Core Insights - V.F. Corporation (VFC) reported revenue of $2.8 billion for the quarter ended September 2025, reflecting a year-over-year increase of 1.6% and surpassing the Zacks Consensus Estimate of $2.73 billion by 2.72% [1] - The company's earnings per share (EPS) was $0.52, down from $0.60 in the same quarter last year, but exceeded the consensus EPS estimate of $0.42 by 23.81% [1] Revenue Performance - Geographic Revenue: - Americas: $1.34 billion, slightly above the estimate of $1.32 billion, with a year-over-year decline of 0.9% [4] - Europe: $1.07 billion, exceeding the estimate of $1.03 billion, with a year-over-year increase of 6.3% [4] - Asia-Pacific: $386.6 million, below the estimate of $391.07 million, with a year-over-year decline of 1.5% [4] - Revenue by Segment: - Outdoor: $1.66 billion, above the estimate of $1.63 billion, with a year-over-year increase of 0.3% [4] - Active: $760.75 million, exceeding the estimate of $737.22 million, but showing a significant year-over-year decline of 13.5% [4] - Direct-To-Consumer: $909.9 million, slightly above the estimate of $903.04 million, with a year-over-year decline of 0.6% [4] Brand Performance - Revenue by Brand: - The North Face: $1.16 billion, surpassing the estimate of $1.13 billion, with a year-over-year increase of 6% [4] - Vans: $606.9 million, exceeding the estimate of $595.57 million, but reflecting a year-over-year decline of 9.1% [4] - Timberland: $506.4 million, above the estimate of $500.99 million, with a year-over-year increase of 6.5% [4] Market Performance - V.F. shares have returned +15% over the past month, outperforming the Zacks S&P 500 composite's +3.6% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Financial Data and Key Metrics Changes - Total revenue increased by 2% in reported dollars but decreased by 1% in constant dollars, showing an improving trend compared to the previous quarter [6][19] - Operating income reached $330 million, exceeding guidance of $260 to $290 million [6][19] - Net debt, excluding lease liabilities, decreased by $1.5 billion year-over-year, a reduction of 27% [6][23] - Adjusted earnings per share was $0.52, down from $0.60 in the same quarter last year [22] Business Line Data and Key Metrics Changes - The North Face revenue grew by 4%, with growth in both wholesale and direct-to-consumer channels [8][19] - Timberland also saw a 4% revenue increase, driven by strong demand in the Americas [10][19] - Altra experienced significant growth, with revenue up over 35% year-over-year [12] - Vans revenue declined by 11%, impacted by channel rationalization actions [19][33] Market Data and Key Metrics Changes - The Americas region revenue decreased by 1%, EMEA was flat, and APAC saw a 2% decline [19] - Direct-to-consumer sales were down 2%, while wholesale remained flat [20] Company Strategy and Development Direction - The company is focused on returning to growth and has made progress in its turnaround strategy [5][26] - Plans to divest the Dickies brand for $600 million to pay down debt and focus on core brands [7][17] - Emphasis on product innovation and marketing strategies to drive brand engagement and growth across all brands [9][10][11] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging and unpredictable global environment but expressed confidence in the company's strategy and execution capabilities [5][26] - The company expects Q3 revenue to decline by 1% to 3% in constant dollars, with a focus on the upcoming holiday season [23][24] - Management remains optimistic about the consumer's resilience despite macroeconomic uncertainties [68] Other Important Information - The company is on track to achieve medium-term targets of $500 to $600 million in operating income expansion by fiscal 2028 and a leverage ratio of 2.5 times or below [25][26] - Free cash flow through Q2 was negative $453 million, consistent with expectations due to seasonal working capital needs [22] Q&A Session Summary Question: Path back to growth for Vans - Management indicated that increasing product newness and improved marketing strategies are key to returning Vans to growth, with expectations for better performance in upcoming quarters [31][33] Question: Gross margins and cost discipline - Management noted that gross margins were impacted by FX and lower promotions, but overall cost discipline initiatives are on track [39][42] Question: Promotional recapture and pricing strategies - Management confirmed that they are operating in a lower promotional environment and are strategically planning pricing actions for the holiday season [47][49] Question: Health of The North Face brand - Management expressed confidence in The North Face's brand health and market share opportunities, emphasizing the importance of product execution [98][100] Question: Ongoing debt deleveraging - Management is focused on achieving a leverage ratio of 2.5 times by 2028 through operational improvements and divestitures [122]

