V F Corp 10-Q for FY2027 Q2
V F Corp (VFC)
10-Q
2026-10-28
For: 2026-09-26
View Original
Added on
October 28, 2026
About this 10-Q
V F Corp filed this 10-Q on October 28, 2026, covering the quarter ended September 26, 2026 (FY2027 Q2).
VF reported second-quarter revenue of $2.7 billion, down 4%, while gross margin rose 320 basis points to 55.4% and diluted EPS increased to $0.71 from $0.48. Outdoor revenue rose 4%; Active revenue fell 8%. AI summary
Headline figures
Quarter ended September 26, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.
- Revenue
- $2.7B
- down 3.8% from $2.8B a year earlier
- Net income
- $285.25M
- up 50.3% from net income of $189.77M a year earlier
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
For the quarterly period ended September 26, 2026
or
For the transition period from ________ to ________
Commission file number: 1-5256
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation or organization) | (I.R.S. employer identification number) | |||||||
(Address of principal executive offices)
(720 ) 778-4000
(Registrant’s telephone number, including area code)
| Securities registered pursuant to Section 12(b) of the Act: | ||||||||
| (Title of each class) | (Trading Symbol(s)) | (Name of each exchange on which registered) | ||||||
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| ☑ | Accelerated filer | ☐ | ||||||||||||||||||
| Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||||||||
| Emerging growth company | ||||||||||||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨ | ||||||||||||||||||||
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑
On October 24, 2026, there were 393,639,062 shares of the registrant’s common stock outstanding.
VF CORPORATION
Table of Contents
| PAGE NUMBER | |||||
PART I — FINANCIAL INFORMATION
| ITEM 1 — FINANCIAL STATEMENTS (UNAUDITED). | ||
VF CORPORATION
Consolidated Balance Sheets
(Unaudited)
| (In thousands, except share amounts) | September 2026 | March 2026 | September 2025 | ||||||||||||||||||||
| ASSETS | |||||||||||||||||||||||
| Current assets | |||||||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | ||||||||||||||||||||
Accounts receivable, less allowance for doubtful accounts of: September 2026 - $ | |||||||||||||||||||||||
Inventories | |||||||||||||||||||||||
Other current assets | |||||||||||||||||||||||
Current assets held-for-sale | |||||||||||||||||||||||
| Total current assets | |||||||||||||||||||||||
Property, plant and equipment, net | |||||||||||||||||||||||
Intangible assets, net | |||||||||||||||||||||||
Goodwill | |||||||||||||||||||||||
Operating lease right-of-use assets | |||||||||||||||||||||||
Other assets | |||||||||||||||||||||||
| TOTAL ASSETS | $ | $ | $ | ||||||||||||||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||||||||||
| Current liabilities | |||||||||||||||||||||||
Short-term borrowings | $ | $ | $ | ||||||||||||||||||||
Current portion of long-term debt | |||||||||||||||||||||||
Accounts payable | |||||||||||||||||||||||
Current portion of operating lease liabilities | |||||||||||||||||||||||
Accrued liabilities | |||||||||||||||||||||||
Current liabilities held-for-sale | |||||||||||||||||||||||
| Total current liabilities | |||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||
Long-term portion of operating lease liabilities | |||||||||||||||||||||||
Other liabilities | |||||||||||||||||||||||
| Total liabilities | |||||||||||||||||||||||
Commitments and contingencies | |||||||||||||||||||||||
| Stockholders’ equity | |||||||||||||||||||||||
Preferred Stock, par value $ | |||||||||||||||||||||||
Common Stock, stated value $ | |||||||||||||||||||||||
Additional paid-in capital | |||||||||||||||||||||||
Accumulated other comprehensive loss | ( | ( | ( | ||||||||||||||||||||
Accumulated deficit | ( | ( | ( | ||||||||||||||||||||
| Total stockholders’ equity | |||||||||||||||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | $ | $ | ||||||||||||||||||||
See notes to consolidated financial statements.
3 VF Corporation Q2 FY27 Form 10-Q
VF CORPORATION
Consolidated Statements of Operations
(Unaudited)
| Three Months Ended September | Six Months Ended September | ||||||||||||||||||||||||||||||||||
| (In thousands, except per share amounts) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||||||||
Revenues | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
Costs and operating expenses | |||||||||||||||||||||||||||||||||||
Cost of goods sold | |||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | |||||||||||||||||||||||||||||||||||
Total costs and operating expenses | |||||||||||||||||||||||||||||||||||
| Operating income | |||||||||||||||||||||||||||||||||||
Interest income | |||||||||||||||||||||||||||||||||||
Interest expense | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Other income (expense), net | |||||||||||||||||||||||||||||||||||
Income before income taxes | |||||||||||||||||||||||||||||||||||
Income tax expense | |||||||||||||||||||||||||||||||||||
| Net income | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
Earnings per common share | |||||||||||||||||||||||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
Diluted | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
Weighted average shares outstanding | |||||||||||||||||||||||||||||||||||
Basic | |||||||||||||||||||||||||||||||||||
Diluted | |||||||||||||||||||||||||||||||||||
See notes to consolidated financial statements.
VF Corporation Q2 FY27 Form 10-Q 4
VF CORPORATION
Consolidated Statements of Comprehensive Income
(Unaudited)
| Three Months Ended September | Six Months Ended September | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| (In thousands) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation and other | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Gains (losses) arising during the period | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax effect | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
Defined benefit pension plans | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Current period actuarial losses | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of net deferred actuarial losses | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of deferred prior service credits | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification of net actuarial loss from settlement charge | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification of deferred prior service cost due to curtailments | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax effect | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Derivative financial instruments | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gains (losses) arising during the period | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax effect | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification of net (gains) losses realized | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax effect | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||
See notes to consolidated financial statements.
5 VF Corporation Q2 FY27 Form 10-Q
VF CORPORATION
Consolidated Statements of Cash Flows
(Unaudited)
| Six Months Ended September | |||||||||||||||||
| (In thousands) | 2026 | 2025 | |||||||||||||||
| OPERATING ACTIVITIES | |||||||||||||||||
Net income | $ | $ | |||||||||||||||
Adjustments to reconcile net income to cash used by operating activities: | |||||||||||||||||
Depreciation and amortization | |||||||||||||||||
Reduction in the carrying amount of right-of-use assets | |||||||||||||||||
Stock-based compensation | |||||||||||||||||
Provision for doubtful accounts | |||||||||||||||||
Pension expense less than contributions | ( | ( | |||||||||||||||
Other, net | ( | ||||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||
Accounts receivable | ( | ( | |||||||||||||||
Inventories | ( | ( | |||||||||||||||
Accounts payable | |||||||||||||||||
Income taxes | ( | ||||||||||||||||
Accrued liabilities | |||||||||||||||||
Operating lease right-of-use assets and liabilities | ( | ( | |||||||||||||||
Other assets and liabilities | ( | ( | |||||||||||||||
Cash used by operating activities | ( | ( | |||||||||||||||
| INVESTING ACTIVITIES | |||||||||||||||||
Payment for working capital adjustment for sale of business | ( | ||||||||||||||||
Proceeds from sale of assets | |||||||||||||||||
Capital expenditures | ( | ( | |||||||||||||||
Software purchases | ( | ( | |||||||||||||||
Other, net | ( | ( | |||||||||||||||
Cash used by investing activities | ( | ( | |||||||||||||||
| FINANCING ACTIVITIES | |||||||||||||||||
Net increase in short-term borrowings | |||||||||||||||||
Payments on long-term debt | ( | ||||||||||||||||
Payment of debt issuance costs | ( | ||||||||||||||||
Cash dividends paid | ( | ( | |||||||||||||||
Proceeds from issuance of Common Stock, net of payments for tax withholdings | ( | ( | |||||||||||||||
Cash provided (used) by financing activities | ( | ||||||||||||||||
Effect of foreign currency rate changes on cash, cash equivalents and restricted cash | ( | ||||||||||||||||
Net change in cash, cash equivalents and restricted cash | ( | ||||||||||||||||
Cash, cash equivalents and restricted cash – beginning of year | |||||||||||||||||
Cash, cash equivalents and restricted cash – end of period | $ | $ | |||||||||||||||
| Balances per Consolidated Balance Sheets: | |||||||||||||||||
| Cash and cash equivalents | $ | $ | |||||||||||||||
| Other current assets | |||||||||||||||||
| Current assets held-for-sale | |||||||||||||||||
| Other assets | |||||||||||||||||
| Total cash, cash equivalents and restricted cash | $ | $ | |||||||||||||||
See notes to consolidated financial statements.
VF Corporation Q2 FY27 Form 10-Q 6
VF CORPORATION
Consolidated Statements of Stockholders’ Equity
(Unaudited)
| Three Months Ended September 2026 | ||||||||||||||||||||||||||||||||||||||
| Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | ||||||||||||||||||||||||||||||||||||
| Common Stock | ||||||||||||||||||||||||||||||||||||||
| (In thousands, except share amounts) | Shares | Amounts | Total | |||||||||||||||||||||||||||||||||||
| Balance, June 2026 | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||
Net income | — | — | — | — | ||||||||||||||||||||||||||||||||||
Dividends on Common Stock ($ | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||
Stock-based compensation, net | — | ( | ||||||||||||||||||||||||||||||||||||
Foreign currency translation and other | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||
Defined benefit pension plans | — | — | — | — | ||||||||||||||||||||||||||||||||||
Derivative financial instruments | — | — | — | — | ||||||||||||||||||||||||||||||||||
| Balance, September 2026 | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||
| Three Months Ended September 2025 | ||||||||||||||||||||||||||||||||||||||
| Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | ||||||||||||||||||||||||||||||||||||
| Common Stock | ||||||||||||||||||||||||||||||||||||||
| (In thousands, except share amounts) | Shares | Amounts | Total | |||||||||||||||||||||||||||||||||||
| Balance, June 2025 | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||
Net income | — | — | — | — | ||||||||||||||||||||||||||||||||||
Dividends on Common Stock ($ | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||
| Stock-based compensation, net | — | ( | ||||||||||||||||||||||||||||||||||||
Foreign currency translation and other | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||
Defined benefit pension plans | — | — | — | — | ||||||||||||||||||||||||||||||||||
Derivative financial instruments | — | — | — | — | ||||||||||||||||||||||||||||||||||
| Balance, September 2025 | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||
Continued on next page.
See notes to consolidated financial statements.
7 VF Corporation Q2 FY27 Form 10-Q
VF CORPORATION
Consolidated Statements of Stockholders’ Equity
(Unaudited)
| Six Months Ended September 2026 | ||||||||||||||||||||||||||||||||||||||
| Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | ||||||||||||||||||||||||||||||||||||
| Common Stock | ||||||||||||||||||||||||||||||||||||||
| (In thousands, except share amounts) | Shares | Amounts | Total | |||||||||||||||||||||||||||||||||||
| Balance, March 2026 | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||
Net income | — | — | — | — | ||||||||||||||||||||||||||||||||||
Dividends on Common Stock ($ | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||
Stock-based compensation, net | — | ( | ||||||||||||||||||||||||||||||||||||
Foreign currency translation and other | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||
Defined benefit pension plans | — | — | — | — | ||||||||||||||||||||||||||||||||||
Derivative financial instruments | — | — | — | — | ||||||||||||||||||||||||||||||||||
| Balance, September 2026 | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||
| Six Months Ended September 2025 | ||||||||||||||||||||||||||||||||||||||
| Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | ||||||||||||||||||||||||||||||||||||
| Common Stock | ||||||||||||||||||||||||||||||||||||||
| (In thousands, except share amounts) | Shares | Amounts | Total | |||||||||||||||||||||||||||||||||||
| Balance, March 2025 | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||
Net income | — | — | — | — | ||||||||||||||||||||||||||||||||||
Dividends on Common Stock ($ | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||
Stock-based compensation, net | — | ( | ||||||||||||||||||||||||||||||||||||
Foreign currency translation and other | — | — | — | — | ||||||||||||||||||||||||||||||||||
Defined benefit pension plans | — | — | — | — | ||||||||||||||||||||||||||||||||||
Derivative financial instruments | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||
| Balance, September 2025 | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||
See notes to consolidated financial statements.
