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Introduction & Market Context
VF Corporation (NYSE:VFC) presented its fiscal second-quarter 2026 earnings on October 28, 2025, revealing better-than-expected performance and strategic portfolio changes. The apparel and footwear company, which owns brands including The North Face, Vans, and Timberland, saw its stock rise 0.36% in pre-market trading to $16.67, though it later declined 4.49% during regular trading hours.
The company continues to execute its turnaround strategy under CEO Bracken Darrell, who highlighted progress across multiple fronts. "We're making progress on our turnaround plan with broad-based growth for The North Face and Timberland, moderating declines in Vans, and we're focused on generating value and profitable growth," Darrell stated in the presentation.
Quarterly Performance Highlights
VF Corp reported revenue of $2.8 billion for Q2 2026, representing a 2% increase year-over-year, or a 1% decline in constant currency. This performance exceeded the company's guidance range, which had projected a 2-4% constant currency decline. Adjusted operating income reached $330 million, significantly above the guidance range of $260-290 million.
The company attributed this outperformance to better-than-expected back-to-school results, early wholesale demand, and lower-than-anticipated adjusted SG&A expenses due to timing shifts.
As shown in the following chart comparing guidance to actual results:
Adjusted earnings per share came in at $0.52, while reported EPS was $0.48. The sequential improvement in revenue growth continues a positive trend for the company, as illustrated in the following chart:
Brand Performance
Performance varied significantly across VF Corp's brand portfolio. The North Face and Timberland continued their growth trajectories, while Vans showed sequential improvement despite ongoing declines.
The North Face achieved 6% revenue growth (4% in constant currency), with broad-based growth across all three regions and in both direct-to-consumer and wholesale channels. The brand saw particular strength in performance apparel and celebrated the 25th anniversary of its Summit Series.
Timberland posted 7% growth (4% in constant currency), marking its fourth consecutive quarter of growth. The Americas region was particularly strong with 11% growth, driven by demand for the iconic 6" Premium boot.
The following chart breaks down revenue trends by brand, region, and channel:
Vans, while still declining at 9% (11% in constant currency), showed sequential improvement from previous quarters. The company noted that product newness is drawing in new consumers, with improving digital traffic trends in the Americas and EMEA regions. VF also announced a multi-year partnership with artist SZA as Vans' first-ever Artistic Director.
Among other brands, Altra stood out with over 35% growth, while Smartwool's direct-to-consumer business grew by double digits.
Strategic Initiatives
The most significant strategic announcement was the planned sale of the Dickies workwear brand to Bluestar Alliance for $600 million. VF Corp indicated that the transaction is both financially and strategically attractive, with proceeds earmarked for debt reduction.
The company emphasized that the sale will be accretive to VF's growth rate and enhance its capacity to invest in the remaining portfolio. This move represents a key step in the company's ongoing portfolio reshaping efforts.
The following slide details the Dickies transaction:
Balance Sheet Improvements
VF Corp has made substantial progress in strengthening its financial position. Net debt decreased by $1.5 billion or 21% year-over-year, with net debt excluding lease liabilities down 27%. This reduction significantly improves the company's financial flexibility.
Inventory management also showed improvement, with net inventories (excluding Dickies) down 4% year-over-year, or 5% in constant currency. The company paid $35 million in cash dividends during the quarter, maintaining its long-standing dividend program.
The following chart illustrates the company's debt reduction progress:
Forward-Looking Guidance
Looking ahead to Q3 2026, VF Corp provided guidance for revenue to decline 1-3% in constant currency compared to the prior year. Adjusted operating income is projected at $275-305 million.
The company indicated it is well-positioned for the holiday period, with adjusted SG&A dollars expected to be slightly up year-over-year. The guidance includes known and anticipated tariff impacts, which the company continues to address through various mitigation strategies.
The following slide outlines the company's Q3 and full-year guidance:
For the full fiscal year 2026, VF Corp expects free cash flow to increase compared to the previous year, and remains on track with its broader financial plans. The company continues to focus on its turnaround strategy, with emphasis on product innovation, marketing relevance, and operational efficiency.
With the pending Dickies sale and ongoing brand revitalization efforts, particularly for Vans, VF Corp's presentation suggests the company is making measured progress in its multi-year transformation journey while continuing to strengthen its financial foundation.
Full presentation:
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