Financial Data and Key Metrics Changes - Total revenue increased by 2% in reported dollars but decreased by 1% in constant dollars, showing an improving trend compared to the previous quarter [6][19] - Operating income reached $330 million, exceeding guidance of $260 million - $290 million [6][19] - Net debt, excluding lease liabilities, decreased by $1.5 billion year-over-year, representing a 27% reduction [6][23] - Adjusted earnings per share was $0.52, down from $0.60 in the same quarter last year [22] Business Line Data and Key Metrics Changes - The North Face revenue grew by 4%, with growth in both wholesale and direct-to-consumer channels [8][19] - Timberland also saw a 4% revenue increase, driven by strong demand in the Americas [10][19] - Altra experienced significant growth, with revenue up over 35% year-over-year [12] - Vans revenue declined by 11%, impacted by channel rationalization actions [14][19] Market Data and Key Metrics Changes - The Americas region revenue was down 1%, EMEA was flat, and APAC decreased by 2% [19] - Direct-to-consumer sales were down 2%, while wholesale remained flat [20] Company Strategy and Development Direction - The company is focused on returning to growth and has made progress in its turnaround strategy, with 65% of its business by revenue growing [6][7] - Plans to divest the Dickies brand for $600 million to pay down debt and focus on core brands [8][17] - Emphasis on product innovation and marketing strategies to drive brand engagement and growth across all brands [9][10][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertain global environment but expressed confidence in the company's strategy and ability to execute [5][26] - The company expects Q3 revenue to decline by 1% to 3% in constant dollars, but remains optimistic about the holiday season [23][26] - Management highlighted the importance of maintaining a lower promotional environment while preparing for price increases in Q4 [46][48] Other Important Information - Free cash flow through Q2 was -$453 million, consistent with expectations due to seasonal working capital needs [22] - The company is on track to achieve medium-term targets of $500 million - $600 million in operating income expansion by fiscal 2028 [25] Q&A Session Summary Question: Path back to growth for Vans - Management indicated that increasing new product offerings and enhancing marketing strategies are key to returning Vans to growth, with expectations of improved performance as new products are introduced [30][32] Question: Gross margins and cost discipline - Management noted that gross margins were impacted by FX and lower promotions, but overall cost discipline initiatives are on track [38][41] Question: Promotional recapture and pricing plans - Management confirmed that they are well on track with promotional recapture and expect to operate in a lower promotional environment moving forward [46][48] Question: Performance in Asia - Management acknowledged a stabilizing period in APAC, particularly in China, but remains optimistic about growth opportunities in other regions [57][60] Question: Debt deleveraging strategy - Management expressed confidence in achieving a leverage ratio of 2.5 times or below by 2028, focusing on fundamental improvements and growing EBITDA [121]

Financial Data and Key Metrics Changes - Total revenue increased by 2% in reported dollars but decreased by 1% in constant dollars, showing an improving trend compared to the previous quarter [5][18] - Operating income reached $330 million, exceeding the guidance range of $260 to $290 million [5][18] - Net debt, excluding lease liabilities, decreased by $1.5 billion year-over-year, representing a 27% reduction [5][21] - Adjusted earnings per share was $0.52, down from $0.60 in the same quarter last year [20] Business Line Data and Key Metrics Changes - The North Face revenue grew by 4%, with growth in both wholesale and direct-to-consumer channels [6][18] - Timberland also saw a 4% revenue increase, driven by strong demand in the Americas [9][18] - Altra experienced significant growth, with revenue up over 35% compared to last year [11] - Vans revenue declined by 11%, attributed to channel rationalization actions [12][18] Market Data and Key Metrics Changes - The Americas region saw a 1% revenue decline, while EMEA was flat and APAC decreased by 2% [18] - Direct-to-consumer sales were down 2%, while wholesale remained flat [19] Company Strategy and Development Direction - The company is focused on returning to growth and has made progress in its turnaround strategy, with 65% of its business by revenue now growing [5][24] - Plans to sell the Dickies brand were announced, with a sale price of $600 million, aimed at reducing debt and focusing on core brands [6][16] - The company is committed to improving brand performance and expanding market share, particularly in underdeveloped regions like the Americas [50] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertain global environment but expressed confidence in the company's strategy and ability to execute [25] - The company expects Q3 revenue to decline by 1% to 3% on a constant dollar basis, with a focus on the upcoming holiday season [21][25] - There is optimism about the potential for growth in the Americas and the overall global profile of the company [50] Other Important Information - The company is working towards medium-term targets of $500 to $600 million in operating income expansion by fiscal 2028 and a leverage ratio of 2.5 times or below [24] - Free cash flow through Q2 was negative $453 million, consistent with expectations due to seasonal working capital needs [20] Q&A Session Summary Question: Can you discuss the path back to growth for Vans? - Management indicated that increasing new product offerings and enhancing marketing strategies are key to returning Vans to growth, with expectations for improved performance in upcoming quarters [28][31] Question: Can you provide more details on gross margins? - Gross margins were impacted by foreign exchange and lower promotions, with expectations for continued improvement as pricing actions take effect in Q4 [35][43] Question: What are the initial signs from retailers regarding holiday orders? - Management noted it is too early to assess retailer behavior for the holiday season but expressed optimism based on product readiness and planning [55] Question: How is the company addressing tariffs and pricing? - The company plans to implement pricing actions in Q4 to offset tariffs, with expectations to mitigate the impact by fiscal 2027 [79][80] Question: What is the outlook for debt deleveraging? - Management is confident in achieving debt reduction targets through operational improvements and the sale of non-core assets, with a focus on growing EBITDA [92][93]

