V F (VFC)·Q3 2026 Earnings Summary

VF Corp Beats on Holiday Strength as North Face and Timberland Surge, Stock Jumps 8%

January 28, 2026 · by Fintool AI Agent

VF Corporation delivered a strong holiday quarter, beating both revenue and earnings guidance while making significant progress on its transformation. Adjusted revenue ex-Dickies of $2.82B topped consensus by 3.2%, and adjusted EPS of $0.58 crushed estimates by 38%. The stock surged 8% in after-hours trading.

The North Face and Timberland both grew 5% on a constant currency basis, while Vans continued its turnaround efforts with improving digital trends. The Americas region delivered its strongest performance in over three years, and global DTC inflected to positive growth for the first time in recent memory.

Did VF Corporation Beat Earnings?

Yes — VF beat on every metric that matters. The company exceeded both its own guidance and Street consensus across revenue, operating income, and margins.

The outperformance was driven by a stronger-than-expected holiday season, particularly in The North Face and Timberland, along with mix benefits and sourcing savings that offset tariff impacts.

How Did the Stock React?

VFC stock jumped 8% in after-hours trading following the earnings release, moving from $20.28 to $21.69.

The stock has been on a recovery trajectory, more than doubling from its 52-week low of $9.41 as the transformation gains traction.

What Changed From Last Quarter?

Several key inflection points emerged this quarter:

DTC Turned Positive: Global direct-to-consumer grew +4% reported (+3% constant currency ex-Dickies), with Digital up +8% (+10% ex-Dickies). This marks the first positive DTC quarter in recent periods.

Americas Strongest in 3 Years: The Americas region grew +2% reported (+6% constant currency ex-Dickies) with both DTC and Wholesale channels up vs last year — the strongest regional performance in over three years.

Dickies Sale Completed: VF completed the sale of Dickies to Bluestar Alliance on November 12, 2025, recording a pre-tax gain of ~$139M and simplifying the portfolio.

Balance Sheet Strengthening: Net debt declined $0.5B or 11% vs last year, with year-end leverage expected at or below 3.5x — progressing toward medium-term deleveraging targets.

How Did Each Brand Perform?

The North Face: +8% (+5% C$)

The North Face delivered during its peak season with broad-based strength:

• Americas +15% with double-digit growth across both DTC and Wholesale
• All product categories up, with strength in performance apparel and footwear
• Product elevation resonating through Summit Series and Advanced Mountain Kit 2.0
• Second SKIMS collaboration driving brand heat and broadening reach
• Largest global flagship store opened on 5th Avenue in New York

Timberland: +8% (+5% C$)

Timberland posted its fifth consecutive quarter of growth:

• Americas +9% driven by brand heat and successful holiday season
• Continued momentum in 6" Premium boot and boat shoe categories
• Search interest growing across US and key EMEA markets
• Four new full-price stores opened in the US, expanding distribution

Vans: (8%) ((10%) C$)

Vans declined as expected, but hit a major milestone: global e-commerce grew for the first time in over 4 years (19 quarters).

• First positive e-com quarter since 2022 — digital traffic improved in Americas and EMEA
• Non-icons growing: Sk8-Low Pro, Skate Loafer, and Crosspath XC gaining traction
• Improving trends in Authentic and Slip-On, benefiting from high-fashion interest in skate-inspired shoes
• K-pop Demon Hunters collaboration went from idea to shelf in just 10 weeks — sold out and refilled
• SZA named artistic director — appeared at Paris Fashion Week wearing bespoke Vans at Louis Vuitton and Dior shows
• Physical store traffic still down but improving sequentially from Q2 to Q3

Altra: +23% — The Sleeper Growth Story

Altra delivered another quarter of exceptional growth, up 23% vs last year.

• On track to exceed $250M in revenue for FY2026 — targeting ~$270M
• Key franchises in trail and road running continue to drive growth
• New products delivering: Via and Timp 6
• High marketing ROI driving continued investment
• CEO Bracken Darrell sees "billion-dollar-plus potential" for the brand

"I was with the founder yesterday... He said, 'I remember the day when I knew that business could hit $500 million.' And I said, 'Wow, I remember the day when I knew it could hit $1 billion.'" — Bracken Darrell

Other Brands

• Smartwool: Up double-digits across channels
• icebreaker: Up vs last year driven by DTC
• Napapijri: Undergoing repositioning under new brand leadership

What Did Management Guide?

Q4 FY2026 Guidance (excludes Dickies):

Q4 Brand Outlook:

• The North Face: Broadly in line with Q3 growth (~+5% C$)
• Timberland: Slower growth than Q3 (as previously communicated)
• Vans: Down mid-single digits (improvement from down 10%)

Full Year FY2026 Outlook — CFO Paul Vogel provided a clear summary:

Management noted the gross margin is now "within striking distance" of the FY2028 target of 55%.

Notably, Q4 revenue guidance of flat to +2% constant currency implies full-year revenue growth for the first time since FY2023 (excluding Dickies and Supreme).

Key Management Quotes

"In Q3, we delivered growth during our peak holiday quarter and beat revenue and operating income guidance. The North Face and Timberland each grew 8% and 5% on a constant dollar basis, while Vans results were as we expected. The Americas region had its strongest performance in over three years, while global DTC inflected to growth. We remain on track to deliver our medium-term financial targets and are excited about the future of the business."

— Bracken Darrell, President and CEO

"The good news for us is we have so much within our control. I've never been in a position where I felt like we had as many levers to pull to really drive our business. We're in that sweet spot right now where we've just gone positive. We've got a lot of engines firing, a lot of green shoots in every direction."

— Bracken Darrell on macro concerns

"I've learned one thing about turnarounds: You don't want to force a turnaround early. You want to let it develop, and we are letting it develop."

