VF Corp. (NYSE:VFC) stock fell in premarket trading Wednesday despite the apparel maker reporting better-than-expected second-quarter results and reaffirming its full-year outlook.
Second-Quarter Results
VF reported adjusted earnings of 70 cents per share, beating analysts’ expectations of 54 cents.
Revenue declined 4% year over year to $2.695 billion but topped the consensus estimate of $2.667 billion.
Excluding Dickies, revenue rose 1% from a year earlier, exceeding the company’s guidance for flat growth on a constant-currency basis.
Adjusted gross margin, excluding Dickies, expanded 290 basis points to 55.4%.
Adjusted operating income, excluding Dickies, reached $364 million, surpassing the company’s guidance of $315 million.
VF operated 1,095 retail stores worldwide as of September 2026, down from 1,105 a year earlier.
The company ended the quarter with $442.95 million in cash and cash equivalents and reduced net debt by $1.1 billion.
VF declared a quarterly dividend of 9 cents per share, payable Dec. 17 to shareholders of record Dec. 10.
The North Face, Timberland Maintain Growth Momentum
Global direct-to-consumer revenue increased 1% year over year to $915 million. Excluding Dickies, sales rose 3% on a constant-currency basis, reflecting continued strength in the company’s retail operations.
Revenue in the Americas declined 2% to $1.32 billion. Excluding Dickies, regional revenue increased 5% in constant currency, supported by growth across sales channels.
The North Face reported a 4% revenue increase, including on a constant-currency basis.
Timberland revenue also rose 4%, driven by continued strength in the Americas.
Vans remained a weak spot, with revenue falling 9.8% year over year, or 10% in constant currency. However, the company expects wholesale demand to improve in the second half of fiscal 2027.
See More:
Top Momentum Stocks
VF Corp. Reaffirms Fiscal 2027 Outlook
President and CEO Bracken Darrell attributed the strong second-quarter performance to product innovation and disciplined execution.
He highlighted continued growth at The North Face and Timberland, along with revenue growth of more than 40% at Altra.
Darrell also said the company’s Vans turnaround strategy is gaining traction, with global direct-to-consumer sales returning to growth for the first time in nearly five years.
Inventories increased 7% year over year as the company prepared to meet anticipated demand in the second half of the fiscal year.
VF expects fiscal 2027 revenue to exceed $9.53 billion, above the analyst consensus estimate of $9.51 billion.
The company projects full-year revenue growth of at least 2% on a constant-currency basis.
VF reaffirmed its adjusted operating margin outlook of about 8% and expects free cash flow to be flat or higher compared with last year’s $405 million.
The company also expects a leverage ratio of 2.6 to 2.9 times for fiscal 2027.
VFC Price Action: VF Corp. shares fell 3.76% to $16.39 in premarket trading Wednesday, according to Benzinga Pro data.
Image via Shutterstock
