Financial Data and Key Metrics Changes - Total revenue increased by 2% in reported dollars but decreased by 1% in constant dollars, showing an improving trend compared to the previous quarter [6][19] - Operating income reached $330 million, exceeding guidance of $260 to $290 million [6][19] - Net debt, excluding lease liabilities, decreased by $1.5 billion year-over-year, a reduction of 27% [6][23] - Adjusted earnings per share was $0.52, down from $0.60 in the same quarter last year [22] Business Line Data and Key Metrics Changes - The North Face revenue grew by 4%, with growth in both wholesale and direct-to-consumer channels [8][19] - Timberland also saw a 4% revenue increase, driven by strong demand in the Americas [10][19] - Altra experienced significant growth, with revenue up over 35% year-over-year [12] - Vans revenue declined by 11%, impacted by channel rationalization actions [19][33] Market Data and Key Metrics Changes - The Americas region revenue decreased by 1%, EMEA was flat, and APAC saw a 2% decline [19] - Direct-to-consumer sales were down 2%, while wholesale remained flat [20] Company Strategy and Development Direction - The company is focused on returning to growth and has made progress in its turnaround strategy [5][26] - Plans to divest the Dickies brand for $600 million to pay down debt and focus on core brands [7][17] - Emphasis on product innovation and marketing strategies to drive brand engagement and growth across all brands [9][10][11] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging and unpredictable global environment but expressed confidence in the company's strategy and execution capabilities [5][26] - The company expects Q3 revenue to decline by 1% to 3% in constant dollars, with a focus on the upcoming holiday season [23][24] - Management remains optimistic about the consumer's resilience despite macroeconomic uncertainties [68] Other Important Information - The company is on track to achieve medium-term targets of $500 to $600 million in operating income expansion by fiscal 2028 and a leverage ratio of 2.5 times or below [25][26] - Free cash flow through Q2 was negative $453 million, consistent with expectations due to seasonal working capital needs [22] Q&A Session Summary Question: Path back to growth for Vans - Management indicated that increasing product newness and improved marketing strategies are key to returning Vans to growth, with expectations for better performance in upcoming quarters [31][33] Question: Gross margins and cost discipline - Management noted that gross margins were impacted by FX and lower promotions, but overall cost discipline initiatives are on track [39][42] Question: Promotional recapture and pricing strategies - Management confirmed that they are operating in a lower promotional environment and are strategically planning pricing actions for the holiday season [47][49] Question: Health of The North Face brand - Management expressed confidence in The North Face's brand health and market share opportunities, emphasizing the importance of product execution [98][100] Question: Ongoing debt deleveraging - Management is focused on achieving a leverage ratio of 2.5 times by 2028 through operational improvements and divestitures [122]

Financial Data and Key Metrics Changes - Total revenue increased by 2% in reported dollars but decreased by 1% in constant dollars, showing an improving trend compared to the previous quarter [6][19] - Operating income reached $330 million, exceeding guidance of $260 million - $290 million [6][19] - Net debt, excluding lease liabilities, decreased by $1.5 billion year-over-year, representing a 27% reduction [6][23] - Adjusted earnings per share was $0.52, down from $0.60 in the same quarter last year [22] Business Line Data and Key Metrics Changes - The North Face revenue grew by 4%, with growth in both wholesale and direct-to-consumer channels [8][19] - Timberland also saw a 4% revenue increase, driven by strong demand in the Americas [10][19] - Altra experienced significant growth, with revenue up over 35% year-over-year [12] - Vans revenue declined by 11%, impacted by channel rationalization actions [14][19] Market Data and Key Metrics Changes - The Americas region revenue was down 1%, EMEA was flat, and APAC decreased by 2% [19] - Direct-to-consumer sales were down 2%, while wholesale remained flat [20] Company Strategy and Development Direction - The company is focused on returning to growth and has made progress in its turnaround strategy, with 65% of its business by revenue growing [6][7] - Plans to divest the Dickies brand for $600 million to pay down debt and focus on core brands [8][17] - Emphasis on product innovation and marketing strategies to drive brand engagement and growth across all brands [9][10][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertain global environment but expressed confidence in the company's strategy and ability to execute [5][26] - The company expects Q3 revenue to decline by 1% to 3% in constant dollars, but remains optimistic about the holiday season [23][26] - Management highlighted the importance of maintaining a lower promotional environment while preparing for price increases in Q4 [46][48] Other Important Information - Free cash flow through Q2 was -$453 million, consistent with expectations due to seasonal working capital needs [22] - The company is on track to achieve medium-term targets of $500 million - $600 million in operating income expansion by fiscal 2028 [25] Q&A Session Summary Question: Path back to growth for Vans - Management indicated that increasing new product offerings and enhancing marketing strategies are key to returning Vans to growth, with expectations of improved performance as new products are introduced [30][32] Question: Gross margins and cost discipline - Management noted that gross margins were impacted by FX and lower promotions, but overall cost discipline initiatives are on track [38][41] Question: Promotional recapture and pricing plans - Management confirmed that they are well on track with promotional recapture and expect to operate in a lower promotional environment moving forward [46][48] Question: Performance in Asia - Management acknowledged a stabilizing period in APAC, particularly in China, but remains optimistic about growth opportunities in other regions [57][60] Question: Debt deleveraging strategy - Management expressed confidence in achieving a leverage ratio of 2.5 times or below by 2028, focusing on fundamental improvements and growing EBITDA [121]

