V.F. Corporation Q3 FY2026 earnings call

• Q3 was strong with revenue up 2%, operating income $341 million, net debt down almost $600 million. - The North Face delivered 5% revenue growth, both DTC and wholesale up globally, 15% growth in The Americas. - Timberland had 5% revenue growth with global growth in channels. - Altra saw 23% revenue growth, on track to exceed $250 million in fiscal '26. - Vans showed green shoots with digital revenue growth and new products. - Chief Commercial Officer Martino Scabbia Grini stepping down, Brent Hyder assuming role.

The North Face: Revenue up 5%, with both DTC and wholesale growth globally, 15% growth in The Americas. All product categories up, including double-digit growth in performance apparel and footwear. Summit Series performing strongly with double-digit growth in all regions. Leather collection sold out quickly. Timberland: Brand revenue up 5%, global growth in wholesale and DTC, 9% growth in The Americas. Six-inch premium boot a key driver, boat shoe growth, social-first marketing. Altra: Revenue up 23%, key franchises in trail and road running, investing in innovation and marketing, on track to exceed $250 million in revenue for fiscal '26. Vans: Revenue down 10%, global digital revenue grew, new products delivering growth, holiday campaign drove online energy, shift in marketing strategy.

• Q3 revenue up 2% above guidance, operating profit better than planned. - Q4 expected revenue flat to up 2% constant dollar, positive FX benefit. The North Face broadly in line, Timberland slower growth, Vans decline mid-single digits. Adjusted operating income $10-$30 million, gross margin flat to slightly up, SG&A rate flat to slightly down. - Full-year fiscal 2026: Revenue flat to up, gross margin 54.5% or better, operating margin 6.5% or better, operating and free cash flow up, leverage 3.5 times or lower.

• Tariffs impacting gross margin, need to mitigate. - Potential consumer demand erosion and market uncertainties affecting performance.

Q: Congrats on sales growth, how to assess consumer and plan if slowing?

A: Bracken feels confident with many levers, Paul says gross margin on track to 55%.

Q: Vans Q3 trend and Q4 guidance?

A: Q3 down high single digits, Q4 mid-single digits improvement, seeing green shoots in digital.

Q: TNF Americas sequential acceleration, inventory?

A: Strong in The Americas, inventory days down, APAC and EMEA have challenges.

Q: Vans US store traffic, back to school order books?

A: Store traffic not up yet, online traffic up, order books not discussed.

Q: AUR, Altra potential?

A: AUR trends positive, Altra has billion-dollar potential, holding back growth for strong pedigree.

Q: Gross margin beat drivers, Q4 margin?

A: Less promotion, tariff impact, sourcing benefit; Q4 similar with pricing helping.

Q: Vans DTC vs wholesale, TNF premiumization?

A: Focus on DTC/e-commerce for Vans, TNF premiumization systematic with growth opportunities.

Q: Full-year guidance?

A: Considering reintroducing full-year guidance, guidance philosophy remains on ranges, outperformed Q3 expectations.