Total Revenue

Declined ~4% (from $2,960.3M to $2,833.9M)

Total revenue fell by about 4% YoY, reflecting broader headwinds including softer performance in core segments, particularly the Active segment’s 23% decline, which was only partly offset by growth in the Outdoor segment; these results follow on the prior period’s challenges and a tougher market environment " " vs. " "

Outdoor Segment

Up ~6.5% (from $1,738.6M to $1,851.1M)

Outdoor segment revenue increased by 6.5% YoY to $1,851.1M, driven by robust demand internationally and strong performance of key outdoor brands, building on prior period momentum and effective strategic positioning in outdoor categories " " " vs. " "

Active Segment

Declined ~23% (from $999.4M to $766.3M)

Active segment revenue dropped steeply by approximately 23% YoY due to weakening consumer demand, inventory adjustments, and underperformance in key brands such as Vans; this decline further deepened from previously high levels, reflecting ongoing challenges visible from earlier periods " " vs. " "

Work Segment

Modest decline (from $222.3M to $216.5M)

Work segment remained relatively stable with a slight decrease, indicating mixed operational performance where some channels faced headwinds while others provided steady demand, echoing patterns seen in previous quarters with cautious inventory and wholesale pressures " " vs. " "

Geographics – Americas

Declined ~5% (from $1,586.4M to $1,506.7M)

Americas revenue fell by around 5% YoY, largely due to persistent softness in key U.S. markets and challenges in flagship brands such as Vans and Timberland, with lower wholesale demand compared to prior periods " vs. "

Geographics – Asia-Pacific

Declined ~6.2% (from $461.6M to $432.9M)

Asia-Pacific experienced about a 6.2% YoY revenue decline, driven by underperformance in certain brand segments and potential foreign exchange pressures, following a tougher-than-expected market environment compared to the previous year " vs. "

Geographics – Europe

Fell ~2% (from $912.3M to $894.2M)

European revenue dipped slightly by approximately 2% YoY, reflecting modest volume erosion due to weaker wholesale trends and brand-specific declines, despite some offset from robust performance by brands like The North Face during the prior period " vs. "

Operating Income

Rebounded from an operating loss of $32.2M to $225.8M

Operating income turned around dramatically from a loss of $32.2M to a profit of $225.8M YoY, driven by improved gross margins (up 120 basis points), enhanced cost control through SG&A discipline, and significant cost savings via the Reinvent program, representing a marked turnaround from previous quarters " vs. "

Net Income

Reversed from a loss of $42.5M to a profit of $167.8M

Net income improved significantly, reversing a loss of $42.5M to a profit of $167.8M YoY, as a result of better operating performance, cost-saving initiatives, and lower effective tax rates offsetting the revenue decline, which marks a substantial recovery from the previous period’s challenges " vs. "

Revenue

Q4 2025

no prior guidance

Expected to be down 4% to 6% on a reported basis; on a constant dollar basis, down 2% to 4%; FX impact -200bps "

no prior guidance

Operating Income

Q4 2025

no prior guidance

Expected to range from breakeven to a loss of $30 million "

no prior guidance

Gross Margin

Q4 2025

no prior guidance

Expected to benefit from lower product costs, fewer promotions, and fewer reserves " "

no prior guidance

SG&A Dollars

Q4 2025

no prior guidance

Expected to be up slightly versus last year, driven by increased investment in marketing and product " "

no prior guidance

Free Cash Flow

FY 2025

$425 million "

Raised to $440 million "

raised

Leverage Ratio

FY 2025

no prior guidance

Targeting a medium-term leverage ratio of 2.5x " "

no prior guidance

Vans Turnaround & Performance Challenges

Q2 2025 and Q1 2025 calls described a deep reset—with revenue declines worsening in Q4 2024 (27% decline) and then sequential improvements (from 21% decline in Q1 2025 to 11% in Q2 2025) while outlining wholesale and APAC challenges " " "

Q3 2025 noted an 8% revenue decline (improving from 11% in Q2) and continued challenges in APAC with a 31% drop, alongside renewed product innovation and marketing focus " " "

Consistent focus on turnaround, with steady sequential improvement but ongoing regional challenges.

