V.F. Corporation 2027 Q2 Earnings Call
Review the key takeaways and the transcript of this earnings call.
- VF Corporation's second-quarter fiscal 2027 revenue grew 1%, versus guidance of flat, and operating income was $364 million, about $50 million above guidance of $315 million.
- Gross margin expanded 290 basis points to 55.4%, and EPS was $0.70, up 40% from $0.49 last year.
- The North Face and Timberland each grew 4%, Ultra grew over 40% in every region and channel, and Vans revenue declined 9.8%.
- Global Vans DTC grew for the first time in almost five years, while Vans wholesale remained soft in Q2.
- Revenue grew 5% in the Americas, declined 1% in EMEA, and declined 7% in APAC.
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Transcript
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Ladies and gentlemen, thank you for joining us and welcome to V.F. Corporation Second Quarter 2027 earnings call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please raise your hand. If you have dialed into today's call, please press star 9 to raise your hand and star 6 to unmute. I will now hand the conference over to Allegra Perry, Vice President of Investor Relations.
Please go ahead. Thank you for joining us on V.F.
Corporation's second quarter fiscal 2027 conference call. On our call today, we 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 we say otherwise, amounts that are referred to on today's call are all on an adjusted constant dollar, continuing operations, and excluding Dickies basis, which we've defined in the earnings release that was posted this morning on our investor relations website. We use those lead numbers in our discussion as we believe they more accurately represent the true operational performance and underlying results of our business. We may also refer to reported amounts which are in accordance with US GAAP.
Reconciliations of GAAP measures to adjusted amounts are found in the supplemental financial tables included in the earnings release, where we identify and qualify all excluded items and provide management's view of why this information is useful to investors. Before we proceed, I want to highlight that scripted remarks have been posted at the start of the earnings call for ease of reference during the call. The scripted remarks will be removed after the earnings transcript is made available on our investor relations website. Joining me on today's call are V.F.'s President and Chief Executive Officer, Bracken Darrell, and Chief Financial Officer and Chief Operating Officer, Abhishek Dalmia. Following our prepared remarks, we'll open the call for your questions. Before I hand it over to Bracken, I will leave you with one of the most incredible videos I've ever seen from a movie featuring The North Face.
Everest: The Other Side opens in IMAX theaters this Friday.
Enjoy. Everest has been summited over 13,000 times.
But only five people have ever climbed the direct north face, and no one in the world has ever skied it.
It's an experience like nowhere else.
There's active avalanches. You have a broken leg.
No. Was there a part of this that was supposed to be fun?
It's the part when you get down and you tell the stories. Oh, right. I've suffered a lot of loss, and the mountains have helped me keep going. Even if we make it to the top, I'd have to ski down the 9,000-foot face.
The higher you get in elevation, there's this connection I don't feel anywhere else.
They love you, brother. I love you too.
Man, every time I see that, I am inspired. Everest: The Other Side, directed by one of our athletes, Jimmy Chin, and featuring two others, Jim Morrison and the late Hilaree Nelson. It's a unique, first of its kind documentary, one of the most incredible feats of outdoor challenge ever attempted. I can't wait to watch it live again in an IMAX theater when it's released later this week. It's a prime example of how V.F. is deeply rooted in exploration and adventure, product and brand building, and authenticated through remarkable athletes. Our work on design and innovation is being brought to life by our brands and is trusted by the best athletes in the world in the harshest conditions on Earth, just as Jimmy and Jim demonstrate in the film.
V.F.'s story is about our amazing brands, and over time, each of these brands will be known more and more for the incredible products we bring to life through design and innovation. I was going to spend most of this call on product and brand building, but before I do that, I want to talk about something that's probably a little under-recognized about V.F. right now. Great sustained performance occurs when your revenue outgrows your cost. Leverage. The really remarkable turnaround stories are often associated with that. Companies compound that leverage, and we all know the law of compounding. By a few years in, the impact is remarkable. None of that is new news to you. What we might not have made clear enough is just how several forms of leverage are all working at once. First, you're starting to see our operating leverage.
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