American apparel company VF Corporation has announced its financial results for the second quarter (Q2) of FY26 ended September 27, reporting a revenue of $2.8 billion, up 2 per cent year-over-year (YoY) or down 1 per cent on a constant currency, surpassing guidance of a 4\u20132 per cent decline. The growth was primarily fuelled by stronger-than-expected back-to-school performance and early wholesale demand.<\/p>\n
Brand-wise, The North Face sales increased 6 per cent YoY or 4 per cent, reflecting continued consumer momentum. Timberland revenue rose 7 per cent YoY or 4 per cent at constant currency, supported by strong product innovation and global marketing. Vans sales declined 9 per cent YoY or 11 per cent, but marked sequential improvement, signalling gradual brand recovery. The pending sale of Dickies for $600 million will enhance liquidity and enable sharper portfolio investment, VF Corporation said in a press release.<\/p>\n
VF Corporation has posted revenue of $2.8 billion in Q2 FY26, up 2 per cent YoY but down 1 per cent in constant currency, surpassing expectations.
\nThe North Face and Timberland grew 6 and 7 per cent respectively, while Vans declined 9 per cent.
\nOperating income rose 5 per cent to $330 million.
\nNet debt dropped $1.5 billion, and a $0.09 per-share dividend was declared. <\/p>\n
The operating income reached $313 million, with adjusted operating income of $330 million, exceeding guidance ($260\u2013$290 million) and marking a 5 per cent YoY increase. Operating margin improved 130 bps to 11.2 per cent, with adjusted margin up 40 basis points (bps) to 11.8 per cent.<\/p>\n
The gross margin remained stable at 52.2 per cent. Selling, general and administrative (SG&A) expenses declined 1 per cent YoY, reflecting cost discipline despite inflationary pressures.<\/p>\n
Earnings per share (EPS) stood at $0.48, down from $0.52 YoY, while adjusted EPS was $0.52 (vs $0.6 last year. Net interest expense totalled $46 million, and the effective tax rate was 29 per cent.<\/p>\n
Net debt decreased $1.5 billion (21 per cent) YoY, with net debt excluding lease liabilities also down 27 per cent, highlighting strengthened balance sheet management.<\/p>\n
For the third quarter (Q3) of FY2026, the company anticipates a revenue decline of 1 to 3 per cent in constant currency terms, with adjusted operating income projected between $275 million and $305 million.<\/p>\n
For FY26, VF expects free cash flow, operating cash flow, and adjusted operating income to improve versus the prior year, incorporating known and anticipated tariff impacts, added the release.<\/p>\n
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Fibre2Fashion News Desk (SG) <\/p>\n
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