Financial Data and Key Metrics Changes - Total revenue increased by 2% in reported dollars but decreased by 1% in constant dollars, showing an improving trend compared to the previous quarter [5][18] - Operating income reached $330 million, exceeding the guidance range of $260 to $290 million [5][18] - Net debt, excluding lease liabilities, decreased by $1.5 billion year-over-year, representing a 27% reduction [5][21] - Adjusted earnings per share was $0.52, down from $0.60 in the same quarter last year [20] Business Line Data and Key Metrics Changes - The North Face revenue grew by 4%, with growth in both wholesale and direct-to-consumer channels [6][18] - Timberland also saw a 4% revenue increase, driven by strong demand in the Americas [9][18] - Altra experienced significant growth, with revenue up over 35% compared to last year [11] - Vans revenue declined by 11%, attributed to channel rationalization actions [12][18] Market Data and Key Metrics Changes - The Americas region saw a 1% revenue decline, while EMEA was flat and APAC decreased by 2% [18] - Direct-to-consumer sales were down 2%, while wholesale remained flat [19] Company Strategy and Development Direction - The company is focused on returning to growth and has made progress in its turnaround strategy, with 65% of its business by revenue now growing [5][24] - Plans to sell the Dickies brand were announced, with a sale price of $600 million, aimed at reducing debt and focusing on core brands [6][16] - The company is committed to improving brand performance and expanding market share, particularly in underdeveloped regions like the Americas [50] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertain global environment but expressed confidence in the company's strategy and ability to execute [25] - The company expects Q3 revenue to decline by 1% to 3% on a constant dollar basis, with a focus on the upcoming holiday season [21][25] - There is optimism about the potential for growth in the Americas and the overall global profile of the company [50] Other Important Information - The company is working towards medium-term targets of $500 to $600 million in operating income expansion by fiscal 2028 and a leverage ratio of 2.5 times or below [24] - Free cash flow through Q2 was negative $453 million, consistent with expectations due to seasonal working capital needs [20] Q&A Session Summary Question: Can you discuss the path back to growth for Vans? - Management indicated that increasing new product offerings and enhancing marketing strategies are key to returning Vans to growth, with expectations for improved performance in upcoming quarters [28][31] Question: Can you provide more details on gross margins? - Gross margins were impacted by foreign exchange and lower promotions, with expectations for continued improvement as pricing actions take effect in Q4 [35][43] Question: What are the initial signs from retailers regarding holiday orders? - Management noted it is too early to assess retailer behavior for the holiday season but expressed optimism based on product readiness and planning [55] Question: How is the company addressing tariffs and pricing? - The company plans to implement pricing actions in Q4 to offset tariffs, with expectations to mitigate the impact by fiscal 2027 [79][80] Question: What is the outlook for debt deleveraging? - Management is confident in achieving debt reduction targets through operational improvements and the sale of non-core assets, with a focus on growing EBITDA [92][93]

