VF’s Q2 Was Solid, but Investors Have a Vans Concern

Core Viewpoint - VF Corp's stock declined by 12.2% following its third-quarter guidance, despite a strong second-quarter performance that exceeded Wall Street's expectations [1][4]. Financial Performance - For the three months ended September 27, VF reported a net income of $189.8 million, or 48 cents per diluted share, an increase from $52.2 million, or 13 cents, in the same period last year [2]. - Revenue rose by 1.6% to $2.80 billion, compared to $2.76 billion in the previous year, while Wall Street expected adjusted diluted EPS of 42 cents on revenue of $2.73 billion [2]. Brand Performance - Revenue by brand showed mixed results: The North Face increased by 6% to $1.16 billion, Vans decreased by 9% to $606.9 million, Timberland grew by 7% to $506.4 million, and other brands collectively rose by 2% to $532.3 million [3]. Third-Quarter Guidance - VF's third-quarter revenue is forecasted to decline by 1% to 3%, with Wall Street's consensus expecting adjusted diluted EPS of 55 cents on revenue of $2.87 billion [4]. - In comparison, VF's adjusted diluted EPS for the three months ended December 28, 2024, was 62 cents on revenue of $2.8 billion [4]. Analyst Insights - Analyst Janine Stichter highlighted concerns regarding Vans' stagnant performance, despite some positive indicators from back-to-school sales [5]. - Stichter noted that third-quarter profit guidance was below consensus due to anticipated tariff impacts of $60 million to $70 million in the second half [5]. - Dana Telsey described VF's second-quarter report as "solid," with the outdoor segment growing by 4%, while the active business remains under pressure due to the ongoing Vans turnaround [6].