Companies

VF Corp second quarter beats expectations

Oct 30, 2025 United States

The US-based company has reported performance in the second quarter that exceeded expectations, driven by its The North Face and Timberland brands. This further strengthens the company's turnaround strategy

“In Q2 we made further progress on our turnaround plan. We delivered broad-based growth for The North Face and Timberland, while continuing to moderate declines in Vans. We also announced the pending sale of Dickies for 600 million US dollars, enhancing our capacity to invest in the portfolio and drive shareholder returns”, commented Bracken Darrell, President and CEO of the company.

Second Quarter Results

In the second quarter of the 2026 financial year, which ended on the 27^th of September, VF Corp reported a revenue of 2.8 billion US dollars. This represents a 2% increase on a reported basis and a 1% decline on a constant basis, as compared to the same period of the last financial year, exceeding the company’s own expectations.

Growth was primarily driven by the company’s core outdoor and workwear brands. The North Face and Timberland posted revenue increases of 6% and 7%, respectively, on a reported basis and 4% on a constant basis, on a comparable basis to the second quarter of the 2025 financial year. Meanwhile, Vans showed sequential improvement, moderating its revenue decline to 9% in the quarter.

VF Corp’s adjusted operating income rose to 330 million US dollars in the second quarter, surpassing the guidance of 260–290 million US dollars and reflecting a 5% year-on-year increase. This improved performance was reflected in margins, with the adjusted operating margin reaching 11%, a 40-basis-point gain, as compared to the same quarter of the previous year. Adjusted earnings per share in the quarter were 0.52 US dollars.

As previously reported, in a move aimed at streamlining its portfolio, the company has entered into a definitive agreement to sell the Dickies brand to Bluestar Alliance for 600 million US dollars in cash. The proceeds are expected to enhance the company’s ability to invest in its remaining brands and accelerate its debt reduction strategy further. This strategy has already resulted in net debt declining by 21% year-on-year.

Outlook

For the third quarter, VF expects revenue to decline by between 3% and 1% on a constant basis, with adjusted operating income expected to be between 275 million and 305 million US dollars.

However, the company remains optimistic about its performance in the full 2026 fiscal year, projecting that adjusted operating income, free cash flow and operating cash flow will all increase compared to the previous year as its transformation efforts gain traction.

Image Credits: lifestyleasia.com

United States Companies Footwear Quarter Results Results VF Corp