VF CORP: OPERATING INCOME ROSE 17.7% TO $367.9M ON REVENUE DOWN 3.8%; EXCLUDING DICKIES REVENUE ROSE 1.2% WHILE VANS FELL 9.8%
By Pau Almar · Published
Q2 FY2027 · 28 OCTOBER 2026
VF Corporation earned operating income of $367.9m in the quarter ended 26 September 2026, up 17.7%, on revenue of $2,695.1m, down 3.8%. The operating margin was 13.7% against 11.2%; net income was $285.3m against $189.8m. Adjusted operating income of $363.7m compares with guidance of about $315m.
Of the $107.6m fall in revenue, the Dickies sale removed $140.0m, 5.0 points, and currency added $2.9m; the rest grew 1.1% in constant dollars. Excluding Dickies, The North Face added $50.2m, Timberland $19.5m and the other brands $22.0m, while Vans lost $59.3m, 9.8%. Without Vans and Dickies, revenue rose 4.5%.
// KEY NUMBERS
Q2 FY2027 · 13 weeks to 26 September 2026
| Revenue | USD 2,695.1m |
|---|---|
| Reported growth | −3.8% |
| Constant-currency growth | −4% |
| Gross margin | 55.4% |
| Operating margin | 13.7% |
| Net income | USD 285.3m |
On the company's adjusted basis excluding Dickies, the gross margin went to 55.4% from 52.5%, while SG&A rose $46.5m and its rate to 41.9% from 40.7%; the operating margin rose 167bp to 13.5%. The release gives no bridge for the gross margin. Below operating income, lower interest, $22.5m, and lower tax, $16.8m, with the tax rate at 17.8% against 29.3%, supplied $39.4m, 41%, of the $95.5m rise in net income. The release does not explain the tax rate.
Inventories were $1,984.4m against $1,855.9m. Days of inventory rose by 16.5 to 23.9, depending on whether Dickies is taken out of last year's cost of goods sold. Free cash flow for the six months was -$322.7m against -$453.1m; the company's floor of $515m for the year requires at least $837.7m in the second half.
The third-quarter FY2027 release, date not yet announced, will show Vans revenue growth after -7.7% in the first quarter and -9.8% in the second; adjusted SG&A excluding Dickies as a share of revenue, after rises of 215bp and 123bp; and inventory growth against revenue growth excluding Dickies.
Source: VF Corporation Form 8-K Exhibit 99.1, Q2 FY2027 earnings press release (filed 28 October 2026) ↗
Analysis by Pau Almar, VGR.
VGR analysis is an independent commercial reading of publicly disclosed company information, written from the perspective of a fashion retail sector operator. It is not investment research and it is not advice to buy, sell or hold any security. VGR is not a regulated financial adviser. Figures are taken from official company materials; figures derived by VGR are labelled as such. Readers should reach their own conclusions and take professional advice where appropriate.