VF CORP (NYSE:VFC) Beats Q2 2026 Earnings Estimates as Turnaround Gains Traction

VF CORP (NYSE:VFC) reported financial results for its second fiscal quarter of 2026, delivering a performance that surpassed analyst expectations on key profitability metrics. The apparel and footwear conglomerate, whose brand portfolio includes The North Face, Vans, and Timberland, posted results that indicate continued progress in its ongoing turnaround efforts, prompting a positive market reaction in pre-market trading.

Earnings and Revenue Performance

The company's second quarter, which ended September 27, 2025, revealed a mixed but largely positive picture against market forecasts. While top-line growth was modest, bottom-line performance significantly exceeded expectations.

• Revenue: Reported revenue of $2.80 billion was slightly above analyst estimates of $2.76 billion. This represents a 2% increase compared to the same quarter last year on a reported basis, or a 1% decline when adjusted for constant currency.
• Earnings Per Share: The non-GAAP adjusted EPS of $0.52 comfortably beat the consensus estimate of $0.43. This result, however, was down from the adjusted EPS of $0.60 reported in the prior year's quarter.

The ability to exceed profit expectations despite a relatively flat revenue performance suggests improvements in operational efficiency and cost management during the quarter.

Market Reaction

The market responded favorably to the earnings beat, particularly the strong outperformance on profitability. In pre-market trading following the release, VF Corp's stock was up approximately 5%. This positive price action indicates that investors were encouraged by the company's ability to control costs and deliver earnings well above what was anticipated, viewing it as a sign that the company's strategic initiatives are gaining traction.

Strategic and Operational Highlights

The earnings report was framed by management as evidence of forward momentum in the company's multi-year turnaround plan. Key takeaways from the press release include:

• Brand Performance: The results were driven by solid growth from The North Face and Timberland, which grew 6% and 7% year-over-year, respectively. The Vans brand, while still reporting a sales decline, showed a sequential improvement in its performance.
• Profitability Metrics: Adjusted operating income of $330 million was "meaningfully above" the company's own guidance range of $260 to $290 million. The adjusted operating margin expanded by 40 basis points to 11.8%.
• Portfolio Simplification: The pending sale of the Dickies brand for $600 million was highlighted as a move that will enhance financial flexibility and allow for greater investment in the core brand portfolio.
• Balance Sheet Improvement: The company reported a substantial reduction in net debt, which was down $1.5 billion, or 21%, compared to the same period last year.

Forward Outlook and Analyst Comparisons

VF Corp provided financial guidance for the upcoming third quarter and the full 2026 fiscal year, offering a measured view of the near future.

• Q3 FY26 Outlook: The company expects revenue to decline between 3% and 1% on a constant currency basis. This outlook is notably more conservative than the analyst sales estimate of $2.91 billion for the next quarter, which would imply slight growth.
• Full-Year FY26 Outlook: For the full year, management anticipates adjusted operating income and operating cash flow to be up versus the prior year. This qualitative guidance does not provide a direct numerical comparison to the full-year analyst sales estimate of $9.65 billion.

The cautious third-quarter revenue outlook may temper some of the initial enthusiasm from the earnings beat, as it suggests the path to consistent top-line growth remains challenging.

Conclusion

VF Corp's second-quarter results demonstrate a company in the midst of a disciplined turnaround. Beating earnings estimates and showing operational improvements are positive steps that have been rewarded by the market. The focus now shifts to whether the company can translate its brand strength and improved profitability into sustainable revenue growth, especially in the face of a conservative near-term sales forecast.

For a more detailed breakdown of historical earnings and future analyst estimates, you can review the data here.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, nor does it recommend buying or selling any securities. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.