VF Corporation Q2 FY27 Form 10-Q 8
VF CORPORATION
Notes to Consolidated Financial Statements
(Unaudited)
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS | PAGE NUMBER | |||||||
| NOTE 1 | ||||||||
| NOTE 2 | ||||||||
| NOTE 3 | ||||||||
| NOTE 4 | ||||||||
| NOTE 5 | ||||||||
| NOTE 6 | ||||||||
| NOTE 7 | ||||||||
| NOTE 8 | ||||||||
| NOTE 9 | ||||||||
| NOTE 10 | ||||||||
| NOTE 11 | ||||||||
| NOTE 12 | ||||||||
| NOTE 13 | ||||||||
| NOTE 14 | ||||||||
| NOTE 15 | ||||||||
| NOTE 16 | ||||||||
| NOTE 17 | ||||||||
| NOTE 18 | ||||||||
| NOTE 19 | ||||||||
| NOTE 20 | ||||||||
9 VF Corporation Q2 FY27 Form 10-Q
NOTE 1 — BASIS OF PRESENTATION
Fiscal Year
Basis of Presentation
On September 15, 2025, VF entered into a definitive agreement with Bluestar Alliance LLC to sell the Dickies® brand business (“Dickies”). The Company determined that the associated assets and liabilities met the held-for-sale accounting criteria and they were classified accordingly in the September 2025 Consolidated Balance Sheet. On November 12, 2025, VF completed the sale of Dickies. Refer to Note 4 for additional information on the divestiture.
Certain prior year amounts have been reclassified to conform to the Fiscal 2027 presentation.
The accompanying unaudited interim consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X and do not include all of the information and notes required by generally accepted accounting principles in the United States of America (“GAAP”) for complete financial statements. Similarly, the March 2026 consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by GAAP. In the opinion of management, the accompanying unaudited interim consolidated financial statements contain all normal and recurring adjustments necessary to fairly state the consolidated financial position, results of operations and cash flows of VF for the interim periods presented. Operating results for the three and six months ended September 2026 are not necessarily indicative of results that may be expected for any other interim period or for Fiscal 2027. For further information, refer to the consolidated financial
statements and notes included in VF’s Annual Report on Form 10-K for the year ended March 28, 2026 (“Fiscal 2026 Form 10-K”).
Use of Estimates
In preparing the interim consolidated financial statements, management makes estimates and assumptions that affect amounts reported in the interim consolidated financial statements and accompanying notes. Actual results may differ from those estimates due to risks and uncertainties.
Changes in Laws and Regulations
VF recognizes the financial effects of changes in laws or regulations in the period in which the Company obtains a legal right to the related asset or incurs a legal obligation for the related liability. On February 20, 2026, the U.S. Supreme Court ruled that the tariffs imposed under the International Emergency Economic Power Act (“IEEPA”) were deemed invalid. Further, on March 4, 2026, the Court of International Trade ruled that U.S. Customs and Border Protection must refund IEEPA tariffs that were collected, with interest. Accordingly, as of March 2026, VF recorded a tariff refund receivable of $149.7 million related to tariffs paid under IEEPA from April 2025 until February 20, 2026, which was included in the accounts receivable, net line item in the Consolidated Balance Sheet at March 2026. In addition, VF recognized $93.8 million as a reduction to cost of goods sold in Fiscal 2026 related to inventory sold in Fiscal 2026 on which IEEPA tariffs were paid, such that the IEEPA tariffs had no net impact on gross margin in Fiscal 2026. Finally, VF recorded an inventory reserve of $55.9 million as of March 2026 to offset IEEPA tariffs reflected in inventory on hand at March 2026. During Fiscal 2027, VF released this reserve as a reduction to cost of goods sold as the related inventory was sold such that the IEEPA tariffs had no net impact on gross margin in Fiscal 2027. Accordingly, $37.3 million of the $55.9 million inventory reserve recorded at March 2026 was recognized as a reduction to cost of goods sold in the three months ended June 2026 and the remaining $18.6 million was recognized as a reduction to cost of goods sold in the three months ended September 2026. As of September 2026, VF has received substantially all of the IEEPA tariff receivable and the related interest income and has recognized all of the inventory-related impacts.
NOTE 2 — RECENTLY ISSUED ACCOUNTING STANDARDS
In November 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2024-03, “Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses”, which is intended to enhance expense disclosures by requiring additional disaggregation of certain costs and expenses, on an interim and annual basis, within the footnotes to the financial statements. The guidance will be effective for annual disclosures beginning in Fiscal 2028 and subsequent interim periods. Early adoption is permitted and the amendments may be applied either prospectively or retrospectively. The Company is evaluating the impact that adopting this guidance will have on VF’s disclosures.
In September 2025, the FASB issued ASU No. 2025-06, “Intangibles — Goodwill and Other — Internal-Use Software
(Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software”, which updates the accounting for internal-use software by replacing former stage-based rules with a principles-based framework. Entities will now capitalize costs associated with internal-use software only when management has authorized and committed to funding the software project and it is probable that the project will be completed and the software will be used to perform the intended function. The amendments are effective for interim and annual periods beginning in Fiscal 2029, with early adoption permitted. The guidance can be applied using a prospective, retrospective or modified transition approach. The Company is evaluating the impact that adopting this guidance will have on its consolidated financial statements and related disclosures.
VF Corporation Q2 FY27 Form 10-Q 10
In November 2025, the FASB issued ASU No. 2025-09, “Derivatives and Hedging (Topic 815): Hedge Accounting Improvements”, which amends certain aspects of hedge accounting rules to more closely align with the economic results of risk management activities in the financial statements. The amendments are effective for interim and annual periods beginning in Fiscal 2028, with early adoption permitted. The amendments are required to be applied on a prospective basis. The Company is evaluating the impact that adopting this guidance will have on its consolidated financial statements and related disclosures.
In December 2025, the FASB issued ASU No. 2025-10, “Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities”, an update that establishes authoritative guidance on the accounting for government grants received by business entities. The guidance is effective for interim and annual periods beginning in Fiscal 2030, with early adoption permitted. The Company is evaluating the impact that adopting this guidance will have on its consolidated financial statements and related disclosures.
In December 2025, the FASB issued ASU No. 2025-11, “Interim Reporting (Topic 270): Narrow-Scope Improvements”, which is intended to clarify interim disclosure requirements and the applicability of Accounting Standards Codification Topic 270 — Interim Reporting. The guidance is effective for interim periods beginning in Fiscal 2029, with early adoption permitted. The Company is evaluating the impact that adopting this guidance will have on its consolidated financial statements and related disclosures.
In December 2025, the FASB issued ASU No. 2025-12, “Codification Improvements”, which represents changes to the Codification that (1) clarify, (2) correct errors, or (3) make minor improvements. The amendments make the Codification easier to understand and apply. The amendments are effective for interim and annual periods beginning in Fiscal 2028, with early adoption permitted, but the Company does not expect the adoption of this guidance to have a material impact on its financial statements and related disclosures.
NOTE 3 — REVENUES
Contract Balances
The following table provides information about contract assets and contract liabilities:
| (In thousands) | September 2026 | March 2026 | September 2025 | ||||||||||||||||||||
Contract assets (a) | $ | $ | $ | ||||||||||||||||||||
Contract liabilities (b) | |||||||||||||||||||||||
(a)Included in the other current assets line item in the Consolidated Balance Sheets.
(b)Included in the accrued liabilities line item in the Consolidated Balance Sheets.
For the three and six months ended September 2026, the Company recognized $59.1 million and $106.4 million, respectively, of revenue that was included in the contract liability balance during the period, including amounts recorded as a contract liability and subsequently recognized as revenue as performance obligations were satisfied within the same period, such as order deposits from customers. The change in the contract asset and contract liability balances primarily results from timing differences between the Company’s satisfaction of performance obligations and the customer’s payment.
Performance Obligations
As of September 2026, the Company expects to recognize $5.7 million of fixed consideration related to the future minimum guarantees in effect under its licensing agreements and expects
such amounts to be recognized over time based on the contractual terms through December 2028. The variable consideration related to licensing arrangements is not disclosed as a remaining performance obligation as it qualifies for the sales-based royalty exemption. VF has also elected the practical expedient to not disclose the transaction price allocated to remaining performance obligations for contracts with an original expected duration of one year or less.
As of September 2026, there were no arrangements with transaction price allocated to remaining performance obligations other than contracts for which the Company has applied the practical expedients and the fixed consideration related to future minimum guarantees discussed above.
11 VF Corporation Q2 FY27 Form 10-Q
Disaggregation of Revenues
The following tables disaggregate our revenues by channel and geography, which provides a meaningful depiction of how the nature, timing and uncertainty of revenues are affected by economic factors.
| Three Months Ended September 2026 | ||||||||||||||||||||||||||||||||
| (In thousands) | Outdoor | Active | All Other (a) | Total | ||||||||||||||||||||||||||||
| Channel revenues | ||||||||||||||||||||||||||||||||
| Wholesale | $ | $ | $ | $ | ||||||||||||||||||||||||||||
| Direct-to-consumer | ||||||||||||||||||||||||||||||||
| Royalty | ||||||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | ||||||||||||||||||||||||||||
| Geographic revenues | ||||||||||||||||||||||||||||||||
| Americas | $ | $ | $ | $ | ||||||||||||||||||||||||||||
| Europe | ||||||||||||||||||||||||||||||||
| Asia-Pacific | ||||||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | ||||||||||||||||||||||||||||
| Three Months Ended September 2025 | |||||||||||||||||||||||||||||
| (In thousands) | Outdoor | Active | All Other (a) | Total | |||||||||||||||||||||||||
| Channel revenues | |||||||||||||||||||||||||||||
| Wholesale | $ | $ | $ | $ | |||||||||||||||||||||||||
| Direct-to-consumer | |||||||||||||||||||||||||||||
| Royalty | |||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | |||||||||||||||||||||||||
| Geographic revenues | |||||||||||||||||||||||||||||
| Americas | $ | $ | $ | $ | |||||||||||||||||||||||||
| Europe | |||||||||||||||||||||||||||||
| Asia-Pacific | |||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | |||||||||||||||||||||||||
| Six Months Ended September 2026 | ||||||||||||||||||||||||||||||||
| (In thousands) | Outdoor | Active | All Other (a) | Total | ||||||||||||||||||||||||||||
| Channel revenues | ||||||||||||||||||||||||||||||||
| Wholesale | $ | $ | $ | $ | ||||||||||||||||||||||||||||
| Direct-to-consumer | ||||||||||||||||||||||||||||||||
| Royalty | ||||||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | ||||||||||||||||||||||||||||
| Geographic revenues | ||||||||||||||||||||||||||||||||
| Americas | $ | $ | $ | $ | ||||||||||||||||||||||||||||
| Europe | ||||||||||||||||||||||||||||||||
| Asia-Pacific | ||||||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | ||||||||||||||||||||||||||||
VF Corporation Q2 FY27 Form 10-Q 12
| Six Months Ended September 2025 | |||||||||||||||||||||||||||||
| (In thousands) | Outdoor | Active | All Other (a) | Total | |||||||||||||||||||||||||
| Channel revenues | |||||||||||||||||||||||||||||
| Wholesale | $ | $ | $ | $ | |||||||||||||||||||||||||
| Direct-to-consumer | |||||||||||||||||||||||||||||
| Royalty | |||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | |||||||||||||||||||||||||
| Geographic revenues | |||||||||||||||||||||||||||||
| Americas | $ | $ | $ | $ | |||||||||||||||||||||||||
| Europe | |||||||||||||||||||||||||||||
| Asia-Pacific | |||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | |||||||||||||||||||||||||
(a)“All Other” is included for purposes of reconciliation of revenues, but it is not considered a reportable segment. “All Other” includes the following brands: Dickies® (through the date of sale), Altra®, Smartwool®, Napapijri® and Icebreaker®.
