VF Corp’s Third Quarter: Timberland and The North Face Drive Growth Amid Vans’ Struggles

Timberland US8870981011

VF Corporation reported a broadly stable performance for the third quarter of its 2026 fiscal year. The company surpassed market expectations, thanks to improved operational efficiency and a strengthened balance sheet, even as one of its major brands continued to face significant headwinds.

The apparel conglomerate posted quarterly revenue of approximately $2.88 billion, marking a 2% year-over-year increase. On the bottom line, adjusted earnings per share came in at $0.58, exceeding analyst forecasts. Investors responded positively, with shares closing at $20.34 on Friday, a gain of 1.19%.

A key achievement for the period was a substantial reduction in leverage. VF Corp successfully decreased its net debt by roughly $600 million compared to the prior year, providing greater financial flexibility for its ongoing brand portfolio strategy.

Divergent Brand Performance

The quarter revealed a stark contrast in the health of VF's brand portfolio. The Timberland and The North Face labels emerged as clear growth engines, each delivering a currency-adjusted revenue increase of 5%. Geographically, the Americas region was the primary driver, surging 6%.

This strength, however, was partially offset by persistent challenges at the Vans brand. The streetwear icon recorded a 10% decline in sales for the quarter. The ongoing question for the corporation is whether the robust performance of its outdoor and workwear segments can sustainably counterbalance the weakness at Vans. Management's current focus on enhancing profitability through efficiency gains across other business units appears to be effectively bridging this gap for now.

Operational Efficiency and Forward Guidance

Despite the mixed sales picture, VF Corporation enhanced its operational profitability. The adjusted operating margin expanded by 30 basis points to reach 12.1%, underscoring the success of cost-management initiatives.

Looking ahead to the fourth quarter, management provided guidance for currency-neutral revenue ranging from flat to a modest 2% increase. They anticipate an adjusted operating income between $10 million and $30 million.

Shareholders are set to receive a quarterly cash dividend of $0.09 per share. The payment will be distributed on March 19, 2026, to shareholders of record as of March 10.