US’ VF Corp beats guidance with $2.8 bn revenue in Q2 FY26, up 2% YoY
American apparel company VF Corporation has announced its financial results for the second quarter (Q2) of FY26 ended September 27, reporting a revenue of $2.8 billion, up 2 per cent year-over-year (YoY) or down 1 per cent on a constant currency, surpassing guidance of a 4–2 per cent decline. The growth was primarily fuelled by stronger-than-expected back-to-school performance and early wholesale demand.
Brand-wise, The North Face sales increased 6 per cent YoY or 4 per cent, reflecting continued consumer momentum. Timberland revenue rose 7 per cent YoY or 4 per cent at constant currency, supported by strong product innovation and global marketing. Vans sales declined 9 per cent YoY or 11 per cent, but marked sequential improvement, signalling gradual brand recovery. The pending sale of Dickies for $600 million will enhance liquidity and enable sharper portfolio investment, VF Corporation said in a press release.
The operating income reached $313 million, with adjusted operating income of $330 million, exceeding guidance ($260–$290 million) and marking a 5 per cent YoY increase. Operating margin improved 130 bps to 11.2 per cent, with adjusted margin up 40 basis points (bps) to 11.8 per cent.
The gross margin remained stable at 52.2 per cent. Selling, general and administrative (SG&A) expenses declined 1 per cent YoY, reflecting cost discipline despite inflationary pressures.
Earnings per share (EPS) stood at $0.48, down from $0.52 YoY, while adjusted EPS was $0.52 (vs $0.6 last year. Net interest expense totalled $46 million, and the effective tax rate was 29 per cent.
Net debt decreased $1.5 billion (21 per cent) YoY, with net debt excluding lease liabilities also down 27 per cent, highlighting strengthened balance sheet management.
For the third quarter (Q3) of FY2026, the company anticipates a revenue decline of 1 to 3 per cent in constant currency terms, with adjusted operating income projected between $275 million and $305 million.
For FY26, VF expects free cash flow, operating cash flow, and adjusted operating income to improve versus the prior year, incorporating known and anticipated tariff impacts, added the release.