VF Corporation reported its financial results for the second quarter of fiscal 2026, revealing a modest increase in revenues and a notable improvement in profitability compared to the same period last year. The company generated revenues of $2.8 billion, a 2% increase from $2.76 billion in the prior year, with a favorable impact of 3% from foreign currency fluctuations. The operating income for the quarter rose to $312.6 million, up from $273.9 million, reflecting a stronger operating margin of 11.2%, compared to 9.9% in the previous year.
The company’s net income for the quarter was $189.8 million, or $0.48 per diluted share, down from $202.5 million, or $0.52 per diluted share, in the same quarter last year. The decrease in earnings per share was attributed to a higher effective tax rate of 48.2%, compared to 22.5% in the prior year, which was partially offset by lower restructuring charges related to the ongoing Reinvent transformation program. For the six months ended September 2025, net income was $73.4 million, or $0.19 per diluted share, compared to a loss of $206.7 million in the prior year.
Significant operational changes included the planned divestiture of the Dickies brand, which VF announced on September 15, 2025, for $600 million in cash. This transaction is expected to close by the end of the calendar year, and the associated assets and liabilities have been classified as held-for-sale. Additionally, VF has realigned its reportable segments, combining the Timberland and Timberland PRO brands into the Outdoor segment, which also includes The North Face brand. This restructuring aims to enhance operational efficiency and focus on brand management.
In terms of geographic performance, revenues in the Americas decreased by 1%, while international revenues increased by 4%, driven by a 6% increase in Europe. The Outdoor segment saw a 6% revenue increase, while the Active segment experienced an 8% decline, primarily due to strategic decisions to exit certain wholesale channels and reduce inventory in the Asia-Pacific region. The company’s total assets as of September 2025 were reported at $10.64 billion, with total liabilities of $9.17 billion, reflecting an increase in short-term borrowings to support seasonal working capital needs.
Looking ahead, VF Corporation anticipates continued challenges from market conditions, including the impact of tariffs and inflationary pressures. The company is focused on executing its Reinvent program, which aims to enhance brand performance and operational efficiency, with a target of generating $500 million to $600 million in net operating income expansion by fiscal 2028. The company remains committed to maintaining its dividend policy, having declared a quarterly cash dividend of $0.09 per share, payable in December 2025.
About V F CORP
VF Corporation is a global apparel, footwear, and accessories company owning brands like The North Face, Vans, Timberland, and Dickies. It offers performance, outdoor, active, and workwear products through wholesale and direct-to-consumer channels, including retail stores and e-commerce. Focused on innovation, sustainability, and brand strength, VF serves diverse markets worldwide with a competitive edge in lifestyle and performance segments.
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