NOTE 4 — DIVESTITURE
The Company continuously assesses the composition of its portfolio to ensure it is aligned with its strategic objectives and positioned to maximize growth and return to shareholders.
Dickies
On September 15, 2025, VF entered into a definitive agreement with Bluestar Alliance LLC to sell Dickies for $600.0 million in cash, subject to customary adjustments for cash, indebtedness, working capital and transaction expenses. The Company determined that the associated assets and liabilities met the held-for-sale accounting criteria and they were classified accordingly in the September 2025 Consolidated Balance Sheet. The Company determined that the sale of Dickies did not represent a strategic shift that would have a major effect on the Company’s operations and financial results, and therefore did not qualify for presentation as a discontinued operation. The results of operations for Dickies through the date of sale are included within the “All Other” category in Note 14, Reportable Segment Information.
On November 12, 2025, VF completed the sale of Dickies and received proceeds of $600.5 million, net of cash sold. VF recorded a final pre-tax gain of $127.2 million in the year ended March 2026, which included a reduction to the gain to reflect final working capital adjustments of $11.9 million that were paid in the first quarter of Fiscal 2027. The pre-tax gain was included in the other income (expense), net line item in the Consolidated Statement of Operations for the year ended March 2026.
Under the terms of a transition services agreement, the Company provided certain post-closing accounting, tax, treasury, digital technology, supply chain, legal, customer service and human resource services on a transitional basis. As of September 2026, the Company is providing limited post-closing treasury services for a period ending no later than the third quarter of Fiscal 2027 and limited digital technology services for a period ending no later than the third quarter of Fiscal 2028.
13 VF Corporation Q2 FY27 Form 10-Q
Summarized Held-for-Sale Financial Information
The following table presents the assets and liabilities of Dickies at September 2025:
| (In thousands) | September 2025 | ||||
| Cash and cash equivalents | $ | ||||
| Accounts receivable, net | |||||
| Inventories | |||||
| Other current assets | |||||
| Property, plant and equipment, net | |||||
| Intangible assets, net | |||||
Goodwill (a) | |||||
| Operating lease right-of-use assets | |||||
| Other assets | |||||
| Total assets held-for-sale | $ | ||||
| Current portion of long-term debt | $ | ||||
| Accounts payable | |||||
| Current portion of operating lease liabilities | |||||
| Accrued liabilities | |||||
| Long-term debt | |||||
| Long-term portion of operating lease liabilities | |||||
| Other liabilities | |||||
| Total liabilities held-for-sale | $ | ||||
(a)The Dickies reporting unit goodwill was fully impaired as of the third quarter of Fiscal 2024, and accumulated impairment charges were $61.8 million.
NOTE 5 — INVENTORIES
| (In thousands) | September 2026 | March 2026 | September 2025 | ||||||||||||||||||||
| Finished products | $ | $ | $ | ||||||||||||||||||||
| Work-in-process | |||||||||||||||||||||||
| Raw materials | |||||||||||||||||||||||
| Total inventories | $ | $ | $ | ||||||||||||||||||||
NOTE 6 — INTANGIBLE ASSETS
| September 2026 | March 2026 | |||||||||||||||||||||||||||||||||||||||||||
| (In thousands) | Weighted Average Amortization Period | Amortization Method | Cost | Accumulated Amortization | Net Carrying Amount | Net Carrying Amount | ||||||||||||||||||||||||||||||||||||||
| Amortizable intangible assets: | ||||||||||||||||||||||||||||||||||||||||||||
| Customer relationships and other | Accelerated | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
| Indefinite-lived intangible assets: | ||||||||||||||||||||||||||||||||||||||||||||
| Trademarks and trade names | ||||||||||||||||||||||||||||||||||||||||||||
| Intangible assets, net | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Amortization expense for the three and six months ended September 2026 was $2.6 million and $5.3 million, respectively. Based on the carrying amounts of amortizable intangible assets noted above, estimated amortization expense for the next five years beginning in Fiscal 2027 is $10.6 million, $9.8 million, $9.0 million, $6.9 million and $5.4 million, respectively.
VF Corporation Q2 FY27 Form 10-Q 14
NOTE 7 — GOODWILL
Changes in goodwill are summarized by reportable segment and the “All Other” category as follows:
| (In thousands) | Outdoor | Active | All Other (a) | Total | ||||||||||||||||||||||
| Balance, March 2026 | $ | $ | $ | $ | ||||||||||||||||||||||
| Foreign currency translation | ( | ( | ( | |||||||||||||||||||||||
| Balance, September 2026 | $ | $ | $ | $ | ||||||||||||||||||||||
(a)“All Other” is included for purposes of reconciliation of goodwill, but it is not considered a reportable segment.
Accumulated impairment charges for the Outdoor reportable segment and the “All Other” category were $730.2 107.7
NOTE 8 — LEASES
The Company leases certain retail locations, office space, distribution facilities, machinery and equipment, and vehicles. All of these leases are operating leases. VF previously had one finance lease for a distribution center that was sold in Fiscal 2026 as part of the Dickies divestiture. Total lease cost includes operating lease cost, variable lease cost, finance lease cost (as applicable), short-term lease cost and an impairment of right-of-use assets. The components of lease cost were as follows:
| Three Months Ended September | Six Months Ended September | ||||||||||||||||||||||||||||||||||
| (In thousands) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||||||||
| Operating lease cost | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
| Other lease cost | |||||||||||||||||||||||||||||||||||
| Total lease cost | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
During the six months ended September 2026, the Company recorded a $6.4 million impairment charge in the selling, general and administrative (“SG&A”) expenses line item in VF's Consolidated Statement of Operations for an impairment of a distribution center.
During the six months ended September 2026 and 2025, the Company paid $225.3 million and $207.8 million for operating leases, respectively. During the six months ended September 2026 and 2025, the Company obtained $203.9 million and $223.8 million of right-of-use assets in exchange for lease liabilities, respectively.
NOTE 9 — SUPPLY CHAIN FINANCING PROGRAM
VF facilitates a voluntary supply chain finance (“SCF”) program that enables a significant portion of our inventory suppliers to leverage VF’s credit rating to receive payment from participating financial institutions prior to the payment date specified in the terms between VF and the supplier. At September 2026, March
2026 and September 2025, the accounts payable line item in VF’s Consolidated Balance Sheets included total outstanding obligations of $848.0 million, $466.0 million and $696.6 million, respectively, due to suppliers that are eligible to participate in the SCF program.
15 VF Corporation Q2 FY27 Form 10-Q
NOTE 10 — PENSION PLANS
The components of pension cost (income) for VF’s defined benefit plans were as follows:
| Three Months Ended September | Six Months Ended September | |||||||||||||||||||||||||||||||||||||
| (In thousands) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||||||||||
| Service cost – benefits earned during the period | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
| Interest cost on projected benefit obligations | ||||||||||||||||||||||||||||||||||||||
| Expected return on plan assets | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
| Settlement charge (premium refund) | ( | ( | ||||||||||||||||||||||||||||||||||||
| Curtailments | ( | |||||||||||||||||||||||||||||||||||||
| Amortization of deferred amounts: | ||||||||||||||||||||||||||||||||||||||
| Net deferred actuarial losses | ||||||||||||||||||||||||||||||||||||||
| Deferred prior service credits | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
| Net periodic pension cost (income) | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||
In May 2025, VF executed a resolution to terminate the U.S. qualified pension plan, which was previously frozen and no longer accruing benefits. In February 2026, the Company completed the termination of the plan through a combination of lump-sum payments to eligible participants and the purchase of group annuity contracts to settle the remaining benefit obligations.
During the three months ended September 2026, VF received a premium refund of $3.1 million related to the previously completed U.S. qualified pension plan termination. The refund reduced the previously estimated non-cash settlement charges and was recorded in the other income (expense), net line item in the Consolidated Statements of Operations for the three and six months ended September 2026. The related funds were transferred to a qualified replacement plan managed by the Company which will be used to fund future incremental annual Company contributions to VF's U.S. 401(k) program.
VF has reported the service cost component of net periodic pension cost (income) in operating income and the other components, which include interest cost, expected return on plan assets, settlement charges, premium refunds, curtailments
and amortization of deferred actuarial losses and prior service credits, in the other income (expense), net line item in the Consolidated Statements of Operations.
VF contributed $3.2 million to its defined benefit plans during the six months ended September 2026, and intends to make approximately $11.8 million of contributions during the remainder of Fiscal 2027.
VF recorded a $0.3
VF recorded $0.5 million in curtailment gains in the other income (expense), net line item in the Consolidated Statement of Operations for the six months ended September 2025, related to employee exits from an international plan resulting from restructuring actions.
NOTE 11 — CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE LOSS
Common Stock
During the six months ended September 2026, the Company did no t purchase shares of Common Stock in open market transactions under its share repurchase program authorized by VF’s Board of Directors. These are treated as treasury stock transactions when shares are repurchased.
Common Stock outstanding is net of shares held in treasury which are, in substance, retired. There were no 0.25
VF Corporation Q2 FY27 Form 10-Q 16
Accumulated Other Comprehensive Loss
Comprehensive income consists of net income and specified components of other comprehensive income (loss), which relate to changes in assets and liabilities that are not included in net income under GAAP but are instead deferred and accumulated within a separate component of stockholders’ equity in the balance sheet. VF’s comprehensive income is presented in the Consolidated Statements of Comprehensive Income. Th e deferred components of other comprehensive income (loss) are reported, net of related income taxes, in accumulated other comprehensive loss (“OCL”) in stockholders’ equity, as follows:
| (In thousands) | September 2026 | March 2026 | September 2025 | ||||||||||||||||||||
| Foreign currency translation and other | $ | ( | $ | ( | $ | ( | |||||||||||||||||
| Defined benefit pension plans | ( | ( | ( | ||||||||||||||||||||
| Derivative financial instruments | ( | ( | |||||||||||||||||||||
| Accumulated other comprehensive loss | $ | ( | $ | ( | $ | ( | |||||||||||||||||
The changes in accumulated OCL, net of related taxes, were as follows:
| Three Months Ended September 2026 | ||||||||||||||||||||||||||
| (In thousands) | Foreign Currency Translation and Other | Defined Benefit Pension Plans | Derivative Financial Instruments | Total | ||||||||||||||||||||||
| Balance, June 2026 | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
Other comprehensive loss before reclassifications | ( | ( | ( | ( | ||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | ||||||||||||||||||||||||||
Net other comprehensive income (loss) | ( | |||||||||||||||||||||||||
| Balance, September 2026 | $ | ( | $ | ( | $ | $ | ( | |||||||||||||||||||
| Three Months Ended September 2025 | ||||||||||||||||||||||||||
| (In thousands) | Foreign Currency Translation and Other | Defined Benefit Pension Plans | Derivative Financial Instruments | Total | ||||||||||||||||||||||
| Balance, June 2025 | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
Other comprehensive income (loss) before reclassifications | ( | ( | ||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | ( | |||||||||||||||||||||||||
Net other comprehensive income (loss) | ( | |||||||||||||||||||||||||
| Balance, September 2025 | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
| Six Months Ended September 2026 | ||||||||||||||||||||||||||
| (In thousands) | Foreign Currency Translation and Other | Defined Benefit Pension Plans | Derivative Financial Instruments | Total | ||||||||||||||||||||||
| Balance, March 2026 | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
| Other comprehensive income (loss) before reclassifications | ( | ( | ||||||||||||||||||||||||
| Amounts reclassified from accumulated other comprehensive loss | ||||||||||||||||||||||||||
| Net other comprehensive income (loss) | ( | |||||||||||||||||||||||||
| Balance, September 2026 | $ | ( | $ | ( | $ | $ | ( | |||||||||||||||||||
17 VF Corporation Q2 FY27 Form 10-Q
| Six Months Ended September 2025 | ||||||||||||||||||||||||||
| (In thousands) | Foreign Currency Translation and Other | Defined Benefit Pension Plans | Derivative Financial Instruments | Total | ||||||||||||||||||||||
| Balance, March 2025 | $ | ( | $ | ( | $ | $ | ( | |||||||||||||||||||
| Other comprehensive income (loss) before reclassifications | ( | ( | ( | |||||||||||||||||||||||
| Amounts reclassified from accumulated other comprehensive loss | ( | ( | ||||||||||||||||||||||||
| Net other comprehensive income (loss) | ( | ( | ||||||||||||||||||||||||
| Balance, September 2025 | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
Reclassifications out of accumulated OCL were as follows:
| (In thousands) | Three Months Ended September | Six Months Ended September | |||||||||||||||||||||||||||||||||||||||
| Details About Accumulated Other Comprehensive Loss Components | Affected Line Item in the Consolidated Statements of Operations | ||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||
| Amortization of defined benefit pension plans: | |||||||||||||||||||||||||||||||||||||||||
Net deferred actuarial losses | Other income (expense), net | $ | ( | $ | ( | ( | ( | ||||||||||||||||||||||||||||||||||
Deferred prior service credits | Other income (expense), net | ||||||||||||||||||||||||||||||||||||||||
Pension settlement charge | Other income (expense), net | ( | ( | ||||||||||||||||||||||||||||||||||||||
Pension curtailment gains | Other income (expense), net | ||||||||||||||||||||||||||||||||||||||||
Total before tax | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||
Income tax effect | |||||||||||||||||||||||||||||||||||||||||
Net of tax | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||
| Gains (losses) on derivative financial instruments: | |||||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | Revenues | ( | ( | ( | |||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | Cost of goods sold | ( | ( | ( | |||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | SG&A expenses | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | Other income (expense), net | ||||||||||||||||||||||||||||||||||||||||
Interest rate contracts | Interest expense | ||||||||||||||||||||||||||||||||||||||||
Total before tax | ( | ( | |||||||||||||||||||||||||||||||||||||||
Income tax effect | ( | ( | |||||||||||||||||||||||||||||||||||||||
Net of tax | ( | ( | |||||||||||||||||||||||||||||||||||||||
| Total reclassifications for the period, net of tax | $ | ( | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||||||
NOTE 12 — STOCK-BASED COMPENSATION
Incentive Equity Awards Granted
During the six months ended September 2026, VF granted stock options to executives to purchase 1,748,898 shares of its Common Stock at an exercise price of $16.70 per share. The exercise price of each option granted was equal to the fair market value of VF Common Stock on the date of grant. Stock options typically vest and become exercisable in equal annual installments over three years . All options have ten-year terms.
