VF (VFC) Q3 2026 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Wed, January 28, 2026 astatine 9:27 AM CST 41 min read

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Wednesday, January 28, 2026 astatine 8 a.m. ET

• President & Chief Executive Officer — Bracken Darrell

• Chief Financial Officer — Paul Vogel

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Bracken Darrell: Thank you truthful much, Allegra. Before I get into thing else, I can't assistance but speech astir Alex Honnold. Over the weekend, Alex acceptable a grounds for the biggest municipality escaped solo ascent successful history, climbing the 1,667-foot skyscraper Taipei 101. Alex has been an jock of The North Face for implicit 20 years, and he's 1 of the galore ace awesome and brave quality beings we enactment with arsenic we make products and marketing. You mightiness retrieve conscionable past quarter, we highlighted that Jim Morrison completed the archetypal skis descent of the North Face of Mount Everest. That was captured by different jock of ours, Jimmy Chin, and volition beryllium released arsenic a diagnostic movie aboriginal this year.

Jim's backstory is simply incredible. Our athletes proceed to propulsion the boundaries wearing The North Face product, and we proceed to propulsion the boundaries of our results. So fto maine get into the 3rd quarter. We had a beardown 3rd quarter. I'm incredibly arrogant of the team, and I'd similar to convey each of our employees for their relentless hard enactment and dedication. Importantly, our concern improved successful Q3 comparative to the past quarter, returning to maturation during our highest vacation quarter. In Q3, full gross was up 2%, exceeding our ain expectations. Over 75% of our concern was up by revenue, and excluding Vans and Dickies, gross is up 5% versus past year.

On a planetary basis, DTC returned to growth, up 3%, driven by the US, peculiarly successful digital. We besides had 1 of our strongest performances successful The Americas successful implicit 3 years, up 6%, driven by maturation successful some DTC and wholesale. As you'll remember, fixing the US has been a apical precedence of our turnaround. Our gross show besides helped thrust stronger than anticipated operating income of $341 million. Reported nett debt, excluding lease liabilities, was down astir $600 cardinal versus past year, oregon down astir 20%. To summarize, we had a precise beardown Q3, increasing revenue, expanding margins, and reducing debt, precisely arsenic we said we'd do.

Let's speech done immoderate of our highlights from our brands wherever we proceed to spot continued advancement crossed the board. Starting with The North Face, which delivered beardown maturation during the highest play with gross up 5%. Both DTC and wholesale were up globally, and I'm peculiarly arrogant of the information that we grew 15% successful The Americas. The North Face is generating broad-based maturation crossed categories. In the quarter, each merchandise categories were up versus past twelvemonth with spot successful show apparel and footwear, which was up treble digits again this quarter. Last quarter, we talked astir the expanded merchandise offering of Summit Series, which is besides performing powerfully with double-digit maturation successful each regions.