V F CORP (VFC): VF CORPORATION EXCEEDS GUIDANCE IN SECOND QUARTER FISCAL 2027
V F CORP (VFC) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 VF CORPORATION EXCEEDS GUIDANCE IN SECOND QUARTER FISCAL 2027 Reports strong operating income performance, with continued gross margin expansion Reaffirms FY'27 guidance DENVER, October 28, 2026 – VF Corporation (NYSE: VFC) today reported financial results for its se
How this was made
The 30-second read
Why it matters
The beat and reaffirmed guidance provide a clear catalyst for short‑term buying, while the dividend adds yield appeal.
Market read
The earnings beat and dividend confirmation are likely to drive immediate buying interest in VFC and may lift related apparel stocks.
What to watch
The recent divestiture of Dickies may still create integration costs not fully reflected in the current numbers.
VF CORPORATION EXCEEDS GUIDANCE IN SECOND QUARTER FISCAL 2027
Adjusted operating income excluding Dickies® was $364M versus guidance of approximately $315M, while revenue excluding Dickies® increased +1% versus LY in constant currency against guidance of approximately flat. Reported revenue declined (4%) versus LY, but gross margin expanded 320 basis points and the company reaffirmed FY'27 guidance.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q2'27 revenueGAAP | $2.70B | – | (4%) |
| Q2'27 revenue excluding Dickies®non-GAAP | +1% vs. LY | – | +1% |
| Q2'27 revenue excluding Dickies® constant currencynon-GAAP | +1% vs. LY | – | +1% |
| Q2'27 gross profitGAAP | $1.49B | – | – |
| Q2'27 gross marginGAAP | 55.4 % | – | up 320 bps vs. LY |
| Q2'27 adjusted gross margin excluding Dickies®non-GAAP | 55.4% | – | up 290 bps vs. LY |
| Q2'27 selling, general and administrative expensesGAAP | $1.12B | – | – |
| Q2'27 adjusted selling, general and administrative expensesnon-GAAP | $1.13B | – | – |
| Q2'27 operating incomeGAAP | $367.9M | – | – |
| Q2'27 operating marginGAAP | 13.7 % | – | up 250 bps vs. LY |
| Q2'27 adjusted operating incomenon-GAAP | $363.7M | – | – |
| Q2'27 adjusted operating marginnon-GAAP | 13.5 % | – | – |
| Q2'27 adjusted operating income excluding Dickies®non-GAAP | $364M | – | – |
| Q2'27 adjusted operating margin excluding Dickies®non-GAAP | 13.5% | – | up 170 bps vs. LY |
| Q2'27 income before income taxesGAAP | $346.9M | – | – |
| Q2'27 income tax expenseGAAP | $61.68M | – | – |
| Q2'27 net incomeGAAP | $285.3M | – | – |
| Q2'27 diluted earnings per shareGAAP | $ 0.71 | – | 48 % |
| Q2'27 adjusted diluted earnings per sharenon-GAAP | 0.70 | – | – |
| Q2'27 basic earnings per shareGAAP | $ 0.73 | – | – |
| First six months FY'27 revenueGAAP | $4.36B | – | (4%) |
| First six months FY'27 gross profitGAAP | $2.41B | – | – |
| First six months FY'27 gross marginGAAP | 55.2 % | – | – |
| First six months FY'27 operating incomeGAAP | $284.8M | – | – |
| First six months FY'27 adjusted operating incomenon-GAAP | $269.2M | – | – |
| First six months FY'27 net incomeGAAP | $188.1M | – | – |
| First six months FY'27 diluted earnings per shareGAAP | $ 0.47 | – | 152 % |
| First six months FY'27 adjusted diluted earnings per sharenon-GAAP | 0.43 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Outdoor segmentThe North Face® revenue increased 4% and Timberland® revenue increased 4%. | $1.73B | – | 4% |
| Active segmentVans® revenue declined (10%). | $700.3M | – | (8%) |
| All OtherAll Other includes Dickies® through the date of sale, Altra®, Smartwool®, Napapijri® and Icebreaker®. | $261.7M | – | (31%) |
| The North Face®The North Face® continued to deliver consistent growth. | $1.21B | – | 4 % |
| Vans®Global DTC returned to growth, while Wholesale improvement is expected in H2'27. | $547.6M | – | (10 %) |
| Timberland®Growth was driven by continued strength in the Americas. | $525.9M | – | 4 % |
| Other BrandsRevenue excluding Dickies® increased 6 %. | $414.3M | – | (22 %) |
