VF Corp Shares Drop 8% Despite Earnings Beat and Cash Flow Outlook

Core Viewpoint - VF Corporation reported stronger-than-expected third-quarter results, but shares fell over 8% intraday despite improving profitability and cash flow trends for fiscal 2026 [1] Financial Performance - The company posted third-quarter earnings of $0.58 per share, exceeding analyst expectations of $0.45 [1] - Revenue totaled $2.88 billion, up 2% in constant currency and above the consensus estimate of $2.75 billion [1] - Adjusted gross margin increased to 57%, up 10 basis points from a year earlier [2] - Operating margin expanded 30 basis points to 12.1% [2] - Operating income rose to $341 million from $318 million in the prior-year quarter [2] Future Projections - For the fourth quarter of fiscal 2026, VF Corporation projected revenue ranging from flat to up 2% year over year [3] - Adjusted operating income is expected to be between $10 million and $30 million for the fourth quarter [3] - For the full fiscal year, the company forecasts higher free cash flow, adjusted operating income, and operating cash flow compared with the prior year [3]