VF Corporation reported second-quarter fiscal 2027 results ahead of its guidance, with stronger operating income and expanding gross margins. Revenue declined 4% from a year earlier on a reported basis, but rose 1% excluding Dickies and on a constant-currency basis. The company reaffirmed its full-year outlook and declared a quarterly dividend of 9 cents per share.
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Operating performance: Operating income was $368 million, with an operating margin of 13.7%, up 2.5 percentage points from a year earlier. Adjusted operating income excluding Dickies was $364 million, well above the company’s roughly $315 million guidance; the comparable adjusted margin was 13.5%, up 1.7 percentage points.
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Margins: Gross margin reached 55.4%, up 3.2 percentage points year over year. Excluding Dickies, adjusted gross margin was also 55.4%, an increase of 2.9 percentage points.
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Revenue and channels: Revenue excluding Dickies increased 1% on a constant-currency basis, ahead of the company’s expectation of roughly flat sales. Global direct-to-consumer revenue grew 1% overall, or 3% excluding Dickies on a constant-currency basis.
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Brand performance: The North Face and Timberland each grew 4% year over year. Altra grew more than 40%, according to CEO Bracken Darrell. Vans revenue fell 9.8%, though its global direct-to-consumer business returned to growth; VF said it expects wholesale performance to improve in the second half of the fiscal year.
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Regional results: The Americas remained comparatively strong. Revenue there declined 2% overall but increased 5% excluding Dickies on a constant-currency basis, with growth across channels.
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Inventory and debt: Net inventories were up 7% from a year earlier as VF positioned stock to serve expected second-half demand. Net debt fell $1.1 billion, or 20%, year over year; excluding lease liabilities, it declined 26%.
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Full-year outlook: VF maintained its fiscal 2027 outlook for revenue growth of 2% or better on a constant-currency basis and an adjusted operating margin of about 8%. It also expects normalized free cash flow to be flat to higher than the prior year’s $405 million.
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Dividend: The 9-cent-per-share dividend is payable December 17 to shareholders of record at the close of business December 10.
What changes for investors: The results show stronger profitability and improved margins despite a reported revenue decline. The full-year outlook is unchanged, while Vans remains a weak spot in sales even as its direct-to-consumer business has returned to growth. The declared dividend provides for a cash payment of 9 cents per share on the stated dates.