operating Cash Flow: UP YoY
CEO Commentary:
🔸 “We performed ahead of expectations, improving our topline trend and delivering a stronger bottom line.” – Bracken Darrell, CEO
🔸 “We’re reducing debt, lowering costs, and resetting VF for growth.”
🔸 “Soon we will move to growth—that’s what the entire organization is now focused on.”