VF(US:VFC)2026-01-28 11:00Revenue 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]