VF Corporation exceeds expectations in second quarter

US apparel group VF Corporation exceeded market expectations in the second quarter of its 2025/26 financial year. The parent company of brands such as The North Face, Vans and Timberland achieved surprising growth in sales and profit. This was revealed in the latest results, which the company presented on Tuesday.

CEO Bracken Darrell was pleased with the business performance. “In the second quarter, we made further progress with our turnaround plan,” he explained in a statement. “We achieved broad-based growth at The North Face and Timberland, while continuing to slow the decline at Vans.”

The CEO also pointed to the sale of the Dickies brand to Bluestar Alliance for 600 million US dollars, which was agreed in mid-September. Darrell emphasised that this transaction improves VF’s chances of “investing in the portfolio and increasing shareholder returns”. Looking ahead, the management will “continue to focus on generating value across all brands and returning the company to sustainable and profitable growth”.

Quarterly sales increase by two percent

In the most recent quarter, which ended September 30, group sales amounted to 2.80 billion US dollars. This represents an increase of 2 percent compared to the same period last year. Adjusted for currency fluctuations, revenue fell by 1 percent. However, this was above analysts' expectations, who had forecast a decline of 2 to 4 percent.

The surprisingly positive sales performance was mainly due to growth at The North Face (+6 percent) and Timberland (+7 percent). Revenue from the long-struggling Vans label was 9 percent below the previous year's quarter. Total sales from the group's smaller brands increased by 2 percent, thanks in part to strong growth at the Altra label (+35 percent).

Group makes further progress in operating profit

The group also made unexpectedly strong progress in its earnings. Adjusted operating profit rose by 5 percent to 330.1 million US dollars. Management had previously forecast only 260 to 290 million US dollars.

Reported net profit jumped to 189.8 million US dollars. However, in the same period last year, high losses from the now-sold Supreme brand had weighed on the result. Quarterly net income from continuing operations fell by 6 percent due to higher tax burdens.

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