VF's Adjusted Operating Income Beats Guidance

The Tip Desk · November 2, 2026 · 3 min read

Adjusted operating income excluding Dickies was $364 million against guidance of about $315 million, with revenue up 1% excluding Dickies.

VF Corporation (VFC) reported second-quarter fiscal 2027 revenue of $2.70 billion, down 4% from a year earlier, as the outdoor and active brands company posted results it said were ahead of guidance on key metrics. Excluding Dickies, revenue rose 1%, above the company’s outlook of roughly flat constant-currency sales.

Adjusted operating income excluding Dickies was $364 million, well above guidance of approximately $315 million. Adjusted operating margin excluding Dickies was 13.5%, up 170 basis points from a year earlier. Reported operating income was $368 million and operating margin was 13.7%, up 250 basis points. Gross margin was 55.4%, up 320 basis points; adjusted gross margin excluding Dickies was 55.4%, up 290 basis points.

President and Chief Executive Officer Bracken Darrell said the company drove results ahead of guidance “as a result of great product and solid execution.” He said The North Face and Timberland continued to deliver consistent growth, and Altra grew more than 40%.

The North Face revenue was $1.21 billion, up 4%. Timberland revenue was $525.9 million, up 4%, which the company attributed to continued strength in the Americas. Vans revenue was $547.6 million, down 9.8%. Darrell said the plan to reignite Vans is working, that global direct-to-consumer sales returned to growth for the first time in almost five years, and that strong wholesale orders give the company confidence of a second-half improvement.

Global DTC revenue was $915.2 million, up 1% or 3% in constant currency excluding Dickies. Wholesale revenue was $1.78 billion, down 6% or 0% excluding Dickies. The Americas region remained strong, down 2% or up 5% in constant currency excluding Dickies, which the company said reflected sustained growth across channels. EMEA revenue was $1.01 billion and APAC revenue was $361.0 million.

The Outdoor segment, which includes The North Face and Timberland, generated $1.73 billion of revenue, up 4%, and $362.2 million of segment profit. The Active segment, which includes Vans, generated $700.3 million of revenue, down 8%, and $50.3 million of segment profit. All Other, which includes Altra, Smartwool, Napapijri, Icebreaker and Dickies through the sale date, generated $261.7 million of revenue, down 31%.

Net income was $285.3 million, or $0.71 a share, compared with $189.8 million, or $0.48 a share, a year earlier. Diluted earnings excluding Reinvent and a pension premium refund were $0.70 a share. Reinvent costs were a $4.2 million benefit in the quarter.

Net inventories rose 7% from a year earlier to support demand in the second half of fiscal 2027. Net debt fell $1.1 billion, or 20%; excluding lease liabilities, net debt fell $1.1 billion, or 26%. Cash and cash equivalents were $443.0 million as of September 26, 2026.

The company reaffirmed full-year fiscal 2027 guidance of revenue up 2% or better in constant currency versus fiscal 2026 (excluding Dickies from fiscal 2026 and including fiscal 2027’s 53rd week), adjusted operating margin of approximately 8%, normalized free cash flow flat to up from $405 million in fiscal 2026 (excluding the $100 million net pension termination impact in fiscal 2026 and any net impact from tariff refunds in fiscal 2027), and a fiscal 2027 leverage ratio of 2.6x to 2.9x. Actual free cash flow is expected to be $515 million or higher. The board authorized a quarterly dividend of $0.09 a share.