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分组1 - V.F. reported quarterly earnings of $0.51 per share, exceeding the Zacks Consensus Estimate of $0.42 per share, but down from $0.6 per share a year ago, resulting in an earnings surprise of +21.43% [1] - The company achieved revenues of $2.8 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 2.72%, although this is a slight decrease from year-ago revenues of $2.76 billion [2] - V.F. has surpassed consensus EPS estimates in all four of the last quarters and has topped consensus revenue estimates three times during the same period [2] 分组2 - The stock has underperformed the market, losing about 22.6% since the beginning of the year compared to the S&P 500's gain of 16.9% [3] - The current consensus EPS estimate for the upcoming quarter is $0.56 on revenues of $2.88 billion, and for the current fiscal year, it is $0.74 on revenues of $9.57 billion [7] - The Zacks Industry Rank indicates that the Textile - Apparel sector is currently in the bottom 13% of over 250 Zacks industries, suggesting potential challenges for stocks in this category [8]

Core Insights - VF Corp. is successfully executing its turnaround plan, exceeding Wall Street's expectations in Q2 with a net income of $189.8 million, or 48 cents per diluted share, compared to $52.2 million, or 13 cents, in the same period last year [1][2] - Revenues increased by 1.6% to $2.80 billion from $2.76 billion, with direct-to-consumer sales down 1% to $909.9 million and wholesale sales up 3% to $1.89 billion [1][5] Financial Performance - Operating income reached $313 million, or $330 million on an adjusted basis, surpassing guidance of $260 million to $290 million [5] - Operating margin improved to 11.2%, up 130 basis points from the previous year, while gross margin remained flat at 52.2% [5] - Net debt decreased by $1.5 billion, indicating improved financial health [5] Brand Performance - Revenue growth was observed in The North Face (up 6% to $1.16 billion) and Timberland (up 7% to $506.4 million), while Vans experienced a decline of 9% to $606.9 million [6] - The North Face saw strong performance in performance apparel across all regions, with double-digit growth in transitional outerwear and footwear [6][7] Strategic Initiatives - The company announced the pending sale of its Dickies brand for $600 million, which is expected to enhance investment capacity and drive shareholder returns [3][4] - The sale proceeds will be used to pay down debt and are projected to be accretive to VF's growth rate [4] Regional Sales Performance - Sales in the Americas decreased by 1% to $1.34 billion, while EMEA sales increased by 6% to $1.07 billion, and APAC sales fell by 2% [8] Future Guidance - For Q3, the company anticipates revenues to decline by 1% to 3%, with adjusted operating income projected between $275 million to $305 million [9][10] - For Fiscal Year 2026, free cash flow is expected to increase compared to the previous year, along with an increase in adjusted operating income [9]

Financial Performance - Q2'26 revenue increased by 2% compared to the previous year (LY), but decreased by 1% in constant dollars (C$)[22, 23] - Operating income (OI) reached $313 million, with an adjusted OI of $330 million, exceeding guidance and showing a 5% increase compared to LY, or 1% in C$[22, 24, 26] - Net debt decreased by $1.5 billion, a 21% reduction compared to LY[22, 23, 33, 36] - Adjusted EPS was $0.52, compared to $0.60 in the previous year[23, 24] Brand Performance - The North Face® experienced a 6% revenue increase compared to LY, or 4% in C$[24, 32, 40] - Timberland® saw a 7% revenue increase compared to LY, or 4% in C$[24, 32, 44] - Vans® revenue declined by 9% compared to LY, or 11% in C$, but showed sequential improvement[24, 32, 42] Strategic Initiatives - VF is selling Dickies® to Bluestar Alliance for $600 million[16, 18, 27] - The sale of Dickies® is expected to be accretive to VF's growth rate and enhance the company's capacity to invest in its portfolio[22, 27] Outlook - Q3'26 revenue is projected to decline by 3% to 1% in C$ compared to LY, with an adjusted OI of $275 million to $305 million[22, 50] - FY'26 free cash flow, adjusted OI, and operating cash flow are expected to increase compared to LY[22, 50] Adjustments - Adjusted amounts exclude Reinvent-related costs of approximately $15 million in Q2'26 and $46 million for the first six months of Fiscal 2026[7] - Adjusted amounts exclude transaction and deal-related costs of approximately $2 million in Q2'26 and the first six months of Fiscal 2026, associated with the pending divestiture of Dickies[8]

Vans parent VF Corp posted better-than-expected results for the second quarter on Tuesday, helped by strong demand for its footwear, bags and lifestyle apparel, even as economic uncertainty looms. ...

