Financial Data and Key Metrics Changes - Total revenue for Q3 was $2.8 billion, up 2% year-over-year on a constant dollar basis, exceeding guidance of a decline of 1%-3% [18] - Operating income was $341 million, with net debt down almost $600 million or nearly 20% compared to last year [8][22] - Adjusted gross margin was up 10 basis points year-over-year, reaching 54.5% or better, with operating margin at 12.1%, up 30 basis points year-over-year [21][25] Business Line Data and Key Metrics Changes - The North Face revenue grew 5%, with a notable 15% increase in the Americas [9][18] - Timberland revenue was up 5%, reflecting growth across all channels [11][18] - Altra showed strong growth of 23% year-over-year, with expectations to exceed $250 million in revenue for fiscal 2026 [13] - Vans revenue declined 10%, consistent with previous quarters, but showed signs of improvement in digital sales [14][18] Market Data and Key Metrics Changes - The Americas region performed strongly, up 6%, while EMEA was down 3% and APAC down 4% [19] - Direct-to-Consumer (DTC) sales were up 3%, marking the first positive quarter in two years, driven by strong e-commerce performance [19] Company Strategy and Development Direction - The company is focused on premiumization, particularly for The North Face, with a systematic approach to enhance product offerings [98] - A new flagship store for The North Face was opened in New York, aiming to reimagine physical retail [10] - The leadership team is undergoing a transition, with Brent Hyder becoming the Chief Commercial Officer [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the turnaround, citing multiple growth engines and positive trends despite a challenging environment [30] - The company expects Q4 revenue to be flat to up 2% on a constant dollar basis, with a positive FX benefit of about 5% [22][23] - Management is cautious about consumer sentiment but believes they have control over many operational levers [30] Other Important Information - The company plans to prepay EUR 500 million notes in March 2026, further reducing debt levels [22] - The impact of tariffs was noted, with an unmitigated impact of approximately $40 million in Q3 [20] Q&A Session Summary Question: How is the company assessing consumer demand and potential erosion? - Management is optimistic about their control over operational levers and believes they can navigate a choppy environment [30] Question: What is the outlook for gross margin? - Management is confident in reaching the 55% target and believes they can mitigate tariff impacts moving forward [31] Question: What is the underlying trend for Vans? - The underlying trend for Vans remains down high single digits, but there are signs of improvement expected in Q4 [38][45] Question: How is the company viewing the performance of The North Face in the Americas? - Management sees significant growth potential in the Americas and believes the recent performance is sustainable [51] Question: What are the expectations for DTC versus wholesale for Vans? - DTC, particularly e-commerce, is prioritized, with expectations for improvement in physical store traffic over time [97]

V.F. (NYSE:VFC) Q3 2026 Earnings call January 28, 2026 08:00 AM ET Company ParticipantsAllegra Perry - VP of Investor RelationsBracken Darrell - CEOBrooke Roach - Managing Director of Equity ResearchJay Sole - Managing DirectorMichael Binetti - Senior Managing DirectorPaul Vogel - EVP and CFOTom Nikic - Managing DirectorTracy Kogan - VPConference Call ParticipantsAdrienne Yih - Managing Director of Consumer Discretionary AnalystJonathan Komp - Senior Research Analyst of Active LifestylesSimeon Siegel - Seni ...

