Full-year revenue increased 1% year-on-year to US$9.60 billion, while revenue excluding the Dickies brand, which was sold during the third quarter, rose 4% year-on-year. Operating income reached US$576.56 million, with operating margin increasing to 6.0% from 3.2% a year earlier. Free cash flow totalled US$405 million, up more than US$90 million from the previous year.
Q4 revenue increased 1% year-on-year to US$2.16 billion. Excluding Dickies, revenue rose 8% year-on-year, or 3% in constant currency, exceeding guidance of flat to 2% growth. Operating income for the quarter was US$61.504 million.
Growth in the quarter was driven by the Americas region, where revenue increased 2% year-on-year. The North Face posted revenue growth of 12%, while Timberland grew 8%. Vans revenue declined 1% year-on-year, although the brand returned to growth in its Americas direct-to-consumer business for the first time in more than four years.
Looking ahead, the company reinstated annual guidance for fiscal 2027 and expects revenue growth of 1% to 2% in constant currency, an adjusted operating margin of approximately 8%, free cash flow flat to higher than fiscal 2026 levels, and a leverage ratio of 2.6x to 2.9x by year-end.