The North Face Revenue Growth & Wholesale Channel Dynamics

Across Q1–Q2 2025 and Q4 2024, the narrative showed mixed results – with Q1 showing a 2% decline overall but a strong 8% DTC growth and Q2 and Q4 highlighting wholesale pressures and timing effects impacting revenue " " "

Q3 2025 reported 5% revenue growth, strong DTC performance, and highlighted outsized wholesale activity due to order pull‐forwards ahead of Lunar New Year " " "

Mixed performance with robust DTC growth, balanced by cyclical wholesale order timing effects.

Cost Reduction & Profitability Improvements

Q1 2025 noted $50M in savings and significant margin pressures from clearance actions; Q2 reported $65M savings and 120 bps margin improvement; Q4 described $40M savings but margin erosion due to reset actions " " "

Q3 2025 achieved $55M in cost savings with a 150 basis point gross margin improvement, driven by lower product costs and fewer promotions; reinvestment into growth was emphasized " " "

Steady progress on cost reduction—with margin improvements ongoing despite short–term promotional pressures.

Debt Reduction & Financial Discipline

Q1 discussions highlighted a $587M reduction and the divestiture of Supreme for $1.5B, while Q2 and Q4 emphasized asset sales and planned debt paydowns (e.g. $750M and $1B loans) " " "

Q3 2025 showcased a near $2B net debt reduction (40% YoY) and detailed use of asset sales (including Supreme) to achieve the 2.5x leverage target " "

A consistent and robust focus on deleveraging through asset sales and strict financial discipline.

Inventory Management & Gross Margin Pressures

Q1 showed a 24% inventory reduction but an 80 bps gross margin drag from reset actions; Q2 reported a 13% reduction and 120 bps improvement; Q4 achieved a 23% reduction yet experienced 120 bps margin erosion from promotional clearance " " "

Q3 2025 saw a 14% inventory decrease and a 150 bps improvement in gross margin, driven by lower product costs and reduced promotion intensity " "

Consistent inventory cleanup leading to margin improvements, though short-term promotional pressures continue to weigh on margins.

Wholesale Business Performance & Order Timing Effects

Q1 cited mixed regional performance and evolving order schedules; Q2 highlighted sequential improvements and order timing effects linked to seasonality; Q4 emphasized wholesale pressures in the Americas and normalization of order timing " " " "

Q3 2025 benefited from reorders, lower cancellations, and orders pulled forward from Q4, though this is expected to dampen Q4 performance " " "

Persistent order timing effects causing cyclical revenue fluctuations, with occasional transient boosts in wholesale performance.

Macroeconomic Challenges

Q1 acknowledged a slight slowdown in China; Q2 mentioned a softer Chinese environment yet strong performance for The North Face; Q4 did not emphasize softness, noting stronger performance in Greater China " " "

Q3 2025 pointed to a softer Chinese economy overall and significant APAC challenges for Vans (31% decline), despite some double-digit growth in specific areas " "

Ongoing concern over soft macro conditions in China impacting key markets, affecting brands differently.

Leadership Changes & Management Restructuring

Q1 detailed a broad leadership reshuffle (new CFO, new presidents for major brands); Q2 mentioned leadership changes at Dickies; Q4 highlighted near–complete leadership replacement and the launch of a transformation program " " "

Q3 2025 emphasized a reset of the leadership team and organizational restructuring across brands as part of the turnaround strategy "

Proactive and continuous leadership overhaul remains central to driving the strategic turnaround.

Brand Portfolio Dynamics

Q1 depicted Timberland as “work in progress” and noted challenges at Dickies along with the divestiture of Supreme; Q2 showed sequential improvement at Timberland with stabilization steps at Dickies; Q4 presented varied outcomes across brands with Timberland and Supreme showing contrasting results " " "

Q3 2025 reported Timberland up 12%, Vans showing sequential improvement despite an 8% decline, active turnaround efforts at Dickies, and confirmation of Supreme divestiture " " "

Divergent performance within the portfolio—with strong growth in some brands and ongoing turnaround efforts in others.

Short-term Guidance & Uncertainty

Q1 forecasted modest sequential improvements with caution over volatility; Q2 introduced quarterly guidance acknowledging external variables such as weather; Q4 highlighted near-term revenue challenges and margin erosion with uncertain timing for recovery " " "

Q3 2025 provided guidance that Q4 could see a 4%-6% revenue decline (with pull-forward effects) and noted that short-term results remain volatile despite long-term transformation efforts " " "

Cautiously optimistic near-term outlook amid inherent volatility and a clear focus on sequential improvement.