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VFC posted Q3 EPS of 58 cents and revenues of $2.88B, beating estimates despite earnings falling Y/Y.
VFC saw strength from The North Face and Timberland, with the Americas delivering its best results.
DTC sales returned to growth and it beat revenue and operating income guidance under the Reinvent program.
V.F. Corporation (VFC - Free Report) reported third-quarter fiscal 2026 results, with a sales and earnings beat. While earnings fell year over year, revenues increased. Nevertheless, the company is on track with its Reinvent program and expects to deliver medium-term financial targets. The Reinvent program and VFC’s actions to boost operating profitability appear encouraging.
The company reported adjusted earnings per share (EPS) of 58 cents, beating the Zacks Consensus Estimate of 43 cents. Earnings declined from 62 cents a share in the year-earlier quarter.
V.F. Corporation Price, Consensus and EPS Surprise
Net revenues of $2.88 billion grew 1% year over year and surpassed the consensus estimate of $2.76 billion. Adjusted revenues (excluding Dickies) increased 4% year over year. The adjusted gross margin rose 10 bps to 57%.
V.F. Corp. reported solid third-quarter performance, delivering growth during the peak holiday season and beating revenue and operating income guidance. Strength was led by The North Face and Timberland, while the Americas region posted its strongest results in over three years. Global direct-to-consumer sales returned to growth, reinforcing management’s confidence in achieving its medium-term financial targets.
V.F. Corp.’s Revenue Details
On a regional basis, revenues in the Americas rose 2% year over year both on a reported basis and on a constant-currency basis. In the EMEA region, revenues were up 4% on a reported basis and down 4% on a constant-currency basis. Revenues in the APAC region were down 6% on a reported basis and 7% down on a constant-currency basis. The company’s International revenues grew 2% year over year on a reported basis and were down 4% on a constant-currency basis.
Channel-wise, wholesale revenues fell 1% on a reported basis. Direct-to-consumer revenues were up 4% year over year on a reported basis and 1% on a constant-currency basis. Our model estimated the wholesale revenues to fall 0.1% and direct-to-consumer revenues to dip 1% year over year.
In the first quarter of fiscal 2026, V.F. Corp. realigned its reportable segments into two main categories: Outdoor and Active. Operating segments not meeting disclosure thresholds are now grouped under an "All Other" category.
Based on reporting segments, revenues in the Outdoor segment improved 8% year over year on a reported basis and 5% on a constant-currency basis to $1,926 million. In the Active segment, revenues of $671.8 million declined 6% year over year on a reported basis and 9% on a constant-currency basis. Revenues in the All Other segment fell 18% year over year on a reported basis and 20% on a constant-currency basis to $278 million.
Financial Details of VFC
V.F. Corp. ended the fiscal third quarter with cash and cash equivalents of $1.5 billion, long-term debt of $3.55 billion and shareholders’ equity of $1.78 billion. Net debt was down $0.5 billion from the year-ago period.
The company’s board has announced a quarterly dividend of 9 cents per share, payable March 19, 2026, to its shareholders of record as of March 10.
Other Details
The company announced a definitive agreement on Sept. 15, 2025, to sell the Dickies brand to Bluestar Alliance LLC and completed the divestiture on Nov. 12. Under U.S. GAAP, Dickies’ results remain included in V.F. Corp.’s third-quarter fiscal 2026 results through the date of sale, as the transaction did not qualify for discontinued-operations treatment. To better reflect ongoing performance following the divestiture, VFC also presents results “excluding Dickies” and “adjusted excluding Dickies,” which remove Dickies’ contribution from all periods and are intended to provide clearer insight into V.F. Corp.’s post-sale operating trends.
In the nine months ended December 2025, VFC spent $51 million on its Reinvent transformation program. These costs mainly covered severance and employee-associated gains and costs with respect to the engagement of a consulting firm to boost the company's transformation journey.
The program led to a net tax benefit of $11.9 million in the nine months of fiscal 2026. VFC has spent $207.7 million in restructuring charges under Reinvent, with all the substantial efforts completed by the end of the first quarter of fiscal 2026.