Financial Data and Key Metrics Changes - Total revenue for Q3 fiscal 2026 was $2.8 billion, up 2% year-over-year, exceeding guidance of a decline of 1%-3% [17] - Operating income was $341 million, stronger than anticipated, contributing to a positive financial performance [6] - Reported net debt, excluding lease liabilities, decreased by almost $600 million, or nearly 20% year-over-year [6] Business Line Data and Key Metrics Changes - The North Face revenue increased by 5%, with a notable 15% growth in the Americas [7] - Timberland revenue rose by 5%, driven by strong performance across both wholesale and DTC channels [10] - Altra experienced significant growth of 23%, with expectations to exceed $250 million in revenue for fiscal 2026 [12] - Vans revenue declined by 10%, consistent with previous quarters, but showed signs of improvement in digital sales [12][13] Market Data and Key Metrics Changes - The Americas region saw a strong performance, up 6%, while EMEA and APAC regions experienced declines of 3% and 4%, respectively [18] - DTC sales increased by 3%, marking the first positive quarter in two years, primarily driven by e-commerce [18] Company Strategy and Development Direction - The company is focusing on premiumization, particularly for The North Face, with plans to systematically enhance product offerings [94] - A new flagship store for The North Face was opened in New York, reflecting a reimagined approach to physical retail [9] - The company aims to reduce debt and leverage, targeting a leverage ratio of 2.5 times by fiscal 2028 [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a challenging consumer environment, citing strong internal controls and growth initiatives [28] - The company anticipates flat to up 2% revenue growth for Q4, with expectations for continued improvement in gross margin [20][22] Other Important Information - The company is experiencing a shift in marketing strategy, focusing on social-first approaches to enhance brand visibility [10] - A leadership transition was announced, with Brent Hyder becoming the new Chief Commercial Officer [15] Q&A Session Summary Question: Consumer demand erosion due to price increases - Management acknowledged the potential impact of price increases on consumer sentiment but expressed confidence in their ability to drive growth through various strategic levers [28] Question: Gross margin expectations - Management indicated that they are close to their gross margin target of 55% and are optimistic about future improvements despite tariff impacts [30] Question: Vans brand performance - Management confirmed that Vans' underlying trend remains down high single digits but noted improvements in e-commerce and product innovation [38][44] Question: North Face's sequential acceleration - Management highlighted strong growth in the Americas for The North Face and expressed optimism about future performance, citing underdeveloped market potential [47] Question: Traffic improvement in Vans stores - Management reported that while online traffic improved, physical store traffic has not yet seen significant gains, but they remain optimistic about future growth [60] Question: Premiumization strategy for North Face - Management explained that premiumization is a strategic focus due to market opportunities, with a systematic approach to enhancing product offerings [94] Question: Guidance for future quarters - Management is considering reintroducing full-year guidance but emphasized the importance of predictability before doing so [100]

分组1 - V.F. reported quarterly earnings of $0.58 per share, exceeding the Zacks Consensus Estimate of $0.43 per share, but down from $0.62 per share a year ago, resulting in an earnings surprise of +34.88% [1] - The company achieved revenues of $2.88 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 4.26% and showing an increase from $2.83 billion year-over-year [2] - V.F. has outperformed the S&P 500 with a share price increase of about 12.2% since the beginning of the year, compared to the S&P 500's gain of 1.9% [3] 分组2 - The earnings outlook for V.F. is mixed, with the current consensus EPS estimate for the coming quarter at -$0.01 on revenues of $2.07 billion, and $0.64 on revenues of $9.15 billion for the current fiscal year [7] - The Zacks Industry Rank indicates that the Textile - Apparel sector is currently in the top 20% of over 250 Zacks industries, suggesting a favorable environment for V.F. [8] - Another company in the same industry, LuxExperience B.V. - Sponsored ADR, is expected to report a quarterly loss of $0.08 per share, reflecting a significant year-over-year decline of -157.1% [9]

Q3'26 EARNINGS JANUARY 28, 2026 Financial Presentation Disclosure All per share amounts are presented on a diluted basis. This presentation refers to "reported" (R$) and "constant dollar" (C$) or "constant currency" amounts, terms that are described under the heading below "Constant Currency - Excluding the Impact of Foreign Currency." Unless otherwise noted, "reported" and "constant dollar" or "constant currency" amounts are the same, and amounts will be as "reported" unless otherwise specified. This prese ...