VF Corporation Q2 FY27 Form 10-Q 18
The grant date fair value of each option award was calculated using a lattice option-pricing valuation model, which incorporated a range of assumptions for inputs as follows:
| Six Months Ended September 2026 | |||||||||||
| Expected volatility | |||||||||||
| Weighted average expected volatility | |||||||||||
| Expected term (in years) | |||||||||||
| Weighted average dividend yield | |||||||||||
| Risk-free interest rate | |||||||||||
| Weighted average fair value at date of grant | $ | ||||||||||
During the six months ended September 2026, VF granted 1,262,880 nonperformance-based restricted stock units (“RSUs”) to executives that enable them to receive one share of VF Common Stock for each unit over a five-year vesting period. These units vest 25 16.70 per share.
During the six months ended September 2026, VF granted 131,747 nonperformance-based stock units to non-employee members of the Board of Directors. These units vest upon grant and will be settled in shares of VF Common Stock one year from the date of grant, unless a director has elected to defer receipt of VF Common Stock. The fair market value of VF Common Stock at the date the units were granted was $16.70 per share.
In addition, VF granted 2,452,856 nonperformance-based RSUs to employees during the six months ended September 2026. These units vest over a period of four years from the date of grant and each unit entitles the holder to one share of VF Common Stock. The weighted average fair market value of VF Common Stock at the dates the units were granted was $16.65 per share.
In Fiscal 2026, VF granted 516,605 performance-based RSUs with a market condition to the Chief Executive Officer (“CEO”)
that enables him to receive shares of VF Common Stock at the end of a performance cycle that goes through Fiscal 2028. Each performance-based RSU has a potential final payout of either zero or one share of VF Common Stock. The number of shares earned by the CEO, if any, is based on achievement of an adjusted operating margin percentage in Fiscal 2028 and a VF stock price target of $32 during the performance period. The targets were set for both and achievement will be determined by the Talent and Compensation Committee (the “Committee”) of the Board of Directors. In the first quarter of Fiscal 2027, the Committee and the Board of Directors further clarified the achievement of the adjusted operating margin percentage target as an exit run rate (as defined by the Committee) in Fiscal 2028, which clarification did not change the fair value of the award and did not result in incremental compensation cost. Shares will be issued to the CEO following the conclusion of the performance period, subject to completion of a one-year holding period. The grant date fair value of the award incorporated achievement of the stock price target using a Monte Carlo simulation technique that incorporates option-pricing model inputs and was $5.10 per share. The grant date fair value is being recognized over the service period so long as achievement of the adjusted operating margin percentage target is probable.
NOTE 13 — INCOME TAXES
The effective income tax rate for the six months ended September 2026 was 21.6 % compared to 48.2 % in the 2025 period. The six months ended September 2026 included a net discrete tax benefit of $4.4 million, which was comprised primarily of changes to unrecognized tax benefits and interest. Excluding the $4.4 million net discrete tax benefit in the 2026 period, the effective income tax rate would have been 23.5 %. The six months ended September 2025 included a net discrete tax expense of $2.5 million, which was comprised primarily of a
$5.6 million tax expense related to stock compensation and a $3.1 million net tax benefit related to unrecognized tax benefits and interest. Excluding the $2.5 million net discrete tax expense in the 2025 period, the effective income tax rate would have been 46.5 %. Without discrete items, the effective income tax rate for the six months ended September 2026 decreased by 23.0 % compared with the 2025 period primarily due to changes in the jurisdictional mix of earnings.
NOTE 14 — REPORTABLE SEGMENT INFORMATION
VF’s President and CEO is the Company’s chief operating decision maker (“CODM”). The Company’s individual global brands, or in certain cases the combination of global brands, have been determined to be operating segments. The operating segments have been evaluated and aggregated into reportable segments because they meet the similar economic characteristics and qualitative aggregation criteria set forth in the relevant accounting guidance. Based on this assessment, the Company’s reportable segments have been identified as: Outdoor and Active. In addition, VF reports results for an “All
Other” category to reconcile between the Company’s reportable segments and its consolidated results of operations and assets. “All Other” includes the following brands: Dickies® (through the date of sale), Altra®, Smartwool®, Napapijri® and Icebreaker®, which do not meet the quantitative threshold to be disclosed as a separate reportable segment.
The results of Dickies have been included in the “All Other” category through the November 12, 2025 date of sale.
19 VF Corporation Q2 FY27 Form 10-Q
Below is a description of VF’s reportable segments and the brands included within each:
| BRANDS | ||||||||
Outdoor - Outdoor apparel, footwear and equipment | The North Face® | |||||||
Timberland® | ||||||||
Active - Active apparel, footwear and accessories | Vans® | |||||||
Kipling® | ||||||||
Eastpak® | ||||||||
JanSport® | ||||||||
All Other - included in the tables below for purposes of reconciliation of revenues, profit and assets, but it is not considered a reportable segment. “All Other” includes the following brands: Dickies® (through the date of sale), Altra®, Smartwool®, Napapijri® and Icebreaker®.
The primary financial measures used by the CODM to assess performance and allocate resources to VF’s segments are segment revenues and segment profit. Segment profit comprises the operating income (loss) and other income (expense), net line items of each segment. Segment revenues and segment profit are regularly reviewed by the CODM and compared against historical results, forecast and budget information in order to make decisions about how to allocate capital and other resources to each segment.
Corporate costs (other than common costs allocated to the segments), goodwill and indefinite-lived intangible asset impairment charges and net interest expense are not controlled by segment management and therefore are excluded from the measurement of segment profit. Common costs such as information systems processing, retirement benefits and insurance are allocated from corporate costs to the segments based on appropriate metrics such as usage or employment. Corporate costs that are not allocated to the segments consist of corporate headquarters expenses (including compensation and benefits of corporate management and staff, certain legal and professional fees and administrative and general costs), costs of
corporate programs or corporate-managed decisions, and other expenses which include a portion of defined benefit pension costs, development costs for management information systems, costs of registering, maintaining and enforcing certain of VF’s trademarks and miscellaneous consolidated costs. Defined benefit pension plans in the U.S. are centrally managed. The current year service cost component of pension cost is allocated to the segments, while the remaining pension cost components are reported in corporate and other expenses.
Segment assets are those used directly in or resulting from the operations of each business, which are accounts receivable and inventories. Segment assets included in the “All Other” category represent accounts receivable and inventory balances related to the brands included within the “All Other” category as noted above and segment assets included in the “Corporate and other” category represent receivable balances primarily related to corporate activities, and both are provided for purposes of reconciliation as they are not considered reportable segments. Total expenditures for additions to long-lived assets are not disclosed as this information is not regularly provided to the CODM at the segment level.
Financial information for VF’s segments is as follows:
| Three Months Ended September 2026 | ||||||||||||||||||||
| (In thousands) | Outdoor | Active | Total | |||||||||||||||||
| Reportable segment revenues | $ | $ | $ | |||||||||||||||||
“All Other” revenues | ||||||||||||||||||||
| Total revenues | ||||||||||||||||||||
| Less: | ||||||||||||||||||||
| Cost of goods sold | ||||||||||||||||||||
| Marketing expenses | ||||||||||||||||||||
| Other SG&A expenses | ||||||||||||||||||||
Other segment items (a) | ||||||||||||||||||||
| Segment profit | ||||||||||||||||||||
| Corporate and other expenses | ( | |||||||||||||||||||
| Interest expense, net | ( | |||||||||||||||||||
“All Other” profit | ||||||||||||||||||||
| Income before income taxes | $ | |||||||||||||||||||
(a)For each reportable segment, 'Other segment items' include certain foreign currency and hedging gains and losses and other miscellaneous non-operating income and expenses, which are reported in the other income (expense), net line item in the Consolidated Statement of Operations.
VF Corporation Q2 FY27 Form 10-Q 20
| Three Months Ended September 2025 | |||||||||||||||||
| (In thousands) | Outdoor | Active | Total | ||||||||||||||
| Reportable segment revenues | $ | $ | $ | ||||||||||||||
“All Other” revenues | |||||||||||||||||
| Total revenues | |||||||||||||||||
| Less: | |||||||||||||||||
| Cost of goods sold | |||||||||||||||||
| Marketing expenses | |||||||||||||||||
| Other SG&A expenses | |||||||||||||||||
Other segment items (a) | |||||||||||||||||
| Segment profit | |||||||||||||||||
| Corporate and other expenses | ( | ||||||||||||||||
| Interest expense, net | ( | ||||||||||||||||
“All Other” profit | |||||||||||||||||
| Income before income taxes | $ | ||||||||||||||||
(a)For each reportable segment, 'Other segment items' include certain foreign currency and hedging gains and losses and other miscellaneous non-operating income and expenses, which are reported in the other income (expense), net line item in the Consolidated Statement of Operations.
| Six Months Ended September 2026 | |||||||||||||||||||||||
| (In thousands) | Outdoor | Active | Total | ||||||||||||||||||||
| Reportable segment revenues | $ | $ | $ | ||||||||||||||||||||
“All Other” revenues | |||||||||||||||||||||||
| Total revenues | |||||||||||||||||||||||
| Less: | |||||||||||||||||||||||
| Cost of goods sold | |||||||||||||||||||||||
| Marketing expenses | |||||||||||||||||||||||
| Other SG&A expenses | |||||||||||||||||||||||
Other segment items (a) | |||||||||||||||||||||||
| Segment profit | |||||||||||||||||||||||
Corporate and other expenses | ( | ||||||||||||||||||||||
Interest expense, net | ( | ||||||||||||||||||||||
“All Other” profit | |||||||||||||||||||||||
| Income before income taxes | $ | ||||||||||||||||||||||
(a)For each reportable segment, 'Other segment items' include certain foreign currency and hedging gains and losses and other miscellaneous non-operating income and expenses, which are reported in the other income (expense), net line item in the Consolidated Statement of Operations.
