GAAPReinvent (a)Impairment Charge (b)Transaction and Deal Related Activities (c)AdjustedLess: Adjusted Contribution from Dickies (d)Adjusted Excluding DickiesRevenues$2,833,912$—$—$—$2,833,912$133,599$2,700,313Gross profit1,595,174———1,595,17459,0381,536,136Percent56.3%56.3%56.9%Selling, general and administrative expenses1,318,397(47,282)——1,271,11553,4501,217,665Percent46.5%44.9%45.1%Operating income225,77747,28251,000—324,0595,588318,471Percent8.0%11.4%11.8%Diluted earnings per share from continuing oper ...

Core Insights - V.F. Corporation (VFC) is expected to report year-over-year declines in both revenue and earnings for the third quarter of fiscal 2026, with revenues estimated at $2.77 billion, reflecting a 2.4% decrease from the previous year [1][10] - The earnings consensus estimate is 43 cents per share, indicating a decline of over 30% compared to the same quarter last year [2] Revenue and Earnings Expectations - The anticipated revenue decline is attributed to ongoing brand-specific and structural challenges, particularly in the Americas region, where the Vans brand continues to struggle [3][10] - Revenue for Vans and Timberland is projected to decrease by 3.9% and 4.9% year-over-year, respectively, due to earlier store closures and strategic exits from certain value channels [4] Cost and Margin Pressures - Macroeconomic factors such as inflation and reduced discretionary spending are exacerbating VFC's challenges, leading to margin compression from increased promotions, tariffs, and higher input and logistics costs [5][10] - Management has indicated a decline in gross margin for the third quarter, with adjusted operating income expected to be between $275 million and $305 million, down from $324 million the previous year [6] Strategic Initiatives - The company's transformation program, "Reinvent," aims to enhance brand focus and operational performance, with ongoing investments in digital and supply-chain capabilities to improve efficiency [7] Market Position and Valuation - VFC's stock is currently trading at a price/earnings ratio of 21.13 on a forward 12-month basis, which is higher than the industry average of 16.41, but lower than its previous high of 32.49 [11] - Over the past three months, VFC's shares have increased by 22.3%, outperforming the industry's growth of 3.2% [11]