Core Insights - VF Corp, the parent company of Vans, reported third-quarter revenue that exceeded analysts' expectations, driven by strong demand for footwear, bags, and lifestyle apparel despite ongoing economic uncertainties [1] Financial Performance - The company experienced robust sales in its footwear segment, contributing significantly to the overall revenue growth [1] - Revenue figures for the third quarter were reported to be above market estimates, indicating a positive trend in consumer spending within the lifestyle apparel sector [1] Market Demand - Continued strength in demand for Vans products, including footwear and bags, highlights the brand's resilience in a challenging economic environment [1] - The lifestyle apparel market remains strong, suggesting a favorable outlook for companies operating in this space [1]

Revenue Performance - VF Corporation reported a revenue increase of 1% year-over-year, with adjusted revenue growth of 4% excluding Dickies®[4] - The Americas region showed a 2% revenue increase year-over-year, with a 6% increase on a constant dollar basis when excluding Dickies®[7] - Global direct-to-consumer (DTC) sales turned positive, growing by 4% year-over-year, driven by digital performance[7] - Revenues for the three months ended December 2025 were $2,875.8 million, with a gross profit of $1,628.3 million, representing a gross margin of 56.6%[27] - For the nine months ended December 2025, revenues totaled $7,439.2 million, with a gross profit of $4,039.8 million, yielding a gross margin of 54.3%[27] - Total revenues for the Outdoor segment were reported at $1,926.0 million for the three months ended December 2025, with a segment profit of $407.7 million[40] - Total revenues for the Active segment were $671.8 million for the same period, with a segment loss of $4.6 million[40] - Total revenues for the nine months ended December 2025 were $7,439.2 million, with a total segment profit of $784.2 million[45] - The Outdoor segment's revenues for the nine months ended December 2025 were $4,401.9 million, with a segment profit of $666.2 million[45] Profitability Metrics - Gross margin improved to 56.6%, up 30 basis points compared to the previous year, while operating margin increased to 10.1%, up 210 basis points year-over-year[4] - Operating income reached $289 million, compared to $226 million in the same quarter last year, reflecting a significant improvement[4] - Operating income for the same period was $289.1 million, equating to an operating margin of 10.1%[27] - The diluted earnings per share from continuing operations for the three months ended December 2025 was $0.58[27] - The diluted earnings per share change from continuing operations was reported at 76% for the three months ended December 2025[40] Strategic Actions and Future Outlook - The company expects Q4'26 revenue to be flat to a 2% increase year-over-year, with adjusted operating income guidance of $10 million to $30 million[8] - VF Corporation is on track to meet its medium-term financial targets and is optimistic about future growth opportunities[2] - The company completed the sale of Dickies® during the quarter, which is reflected in both reported and adjusted financial results[7] Charges and Impairments - The company incurred a non-cash impairment charge of $30.7 million related to the Napapijri reporting unit during the three and nine months ended December 2025[28] - A pension settlement charge of $34.0 million was recorded during the same periods, resulting from lump-sum payments due to the termination of the U.S. qualified plan[29] - Transaction and deal-related activities included costs of $8.2 million for the three months and $10.2 million for the nine months ended December 2025, associated with the divestiture of Dickies[30] - The divestiture of Dickies resulted in a pre-tax gain on sale of $139.1 million recorded in the other income (expense), net line item for the three and nine months ended December 2025[30] - Total restructuring charges related to the Reinvent program amounted to $207.7 million, with most actions completed by the end of the first quarter of Fiscal 2026[29] - The company expects to complete the pension settlement by the end of Fiscal 2026, with a net tax benefit of $9.4 million from the impairment and pension settlement charge[29] - Costs related to the Reinvent transformation program amounted to $47.3 million and $106.4 million for the three and nine months ended December 2024, respectively[35] - A non-cash impairment charge of $51.0 million was recognized for the Dickies trademark during the same period, resulting in a net tax benefit of $10.5 million[35] - The adjusted contribution from Dickies resulted in a net tax expense of $1.1 million and $4.1 million for the three and nine months ended December 2024, respectively[36]

GAAPReinvent (a)Impairment Charge (b)Transaction and Deal Related Activities (c)AdjustedLess: Adjusted Contribution from Dickies (d)Adjusted Excluding DickiesRevenues$2,833,912$—$—$—$2,833,912$133,599$2,700,313Gross profit1,595,174———1,595,17459,0381,536,136Percent56.3%56.3%56.9%Selling, general and administrative expenses1,318,397(47,282)——1,271,11553,4501,217,665Percent46.5%44.9%45.1%Operating income225,77747,28251,000—324,0595,588318,471Percent8.0%11.4%11.8%Diluted earnings per share from continuing oper ...