What to Expect From VFC in Q4 & FY26?
For the fourth quarter of fiscal 2026, VFC expects revenues to be flat to up 2% in constant currency compared with the prior year. Adjusted operating income is projected to range between $10 million and $30 million. Adjusted gross margin is likely to be flat to slightly up year over year. Adjusted SG&A are likely to be flat to slightly down.
For fiscal 2026, VFC expects adjusted operating income, operating cash flow and free cash flow to increase year over year, while ending fiscal 2026 with leverage at or below 3.5x. These projections reflect the company’s ongoing progress under its Reinvent transformation program, focused on cost reduction, margin improvement and strategic brand repositioning to drive long-term growth.
The Zacks Rank #3 (Hold) company's shares have gained 27.5% in the past three months compared with the industry’s 5.4% growth.
VFC Stock's Price Performance
Image Source: Zacks Investment Research
Key Consumer Discretionary Picks
Under Armour (UAA - Free Report) is one of the leading designers, marketers and distributors of authentic athletic footwear, apparel and accessories for a wide variety of sports and fitness activities in the United States and internationally. The company sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for UAA’s current financial-year sales and EPS indicates declines of 3.9% and 93.9%, respectively, from the year-ago reported figures. Under Armour has a trailing four-quarter earnings surprise of 44.5%, on average.
Ralph Lauren (RL - Free Report) , which is a designer and marketer of premium lifestyle products, currently carries a Zacks Rank of 2 (Buy).
RL delivered a trailing four-quarter earnings surprise of 9.8%, on average. The Zacks Consensus Estimate for RL’s current financial-year sales indicates growth of 25.1% from the year-ago number.
GIII Apparel Group (GIII - Free Report) , which is a designer and manufacturer of apparel and accessories, currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for GIII’s current financial-year EPS is expected to rise 6.3% from the corresponding year-ago reported figure. GIII Apparel delivered a trailing four-quarter earnings surprise of 64.5%, on average.
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V.F. Corp. Q3 Earnings & Revenues Beat Estimates, Sales Up Y/Y
Key Takeaways
V.F. Corporation (VFC - Free Report) reported third-quarter fiscal 2026 results, with a sales and earnings beat. While earnings fell year over year, revenues increased. Nevertheless, the company is on track with its Reinvent program and expects to deliver medium-term financial targets. The Reinvent program and VFC’s actions to boost operating profitability appear encouraging.
The company reported adjusted earnings per share (EPS) of 58 cents, beating the Zacks Consensus Estimate of 43 cents. Earnings declined from 62 cents a share in the year-earlier quarter.
V.F. Corporation Price, Consensus and EPS Surprise
V.F. Corporation price-consensus-eps-surprise-chart | V.F. Corporation Quote
Net revenues of $2.88 billion grew 1% year over year and surpassed the consensus estimate of $2.76 billion. Adjusted revenues (excluding Dickies) increased 4% year over year. The adjusted gross margin rose 10 bps to 57%.
V.F. Corp. reported solid third-quarter performance, delivering growth during the peak holiday season and beating revenue and operating income guidance. Strength was led by The North Face and Timberland, while the Americas region posted its strongest results in over three years. Global direct-to-consumer sales returned to growth, reinforcing management’s confidence in achieving its medium-term financial targets.
V.F. Corp.’s Revenue Details
On a regional basis, revenues in the Americas rose 2% year over year both on a reported basis and on a constant-currency basis. In the EMEA region, revenues were up 4% on a reported basis and down 4% on a constant-currency basis. Revenues in the APAC region were down 6% on a reported basis and 7% down on a constant-currency basis. The company’s International revenues grew 2% year over year on a reported basis and were down 4% on a constant-currency basis.
Channel-wise, wholesale revenues fell 1% on a reported basis. Direct-to-consumer revenues were up 4% year over year on a reported basis and 1% on a constant-currency basis. Our model estimated the wholesale revenues to fall 0.1% and direct-to-consumer revenues to dip 1% year over year.