| AmericasRevenue excluding Dickies® increased 6 % and constant-currency revenue excluding Dickies® increased 5 %. | $1.32B | – | (2 %) |
| EMEAConstant-currency revenue declined (5 %); revenue excluding Dickies® declined (2 %). | $1.01B | – | (6 %) |
| APACConstant-currency revenue declined (10 %); revenue excluding Dickies® declined (4 %). | $361M | – | (7 %) |
| DTCDTC revenue excluding Dickies® increased 3 %. | $915.2M | – | 1 % |
| WholesaleWholesale revenue excluding Dickies® was 0 %. | $1.78B | – | (6 %) |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
FY'27 outlook
- Revenue+2% or better C$ vs. LY
- NoteAdjusted OM of approximately 8%
- NoteNormalized free cash flow flat to up vs. LY of $405M
- Noteactual free cash flow to be $515M or higher
- NoteFYE'27 leverage ratio of 2.6x to 2.9x
- NoteRevenue performance excludes Dickies® in FY'26 and includes 53rd week in FY'27
- NoteNormalized free cash flow excludes $100M net impact of pension termination in FY'26 and any net impact from tariff refunds in FY'27
Capital returns
- VF’s Board of Directors declared a quarterly dividend of $0.09 per share.
- The dividend will be payable on December 17, 2026, to shareholders of record at the close of business on December 10, 2026.
- Cash dividends paid were $ 70,798 (in thousands) in the six months ended September 2026, compared with $ 70,312 (in thousands) in the six months ended September 2025.
- Cash dividends per common share were $ 0.09 for the three months ended September 2026 and $ 0.18 for the six months ended September 2026.
What drove it
- Gross margin was 55.4%, up 320 bps vs. LY.
- Adjusted gross margin excluding Dickies® was 55.4%, up 290 bps vs. LY.
- The North Face® and Timberland® each increased revenue 4%.
- Global DTC revenue increased 1%, or 3% C$ excluding Dickies®; digital revenue increased 2%, or 8% excluding Dickies®.
- Altra® grew more than 40%.
- Interest expense, net was $ 23,693 (in thousands), compared with $ 46,209 (in thousands) in the prior-year quarter.
Concerns
- Reported Q2'27 revenue declined (4%) versus LY to $ 2,695,132 (in thousands).
- Vans® revenue declined (10 %) to $ 547.6 million.
- Wholesale revenue declined (6 %) to $ 1,779.9 million.
- EMEA revenue declined (6 %) and APAC revenue declined (7 %).
- Active segment revenue declined (8%) and All Other revenue declined (31%).
- Cash used by operating activities was $ 214,030 (in thousands) in the first six months of FY'27.
What to watch
- Whether Vans® Wholesale improvement materializes in H2'27.
- Whether inventories of $ 1,984,403 (in thousands) support the stated demand in H2'27.
- Execution against FY'27 revenue growth of +2% or better C$ vs. LY, adjusted OM of approximately 8%, and FYE'27 leverage ratio of 2.6x to 2.9x.
- The trajectory of normalized free cash flow relative to FY'26 normalized free cash flow of $405M.
- The effect of the additional week in the fourth quarter of Fiscal 2027.
Balance sheet and cash flow
- Cash and cash equivalents were $ 442,951 (in thousands) at September 2026, compared with $ 823,943 (in thousands) at March 2026 and $ 419,115 (in thousands) at September 2025.
- Inventories were $ 1,984,403 (in thousands) at September 2026, compared with $ 1,855,895 (in thousands) at September 2025. Net inventories were up 7% vs. LY to support demand in H2'27.
- Short-term borrowings were $ 34,223 (in thousands), current portion of long-term debt was $ 499,561 (in thousands), and long-term debt was $ 3,004,805 (in thousands) at September 2026.
- Net debt was down $1.1B or (20%) vs. LY. Net debt excluding lease liabilities was down $1.1B or (26%) vs. LY.
- Cash used by operating activities was $ 214,030 (in thousands) in the six months ended September 2026, compared with $ 372,468 (in thousands) in the six months ended September 2025.
- Capital expenditures were $ 78,696 (in thousands) and software purchases were $ 29,925 (in thousands) in the six months ended September 2026.