21 VF Corporation Q2 FY27 Form 10-Q
| Six Months Ended September 2025 | |||||||||||||||||||||||
| (In thousands) | Outdoor | Active | Total | ||||||||||||||||||||
| Reportable segment revenues | $ | $ | $ | ||||||||||||||||||||
“All Other” revenues | |||||||||||||||||||||||
| Total revenues | |||||||||||||||||||||||
| Less: | |||||||||||||||||||||||
| Cost of goods sold | |||||||||||||||||||||||
| Marketing expenses | |||||||||||||||||||||||
| Other SG&A expenses | |||||||||||||||||||||||
Other segment items (a) | |||||||||||||||||||||||
| Segment profit | |||||||||||||||||||||||
| Corporate and other expenses | ( | ||||||||||||||||||||||
Interest expense, net | ( | ||||||||||||||||||||||
“All Other” profit | |||||||||||||||||||||||
| Income before income taxes | $ | ||||||||||||||||||||||
(a)For each reportable segment, 'Other segment items' include certain foreign currency and hedging gains and losses and other miscellaneous non-operating income and expenses, which are reported in the other income (expense), net line item in the Consolidated Statement of Operations.
| (In thousands) | September 2026 | March 2026 | September 2025 | ||||||||||||||||||||
| Segment assets: | |||||||||||||||||||||||
| Outdoor | $ | $ | $ | ||||||||||||||||||||
| Active | |||||||||||||||||||||||
| All Other | |||||||||||||||||||||||
| Corporate and other | |||||||||||||||||||||||
| Total segment assets | |||||||||||||||||||||||
| Cash and cash equivalents | |||||||||||||||||||||||
| Property, plant and equipment, net | |||||||||||||||||||||||
| Goodwill and intangible assets, net | |||||||||||||||||||||||
| Operating lease right-of-use assets | |||||||||||||||||||||||
| Other assets | |||||||||||||||||||||||
| Assets held-for-sale | |||||||||||||||||||||||
| Consolidated assets | $ | $ | $ | ||||||||||||||||||||
| Three Months Ended September | Six Months Ended September | ||||||||||||||||||||||||||||||||||
| (In thousands) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||||||||
| Depreciation and amortization: | |||||||||||||||||||||||||||||||||||
| Outdoor | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
| Active | |||||||||||||||||||||||||||||||||||
| All Other | |||||||||||||||||||||||||||||||||||
| Corporate and other | |||||||||||||||||||||||||||||||||||
| $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
VF Corporation Q2 FY27 Form 10-Q 22
NOTE 15 — EARNINGS PER SHARE
| Three Months Ended September | Six Months Ended September | ||||||||||||||||||||||||||||||||||
| (In thousands, except per share amounts) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||||||||
Earnings per common share – basic: | |||||||||||||||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
Weighted average common shares outstanding | |||||||||||||||||||||||||||||||||||
Earnings per common share | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
Earnings per common share – diluted: | |||||||||||||||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
Weighted average common shares outstanding | |||||||||||||||||||||||||||||||||||
Incremental shares from stock options and other dilutive securities | |||||||||||||||||||||||||||||||||||
Adjusted weighted average common shares outstanding | |||||||||||||||||||||||||||||||||||
Earnings per common share | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
Outstanding stock options and other potentially dilutive securities of 8.9 million and 9.1 million shares were excluded from the calculations of diluted earnings per share for the three and six-month periods ended September 2026, respectively, and 15.6 million and 16.1 million shares were excluded from the calculations of diluted earnings per share for the three and six-month periods ended September 2025, respectively, because the effect of their inclusion would have been anti-dilutive to those periods.
In addition, 2.0 million and 1.7 million shares of performance-based RSUs and RSUs with a total shareholder return component were excluded from the calculations of diluted earnings per share for the three and six-month periods ended September 2026, respectively, and 2.6 million and 2.3 million shares were excluded from the calculations of diluted earnings per share for the three and six-month periods ended September 2025, respectively, because these units were not considered to be contingent outstanding shares in those periods.
NOTE 16 — FAIR VALUE MEASUREMENTS
Financial assets and financial liabilities measured and reported at fair value are classified in a three-level hierarchy that prioritizes the inputs used in the valuation process. A financial instrument’s categorization within the valuation hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The hierarchy is based on the observability and objectivity of the pricing inputs, as follows:
•Level 1 — Quoted prices in active markets for identical assets or liabilities.
•Level 2 — Significant directly observable data (other than Level 1 quoted prices) or significant indirectly observable
data through corroboration with observable market data. Inputs would normally be (i) quoted prices in active markets for similar assets or liabilities, (ii) quoted prices in inactive markets for identical or similar assets or liabilities, or (iii) information derived from or corroborated by observable market data.
•Level 3 — Prices or valuation techniques that require significant unobservable data inputs. These inputs would normally be VF’s own data and judgments about assumptions that market participants would use in pricing the asset or liability.
23 VF Corporation Q2 FY27 Form 10-Q
Recurring Fair Value Measurements
The following table summarizes financial assets and financial liabilities that are measured and recorded in the consolidated financial statements at fair value on a recurring basis:
| Total Fair Value | Fair Value Measurement Using (a) | |||||||||||||||||||||||||
| (In thousands) | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||
| September 2026 | ||||||||||||||||||||||||||
| Financial assets: | ||||||||||||||||||||||||||
| Cash equivalents: | ||||||||||||||||||||||||||
| Money market funds | $ | $ | $ | $ | ||||||||||||||||||||||
| Time deposits | ||||||||||||||||||||||||||
| Derivative financial instruments | ||||||||||||||||||||||||||
| Deferred compensation and other | ||||||||||||||||||||||||||
| Financial liabilities: | ||||||||||||||||||||||||||
| Derivative financial instruments | ||||||||||||||||||||||||||
| Deferred compensation | ||||||||||||||||||||||||||
| Contingent consulting fees | ||||||||||||||||||||||||||
| Total Fair Value | Fair Value Measurement Using (a) | |||||||||||||||||||||||||
| (In thousands) | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||
| March 2026 | ||||||||||||||||||||||||||
| Financial assets: | ||||||||||||||||||||||||||
| Cash equivalents: | ||||||||||||||||||||||||||
| Money market funds | $ | $ | $ | $ | ||||||||||||||||||||||
| Time deposits | ||||||||||||||||||||||||||
| Derivative financial instruments | ||||||||||||||||||||||||||
| Deferred compensation and other | ||||||||||||||||||||||||||
| Financial liabilities: | ||||||||||||||||||||||||||
| Derivative financial instruments | ||||||||||||||||||||||||||
| Deferred compensation | ||||||||||||||||||||||||||
| Contingent consulting fees | ||||||||||||||||||||||||||
(a)There were no transfers among the levels within the fair value hierarchy during the six months ended September 2026 or the year ended March 2026.
The following table presents the activity related to the contingent consulting fees designated as Level 3:
| Three Months Ended September | Six Months Ended September | ||||||||||||||||||||||||||||||||||
| (In thousands) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||||||||
| Beginning Balance | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
| Cash payments | ( | ||||||||||||||||||||||||||||||||||
| Change in fair value | ( | ( | |||||||||||||||||||||||||||||||||
| Ending Balance | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
VF’s cash equivalents include money market funds and time deposits with maturities within three months of their purchase dates, that approximate fair value based on Level 1 measurements. The fair value of derivative financial instruments, which consist of foreign exchange forward contracts, is determined based on observable market inputs (Level 2), including spot and forward exchange rates for foreign currencies, and considers the credit risk of the Company and its counterparties. VF’s deferred compensation assets primarily represent investments held within plan trusts as an economic hedge of the related deferred compensation liabilities. These investments primarily include mutual funds (Level 1) that are
valued based on quoted prices in active markets. Liabilities related to VF’s deferred compensation plans are recorded at amounts due to participants, based on the fair value of the participants’ selection of hypothetical investments.
During the second quarter of Fiscal 2025, VF entered into a contract with a consulting firm to support Reinvent, VF’s transformation program. Fees related to this contract could be up to $146.0 million, which includes $71.0 million of fixed fees and $75.0 million of contingent fees tied to increases in VF’s stock price. The contingent fees are accounted for under Accounting Standards Codification Topic 718 — Stock
VF Corporation Q2 FY27 Form 10-Q 24
Compensation as a liability award to a non-employee. Accordingly, VF has utilized the Monte Carlo valuation model (Level 3) to estimate the fair value of the award at its inception, and will adjust such fair value on a quarterly basis over the measurement period, which concludes on June 30, 2027. Changes in the fair value are recognized in the SG&A expenses line item in the Consolidated Statements of Operations over the relevant service period, which concluded in the third quarter of Fiscal 2026. Accordingly, future changes in fair value are recognized immediately in the SG&A expenses line item in the Consolidated Statements of Operations. The valuation includes the effects of market conditions that are based upon VF’s stock price performance relative to stock price targets and a minimum payout dependent on the Standard & Poor’s 500 Index return and VF’s total shareholder return versus that of peer companies over the measurement period. As of September 2026, the total fair value of the remaining contingent fees was $2.1 million, with reductions in SG&A expense of $4.2 million and $4.5 million recognized during the three and six months ended September 2026, respectively. During the six months ended September
2025, $20.0 million of contingent fees were paid to the consulting firm. As of September 2025, the total fair value of the remaining contingent fees was $6.7 million, with $2.7 million and $1.7 million recognized in the three and six months ended September 2025, respectively.
All other significant financial assets and financial liabilities are recorded in the consolidated financial statements at cost, except life insurance contracts which are recorded at cash surrender value. These other financial assets and financial liabilities include cash held as demand deposits, accounts receivable, short-term borrowings, accounts payable and accrued liabilities. At September 2026 and March 2026, their carrying values approximated their fair values. Additionally, at September 2026 and March 2026, the carrying values of VF’s long-term debt, including the current portion, were $3,504.4 million and $3,519.9 million, respectively, compared with fair values of $3,241.7 million and $3,262.5 million at those respective dates. Fair value for long-term debt is a Level 2 estimate based on quoted market prices or values of comparable borrowings.
NOTE 17 — DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES
Summary of Derivative Financial Instruments
All of VF’s outstanding derivative financial instruments at September 2026 are foreign currency exchange forward contracts. Although derivatives meet the criteria for hedge accounting at the inception of the hedging relationship, a limited number of derivative contracts intended to hedge assets and liabilities are not designated as hedges for accounting purposes.
The notional amounts of all outstanding foreign currency exchange forward contracts were $3.3 billion at September 2026
and $3.1 20 months.
