VF operating income rises to $368 million, reaffirms fiscal 2027 guidance
VF said second-quarter operating income rose to $368 million from $312.6 million a year earlier, and it kept its fiscal 2027 outlook. Revenue fell 4% to $2.7 billion.
Key takeaways
- VF Corporation (VFC) said on Oct. 28 that second-quarter fiscal 2027 operating income rose to $368 million from $312.6 million a year earlier. Revenue fell 4% to $2.7 billion. The company reaffirmed its full-year guidance, including revenue growth of 2% or better in constant currency.
VF Corporation (VFC) said on Oct. 28 that operating income rose to $368 million in the second quarter of fiscal 2027, which ended Sept. 26, from $312.6 million a year earlier. Revenue fell 4% to $2.7 billion, and the company reaffirmed its full-year outlook.
CEO Bracken Darrell said the quarter came in ahead of the company's guidance. "We drove strong results in the second quarter, ahead of guidance across key metrics, as a result of great product and solid execution."
The company sold its Dickies brand to Bluestar Alliance LLC on Nov. 12, 2025. Several figures in the release exclude Dickies from the prior-year period.
Here's how the company did:
- Diluted EPS: $0.71 vs. $0.48 a year earlier
- Adjusted diluted EPS: $0.70, excluding Reinvent costs and a pension premium refund
- Revenue: $2,695.1 million vs. $2,802.7 million a year earlier
- Operating income: $367.9 million vs. $312.6 million a year earlier
Guidance reaffirmed
The company kept its fiscal 2027 targets. It expects revenue growth of 2% or better in constant dollars, an adjusted operating margin of about 8%, and free cash flow of $515 million or higher.
It also reaffirmed a year-end leverage ratio of 2.6x to 2.9x.
Brand and region performance
The North Face sales rose 4%, and Timberland rose 4%. Vans fell 9.8%, according to the release.
Global direct-to-consumer sales returned to growth, rising 1% from a year earlier. Altra grew more than 40%.
Darrell said, "Our plan to reignite Vans is working" and pointed to direct-to-consumer growth for the first time in almost five years.
Adjusted operating income excluding Dickies was $364 million, against guidance of approximately $315 million.
Balance sheet and dividend
Net debt fell $1.1 billion, or 20%, from a year earlier. Net inventories rose 7% to support demand in the second half.
The board declared a quarterly dividend of $0.09 per share. It is payable Dec. 17, 2026, to holders of record at the close of business on Dec. 10.