Core Insights - VF Corp. is successfully executing its turnaround plan, exceeding Wall Street's expectations in Q2 with a net income of $189.8 million, or 48 cents per diluted share, compared to $52.2 million, or 13 cents, in the same period last year [1][2] - Revenues increased by 1.6% to $2.80 billion from $2.76 billion, with direct-to-consumer sales down 1% to $909.9 million and wholesale sales up 3% to $1.89 billion [1][5] Financial Performance - Operating income reached $313 million, or $330 million on an adjusted basis, surpassing guidance of $260 million to $290 million [5] - Operating margin improved to 11.2%, up 130 basis points from the previous year, while gross margin remained flat at 52.2% [5] - Net debt decreased by $1.5 billion, indicating improved financial health [5] Brand Performance - Revenue growth was observed in The North Face (up 6% to $1.16 billion) and Timberland (up 7% to $506.4 million), while Vans experienced a decline of 9% to $606.9 million [6] - The North Face saw strong performance in performance apparel across all regions, with double-digit growth in transitional outerwear and footwear [6][7] Strategic Initiatives - The company announced the pending sale of its Dickies brand for $600 million, which is expected to enhance investment capacity and drive shareholder returns [3][4] - The sale proceeds will be used to pay down debt and are projected to be accretive to VF's growth rate [4] Regional Sales Performance - Sales in the Americas decreased by 1% to $1.34 billion, while EMEA sales increased by 6% to $1.07 billion, and APAC sales fell by 2% [8] Future Guidance - For Q3, the company anticipates revenues to decline by 1% to 3%, with adjusted operating income projected between $275 million to $305 million [9][10] - For Fiscal Year 2026, free cash flow is expected to increase compared to the previous year, along with an increase in adjusted operating income [9]

Financial Performance - Q2'26 revenue increased by 2% compared to the previous year (LY), but decreased by 1% in constant dollars (C$)[22, 23] - Operating income (OI) reached $313 million, with an adjusted OI of $330 million, exceeding guidance and showing a 5% increase compared to LY, or 1% in C$[22, 24, 26] - Net debt decreased by $1.5 billion, a 21% reduction compared to LY[22, 23, 33, 36] - Adjusted EPS was $0.52, compared to $0.60 in the previous year[23, 24] Brand Performance - The North Face® experienced a 6% revenue increase compared to LY, or 4% in C$[24, 32, 40] - Timberland® saw a 7% revenue increase compared to LY, or 4% in C$[24, 32, 44] - Vans® revenue declined by 9% compared to LY, or 11% in C$, but showed sequential improvement[24, 32, 42] Strategic Initiatives - VF is selling Dickies® to Bluestar Alliance for $600 million[16, 18, 27] - The sale of Dickies® is expected to be accretive to VF's growth rate and enhance the company's capacity to invest in its portfolio[22, 27] Outlook - Q3'26 revenue is projected to decline by 3% to 1% in C$ compared to LY, with an adjusted OI of $275 million to $305 million[22, 50] - FY'26 free cash flow, adjusted OI, and operating cash flow are expected to increase compared to LY[22, 50] Adjustments - Adjusted amounts exclude Reinvent-related costs of approximately $15 million in Q2'26 and $46 million for the first six months of Fiscal 2026[7] - Adjusted amounts exclude transaction and deal-related costs of approximately $2 million in Q2'26 and the first six months of Fiscal 2026, associated with the pending divestiture of Dickies[8]

