V.F. Corp to Report Q2 Earnings: What Surprise Awaits Investors?

V.F. Corporation VFC is likely to register year-over-year bottom and top-line declines when it posts second-quarter fiscal 2026 earnings on Oct. 28, before the opening bell. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.73 billion, indicating a 1% dip from the prior-year quarter’s figure.

The consensus estimate for earnings is pegged at 42 cents per share, which indicates a plunge of around 30% from the year-ago quarter’s figure. However, the metric has been stable in the past 30 days.

V.F. Corp. delivered an earnings surprise of 31.4% in the last reported quarter. In the trailing four quarters, the company’s earnings beat the Zacks Consensus Estimate by 43.4%.

Key Factors to Influence VFC’s Q2 Results

V.F. Corp is likely to report a year-over-year revenue decline in its upcoming second-quarter fiscal 2026 results, pressured by continued brand-specific and structural headwinds. Management has guided for revenues to fall 2-4% on a constant currency basis, citing ongoing impacts from strategic reset actions at Vans and lingering softness in consumer traffic. V.F. Corp’s Americas region remains under pressure, with Vans and Timberland struggling in the US. Vans continues to be a drag on top-line performance in the second quarter of fiscal 2026. We expect revenues at Vans and Timberland to decline 6.3% and 2.5%, respectively, year over year in the fiscal second quarter.

The fiscal second quarter will reflect the full impact of earlier store closures, value channel exits and distressed inventory reductions, all part of a deliberate plan to clean up the marketplace and reset the brand for profitable growth. While these actions are setting a stronger foundation, they are expected to continue distorting year-over-year comparisons in the impending quarterly results.

Additionally, elevated promotions, input cost inflation and currency fluctuations are likely to have impacted profitability. Also, efforts to clear inventory with the need to support brand equity and competitive discounting in North America have further pressured pricing power, particularly for Vans and Timberland, which have been acting as deterrents. The aforesaid factors are likely to have weighed on the to-be-reported quarterly performance.

On its last earnings call, management had anticipated Q2 operating income of $260-$290 million and gross margins to remain broadly flat on fewer discounts and healthy inventory. However, it seems to be lapping the tailwinds from last year's inventory efforts. It predicted SG&A dollars to be up slightly year over year on higher investments in marketing ahead of the back-to-school and foreign currency headwinds. On a constant dollar basis, SG&A was expected to remain broadly flat year over year.

On the flip side, the company’s transformation program, Reinvent, which targets enhancing focus on brand-building and improving the operating performance, appears encouraging. The plan focuses on objectives, including enhancing the North America performance, Vans’ turnaround, reducing costs and strengthening the balance sheet. Ongoing investments in digital and supply-chain capabilities further enhance efficiency.

What the Zacks Model Unveils for VFC

Our proven model doesn’t conclusively predict an earnings beat for V.F. Corp. this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

V.F. Corp. currently has an Earnings ESP of +8.64% and a Zacks Rank #4 (Sell).

Valuation Picture of VFC Stock

Going by the price/earnings ratio, VFC stock is currently trading at 16.92 on a forward 12-month basis, lower than 17.17 of the Textile - Apparel industry. Also, it is trading lower than its high of 32.49.

The recent market movements show that VFC’s shares have gained 20.6% in the past three months compared with the industry's 62.9% growth.

Stocks Poised to Beat Earnings Estimates

Here are some companies, which according to our model, have the right combination of elements to post an earnings beat:

Carnival Corp. CCL currently has an Earnings ESP of +1.45% and sports a Zacks Rank of 1. CCL is likely to register top and bottom-line growth when it reports fourth-quarter fiscal 2025 results. You can see the complete list of today’s Zacks #1 Rank stocks here. 

The Zacks Consensus Estimate for its quarterly revenues is pegged at $6.36 billion, indicating a 7.1% increase from the figure reported in the year-ago quarter. The consensus estimate for CCL’s fiscal fourth-quarter earnings is pegged at 24 cents per share, implying a 71.4% surge from the year-ago quarter’s actual. The consensus mark has risen 20% in the past 30 days.

Ralph Lauren Corporation RL currently has an Earnings ESP of +1.98% and a Zacks Rank of 2. RL is likely to register top and bottom-line growth when it reports second-quarter fiscal 2026 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.90 billion, indicating 9.9% growth from the figure reported in the year-ago quarter.

The consensus estimate for Ralph Lauren’s fiscal second-quarter earnings is pegged at $3.44 a share, implying 35.4% growth from the year-earlier quarter. The consensus mark has moved up 1.5% in the past 30 days.

Boyd Gaming BYD currently has an Earnings ESP of +1.25% and a Zacks Rank of 3. BYD is likely to register a top-line decline when it reports third-quarter 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $865.8 million, indicating a 9.9% decline from the figure reported in the year-ago quarter.

The consensus estimate for Boyd Gaming’s third-quarter earnings is pegged at $1.55 a share, implying 2% growth from the year-earlier quarter. The consensus mark has risen 0.6% in the past seven days.

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This article originally published on Zacks Investment Research (zacks.com).

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