Companies

VF Corp exceeds second-quarter guidance as profitability improves

Oct 30, 2026 United States

The US-based company exceeded expectations for the second quarter of the 2027 fiscal year, thanks to growth at The North Face and Timberland, as well as improved operating and gross margins

“We drove strong results in the second quarter, ahead of guidance across key metrics, as a result of great product and solid execution”, commented Bracken Darrell, President and CEO of VF Corp. “The North Face and Timberland continued to deliver consistent growth, and Altra grew more than 40%, all powered by bold product design and innovation and brand storytelling that are resonating with our consumers”.

Second-Quarter Results

In the second quarter of the 2027 financial year, which ended on the 26^th of September, VF Corp reported a revenue of 2.70 billion US dollars, a 4% decrease compared to the same period of the previous financial year. However, excluding Dickies, which was sold in November 2025, revenue increased by 1% on a constant currency basis, surpassing the company’s expectations of flat sales.

During this period, The North Face continued to perform well, recording a 4% year-on-year increase in revenue to reach 1.21 billion US dollars, compared to the second quarter of the 2026 financial year. Timberland also recorded a year-on-year growth of 4%, reaching 525.9 million US dollars, thanks to continued strength in the Americas.

Vans remained a weak spot for the group in the second quarter. The brand’s revenue declined by 10% year-on-year, reaching 547.6 million US dollars. Despite this decline, global direct-to-consumer sales have returned to growth, and VF Corp expects an improvement in wholesale performance during the second half of the financial 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 emphasised.

Geographically, the Americas remained the company’s strongest region in the second quarter, with revenue declining by 2% year-on-year to 1.32 billion US dollars. However, excluding Dickies and the impact of currency fluctuations, revenue increased by 5%, reflecting sustained growth across distribution channels.

In the EMEA region, VF’s revenue fell by 6% to 1.01 billion US dollars during this quarter, representing 1% decline on a constant currency basis when Dickies is excluded. The APAC region experienced a more significant contraction, with revenue falling by 7% on a constant currency basis, totalling 361 million US dollars. Overall, international revenue declined by 2% on a constant currency, excluding Dickies.

In the second quarter of this year, VF Corp’s operating income increased to 368 million US dollars, up from 313 million US dollars in the same period a year earlier. The operating margin also expanded, rising by 250 basis points to 13.7%. Excluding Dickies, adjusted operating income reached 364 million US dollars, exceeding guidance, with the adjusted operating margin rising by 170 basis points to 13.5%.

The gross margin increased by 320 basis points year-on-year to reach 55.4%, or 290 basis points when excluding Dickies. This improvement is due to better pricing, lower product costs, and a more favourable channel mix.

The group also strengthened its balance sheet further, reducing net debt by 1.1 billion US dollars (20%) year-on-year. Net inventories increased by 7% as VF Corp prepared for anticipated demand in the second half of the 2027 financial year.

Full-Year Outlook

VF Corp has reaffirmed its full-year guidance for fiscal 2027. The company continues to expect revenue growth of at least 2% in constant currency, excluding Dickies and adjusting for the additional 53rd week. The adjusted operating margin is expected to reach approximately 8%.

Image Credits: wwd.com

United States Companies Quarter Results Results Timberland Vans VF Corp