Core Viewpoint - Carter's, Inc. announced a proposed offering of $500 million in senior notes due 2031 to refinance existing debt and cover related expenses [1][2]. Group 1: Offering Details - The offering will consist of $500 million aggregate principal amount of senior notes due 2031 [1]. - The net proceeds will be used to redeem all outstanding 5.625% senior notes due 2027 and to pay related fees and expenses [2]. - The notes are being offered to qualified institutional buyers under Rule 144A and to non-U.S. persons outside the United States under Regulation S [3]. Group 2: Company Overview - Carter's, Inc. is North America's largest apparel company exclusively for babies and young children, with core brands including Carter's and OshKosh B'gosh [5]. - The company operates over 1,000 stores across the U.S., Canada, and Mexico, and sells online through multiple platforms [5]. - Carter's is also the largest supplier of baby and young children's apparel to major North American retailers [5].

Core Insights - The brand has launched its Blue Tab collection to enhance its existing product lines [1] Product Offering - The new Blue Tab collection is designed to complement the brand's current offerings, which are priced as low as approximately $20 [1]

Summary of Anta Sports Products Conference Call Company Overview - **Company**: Anta Sports Products (2020.HK) - **Market Cap**: HK$247.9 billion / $31.9 billion - **Enterprise Value**: HK$287.8 billion / $37.0 billion - **Current Price**: HK$87.80 - **Target Price**: HK$115.00 - **Upside Potential**: 31.0% [1][2][27] Key Industry Insights - **Industry**: Greater China Retail, specifically the sportswear sector - **Market Conditions**: Weaker macroeconomic environment leading to softer sportswear spending and intensified competition [21][22] Core Financial Updates - **3Q25 Performance**: - Anta brand reported low single-digit percentage (LSD%) year-over-year growth, below expectations - Fila brand maintained mid-single-digit percentage (MSD%) growth, while other smaller brands like Descente (+30% yoy), Kolon (+70% yoy), and MAIA (+45% yoy) performed well [1][3][21] - **Revenue Guidance**: - Full-year revenue growth guidance for Anta brand lowered to LSD% (previously MSD%) - Fila brand and other brands expected to grow at +MSD% and >40% yoy respectively [3][21] - **Cost Control**: - Company demonstrated strong cost control capabilities, maintaining operating profit margin (OPM) outlook for Anta brand at the lower end of 20-25% and for Fila brand at ~25% [1][3] Strategic Initiatives - **E-commerce Strategy**: - New e-commerce initiatives expected to take several quarters to execute, with cautious expectations for Double-11 online performance [21] - **Store Optimization**: - 'Light-house Store Campaign' aimed at upgrading stores in lower-tier cities to enhance customer engagement [21] - **Overseas Expansion**: - Targeting 15% of sell-through from non-China markets within five years and over 1000 stores in ASEAN markets in three years [21] Inventory and Discount Management - **Inventory Levels**: - Anta core brand's inventory level at slightly over 5x, considered healthy [21] - Fila's inventory level deteriorated to approximately 6x due to warmer weather [21] - **Discount Strategy**: - Anta plans to maintain stable offline discounts while managing online discounts carefully during the Double-11 shopping festival [21][22] Earnings Revision - **Earnings Forecast**: - Revised down 2025-2027 earnings by 3-4% reflecting slower growth at Anta and Fila brands - New revenue estimates for 2025E at Rmb 79,471 million, 2026E at Rmb 87,200 million, and 2027E at Rmb 94,868 million [2][26] Risks and Challenges - **Key Risks**: - Weaker growth for Anta and Fila brands, discount pressures, and challenges in operating expense control [28] Conclusion - **Investment Rating**: Maintain Buy rating with a target price of HK$115, reflecting confidence in long-term growth potential despite current challenges [2][27]

Group 1 - The article provides a market analysis focusing on Nike Inc and Lululemon Athletica Inc, highlighting their performance and market trends [1] - It discusses the competitive landscape in the athletic apparel industry, emphasizing the growth strategies of both companies [1] - The analysis includes financial metrics and projections for future growth, indicating a positive outlook for both brands [1] Group 2 - Nike Inc is noted for its strong brand presence and innovative product offerings, which contribute to its market leadership [1] - Lululemon Athletica Inc is recognized for its premium positioning and loyal customer base, driving its revenue growth [1] - The article suggests that both companies are well-positioned to capitalize on the increasing demand for athleisure and fitness-related products [1]