The following table presents outstanding derivatives on an individual contract basis:
| Fair Value of Derivatives with Unrealized Gains | Fair Value of Derivatives with Unrealized Losses | ||||||||||||||||||||||||||||||||||||||||||||||
| (In thousands) | September 2026 | March 2026 | September 2025 | September 2026 | March 2026 | September 2025 | |||||||||||||||||||||||||||||||||||||||||
| Derivatives Designated as Hedging Instruments: | |||||||||||||||||||||||||||||||||||||||||||||||
| Cash flow foreign exchange contracts | $ | $ | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||||||||||||||||||||||||
| Derivatives Not Designated as Hedging Instruments: | |||||||||||||||||||||||||||||||||||||||||||||||
| Foreign exchange contracts | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Total derivatives | $ | $ | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||||||||||||||||||||||||
VF records and presents the fair values of all of its derivative assets and liabilities in the Consolidated Balance Sheets on a gross basis, even though they are subject to master netting agreements. If VF were to offset and record the asset and liability balances on a net basis in accordance with the terms of its master netting agreements, the amounts presented in the Consolidated Balance Sheets would be adjusted from the current gross presentation to the net amounts as detailed in the following table:
| September 2026 | March 2026 | September 2025 | |||||||||||||||||||||||||||||||||||||||
| (In thousands) | Derivative Asset | Derivative Liability | Derivative Asset | Derivative Liability | Derivative Asset | Derivative Liability | |||||||||||||||||||||||||||||||||||
Gross amounts presented in the Consolidated Balance Sheets | $ | $ | ( | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||||
Gross amounts not offset in the Consolidated Balance Sheets | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
Net amounts | $ | $ | ( | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||||
25 VF Corporation Q2 FY27 Form 10-Q
Derivatives are classified as current or noncurrent based on maturity dates, as follows:
| (In thousands) | September 2026 | March 2026 | September 2025 | |||||||||||||||||||||||
| Derivative Instruments | Balance Sheet Location | |||||||||||||||||||||||||
| Foreign exchange contracts | Other current assets | $ | $ | $ | ||||||||||||||||||||||
| Foreign exchange contracts | Accrued liabilities | ( | ( | ( | ||||||||||||||||||||||
| Foreign exchange contracts | Other assets | |||||||||||||||||||||||||
| Foreign exchange contracts | Other liabilities | ( | ( | ( | ||||||||||||||||||||||
Cash Flow Hedges
VF primarily uses foreign currency exchange forward contracts to hedge a portion of the exchange risk for its forecasted sales, inventory purchases, operating costs and certain intercompany transactions, including sourcing and management fees and royalties. The effects of cash flow hedging included in VF’s Consolidated Statements of Comprehen sive Income and Consolidated Statements of Operations are summarized as follows:
| (In thousands) | Gain (Loss) on Derivatives Recognized in Accumulated OCL Three Months Ended September | Gain (Loss) on Derivatives Recognized in Accumulated OCL Six Months Ended September | |||||||||||||||||||||||||||||||||
| Cash Flow Hedging Relationships | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||||||||
| Foreign exchange contracts | $ | ( | $ | $ | $ | ( | |||||||||||||||||||||||||||||
| (In thousands) | Gain (Loss) Reclassified from Accumulated OCL into Net Income Three Months Ended September | Gain (Loss) Reclassified from Accumulated OCL into Net Income Six Months Ended September | ||||||||||||||||||||||||||||||||||||
| Cash Flow Hedging Relationships | Location of Gain (Loss) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||||||||||
| Foreign exchange contracts | Revenues | $ | ( | $ | $ | ( | $ | ( | ||||||||||||||||||||||||||||||
| Foreign exchange contracts | Cost of goods sold | ( | ( | ( | ||||||||||||||||||||||||||||||||||
| Foreign exchange contracts | SG&A expenses | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||
| Foreign exchange contracts | Other income (expense), net | |||||||||||||||||||||||||||||||||||||
| Interest rate contracts | Interest expense | |||||||||||||||||||||||||||||||||||||
| Total | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||
Derivative Contracts Not Designated as Hedges
VF uses foreign currency exchange contracts to manage foreign currency exchange risk on third-party and intercompany accounts receivable and payable, as well as third-party and intercompany borrowings and interest payments. These contracts are not designated as hedges, and are recorded at fair value in the Consolidated Balance Sheets. Changes in the fair values of these instruments are recognized directly in earnings. Gains or losses on these contracts largely offset the net transaction losses or gains on the related assets and liabilities. In the case of derivative contracts executed on foreign currency exposures that are no longer probable of occurring, VF de-designates these hedges and the fair value changes of these instruments are also recognized directly in earnings. The impact of de-designated derivative contracts and changes in the fair value of derivative contracts not designated as hedges, recognized as gains or losses in VF’s Consolidated Statements of Operations were not material for the three and six months ended September 2026 and September 2025.
Other Derivative Information
At September 2026, accumulated OCL included $13.0 million of pre-tax net deferred losses for foreign currency exchange
contracts that are expected to be reclassified to earnings during the next 12 months. The amounts ultimately reclassified to earnings will depend on exchange rates in effect when outstanding derivative contracts are settled.
Net Investment Hedge
The Company has designated its euro-denominated fixed-rate notes, which represented €1.5 billion in aggregate principal as of September 2026, as a net investment hedge of VF’s investment in certain foreign operations. Because this debt qualified as a non-derivative hedging instrument, foreign currency transaction gains or losses of the debt are deferred in the foreign currency translation and other component of accumulated OCL as an offset to the foreign currency translation adjustments on the hedged investments. During the three and six-month periods ended September 2026, the Company recognized an after-tax loss of $0.2 million and an after-tax gain of $13.6 million, respectively, in other comprehensive income (loss) related to the net investment hedge transaction and an after-tax gain of $4.3 million and an after-tax loss of $130.1 million for the three and six-month periods ended September 2025, respectively. Any amounts deferred in accumulated OCL will remain until the hedged investment is sold or substantially liquidated.
VF Corporation Q2 FY27 Form 10-Q 26
NOTE 18 — RESTRUCTURING
The Company incurs restructuring charges related to strategic initiatives and cost optimization of business activities. A description of significant restructuring programs and other restructuring charges is provided below.
Reinvent
On October 30, 2023, VF introduced Reinvent, a transformation program to enhance focus on brand-building and to improve operating performance and allow VF to achieve its full potential. All actions related to the program were substantially complete at the end of the first quarter of Fiscal 2026. However, in the six months ended September 2026, VF recorded a gain of $17.6 million related to the sale of a distribution center and an impairment charge of $6.4 million related to an impairment of a leased distribution center. These amounts are included in
Reinvent as the actions leading to the gain and the impairment charge were initiated under Reinvent. Of the total Reinvent restructuring charges, 76 % related to severance and employee-related benefits and the remainder primarily related to asset impairments and write-downs. Cash payments are generally expected to be paid within one year of charges incurred. During the six months ended September 2026, $2.4 million of cash payments related to the Reinvent charges were made.
The type of cost and respective location of restructuring charges (gains) related to Reinvent within VF’s Consolidated Statements of Operations for the three and six months ended September 2026 and 2025, and the cumulative charges (gains) recorded since the inception of Reinvent were as follows:
| Three Months Ended September | Six Months Ended September | Cumulative Charges (Gains) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (In thousands) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Type of Cost | Location | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Severance and employee-related benefits | SG&A expenses | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Severance and employee-related benefits | Cost of goods sold | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Contract termination and other | SG&A expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Contract termination and other | Cost of goods sold | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Asset impairments and write-downs | SG&A expenses | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gain on the sale of fixed assets | SG&A expenses | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pension withdrawal | SG&A expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Curtailment gains | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accelerated depreciation | SG&A expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accelerated depreciation | Cost of goods sold | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Reinvent Restructuring Charges (Gains) | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
All restructuring charges (gains) related to Reinvent recognized in the three and six months ended September 2026 and 2025 were reported within 'Corporate and other' expenses in Note 14, Reportable Segment Information.
Other Restructuring Charges
Other Restructuring Charges are related to various approved initiatives. The type of cost and respective location of Other Restructuring Charges within VF’s Consolidated Statements of Operations for the three and six months ended September 2026 and 2025 were as follows:
| Three Months Ended September | Six Months Ended September | |||||||||||||||||||||||||||||||||||||
| (In thousands) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||||||||||
| Type of Cost | Location | |||||||||||||||||||||||||||||||||||||
| Severance and employee-related benefits | SG&A expenses | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||
| Severance and employee-related benefits | Cost of goods sold | |||||||||||||||||||||||||||||||||||||
| Total Other Restructuring Charges | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
27 VF Corporation Q2 FY27 Form 10-Q
Other Restructuring Charges by reportable segment and the “All Other” category were as follows:
| Three Months Ended September | Six Months Ended September | ||||||||||||||||||||||||||||||||||
| (In thousands) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||||||||
| Outdoor | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
| Active | |||||||||||||||||||||||||||||||||||
| All Other | |||||||||||||||||||||||||||||||||||
| Corporate and other | |||||||||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
Consolidated Restructuring Charges
The activity in the restructuring accrual related to Reinvent and Other Restructuring Charges for the six-month period ended September 2026 was as follows:
| (In thousands) | Severance | |||||||||||||||||||
| Accrual at March 2026 | $ | |||||||||||||||||||
| Restructuring charges | ||||||||||||||||||||
| Cash payments and settlements | ( | |||||||||||||||||||
| Adjustments to accruals | ( | |||||||||||||||||||
| Impact of foreign currency | ||||||||||||||||||||
| Accrual at September 2026 | $ | |||||||||||||||||||
Of the total restructuring accrual at September 2026, $22.9 million is expected to be paid within the next 12 months and is classified within accrued liabilities. The remaining $1.7 million will be paid out beyond the next 12 months and thus is classified within other liabilities. During the three and six months ended September 2026, VF recorded adjustments to prior accruals to reflect actual attrition rates that differed from original estimates.
NOTE 19 — CONTINGENCIES
On September 12, 2025 and November 6, 2025, putative securities class action complaints naming VF and certain of its current and former directors and officers were filed in the U.S. District Court for the District of Colorado (the “Court”). The Court consolidated the cases into one action (the “Consolidated Action”). An amended complaint in the Consolidated Action was filed on February 23, 2026, also naming as defendants VF and certain of its current and former directors and officers. The amended complaint asserts claims under Section 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, purportedly on behalf of a putative class of all persons and entities who purchased or otherwise acquired VF securities between
September 28, 2022 and May 20, 2025, inclusive. It contends that certain statements made by VF and certain of its officers and directors were allegedly false or misleading and seeks unspecified damages on behalf of the putative class. VF filed a motion to dismiss the amended complaint on April 24, 2026. On June 30, 2026, Plaintiffs filed their opposition to VF’s motion to dismiss the amended complaint. On August 14, 2026, VF filed its reply in further support of the motion to dismiss the amended complaint. VF believes the allegations in the Consolidated Action are entirely without merit and VF will be vigorously defending against them. At this time, the outcome of this matter remains uncertain.
NOTE 20 — SUBSEQUENT EVENT
On October 21, 2026, VF’s Board of Directors declared a quarterly cash dividend of $0.09 per share, payable on December 17, 2026 to stockholders of record on December 10, 2026.
VF Corporation Q2 FY27 Form 10-Q 28
ITEM 2 — MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. | ||
VF Corporation (together with its subsidiaries, collectively known as “VF” or the “Company”) uses a 52/53 week fiscal year ending on the Saturday closest to March 31 of each year. The Company’s current fiscal year runs from March 29, 2026 through April 3, 2027 (“Fiscal 2027”) and contains 53 weeks, with an additional week occurring in the fourth quarter. This Form 10-Q presents our second quarter of Fiscal 2027. For presentation purposes herein, all references to periods ended September 2026 and September 2025 relate to the fiscal periods ended on September 26, 2026 and September 27, 2025, respectively. References to March 2026 relate to information as of March 28, 2026.
All per share amounts are presented on a diluted basis and all percentages shown in the tables below and the following discussion have been calculated using unrounded numbers. References to the three and six months ended September 2026 foreign currency amounts and impacts below reflect the changes in foreign exchange rates from the three and six months ended September 2025 when translating foreign currencies into U.S.
dollars. VF’s most significant foreign currency exposure relates to business conducted in euro-based countries. Additionally, VF conducts business in other developed and emerging markets around the world with exposure to foreign currencies other than the euro.
On September 15, 2025, VF entered into a definitive agreement with Bluestar Alliance LLC to sell the Dickies® brand business (“Dickies”). The Company determined that the associated assets and liabilities met the held-for-sale accounting criteria and they were classified accordingly in the September 2025 Consolidated Balance Sheet. On November 12, 2025, VF completed the sale of Dickies. The Company determined that the sale of Dickies did not represent a strategic shift that would have a major effect on the Company’s operations and financial results, and therefore did not qualify for presentation as a discontinued operation. Refer to Note 4 to VF’s consolidated financial statements for additional information on the divestiture. All references to the impact of Dickies divestiture below represent Dickies revenue recognized in the three and six months ended September 2025.
| RECENT DEVELOPMENTS | ||
Conflict in the Middle East
The conflict in the Middle East, which began during the fourth quarter of Fiscal 2026, has contributed to heightened geopolitical uncertainty, including impacts to global supply chains and increased fuel and oil costs. These and other factors may lead to broader macroeconomic implications, such as decreased consumer spending. While the length, scope and intensity of the conflict is unknown, VF does not believe the impact will be material, but will continue to monitor the evolving macroeconomic environment and its ability to mitigate the impact on VF’s business, financial condition and results of operations.
