VF Corporation (NYSE: VFC), a leading global company in the outdoor and active lifestyle sector, announced robust financial results for its third quarter of fiscal 2026, ended December 27, 2025. The company demonstrated significant revenue growth, margin expansion, and debt reduction, affirming its strategic transformation efforts amidst a challenging retail environment.

1. Key Financial Highlights

Bracken Darrell, President and CEO of VF Corporation, expressed optimism regarding the company's performance during the peak holiday quarter. "In Q3, we delivered growth during our peak holiday quarter and beat revenue and operating income guidance," he stated. The highlights from the quarter include:

Revenue Growth: Reported revenue increased by 1% to $2.88 billion, while adjusted revenue (excluding the divested Dickies® brand) rose by 4% year-over-year.

Operating Income: The operating income soared to $289 million, compared to $226 million in the same quarter last year. Adjusted operating income reached $341 million, marking a healthy increase from $318 million year-over-year.

Earnings Per Share (EPS): The company reported diluted EPS of $0.76, up from $0.43 in the prior year. Adjusted EPS stood at $0.58, reflecting a solid recovery trajectory.

Brand Performance

The results were fueled by strong performances from key brands:

The North Face®: Revenue grew by 8% year-over-year (5% in constant dollars), benefiting from seasonal demand.

Timberland®: Achieved 8% growth year-over-year (5% in constant dollars), marking its fifth consecutive quarter of growth.

Vans®: The brand's performance was stable, aligning with expectations despite a slight decline of 8% year-over-year (10% in constant dollars).

The Americas region showcased its best performance in over three years, with an overall revenue increase of 2% year-over-year, and 6% growth when excluding Dickies. Additionally, the company's direct-to-consumer (DTC) channel returned to growth, rising 4% year-over-year (3% in constant dollars).

2. Strategic Developments

VF Corporation continued its strategic transformation, which included the successful divestiture of the Dickies® brand. The sale, completed in Q3, enabled the company to focus on its core brands and streamline operations. The financial results presented for Q3'26 reflect both reported figures and adjusted results excluding Dickies, providing clarity on ongoing business trends.

Margin and Expense Management

The company reported a gross margin of 56.6%, a 30 basis points improvement year-over-year. Selling, general, and administrative expenses (SG&A) as a percentage of revenue decreased to 45.5%, down 100 basis points from the previous year, contributing positively to operating margins, which expanded to 10.1% (up 210 basis points year-over-year).

3. Outlook for Q4 and Fiscal Year 2026

Looking ahead, VF Corporation provided guidance for the fourth quarter and the full fiscal year:

Q4'26 Outlook: Revenue is anticipated to be flat to a 2% increase in constant dollars compared to the prior year, with adjusted operating income expected to range between $10 million to $30 million.

Full Fiscal Year 2026: The company expects free cash flow and operating cash flow to be up compared to last year, with leverage projected to be at or below 3.5x, moving towards medium-term financial targets.

4. Dividend Announcement

In addition to the strong financial performance, VF's Board of Directors declared a quarterly dividend of $0.09 per share, payable on March 19, 2026, to shareholders of record by March 10, 2026. This reflects the company's commitment to returning value to its shareholders while maintaining a strong balance sheet.

5. Conclusion

VF Corporation's Q3 Fiscal 2026 results underscore the effectiveness of its transformation strategy, with notable growth across its key brands and regions. As the company navigates market challenges, its focus on operational efficiency and brand strength positions it well for continued success in the coming quarters. With a strong financial foundation and a commitment to innovation, VF Corporation is poised for a promising future in the outdoor and active lifestyle markets.

Original press release