The performance was driven by strong holiday-season execution, particularly in the Americas and its direct-to-consumer (DTC) channel. The company also announced a quarterly dividend of $0.09 per share. Operating income climbed to $289 million, or $341 million excluding Dickies, compared with $226 million and $318 million respectively last fiscal.
VF Corporation has reported a solid Q3 FY26, with revenue up 1 per cent YoY and 4 per cent excluding Dickies.
Strong holiday demand in the Americas and DTC drove performance.
Operating income and margins improved, supported by lower SG&A.
The North Face and Timberland led brand growth.
The company also announced a $0.09 per share dividend and maintained a positive FY26 outlook.
The gross margin improved by 30 basis points (bps) YoY to 56.6 per cent reported and stood at 57 per cent on an adjusted ex Dickies basis. Selling, General and Administrative (SG&A) expenses declined to 45.5 per cent of revenue, supporting a stronger operating margin of 10.1 per cent reported and 12.1 per cent excluding Dickies. Earnings per share (EPS) from continuing operations rose to $0.76 reported and $0.58 adjusted ex Dickies, compared with $0.43 and $0.61 in the same quarter a year earlier, VF Corporation said in a press release.
Brand performance was led by The North Face, which grew 8 per cent YoY, or 5 per cent on a constant-currency basis, during its peak season. Timberland delivered its fifth consecutive quarter of growth, rising 8 per cent YoY. Vans performed broadly in line with expectations, supported by product newness and digital engagement during the holiday period.
Regionally, the Americas posted its strongest performance in over three years, with reported growth of 2 per cent and constant-currency growth of 6 per cent excluding Dickies. Global DTC revenue returned to growth, rising 4 per cent YoY, or 3 per cent on a constant-currency basis excluding Dickies, driven mainly by digital channels.
Looking ahead, VF Corporation expects fourth-quarter revenue to be flat to up 2 per cent on a constant-currency basis, with adjusted operating income in the range of $10 million to $30 million. For full FY26, the company reiterated expectations of higher free cash flow, operating cash flow, and adjusted operating income YoY, while targeting year-end leverage at or below 3.5 times.
Fibre2Fashion News Desk (SG)