In the first quarter of fiscal 2026, V.F. Corp. realigned its reportable segments into two main categories: Outdoor and Active. Operating segments not meeting disclosure thresholds are now grouped under an "All Other" category.
Based on reporting segments, revenues in the Outdoor segment improved 8% year over year on a reported basis and 5% on a constant-currency basis to $1,926 million. In the Active segment, revenues of $671.8 million declined 6% year over year on a reported basis and 9% on a constant-currency basis. Revenues in the All Other segment fell 18% year over year on a reported basis and 20% on a constant-currency basis to $278 million.
Financial Details of VFC
V.F. Corp. ended the fiscal third quarter with cash and cash equivalents of $1.5 billion, long-term debt of $3.55 billion and shareholders’ equity of $1.78 billion. Net debt was down $0.5 billion from the year-ago period.
The company’s board has announced a quarterly dividend of 9 cents per share, payable March 19, 2026, to its shareholders of record as of March 10.
Other Details
The company announced a definitive agreement on Sept. 15, 2025, to sell the Dickies brand to Bluestar Alliance LLC and completed the divestiture on Nov. 12. Under U.S. GAAP, Dickies’ results remain included in V.F. Corp.’s third-quarter fiscal 2026 results through the date of sale, as the transaction did not qualify for discontinued-operations treatment. To better reflect ongoing performance following the divestiture, VFC also presents results “excluding Dickies” and “adjusted excluding Dickies,” which remove Dickies’ contribution from all periods and are intended to provide clearer insight into V.F. Corp.’s post-sale operating trends.
In the nine months ended December 2025, VFC spent $51 million on its Reinvent transformation program. These costs mainly covered severance and employee-associated gains and costs with respect to the engagement of a consulting firm to boost the company's transformation journey.
The program led to a net tax benefit of $11.9 million in the nine months of fiscal 2026. VFC has spent $207.7 million in restructuring charges under Reinvent, with all the substantial efforts completed by the end of the first quarter of fiscal 2026.
What to Expect From VFC in Q4 & FY26?
For the fourth quarter of fiscal 2026, VFC expects revenues to be flat to up 2% in constant currency compared with the prior year. Adjusted operating income is projected to range between $10 million and $30 million. Adjusted gross margin is likely to be flat to slightly up year over year. Adjusted SG&A are likely to be flat to slightly down.
For fiscal 2026, VFC expects adjusted operating income, operating cash flow and free cash flow to increase year over year, while ending fiscal 2026 with leverage at or below 3.5x. These projections reflect the company’s ongoing progress under its Reinvent transformation program, focused on cost reduction, margin improvement and strategic brand repositioning to drive long-term growth.
The Zacks Rank #3 (Hold) company's shares have gained 27.5% in the past three months compared with the industry’s 5.4% growth.
VFC Stock's Price Performance
Image Source: Zacks Investment Research
Key Consumer Discretionary Picks
Under Armour (UAA - Free Report) is one of the leading designers, marketers and distributors of authentic athletic footwear, apparel and accessories for a wide variety of sports and fitness activities in the United States and internationally. The company sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for UAA’s current financial-year sales and EPS indicates declines of 3.9% and 93.9%, respectively, from the year-ago reported figures. Under Armour has a trailing four-quarter earnings surprise of 44.5%, on average.
Ralph Lauren (RL - Free Report) , which is a designer and marketer of premium lifestyle products, currently carries a Zacks Rank of 2 (Buy).
RL delivered a trailing four-quarter earnings surprise of 9.8%, on average. The Zacks Consensus Estimate for RL’s current financial-year sales indicates growth of 25.1% from the year-ago number.
GIII Apparel Group (GIII - Free Report) , which is a designer and manufacturer of apparel and accessories, currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for GIII’s current financial-year EPS is expected to rise 6.3% from the corresponding year-ago reported figure. GIII Apparel delivered a trailing four-quarter earnings surprise of 64.5%, on average.