VF Corp’s sales beat guidance in the third quarter, driven by growth at The North Face and Timberland businesses.
The company’s revenue for the quarter ended December 31 rose 2 per cent to US$2.8 billion, surpassing previous guidance of a 1-3 per cent decline.
The growth was driven by a 5 per cent sales increase at The North Face and an 11 per cent uplift at Timberland. Vans recorded “sequential improvement” despite 9 per cent decrease, while Dickies reported a 10 per cent decline.
All regions saw positive sales, with the Americas up 1 per cent, EMEA up 1 per cent and Apac up 5 per cent.
On the bottom line, operating income was $324 million compared to the guidance range of $170 million to $200 million. Net debt was down $1.9 billion versus last year.
“We made strong progress in Q3’25, improving profitability and further strengthening the balance sheet,” said Bracken Darrell, president and CEO. “The pace of VF’s transformation is on track as we deliver against our Reinvent priorities.”
The company expects revenue to fall by 4-6 per cent in the fourth quarter, translating to a 1-2 per cent decline in the second half. The retailer increased its full-year free cash flow guidance to $440 million.
VF Corp previously reported a 6 per cent sales drop in the second quarter, which management said was in line with expectations.
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