Dickies Divestiture
As noted above, VF completed the sale of Dickies on November 12, 2025. In connection with the closing of the transaction, VF received proceeds of $600.5 million, net of cash sold. VF recorded a final pre-tax gain of $127.2 million in the year ended March 2026, which included a reduction to the gain to reflect final working capital adjustments of $11.9 million that were paid in the first quarter of Fiscal 2027. The pre-tax gain was included in the other income (expense), net line item in the Consolidated Statement of Operations for the year ended March 2026.
Impact of Tariffs
In April 2025, the U.S. government announced broad-based, reciprocal tariffs on foreign imports under the International Emergency Economic Power Act (“IEEPA”). In February 2026, the U.S. Supreme Court invalidated tariffs imposed under the IEEPA. Immediately following the IEEPA ruling, the U.S. government imposed additional new tariffs under other statutory authorities, resulting in a rapidly evolving tariff environment.
VF paid tariffs totaling $149.7 million imposed under IEEPA, and on February 20, 2026 the U.S. Supreme Court ruled that these tariffs were deemed invalid. Further, on March 4, 2026, the Court of International Trade ruled that U.S. Customs and Border Protection must refund IEEPA tariffs that were collected, with
interest. Accordingly, as of March 2026, VF recorded a tariff refund receivable of $149.7 million related to tariffs paid under IEEPA from April 2025 until February 20, 2026, which was included in the accounts receivable, net line item in the Consolidated Balance Sheet at March 2026. In addition, VF recognized $93.8 million as a reduction to cost of goods sold in Fiscal 2026 related to inventory sold in Fiscal 2026 on which IEEPA tariffs were paid, such that the IEEPA tariffs had no net impact on gross margin in Fiscal 2026. Finally, VF recorded an inventory reserve of $55.9 million as of March 2026 to offset IEEPA tariffs reflected in inventory on hand at March 2026. During Fiscal 2027, VF released this reserve as a reduction to cost of goods sold as the related inventory was sold such that the IEEPA tariffs had no net impact on gross margin in Fiscal 2027. Accordingly, $37.3 million of the $55.9 million inventory reserve recorded at March 2026 was recognized as a reduction to cost of goods sold in the three months ended June 2026 and the remaining $18.6 million was recognized as a reduction to cost of goods sold in the three months ended September 2026. As of September 2026, VF has received substantially all of the IEEPA tariff receivable and the related interest income and has recognized all of the inventory-related impacts.
VF has a diversified sourcing country mix. Approximately 85% of products purchased for sale in the U.S. are sourced through Southeast Asia and Central and South America, with Vietnam, Bangladesh, Cambodia and Indonesia comprising the top four sourcing markets. Less than 2% of total U.S. products are sourced through China.
While the tariff situation is dynamic and evolving, VF continues to analyze the impact of tariffs on our business and has taken steps to mitigate our tariff exposure. Mitigation strategies have included, and may continue to include, sourcing optimization, accelerating production and shipments into the U.S., negotiations with our vendors and tactical price increases. The duration and scope of the tariffs are difficult to predict, along with the extent to which VF will be able to offset the impact through our mitigation efforts. VF will continue to monitor and evaluate new information as it becomes available.
29 VF Corporation Q2 FY27 Form 10-Q
SUMMARY OF THE SECOND QUARTER OF FISCAL 2027 | ||
•Revenues decreased 4% to $2.7 billion compared to the three months ended September 2025, including a 5% unfavorable impact from the divestiture of Dickies.
•Outdoor segment revenues increased 4% to $1.7 billion compared to the three months ended September 2025.
•Active segment revenues decreased 8% to $700.3 million compared to the three months ended September 2025.
•Wholesale revenues decreased 6% compared to the three months ended September 2025, including a 6% unfavorable impact from the divestiture of Dickies.
•Direct-to-consumer revenues increased 1% compared to the three months ended September 2025, including a 2% unfavorable impact from the divestiture of Dickies.
•International revenues decreased 5% compared to the three months ended September 2025, including a 3% unfavorable impact from the divestiture of Dickies.
•Revenues in the Americas region decreased 2% compared to the three months ended September 2025, including an 8% unfavorable impact from the divestiture of Dickies.
•Gross margin increased 320 basis points to 55.4% compared to the three months ended September 2025, primarily due to the divestiture of Dickies, favorable foreign currency impacts, tactical price increases, lower product costs and channel mix.
•Earnings per share was $0.71 compared to $0.48 in the 2025 period. The increase in earnings per share was primarily driven by increased profitability in the Outdoor segment, lower net interest expense, a lower tax rate in the current year and lower charges related to Reinvent (VF’s transformation program) during the three months ended September 2026 compared to the three months ended September 2025.
ANALYSIS OF RESULTS OF OPERATIONS | ||
Consolidated Statements of Operations | ||
The following table presents a summary of the changes in revenues for the three and six months ended September 2026 from the comparable periods in 2025:
| (In millions) | Three Months Ended September | Six Months Ended September | |||||||||||||||
| Revenues — 2025 | $ | 2,802.7 | $ | 4,563.4 | |||||||||||||
| Organic | 29.5 | 26.5 | |||||||||||||||
| Impact of Dickies divestiture | (140.0) | (253.5) | |||||||||||||||
| Impact of foreign currency | 2.9 | 28.1 | |||||||||||||||
| Revenues — 2026 | $ | 2,695.1 | $ | 4,364.5 | |||||||||||||
VF reported a 4% decrease in revenues for both the three and six months ended September 2026, compared to the 2025 periods, including a 1% favorable impact from foreign currency in the six months ended September 2026. The decreases in revenues in both periods were primarily due to the Dickies divestiture in the third quarter of Fiscal 2026, which had an unfavorable impact of 5% in both the three and six months ended September 2026. The decreases were also due to declines in wholesale revenues in the Active segment in both the three and six months ended September 2026. The decreases were partially offset by
increases in revenues in the Outdoor segment in both the three and six months ended September 2026. In both the three and six months ended September 2026, revenues decreased across all regions. Excluding the impact of the Dickies divestiture, revenues increased in the Americas region and decreased in the Europe and Asia-Pacific regions.
Additional details on revenues are provided in the section titled “Information by Reportable Segment.”
The following table presents the percentage relationship to revenues for components of the Consolidated Statements of Operations:
| Three Months Ended September | Six Months Ended September | ||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||||||||
| Gross margin (revenues less cost of goods sold) | 55.4 | % | 52.2 | % | 55.2 | % | 52.8 | % | |||||||||||||||||||||||||||
| Selling, general and administrative expenses | 41.7 | 41.0 | 48.7 | 47.9 | |||||||||||||||||||||||||||||||
| Operating margin | 13.7 | % | 11.2 | % | 6.5 | % | 5.0 | % | |||||||||||||||||||||||||||
Note: Amounts may not sum due to rounding.
Gross margin increased 320 and 240 basis points in the three and six months ended September 2026, respectively, compared to the 2025 periods, primarily due to the divestiture of Dickies, tactical price increases, lower product costs and channel mix. The increase in the three months ended September 2026 was also due to favorable foreign currency impacts.
Selling, general and administrative expenses as a percentage of total revenues increased 70 and 80 basis points during the three and six months ended September 2026, respectively, compared to the 2025 periods, reflecting lower leverage of operating expenses due to decreased revenues. Selling, general and administrative expenses decreased $25.1 million and $60.6
VF Corporation Q2 FY27 Form 10-Q 30
million in the three and six months ended September 2026, respectively, compared to the 2025 periods, primarily due to the divestiture of Dickies, lower Reinvent restructuring charges and project-related costs, and structural cost savings. The decreases in both periods were partially offset by increased advertising and direct-to-consumer costs.
Net interest expense decreased $22.5 million and $39.0 million during the three and six months ended September 2026, respectively, compared to the 2025 periods, primarily due to the February 2026 early redemption of €500.0 million ($582.2 million) in aggregate principal amount of its outstanding 4.125% Senior Notes due in March 2026, lower short-term borrowings, and interest received on IEEPA tariff refunds, which totaled $4.1 million and $5.6 million in the three and six months ended September 2026, respectively. Total outstanding debt averaged $3.7 billion in the six months ended September 2026 and $4.6 billion in the same period in 2025, with weighted average interest rates of 2.9% and 3.3% in the six months ended September 2026 and 2025, respectively.
The effective income tax rate for the six months ended September 2026 was 21.6% compared to 48.2% in the 2025 period. The six months ended September 2026 included a net
discrete tax benefit of $4.4 million, which was comprised primarily of changes to unrecognized tax benefits and interest. Excluding the $4.4 million net discrete tax benefit in the 2026 period, the effective income tax rate would have been 23.5%. The six months ended September 2025 included a net discrete tax expense of $2.5 million, which was comprised primarily of a $5.6 million tax expense related to stock compensation and a $3.1 million net tax benefit related to unrecognized tax benefits and interest. Excluding the $2.5 million net discrete tax expense in the 2025 period, the effective income tax rate would have been 46.5%. Without discrete items, the effective income tax rate for the six months ended September 2026 decreased by 23.0% compared with the 2025 period primarily due to changes in the jurisdictional mix of earnings.
As a result of the above, net income in the three months ended September 2026 was $285.3 million ($0.71 per diluted share) compared to $189.8 million ($0.48 per diluted share) in the 2025 period, and net income in the six months ended September 2026 was $188.1 million ($0.47 per diluted share) compared to $73.4 million ($0.19 per diluted share) in the 2025 period. Refer to additional discussion in the “Information by Reportable Segment” section below.
Information by Reportable Segment | ||
VF’s reportable segments are Outdoor and Active. We have included an “All Other” category in the revenues table below for purposes of reconciliation of total revenues.
The primary financial measures used by management to evaluate the financial results of VF’s reportable segments are segment revenues and segment profit. Segment profit
comprises the operating income and other income (expense), net line items of each segment.
Refer to Note 14 to the consolidated financial statements for a summary of results of operations by segment, along with a reconciliation of segment profit to income before income taxes.
The following tables present a summary of the changes in revenues and segment profit in the three and six months ended September 2026 from the comparable periods in 2025 and revenues by region for our Top 3 brands for the three and six months ended September 2026 and 2025:
Revenues:
| Three Months Ended September | ||||||||||||||||||||||||||||||||
| (In millions) | Outdoor Segment | Active Segment | All Other | Total | ||||||||||||||||||||||||||||
| Revenues — 2025 | $ | 1,663.5 | $ | 760.8 | $ | 378.5 | $ | 2,802.7 | ||||||||||||||||||||||||
| Organic | 64.8 | (59.7) | 24.3 | 29.5 | ||||||||||||||||||||||||||||
| Impact of Dickies divestiture | — | — | (140.0) | (140.0) | ||||||||||||||||||||||||||||
| Impact of foreign currency | 4.9 | (0.8) | (1.1) | 2.9 | ||||||||||||||||||||||||||||
| Revenues — 2026 | $ | 1,733.2 | $ | 700.3 | $ | 261.7 | $ | 2,695.1 | ||||||||||||||||||||||||
| Six Months Ended September | ||||||||||||||||||||||||||||||||
| (In millions) | Outdoor Segment | Active Segment | All Other | Total | ||||||||||||||||||||||||||||
| Revenues — 2025 | $ | 2,475.9 | $ | 1,460.4 | $ | 627.0 | $ | 4,563.4 | ||||||||||||||||||||||||
| Organic | 94.2 | (100.6) | 33.1 | 26.5 | ||||||||||||||||||||||||||||
| Impact of Dickies divestiture | — | — | (253.5) | (253.5) | ||||||||||||||||||||||||||||
| Impact of foreign currency | 20.1 | 7.8 | 0.2 | 28.1 | ||||||||||||||||||||||||||||
| Revenues — 2026 | $ | 2,590.2 | $ | 1,367.6 | $ | 406.8 | $ | 4,364.5 | ||||||||||||||||||||||||
Note: Amounts may not sum due to rounding.
