Q2 2026 VF Corp Earnings Call Transcript
Key Points
- VF Corp (VFC) reported a 2% increase in total revenue in reported dollars, showing an improving trend compared to the previous quarter.
- Operating income significantly exceeded guidance, reaching $313 million against a forecasted range of $260 million to $290 million.
- The North Face brand delivered a 4% revenue growth, with all regions showing positive performance and strong momentum in performance apparel and footwear.
- Timberland also saw a 4% revenue increase, driven by strong demand for the 6-inch premium boot and successful adoption of a social-first marketing strategy.
- Altra brand experienced over 35% revenue growth, marking the third consecutive quarter of strong double-digit growth, supported by increased brand awareness and e-commerce performance.
- Vans brand revenue declined by 11% compared to the previous year, reflecting challenges in channel rationalization and the need for product portfolio upgrades.
- The APAC region experienced a 2% revenue decline, indicating a stabilization period after a long run of growth, particularly in China.
- Gross margin was flat year-over-year, with benefits from fewer discounts offset by foreign exchange headwinds.
- Free cash flow was negative $453 million through Q2, aligning with expectations but highlighting the seasonal working capital needs.
- The company faces challenges from tariffs, which are expected to impact gross margins in the upcoming quarters, with mitigation efforts not fully realized until fiscal '27.
Hello, everyone. Thank you for joining us, and welcome to the VF Corporation Q2 full-year 2026 earnings call. (Operator Instructions) I will now hand the call over to Allegra Perry, Vice President of Investor Relations. Please go ahead.
Hello, and welcome to VF Corporation's second-quarter fiscal 2026 conference call. Participants on today's call will make forward-looking statements. These statements are based on current expectations and are subject to uncertainties that could cause actual results to differ materially. These uncertainties are detailed in documents filed regularly with the SEC.
Unless otherwise noted, amounts referred to on today's call will be on an adjusted constant dollar and continuing operations basis, which we've defined in the presentation, that was posted on Investor Relations website and which we use as lead to numbers in our discussion because we believe they more accurately represent the true operational performance and underlying results of our business.
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