VF Corp Reports 1% Revenue Increase in Q3'26

By Chris Stiles • Wednesday, January 28 12:08 • Permanent Link

VF Corporation has released its Q3'26 earnings, reporting a 1% increase in revenue compared to the same period last year. When excluding the impact of foreign currency, the revenue showed a 2% increase. The company's operating income stood at $289 million, a significant improvement from the $226 million reported in the previous year. Adjusted operating income, excluding the impact of the divestiture of Dickies, was reported at $341 million, surpassing the guidance range of $275 million to $305 million.

The company reported a gross margin of 56.6%, which was 30 basis points higher than the previous year, and a 10 basis point increase from the adjusted figure. Similarly, the operating margin saw a substantial improvement, reaching 10.1%, up by 210 basis points from the previous year, and 30 basis points from the adjusted figure.

In terms of earnings per share, the company reported $0.76, compared to $0.43 in the same period last year. On an adjusted basis, excluding the impact of the Dickies divestiture, the earnings per share were reported at $0.58, up from $0.61 in the previous year.

VF Corporation's financial performance was driven by strong growth in its key brands. The North Face and Timberland each experienced an 8% and 5% growth, respectively, on a constant dollar basis. Vans' results met expectations, and the Americas region delivered its strongest performance in over three years. The direct-to-consumer (DTC) channel also showed growth during the period.

The company also highlighted a significant reduction in net debt, which decreased by $0.5 billion, representing an 11% reduction compared to the same period last year. Net inventories, excluding the impact of the Dickies divestiture, decreased by 4% in constant currency compared to the previous year.

Looking ahead, VF Corporation provided guidance for the fourth quarter of 2026, expecting revenue to be flat to up 2% in constant currency compared to the previous year. The adjusted operating income for the same period is anticipated to be in the range of $10 million to $30 million.

The market has reacted to these announcements by moving the company's shares -1.88% to a price of $18.82. For the full picture, make sure to review V F CORP's 8-K report.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.