V.F. Corporation, a well-known global apparel and footwear company that owns brands such as The North Face, Vans, and Timberland, reported a decline in its fourth-quarter results for fiscal year 2025. Total revenue for the quarter was $2.1 billion, down 3% year-over-year, consistent with prior guidance of a 2% to 4% decline.

The company’s revenue was affected primarily by a 20% drop in sales from Vans, which had been down 8% in the previous quarter. In contrast, The North Face grew by 4%, with direct-to-consumer (DTC) sales rising 9%, and Timberland saw a 13% increase in revenue. Excluding Vans, the company’s overall revenue was up by 4%.

Gross margin increased by 560 basis points to 53.4%, driven by lower material costs and reduced discounting strategies. Selling, general, and administrative expenses (SG&A) decreased by 2% due to efficiency measures implemented as part of the company’s Reinvent program.

V.F. Corporation’s adjusted operating margin reached 1% during the quarter, reflecting an increase of 400 basis points versus the prior year. The company reported an adjusted loss per share of $0.13, an improvement from an adjusted loss of $0.30 in Q4 of fiscal 2024.

Net debt was reduced significantly by $1.8 billion, or 26%, bringing the company’s leverage down to 4.1x year-end, ahead of its target of 2.5x by fiscal 2028. The firm’s free cash flow for the fiscal year was $313 million, alongside $401 million when accounting for the sale of non-core assets.

For the first quarter of fiscal 2026, V.F. Corporation expects revenue to decline by 3% to 5%, with an adjusted operating loss projected to be between $110 million and $125 million. The company’s proactive cost management emphasizes their strategic planning amidst the challenging macroeconomic environment.