VF Corporation Reports Strong Q3'25 Earnings

By Bobby Samwell • Wednesday, January 29 15:30 • Permanent Link

VF Corporation has reported its Q3'25 earnings, revealing a notable improvement in various financial metrics compared to the prior period. In Q3'25, the company's revenue reached $2.8 billion, marking a 2% increase compared to the same period in the previous year. Operating income stood at $226 million, with adjusted operating income reaching $324 million. The operating margin saw a significant improvement, reaching 8.0%, up by 1,130 basis points year-over-year, while the adjusted operating margin was 11.4%, up by 360 basis points year-over-year.

Additionally, the company reported a positive change in its earnings per share (EPS) which amounted to $0.43 compared to $(0.24) in Q3'24. Adjusted EPS also showed improvement, reaching $0.62 compared to $0.45 in the same period last year. Furthermore, VF Corporation managed to reduce its net debt by $1.9 billion compared to the prior year, and net inventories decreased by 14% year-over-year.

Looking ahead, the company provided guidance for Q4'25, expecting a revenue decrease of 4% to 6% compared to the prior year, and an adjusted operating loss ranging from $(30) million to $0 million. However, VF Corporation increased its fiscal year 2025 free cash flow guidance to $440 million, up from the previous guidance of $425 million, reflecting higher-than-planned proceeds on the sale of non-core physical assets and improved core fundamentals.

Furthermore, the company highlighted its progress in its transformation initiatives, including the achievement of $55 million in savings in Q3'25 and the continued reduction of net inventories by $300 million. VF Corporation also mentioned its efforts to strengthen its balance sheet, such as paying down a $1 billion term loan in October 2024.

These figures demonstrate VF Corporation's positive financial performance and its ongoing efforts to transform and strengthen its position in the market, as it aims to consistently deliver double-digit operating margins and sustainable top-line growth. Following these announcements, the company's shares moved -3.7%, and are now trading at a price of $25.61. Check out the company's full 8-K submission here.

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