VF Corp Beats Guidance as The North Face and Timberland Shine

VF Corp surpasses expectations in Q2

US apparel group VF Corporation has reported second-quarter results for the 2026/27 financial year that exceeded its own guidance, prompting the company to reaffirm its full-year outlook. The parent company of brands including The North Face, Vans and Timberland saw group revenue of $2.7 billion for the July to September period, a 4 percent decline year-over-year. On a constant currency basis, revenue also fell by 4 percent. However, excluding contributions from the Dickies brand, which was sold in November 2025, group revenue actually increased by 1 percent (also +1 percent in constant currency). This adjusted performance surpassed management’s expectations, which had anticipated flat revenue compared to the previous year.

The North Face and Timberland drive growth

The North Face and Timberland remained the primary growth engines in the latest quarter. Revenue at The North Face rose by 4 percent to $1.2 billion, while Timberland grew by 4 percent to reach $525.9 million. In contrast, Vans continued its downward trajectory, with revenue falling by 10 percent to $547.6 million. The group’s smaller brands generated a combined $414.3 million, a 22 percent decrease year-over-year, but this was largely due to the divestment of Dickies. Adjusted for the brand’s contribution, revenue in this segment increased by 1 percent.

Net profit rises by 50 percent

Driven by a higher gross margin and further cost reductions, VF Corp also made significant progress in profitability. Operating profit grew by 18 percent to $367.9 million. Adjusted for special items, it reached $363.7 million, exceeding the company’s expectations of approximately $315 million. Reported net profit surged by 50 percent to $285.3 million. These results gave management no reason to alter its existing full-year guidance. For 2026/27, constant-currency revenue growth from continuing operations is still expected to be at least 2 percent, with the target for operating margin remaining at approximately 8 percent.

CEO Darrell sees progress at Vans

CEO and president Bracken Darrell expressed his satisfaction with the latest figures. “We delivered strong results in the second quarter and beat guidance across all key metrics,” he emphasised in a statement. He also highlighted progress at the Vans label, which has been struggling for years. The brand’s global retail revenue “grew for the first time in nearly five years,” Darrell explained. Furthermore, there were “strong orders from wholesale partners.” Given these upward trends, the company is confident of further improvements at Vans in the second half of the year.

Outlook remains unchanged

With the second-quarter performance surpassing expectations and signs of a turnaround at Vans, VF Corp is holding steady on its full-year guidance. The company continues to expect constant-currency revenue growth of at least 2 percent from continuing operations and an operating margin of around 8 percent. The results reflect a mixed picture across the portfolio, with The North Face and Timberland delivering solid growth while Vans shows early signs of recovery. The divestment of Dickies has allowed the company to focus on its core brands, and the adjusted revenue growth of 1 percent indicates underlying resilience. As VF Corp moves into the second half of the year, all eyes will be on whether Vans can sustain its momentum and whether the group can achieve its full-year targets.