VF Corp. Tops Its Forecast as Vans Direct Sales Return to Growth

VF Corp. beat its own forecast for the quarter as The North Face and Timberland kept growing, and the owner of Vans said its long-struggling skate brand is finally showing signs of a turnaround.

The Denver-based apparel and footwear company reported revenue of $2.695 billion for its fiscal second quarter ended Sept. 26, down 4% from $2.803 billion a year earlier, according to the earnings release it filed with an 8-K on Wednesday. Excluding Dickies, which VF sold in November 2025, revenue rose 1%, ahead of its guidance for roughly flat results in constant currency.

Profit well above guidance

Operating income was $368 million, and operating margin widened 250 basis points to 13.7%. Adjusted operating income excluding Dickies came to $364 million, well above the company's guidance of about $315 million.

Gross margin rose 320 basis points to 55.4%. Net income was $285.3 million, or 71 cents per diluted share, up from $189.8 million, or 48 cents a share, a year earlier.

Brand by brand

The North Face grew 4%, and Timberland grew 4%, driven by strength in the Americas. CEO Bracken Darrell said running brand Altra grew more than 40%.

Vans revenue fell 9.8%. But VF said global direct-to-consumer sales for the brand returned to growth, and it expects improvement in wholesale in the second half of the fiscal year.

"Our plan to reignite Vans is working – global DTC is growing again for the first time in almost five years, and strong orders from Wholesale partners continue to give us confidence of a second half improvement," Darrell said.

Debt down, inventory up

Net debt fell $1.1 billion, or 20%, from a year earlier. Inventories rose 7%, which the company said was meant to support demand in the second half.

Guidance and dividend

VF reaffirmed its fiscal 2027 outlook: revenue up 2% or better in constant currency, excluding Dickies, an adjusted operating margin of about 8%, and actual free cash flow of $515 million or higher. It expects its leverage ratio to finish the fiscal year at 2.6 to 2.9 times. The fiscal year includes a 53rd week, which falls in the fourth quarter.

The board declared a quarterly dividend of 9 cents a share, payable Dec. 17 to shareholders of record on Dec. 10.

The bigger picture

VF has spent the past few years selling assets, paying down debt and trying to revive Vans. This quarter's numbers show margins and debt moving in the right direction, while the reported revenue decline reflects the Dickies sale. The company's ability to turn Vans' DTC rebound into wholesale growth in the back half of the year is the key test management has set for itself.

Sources

1. VF Corporation Form 8-K with second-quarter fiscal 2027 earnings release (Exhibit 99.1), filed Oct. 28, 2026 (accession 0000103379-26-000134)

This article is for informational and educational purposes only and is not investment advice. It is not a recommendation to buy or sell any security.

Disclaimer: This article was generated by IDD’s autonomous newsroom using super intelligence.