— Bracken Darrell on Vans

Leadership Transition

VF announced that Martino Scabbia Guerrini is stepping down as Chief Commercial Officer after 20 years with the company. He will continue as an advisor to ensure a smooth transition. Brent Hyder will assume the CCO role in addition to his continuing role as President for the Americas, which he's held since spring 2025 with strong results.

Athlete Marketing Wins

CEO Bracken Darrell opened the call highlighting The North Face's athlete momentum:

• Alex Honnold set a record for the biggest urban free solo climb in history, scaling the 1,667-foot Taipei 101 skyscraper over the weekend — a massive brand moment
• Jim Morrison completed the first ski descent of the North Face of Mount Everest, captured by athlete Jimmy Chin for an upcoming feature film
• The North Face was named top outdoor brand in America in Time's "The World's Best Brands of 2025" list, plus won Fast Company's Innovation by Design award and Popular Science's 50 Greatest Innovations

Q&A Highlights

On Consumer Sentiment & Pricing (Adrienne Yih, Barclays): When asked about consumer confidence and price increases, Darrell emphasized internal levers over macro concerns: "The good news for us is we have so much within our control... We're in that sweet spot right now where we've just gone positive."

On TNF Americas Strength (Brooke Roach, Goldman Sachs): Asked about whether TNF Americas momentum is sustainable, Darrell noted the region was "just very weakly developed" and has significant upside: "Compared to the other regions of the world, whether you look at average price or market share, we're just underdeveloped to what we could be, given this is our home market." He sees the Americas as "probably the strongest opportunity in the world right now" for TNF.

On Vans Underlying Trend (Tom Nikic, Needham): CFO Vogel clarified that the "underlying trend" (excluding deliberate distribution actions) remains down high single digits, same as prior quarters. Q4 guidance of down mid-single digits implies some improvement in the underlying trend. Bracken added: "I've learned one thing about turnarounds: You don't want to force a turnaround early. You want to let it develop."

On Vans Traffic (Michael Binetti, Evercore): Physical store traffic remains down, but improved sequentially from Q2 to Q3. Digital traffic turned positive. Management is focused on driving store traffic through exclusive product drops — Bracken noted they "might have made it too easy to buy some of that stuff online" and should direct exclusive products to stores first.

On AUR vs Unit Dynamics (Simeon Siegel, Guggenheim): CFO Vogel noted average unit retail is up across all brands — Vans seeing "a little bit of an uptick in AUR in the Americas," while TNF and Timberland AUR are "all up moderately."

On Gross Margin Drivers (Tracy Kogan, Citigroup): CFO Paul Vogel explained the beat: "It's a little bit less promotion, so the full price was better. We did have a tariff impact which we did not mitigate [$40M], and we got a little bit of a benefit on the sourcing side." Pricing actions began in Q4 to help offset tariffs.

On Full-Year Guidance (Jay Sole, UBS): When asked about reinstating annual guidance, Darrell was candid: "We pulled guidance because you can guide when you have predictability... it's really nice not to give full year guidance. But we also know that investors like it, and so we're seriously considering it." Logical timing would be end of fiscal year.

On Vans Channel Strategy (Anna Andreeva, Piper Sandler): Bracken outlined the priority order: "If you ask me where am I focused, I'm focused on the Americas right now. It's 50% of the Vans business... within that, DTC first, but even there, e-com first. E-com is the fastest lever we can pull because the products can get there faster." Stores will follow with a lag, then wholesale.

On Medium-Term Targets (Jonathan Komp, Baird): CFO Vogel reaffirmed all medium-term targets: Operating margin from 6.5%+ this year to 10% exit run rate by FY28. Leverage from 3.5x to 2.5x by year-end FY28. Gross margin target of 55% or better. "We feel like we're in a really good place to hit those targets."

What Are the Key Risks?

Vans Turnaround Remains Uncertain: While showing improving trends, Vans still declined 10% constant currency and remains the key swing factor for VF's overall portfolio. The brand needs to sustain product innovation momentum and stabilize core franchises.

EMEA and APAC Weakness: International regions remained soft — EMEA was down 3% and APAC down 4% constant currency ex-Dickies. Recovery in these markets is needed for sustainable growth.

Leverage Still Elevated: While net debt improved by $0.5B, the company still carries significant debt. Continued progress on deleveraging is essential.

Tariff Exposure: Q3 saw $40M of unmitigated tariff impact. Pricing actions implemented in Q4 and ongoing sourcing savings expected to offset tariffs in FY27, but management acknowledged: "Obviously, we've got to make sure that we're able to manage the tariffs the way we expect."

Balance Sheet Progress

The company paid $35M in cash dividends during the quarter and declared a $0.09 quarterly dividend payable March 19, 2026.

Notably, CEO Darrell emphasized debt discipline has driven focus on organic growth: "There's a big benefit to debt, which is it's really forced us to not rely on M&A... it's the reason why you saw us go positive this quarter. The complete obsession with getting our businesses growing and our brands growing the right way."

Forward Catalysts

1. Vans Stabilization: Continued product newness driving holiday momentum; can Vans turn positive?
2. The North Face Sustainability: Can the brand maintain momentum after peak season?
3. FY26 Revenue Growth: First full-year growth since FY23 if Q4 guidance achieved
4. Deleveraging Progress: Leverage at or below 3.5x target expected by year-end
5. Reinvent Program Completion: Transformation program substantially completed, focus shifting to growth

Historical Quarterly Performance

Values retrieved from S&P Global for Q4 FY24 - Q2 FY26. Q3 FY26 from company 8-K.

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This analysis was generated by Fintool AI Agent based on VF Corporation's Q3 FY2026 8-K filing, earnings presentation, and earnings call transcript published January 28, 2026. All figures exclude Dickies unless otherwise noted.