A month has gone by since the last earnings report for V.F. (VFC). Shares have lost about 2.1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is V.F. due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for V.F. Corporation before we dive into how investors and analysts have reacted as of late.
V.F. Corp. Q3 Earnings & Revenues Beat Estimates
V.F. Corp. reported third-quarter fiscal 2026 results, with a sales and earnings beat. While earnings fell year over year, revenues increased. Nevertheless, the company is on track with its Reinvent program and expects to deliver medium-term financial targets. The Reinvent program and VFC’s actions to boost operating profitability appear encouraging.
The company reported adjusted earnings per share (EPS) of 58 cents, beating the Zacks Consensus Estimate of 43 cents. Earnings declined from 62 cents a share in the year-earlier quarter.
Net revenues of $2.88 billion grew 1% year over year and surpassed the consensus estimate of $2.76 billion. Adjusted revenues (excluding Dickies) increased 4% year over year. The adjusted gross margin rose 10 bps to 57%.
V.F. Corp. reported solid third-quarter performance, delivering growth during the peak holiday season and beating revenue and operating income guidance. Strength was led by The North Face and Timberland, while the Americas region posted its strongest results in over three years. Global direct-to-consumer sales returned to growth, reinforcing management’s confidence in achieving its medium-term financial targets.
V.F. Corp.’s Revenue Details
On a regional basis, revenues in the Americas rose 2% year over year both on a reported basis and on a constant-currency basis. In the EMEA region, revenues were up 4% on a reported basis and down 4% on a constant-currency basis. Revenues in the APAC region were down 6% on a reported basis and 7% down on a constant-currency basis. The company’s International revenues grew 2% year over year on a reported basis and were down 4% on a constant-currency basis.
Channel-wise, wholesale revenues fell 1% on a reported basis. Direct-to-consumer revenues were up 4% year over year on a reported basis and 1% on a constant-currency basis. Our model estimated the wholesale revenues to fall 0.1% and direct-to-consumer revenues to dip 1% year over year.
In the first quarter of fiscal 2026, V.F. Corp. realigned its reportable segments into two main categories: Outdoor and Active. Operating segments not meeting disclosure thresholds are now grouped under an "All Other" category.
Based on reporting segments, revenues in the Outdoor segment improved 8% year over year on a reported basis and 5% on a constant-currency basis to $1,926 million. In the Active segment, revenues of $671.8 million declined 6% year over year on a reported basis and 9% on a constant-currency basis. Revenues in the All Other segment fell 18% year over year on a reported basis and 20% on a constant-currency basis to $278 million.
Financial Details of VFC
V.F. Corp. ended the fiscal third quarter with cash and cash equivalents of $1.5 billion, long-term debt of $3.55 billion and shareholders’ equity of $1.78 billion. Net debt was down $0.5 billion from the year-ago period.
The company’s board has announced a quarterly dividend of 9 cents per share, payable March 19, 2026, to its shareholders of record as of March 10.
Other Details
The company announced a definitive agreement on Sept. 15, 2025, to sell the Dickies brand to Bluestar Alliance LLC and completed the divestiture on Nov. 12. Under U.S. GAAP, Dickies’ results remain included in V.F. Corp.’s third-quarter fiscal 2026 results through the date of sale, as the transaction did not qualify for discontinued-operations treatment. To better reflect ongoing performance following the divestiture, VFC also presents results “excluding Dickies” and “adjusted excluding Dickies,” which remove Dickies’ contribution from all periods and are intended to provide clearer insight into V.F. Corp.’s post-sale operating trends.
What to Expect From VFC in Q4 & FY26?
For the fourth quarter of fiscal 2026, VFC expects revenues to be flat to up 2% in constant currency compared with the prior year. Adjusted operating income is projected to range between $10 million and $30 million. Adjusted gross margin is likely to be flat to slightly up year over year. Adjusted SG&A are likely to be flat to slightly down.
For fiscal 2026, VFC expects adjusted operating income, operating cash flow and free cash flow to increase year over year, while ending fiscal 2026 with leverage at or below 3.5x. These projections reflect the company’s ongoing progress under its Reinvent transformation program, focused on cost reduction, margin improvement and strategic brand repositioning to drive long-term growth.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a flat trend in fresh estimates.
The consensus estimate has shifted 116.67% due to these changes.
VGM Scores
At this time, V.F. has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. However, the stock has a grade of A on the value side, putting it in the top quintile for value investors.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
V.F. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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V.F. Corporation (VFC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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