VF(US:VFC) ZACKS·2026-01-28 18:56Core Insights - V.F. Corporation (VFC) reported third-quarter fiscal 2026 results with a sales and earnings beat, despite a year-over-year decline in earnings. The company is progressing with its Reinvent program and anticipates meeting medium-term financial targets [1][10]. Financial Performance - Adjusted earnings per share (EPS) were 58 cents, exceeding the Zacks Consensus Estimate of 43 cents, although down from 62 cents in the same quarter last year [2]. - Net revenues reached $2.88 billion, a 1% increase year over year, surpassing the consensus estimate of $2.76 billion. Adjusted revenues, excluding Dickies, rose by 4% year over year [2][10]. - The adjusted gross margin improved by 10 basis points to 57% [2]. Revenue Breakdown - The Americas region saw a 2% revenue increase year over year, both on a reported and constant-currency basis. EMEA revenues increased by 4% on a reported basis but decreased by 4% on a constant-currency basis. APAC revenues fell by 6% reported and 7% constant-currency [4]. - Wholesale revenues declined by 1% on a reported basis, while direct-to-consumer revenues increased by 4% year over year on a reported basis and by 1% on a constant-currency basis [5]. Segment Performance - The Outdoor segment's revenues improved by 8% year over year on a reported basis, reaching $1,926 million. In contrast, the Active segment's revenues declined by 6% year over year to $671.8 million [7]. - The "All Other" segment experienced an 18% revenue decline year over year, totaling $278 million [7]. Financial Position - VFC ended the fiscal third quarter with cash and cash equivalents of $1.5 billion, long-term debt of $3.55 billion, and shareholders' equity of $1.78 billion. Net debt decreased by $0.5 billion from the previous year [8]. Future Outlook - For the fourth quarter of fiscal 2026, VFC expects revenues to be flat to up 2% in constant currency compared to the prior year, with adjusted operating income projected between $10 million and $30 million [14]. - For fiscal 2026, the company anticipates increases in adjusted operating income, operating cash flow, and free cash flow year over year, while maintaining leverage at or below 3.5x [15].