Core Insights - V.F. Corporation (VFC) is expected to report year-over-year declines in both revenue and earnings for the third quarter of fiscal 2026, with revenues estimated at $2.77 billion, reflecting a 2.4% decrease from the previous year [1][10] - The earnings consensus estimate is 43 cents per share, indicating a decline of over 30% compared to the same quarter last year [2] Revenue and Earnings Expectations - The anticipated revenue decline is attributed to ongoing brand-specific and structural challenges, particularly in the Americas region, where the Vans brand continues to struggle [3][10] - Revenue for Vans and Timberland is projected to decrease by 3.9% and 4.9% year-over-year, respectively, due to earlier store closures and strategic exits from certain value channels [4] Cost and Margin Pressures - Macroeconomic factors such as inflation and reduced discretionary spending are exacerbating VFC's challenges, leading to margin compression from increased promotions, tariffs, and higher input and logistics costs [5][10] - Management has indicated a decline in gross margin for the third quarter, with adjusted operating income expected to be between $275 million and $305 million, down from $324 million the previous year [6] Strategic Initiatives - The company's transformation program, "Reinvent," aims to enhance brand focus and operational performance, with ongoing investments in digital and supply-chain capabilities to improve efficiency [7] Market Position and Valuation - VFC's stock is currently trading at a price/earnings ratio of 21.13 on a forward 12-month basis, which is higher than the industry average of 16.41, but lower than its previous high of 32.49 [11] - Over the past three months, VFC's shares have increased by 22.3%, outperforming the industry's growth of 3.2% [11]

Investment Rating - The report maintains a "Positive" investment rating for the textile, apparel, and luxury goods industry [9]. Core Insights - The current inventory replenishment cycle in the U.S. apparel industry is characterized by weak elasticity due to several factors, including K-shaped consumer spending, misalignment in brand recovery rhythms, and constraints faced by comprehensive sports brands [3][6]. - Despite the transition from inventory destocking to replenishment, the expected rebound in manufacturing performance and market response has not materialized as anticipated [6][19]. - The report forecasts limited replenishment elasticity in the near term, with potential improvements in terminal demand expected after the current interest rate cycle concludes [3][8]. Summary by Sections Introduction - The report discusses the weak momentum in the current manufacturing replenishment cycle, noting that the U.S. apparel industry has transitioned to a phase of active replenishment after reducing inventory to healthy levels since Q1 2023 [6][17]. Analysis of Weak Replenishment Cycle - **Macro Perspective**: U.S. consumer spending is experiencing K-shaped differentiation, where high-income households support overall consumption while lower-income households face suppressed purchasing power and willingness to spend [7][32]. - **Brand Perspective**: The misalignment in recovery rhythms among brands has diluted overall replenishment elasticity, with brands like Adidas and Deckers already undergoing several quarters of replenishment without strong retail catalysts [7][30]. - **Industry Perspective**: The growth potential in the sports category is diminishing due to factors such as slowing penetration rates, reduced technological innovation, and diminishing returns from direct-to-consumer (DTC) strategies [7][30]. Future Replenishment Elasticity Expectations - In the short term, historical inventory cycles suggest that mature brands may experience shorter replenishment periods, while growth-oriented brands could see longer cycles [8][19]. - The report indicates that after the current interest rate cycle, retail demand may improve, leading to a more resilient growth trajectory for top brands transitioning into replenishment phases [8][19]. - Recommended stocks include Crystal International and Shenzhou International, with a focus on companies like Wah Lee and Yue Yuen [8][19].