Revenue Performance - Q2'26 revenue reached $2.8 billion, representing a 2% increase year-over-year, or a decrease of 1% in constant currency[5] - The North Face® and Timberland® brands grew by 6% and 7% year-over-year, respectively, while Vans® revenue declined by 9%[5] - Revenues for the three months ended September 2025 were $2,802.7 million, representing a 1.6% increase from $2,757.9 million in the same period of 2024[29] - Total revenues for the six months ended September 2025 were $4,563.4 million, a 0.8% increase from $4,527.0 million in the same period of 2024[29] - The Outdoor segment generated revenues of $1,663.5 million for the three months ended September 2025, while the Active segment contributed $760.8 million[34] Profitability Metrics - Adjusted operating income was $330 million, significantly above the guidance of $260 million to $290 million, and up 5% year-over-year[5] - Operating margin improved to 11.2%, an increase of 130 basis points compared to the previous year[5] - Gross profit margin for the three months ended September 2025 was 52.2%, consistent with the previous year[29] - Operating income for the three months ended September 2025 was $330.1 million, up from $315.2 million in the same period of 2024, reflecting an increase in operating margin from 11.4% to 11.8%[29] - EPS for Q2'26 was $0.48, with adjusted EPS at $0.52, down from $0.60 in the prior year[5] - Diluted earnings per share from continuing operations for the three months ended September 2025 were $0.52, compared to $0.60 in the same period of 2024[29] Financial Health - Net debt decreased by $1.5 billion, or 21% year-over-year, indicating improved financial health[5] - The company announced the pending sale of Dickies® for $600 million, aimed at enhancing investment capacity[2] - The company declared a quarterly dividend of $0.09 per share, payable on December 18, 2025[7] Future Projections - Q3'26 revenue is projected to decline between 3% to 1% year-over-year[5] - FY'26 free cash flow is expected to increase compared to the previous year, including known tariff impacts[5] - The company expects the consulting contract related to the Reinvent program to be substantially complete by the third quarter of Fiscal 2026, with contingent fees tied to stock price increases through June 2027[24] Restructuring and Charges - Total restructuring charges related to the Reinvent program were $15.5 million for the three months ended September 2025, with a total of $211.7 million incurred to date[24] - Transaction and deal-related activities associated with the pending divestiture of Dickies totaled $2.0 million for the three and six months ended September 2025[25] Currency and Reporting - VF reports financial information in U.S. dollars in accordance with GAAP, with foreign currency exchange rate fluctuations significantly affecting reported operating results[40] - Constant currency financial information is presented as a non-GAAP measure to assess business performance excluding foreign currency translation effects[40] - Operating results for the current year are translated into U.S. dollars at the average exchange rates of the comparable prior year period for constant currency calculations[41] - Constant currency performance measures should be viewed in addition to GAAP operating performance measures, not as a substitute[42]

Core Viewpoint - V.F. Corporation is expected to report a strong quarter, with CEO Bracken Darrell's recent stock purchases indicating confidence in the company's performance [1]. Company Overview - V.F. Corporation designs and markets branded apparel, footwear, and accessories across outdoor, active, and work categories, with well-known brands such as The North Face, Vans, Timberland, and Dickies [2]. - The company has faced challenges in the apparel sector but is showing signs of recovery under the leadership of CEO Bracken Darrell, who was brought in two years ago to turn the company around [2]. Recent Performance - The company reported a "magnificent quarter," leading to a stock increase of at least 3% on the day of the announcement, although it had been higher earlier in the day [2]. - The stock had previously struggled, being described as a "real dog" for a long time, but recent developments suggest a positive turnaround [2].