V.F. (VFC) Q3 2026 earnings summary

Executive summary

• Q3 fiscal 2026 delivered revenue growth and margin expansion, surpassing guidance, with reported revenue up 1% and adjusted revenue ex Dickies up 4%; operating income reached $341M (adjusted ex Dickies), and net income from continuing operations was $300.8M.

• The North Face and Timberland grew 8% and 5% in constant dollars, respectively, with The North Face Americas up 15% and Timberland Americas up 9%; Vans declined 8–10% but showed digital and product innovation progress.

• The Americas region posted its strongest performance in over three years, with global DTC sales up 3–4% and digital channels driving growth.

• Completed the sale of Dickies in Q3'26, resulting in a $139M pre-tax gain; results are shown both including and excluding Dickies.

• Leadership transition announced: Martino Scabbia Guerrini stepping down as CCO, Brent Hyder assuming the role.

Financial highlights

• Q3 revenue was $2.88B, up 1% year-over-year (2% in constant currency), with adjusted revenue ex Dickies up 4%.

• Gross margin improved to 56.6% (reported), 57.0% (adjusted ex Dickies), up 30bps year-over-year, despite tariff impacts.

• Operating income was $289M (reported), $341M (adjusted ex Dickies); adjusted operating margin was 12.1%.

• Diluted EPS from continuing operations was $0.76 (reported), $0.58 (adjusted ex Dickies).

• Free cash flow through Q3 was $513M, flat year-over-year; cash provided by operating activities for nine months was $638M.

Outlook and guidance

• Q4 revenue expected to be flat to up 2% in constant dollars, with adjusted operating income guidance of $10M–$30M.

• Fiscal 2026 annual revenue expected to be flat to up versus last year, with gross margin targeted at 54.5% or better and operating margin at 6.5% or better.

• Free cash flow and operating cash flow projected up year-over-year; year-end leverage targeted at or below 3.5x.

• The company aims for $500–$600M in net operating income expansion by Fiscal 2028 through its transformation program.

• Full-year revenue growth (ex Dickies and Supreme) expected for the first time since FY'23.