V.F. Corporation (NYSE:VFC) Q2 2026 Earnings Call October 28, 2025 08:00 AM ET Company ParticipantsBracken Darrell - President and CEOAnna Andreeva - Managing DirectorJay Sole - Managing DirectorPaul Vogel - EVP and CFOAllegra Perry - VP of Investor RelationsBrooke Roach - VP of Equity ResearchMichael Binetti - Senior Managing DirectorIke Boruchow - Managing DirectorJanine Stichter - Managing Director of Consumer Equity ResearchTom Nikic - Managing DirectorConference Call ParticipantsAdrienne Yih - Managing ...

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]

V.F. Corporation (NYSE:VFC) Q2 2026 Earnings Call October 28, 2025 08:00 AM ET Speaker2Hello everyone, thank you for joining us and welcome to the V.F. Corporation Q2 Full Year 2026 Earnings Call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please raise your hand. If you have dialed in to today's call, please press *9 to raise your hand and *6 to unmute. I will now hand the call over to Allegra Perry, Vice President of Investor Relations. ...

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V.F. (VFC) came out with quarterly earnings of $0.51 per share, beating the Zacks Consensus Estimate of $0.42 per share. This compares to earnings of $0.6 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +21.43%. A quarter ago, it was expected that this maker of brands such as Vans, North Face and Timberland would post a loss of $0.35 per share when it actually produced a loss of $0.24, delivering a surprise of +31.43%.Over the ...

VF Corp. is progressing on its turnaround plan, besting Wall Street’s expectations in the second quarter. For the second quarter ended Sept. 27, VF posted net income of $189.8 million, or 48 cents a diluted share, versus net income of $52.2 million, or 13 cents, in the same year-ago period. Revenues rose 1.6 percent to $2.80 billion from $2.76 billion. By channel, direct-to-consumer sales were down 1 percent to $909.9 million, while wholesale sales rose 3 percent to $1.89 billion. More from WWD Wall Stre ...

Q2'26 EARNINGS OCTOBER 28, 2025 Dickies Held-for-Sale On September 15, 2025, VF entered into a definitive agreement with Bluestar Alliance LLC to sell the Dickies® brand business ("Dickies"). The Company determined that the associated assets and liabilities met the held-for-sale accounting criteria and they were classified accordingly in the September 2025 Consolidated Balance Sheet. Discontinued Operations - Supreme On July 16, 2024, VF entered into a definitive Stock and Asset Purchase Agreement with Essi ...

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].