- Cash used by investing activities was $ 103,928 (in thousands) and cash used by financing activities was $ 56,158 (in thousands) in the six months ended September 2026.
- Cash, cash equivalents and restricted cash at the end of the period were $ 452,462 (in thousands), compared with $ 435,504 (in thousands) in the prior-year period.
Analysis
VF reported Q2'27 revenue of $ 2,695,132 (in thousands), down (4%) versus the prior-year quarter. The reported decline reflected Vans® down (10%), Other Brands down (22%), EMEA down (6%), APAC down (7%), and Wholesale down (6%). On the post-Dickies® comparison, revenue increased +1% versus LY in constant currency, exceeding guidance of approximately flat C$ versus LY. DTC increased 1%, or 3% C$ excluding Dickies®, and digital increased 2%, or 8% excluding Dickies®.
Profitability was the principal strength. Gross margin was 55.4%, up 320 bps versus LY, while GAAP operating income was $ 367,920 (in thousands) and operating margin was 13.7%, up 250 bps versus LY. Adjusted operating income was $ 363,716 (in thousands), and adjusted operating income excluding Dickies® was $364M, above guidance of approximately $315M. GAAP net income was $ 285,251 (in thousands) and diluted EPS was $ 0.71, compared with $ 0.48 in the prior-year quarter.
Outdoor remained the growth engine, with revenue of $ 1,733,182 (in thousands), up 4%. The North Face® generated $ 1,207.3 million of revenue, up 4%, and Timberland® generated $ 525.9 million, also up 4%, with Timberland's growth attributed to continued strength in the Americas. Active segment revenue declined (8%) to $ 700,262 (in thousands), driven by Vans®. Management highlighted that Vans® global DTC returned to growth and cited strong wholesale orders as support for expected H2'27 improvement.
Balance-sheet and cash-flow data show inventory investment alongside deleveraging. Inventories were $ 1,984,403 (in thousands) at September 2026 and net inventories were up 7% versus LY to support H2'27 demand. Cash used by operating activities was $ 214,030 (in thousands) over the first six months, while capital expenditures and software purchases were $ 78,696 (in thousands) and $ 29,925 (in thousands), respectively. The company said net debt was down $1.1B, or (20%), versus LY and reaffirmed FY'27 guidance, including revenue growth of +2% or better C$ versus LY, adjusted OM of approximately 8%, and FYE'27 leverage of 2.6x to 2.9x.
Management, verbatim
We drove strong results in the second quarter, ahead of guidance across key metrics, as a result of great product and solid execution.
Bracken Darrell, President and CEO
Our plan to reignite Vans ® is working – global DTC is growing again for the first time in almost five years, and strong orders from Wholesale partners continue to give us confidence of a second half improvement.
Bracken Darrell, President and CEO
Not in the filing
stated, not guessed- Prior-quarter comparisons for revenue, earnings, margins, segments and cash flow were not provided.
- Q2'27 free cash flow was not provided.
- A Q2'27 free-cash-flow reconciliation was not provided.
- Share repurchase activity was not provided.
- Forward gross-margin, operating-expense and tax-rate guidance was not provided.
- A current-period absolute net-debt amount was not provided.
- An effective income-tax-rate metric was not provided.
- Prior outlook was not provided; therefore, no reported results were compared with prior guidance.
- Q2'27 adjusted diluted EPS excluding Dickies® was not provided.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
VF Corp disclosed its Q2 FY27 earnings via an SEC Form 8‑K, highlighting operating income, margin expansion, and a quarterly dividend.
Ticker impact
VF Corporation reported Q2 FY27 results that beat guidance and reaffirmed full-year FY27 guidance, including higher operating income and a quarterly dividend.
likely upward pressure as investors price in stronger operating income and dividend confirmation
The company delivered operating income above the $315M guidance, raised operating margin by 250 bps, and announced a $0.09 per share dividend, all of which are fresh, material data that can move the stock today.
Market effects
Strong performance in outdoor apparel may lift peer brands and reinforce sector optimism.
Positive earnings from a U.S. consumer discretionary leader could boost broader U.S. retail sentiment.
Reaffirmed guidance supports confidence in global supply chain recovery for apparel manufacturers.
Counterpoint
If the market has already priced in the beat, the stock could face short‑term profit‑taking.
Key entities
- companyVF Corporation
Apparel and outdoor brand parent of The North Face, Vans, Timberland, etc.
