VF Corporation exceeds expectations in second quarter

US apparel group VF Corporation (VF Corp) exceeded its own expectations in the second quarter of the 2026/27 financial year. In light of the latest figures, the parent company of brands such as The North Face, Vans and Timberland confirmed its full-year guidance on Wednesday.

From July to September, group revenue amounted to 2.7 billion dollars. This represented a 4 percent decrease year-over-year, with revenue also falling by 4 percent on a constant currency basis. Excluding contributions from the Dickies brand, which was sold in November 2025, group revenue increased by 1 percent (+1 percent in constant currency). This surpassed management's guidance, which had anticipated adjusted revenue to remain flat compared to the previous year.

The North Face and Timberland continue solid growth

The North Face and Timberland remained the main growth drivers in the latest quarter. Revenue at The North Face rose by 4 percent to 1.2 billion dollars, while Timberland grew by 4 percent to reach 525.9 million dollars.

Conversely, the downward trend continued at Vans. Its revenue fell by 10 percent to 547.6 million dollars. The group's smaller brands generated a combined 414.3 million dollars, representing a 22 percent decrease YoY. However, the losses were attributable to the divestment of Dickies. Adjusted for the brand's contribution, revenue in this segment increased by 1 percent.

Net profit rises by 50 percent

Driven by a higher gross margin and further cost reductions, the group also made progress in terms of earnings. Operating profit grew by 18 percent to 367.9 million dollars. Adjusted for special items, it reached 363.7 million dollars, exceeding the company's expectations of approximately 315 million dollars. Reported net profit rose by 50 percent to 285.3 million dollars.

The latest results gave management no reason to alter its existing full-year guidance. For 2026/27, constant-currency revenue growth from continuing operations is still expected to be at least 2 percent. The target for the operating margin remains at approximately 8 percent.

CEO Darrell sees progress at Vans

CEO and president Bracken Darrell expressed his satisfaction with the latest figures. “We delivered strong results in the second quarter and beat guidance across all key metrics,” he emphasised in a statement.

He also highlighted progress at the Vans label, which has been struggling for years. The brand's global retail revenue “grew for the first time in nearly five years”, Darrell explained. Furthermore, there were “strong orders from wholesale partners”. Given these upward trends, the company is confident of further improvements at Vans in the second half of the year.