VF Reports Adjusted EPS of $0.70 and Falls 2.9% Pre-Market
Key Facts
VF Corporation reported results for the second quarter of its fiscal 2027, ended September 26, 2026, and reaffirmed its outlook for the year, while its shares fell 2.9% in pre-market trading after the announcement, according to Investing.com. Adjusted earnings per share were $0.70, exceeding the analyst consensus of $0.53 by $0.17. The company also reported revenue of $2.7 billion, above the $2.66 billion estimate. However, revenue declined 4% year over year in reported currency. The available information did not provide a documented explanation for the pre-market share decline.
Excluding the Dickies brand, which the company sold, revenue rose 1% year over year in constant currency, ahead of guidance that had called for it to be flat. Adjusted operating income, excluding Dickies, was $364 million, compared with the company’s guidance of about $315 million. Gross margin rose to 55.4%, up 320 basis points from the same period a year earlier. Adjusted operating margin excluding Dickies was 13.5%, up 170 basis points year over year. These indicators reflect improved margins and adjusted operating performance alongside a decline in reported revenue.
The group’s brands delivered mixed results during the quarter. The North Face revenue rose 4% year over year, and Timberland posted similar growth. By contrast, Vans revenue fell 9.8%, while Altra grew more than 40%. Chief Executive Officer Bracken Darrell said the Vans turnaround plan was paying off, adding: "Global direct-to-consumer sales are growing again for the first time in about five years." The performance puts an improvement in the brand’s direct sales alongside a continued decline in its total revenue for the quarter.
On the balance sheet, net debt fell by $1.1 billion, or 20%, compared with the same period a year earlier. Net inventories rose 7% year over year, and the company said it was building them to support demand in the second half of fiscal 2027. These figures follow VF’s return to annual revenue growth in fiscal 2026, at 1%. Adjusted operating margin excluding Dickies was then 7%, while the leverage ratio reached 3.1 times at year-end. In the first quarter of fiscal 2027, reported revenue declined 5% year over year, and reported Vans revenue fell 8%.
VF reaffirmed its fiscal 2027 outlook, targeting revenue growth of 2% or more in constant currency and adjusted operating margin of about 8%. It also expected normalized free cash flow to be flat to higher compared with $405 million in the prior year. Separately, it said actual free cash flow for fiscal 2027 would be $515 million or more. The company expects its leverage ratio at year-end to range between 2.6 and 2.9 times. After the first-quarter results, the CEO had said the company expected a significant improvement in Vans wholesale sales in the second half of the fiscal year.
The company had set October 28, 2026, as the date for releasing its second-quarter results, at about 6 a.m. Eastern Time, with management scheduled to hold a call at about 8 a.m. It also announced a quarterly cash dividend of $0.09 per share. The dividend is payable on December 17, 2026, to shareholders of record as of the close of business on December 10, 2026. The company ties its second-half plan to supporting demand through inventory and to an expected improvement in Vans wholesale sales. Its reaffirmed annual outlook covers revenue growth, margins, cash flow and leverage.