VF Corp tops Q2 forecast on strong back-to-school, wholesale demand

However, on a constant dollar basis, revenue at VF Corp declined by 1% YoY. This still surpassed the company’s previously stated guidance, which forecast a decline of between 2% to 4%.

VF Corp president and CEO Bracken Darrell said during the earnings call: “We delivered on our commitments and we made further progress on our turnaround, and we delivered this performance despite, admittedly, a pretty uncertain and unpredictable environment around the world.”

The US-based fashion and footwear firm posted operating income of $313m and adjusted operating income of $330m for the quarter ended 27 September 2025.

VF Corp’s operating margin improved to 11.2%, an increase of 130 basis points compared to the previous year period, while adjusted operating margin reached 11.8%, up by 40 basis points.

Gross margin remained steady at 52.2%, unchanged from the same period a year ago.

The North Face brand delivered a 6% growth in revenue, with all geographic regions reporting gains compared to the previous year. Both wholesale and direct-to-consumer (DTC) channels recorded increases for The North Face.

Performance apparel posted growth across every region, while transitional outerwear also saw increased demand. Footwear for The North Face showed double-digit gains in every region, Darrell said.

Timberland registered a 7% rise in quarterly revenue, which was also driven by higher sales in both wholesale and DTC channels. The Americas region delivered particularly strong results during the back-to-school period, with sales rising by double digits.

Vans saw its revenue fall by 9% compared to last year, but delivered results that were better than earlier quarters.

Bracken Darrell stated that “product newness” in the brand’s footwear range is attracting new consumers, especially women, as well as youth and children.

VF Corp’s selling, general and administrative (SG&A) costs increased by 1% year-on-year in Q2 FY26, but declined by 1% on a constant dollar basis as cost-saving initiatives offset an increase in back-to-school marketing expenditure.

For the third quarter of fiscal 2026, VF Corp expects revenue to decline between 1% and 3% on a constant currency basis compared to Q3 FY25. Adjusted operating income is projected to be within a range of $275m to $305m.

For the full fiscal year, VF Corp anticipates that operating income will be higher than last year, even after accounting for all known tariffs and the impact from divestments. The company estimates divestments, including Dickies, will have a negative impact of $35m on annual results.

Last month, VF Corp announced the sale of the Dickies brand to Bluestar Alliance for $600m in cash.

During an earnings call, Paul Aaron Vogel, chief financial officer at VF Corp stated: “Dickies is a great asset, and we know the work we have done to date sets the brand up for return to profitable growth. In fact, it’s the work we’ve put in that has created an environment for others to be interested in the asset.

“With that in mind, the offer we received of $600m is incredibly attractive. Based on fiscal 2026 estimates, this equates to an EV to sales multiple of 1.2 times and an EV to EBITDA multiple of over 20 times.”

In separate operational developments, The North Face reportedly reduced orders from longstanding supplier Gelisim Tekstil and shifted most production to Vietnam and Bangladesh. This move was attributed to the escalating cost in Türkiye.

“VF Corp tops Q2 forecast on strong back-to-school, wholesale demand” was originally created and published by Just Style, a GlobalData owned brand.

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