31 VF Corporation Q2 FY27 Form 10-Q
Segment Profit:
| Three Months Ended September | ||||||||||||||||||||||||||
| (In millions) | Outdoor Segment | Active Segment | Total | |||||||||||||||||||||||
| Segment profit — 2025 | $ | 300.7 | $ | 65.7 | $ | 366.5 | ||||||||||||||||||||
| Organic | 59.8 | (14.4) | 45.4 | |||||||||||||||||||||||
| Impact of foreign currency | 1.7 | (1.0) | 0.6 | |||||||||||||||||||||||
| Segment profit — 2026 | $ | 362.2 | $ | 50.3 | $ | 412.5 | ||||||||||||||||||||
| Six Months Ended September | ||||||||||||||||||||||||||
| (In millions) | Outdoor Segment | Active Segment | Total | |||||||||||||||||||||||
| Segment profit — 2025 | $ | 258.5 | $ | 122.6 | $ | 381.1 | ||||||||||||||||||||
| Organic | 59.4 | (24.4) | 35.0 | |||||||||||||||||||||||
| Impact of foreign currency | 2.7 | (0.5) | 2.2 | |||||||||||||||||||||||
| Segment profit — 2026 | $ | 320.6 | $ | 97.7 | $ | 418.3 | ||||||||||||||||||||
Note: Amounts may not sum due to rounding.
| Top Brand Revenues: | ||||||||||||||||||||||||||
| Three Months Ended September 2026 | ||||||||||||||||||||||||||
| (In millions) | The North Face® | Vans® | Timberland® | Total | ||||||||||||||||||||||
| Americas | $ | 513.6 | $ | 346.1 | $ | 253.5 | $ | 1,113.2 | ||||||||||||||||||
| Europe | 448.7 | 163.4 | 226.5 | 838.6 | ||||||||||||||||||||||
| Asia-Pacific | 245.0 | 38.1 | 45.9 | 329.0 | ||||||||||||||||||||||
| Global | $ | 1,207.3 | $ | 547.6 | $ | 525.9 | $ | 2,280.8 | ||||||||||||||||||
| Three Months Ended September 2025 | ||||||||||||||||||||||||||
| (In millions) | The North Face® | Vans® | Timberland® | Total | ||||||||||||||||||||||
| Americas | $ | 475.6 | $ | 368.2 | $ | 220.0 | $ | 1,063.8 | ||||||||||||||||||
| Europe | 439.7 | 192.2 | 228.0 | 859.9 | ||||||||||||||||||||||
| Asia-Pacific | 241.8 | 46.6 | 58.3 | 346.7 | ||||||||||||||||||||||
| Global | $ | 1,157.1 | $ | 606.9 | $ | 506.4 | $ | 2,270.4 | ||||||||||||||||||
| Six Months Ended September 2026 | ||||||||||||||||||||||||||
| (In millions) | The North Face® | Vans® | Timberland® | Total | ||||||||||||||||||||||
| Americas | $ | 776.4 | $ | 632.9 | $ | 399.0 | $ | 1,808.3 | ||||||||||||||||||
| Europe | 638.4 | 279.4 | 311.8 | 1,229.6 | ||||||||||||||||||||||
| Asia-Pacific | 383.5 | 95.1 | 81.2 | 559.8 | ||||||||||||||||||||||
| Global | $ | 1,798.2 | $ | 1,007.4 | $ | 791.9 | $ | 3,597.5 | ||||||||||||||||||
| Six Months Ended September 2025 | ||||||||||||||||||||||||||
| (In millions) | The North Face® | Vans® | Timberland® | Total | ||||||||||||||||||||||
| Americas | $ | 717.8 | $ | 663.8 | $ | 350.7 | $ | 1,732.3 | ||||||||||||||||||
| Europe | 623.6 | 328.5 | 317.0 | 1,269.1 | ||||||||||||||||||||||
| Asia-Pacific | 373.1 | 112.6 | 93.8 | 579.5 | ||||||||||||||||||||||
| Global | $ | 1,714.5 | $ | 1,104.9 | $ | 761.4 | $ | 3,580.8 | ||||||||||||||||||
Note: Amounts may not sum due to rounding.
VF Corporation Q2 FY27 Form 10-Q 32
The following sections discuss the changes in revenues and profitability by segment. For purposes of this analysis, royalty revenues have been included in the wholesale channel for all periods.
Outdoor Segment
| Three Months Ended September | Six Months Ended September | ||||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | 2026 | 2025 | Percent Change | 2026 | 2025 | Percent Change | |||||||||||||||||||||||||||||||||||||||||
| Segment revenues | $ | 1,733.2 | $ | 1,663.5 | 4.2 | % | $ | 2,590.2 | $ | 2,475.9 | 4.6 | % | |||||||||||||||||||||||||||||||||||
| Segment profit | 362.2 | 300.7 | 20.4 | % | 320.6 | 258.5 | 24.0 | % | |||||||||||||||||||||||||||||||||||||||
| Segment profit margin | 20.9 | % | 18.1 | % | 12.4 | % | 10.4 | % | |||||||||||||||||||||||||||||||||||||||
The Outdoor segment includes the following brands: The North Face® and Timberland®.
Global revenues for Outdoor increased 4% and 5% in the three and six months ended September 2026, respectively, compared to the 2025 periods, including a 1% favorable impact from foreign currency in the six months ended September 2026. Revenues in the Americas region increased 10% in both the three and six months ended September 2026. Revenues in the Europe region increased 1% in both the three and six months ended September 2026, including a 1% unfavorable impact from foreign currency in the three months ended September 2026. Revenues in the Asia-Pacific region decreased 3% and remained flat in the three and six months ended September 2026, respectively, including a 4% favorable impact from foreign currency in both periods.
Global revenues for The North Face® brand increased 4% and 5% in the three and six months ended September 2026, respectively, compared to the 2025 periods, including a 1% favorable impact from foreign currency in the six months ended September 2026. Revenue growth in both the three and six months ended September 2026 was primarily driven by growth in the Americas region, which increased 8% in both the three and six months ended September 2026. Revenues in the Europe region increased 2% in both the three and six months ended September 2026, including a 1% unfavorable impact from foreign currency in both periods. Revenues in the Asia-Pacific region increased 1% and 3% in the three and six months ended September 2026, respectively, including a 5% favorable impact from foreign currency in both periods.
Global revenues for the Timberland® brand increased 4% in both the three and six months ended September 2026 compared to the 2025 periods, driven by growth in the Americas region in both periods. Revenues in the Americas region increased 15% and
14% in the three and six months ended September 2026, respectively, including a 1% favorable impact from foreign currency in the six months ended September 2026. Revenues in the Europe region decreased 1% and 2% in the three and six months ended September 2026, respectively, including a 2% and 1% unfavorable impact from foreign currency in the respective periods. Revenues in the Asia-Pacific region decreased 21% and 13% in the three and six months ended September 2026, respectively, including a 1% unfavorable impact from foreign currency in the six months ended September 2026.
Global direct-to-consumer revenues for Outdoor increased 2% and 5% in the three and six months ended September 2026, respectively, compared to the 2025 periods, including a 1% favorable impact from foreign currency in the six months ended September 2026. The increases in both the three and six months ended September 2026 were primarily driven by growth in The North Face® brand in the Americas region. Global wholesale revenues increased 5% and 4% in the three and six months ended September 2026, respectively, compared to the 2025 periods. The increases in both the three and six months ended September 2026 were primarily driven by increases in The North Face® brand across all regions and increases in the Timberland® brand in the Americas region.
Segment profit margin increased in both the three and six months ended September 2026 compared to the 2025 periods, reflecting higher gross margin in both periods, primarily driven by tactical price increases and lower product costs. The increase in gross margin in the three months ended September 2026 was also due to favorable foreign currency impacts. The increase in segment profit margin was partially offset by higher direct-to-consumer and advertising costs in both periods.
33 VF Corporation Q2 FY27 Form 10-Q
Active Segment
| Three Months Ended September | Six Months Ended September | ||||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | 2026 | 2025 | Percent Change | 2026 | 2025 | Percent Change | |||||||||||||||||||||||||||||||||||||||||
| Segment revenues | $ | 700.3 | $ | 760.8 | (8.0 | %) | $ | 1,367.6 | $ | 1,460.4 | (6.4 | %) | |||||||||||||||||||||||||||||||||||
| Segment profit | 50.3 | 65.7 | (23.5 | %) | 97.7 | 122.6 | (20.3 | %) | |||||||||||||||||||||||||||||||||||||||
| Segment profit margin | 7.2 | % | 8.6 | % | 7.1 | % | 8.4 | % | |||||||||||||||||||||||||||||||||||||||
The Active segment includes the following brands: Vans®, Kipling®, Eastpak® and JanSport®.
Global revenues for Active decreased 8% and 6% in the three and six months ended September 2026, respectively, compared to the 2025 periods, including a 1% favorable impact from foreign currency in the six months ended September 2026. Revenues in the Europe region decreased 13% and 12% in the three and six months ended September 2026, respectively, including a 2% unfavorable impact from foreign currency in the three months ended September 2026. Revenues in the Americas region decreased 5% and 3% in the three and six months ended September 2026, respectively. Revenues in the Asia-Pacific region decreased 12% and 8% in the three and six months ended September 2026, respectively, compared to the 2025 periods, including a 1% favorable impact from foreign currency in the six months ended September 2026.
Vans® brand global revenues decreased 10% and 9% in the three and six months ended September 2026, respectively, compared to the 2025 periods. The overall declines in both periods were primarily impacted by decreases across the Europe and Americas regions. Revenues in the Europe region decreased 15% in both the three and six months ended September 2026, including a 1% unfavorable impact from foreign currency in the three months ended September 2026. Revenues in the Americas region decreased 6% and 5% in the three and six months ended
September 2026, respectively, including a 1% favorable impact from foreign currency in the three months ended September 2026. Revenues in the Asia-Pacific region decreased 18% and 16% in the three and six months ended September 2026, respectively.
Global direct-to-consumer revenues for Active increased 3% and 2% in the three and six months ended September 2026, respectively, compared to the 2025 periods, primarily driven by increases in the Vans® brand in the Americas region in both periods. Global wholesale revenues decreased 18% and 14% in the three and six months ended September 2026, respectively. The decreases were primarily due to decreases in the Vans® brand in the Europe and Americas regions in both periods.
Segment profit margin decreased in both the three and six months ended September 2026 compared to the 2025 periods, primarily due to lower leverage of operating expenses due to decreased revenues. The decreases in segment profit margin were partially offset by higher gross margins, which were primarily due to channel mix in both periods, favorable foreign currency impacts in the three months ended September 2026 and lower discounts in the six months ended September 2026.
All Other
| Three Months Ended September | Six Months Ended September | ||||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | 2026 | 2025 | Percent Change | 2026 | 2025 | Percent Change | |||||||||||||||||||||||||||||||||||||||||
| Revenues | $ | 261.7 | $ | 378.5 | (30.9 | %) | $ | 406.8 | $ | 627.0 | (35.1 | %) | |||||||||||||||||||||||||||||||||||
The “All Other” grouping includes the following brands: Dickies® (through the date of sale), Altra®, Smartwool®, Napapijri® and Icebreaker®. The “All Other” grouping represents the aggregation of brands that do not meet the quantitative threshold for disclosure and it is not a reportable segment.
Global “All Other” revenues decreased 31% and 35% in the three and six months ended September 2026, respectively, compared to the 2025 periods. Revenues in the Americas region decreased 34% and 39% in the three and six months ended September 2026, respectively. Revenues in the Europe region decreased 25% and 26% in the three and six months ended September 2026, respectively, including a 1% unfavorable impact from foreign currency in the three months ended September 2026. Revenues in the Asia-Pacific region decreased 38% and 44% in the three and six months ended September 2026, respectively, including a 1% favorable impact from foreign currency in both periods.
Revenues were impacted by the sale of Dickies on November 12, 2025. Excluding the impact of the Dickies divestiture, global “All
Other” revenues increased 10% and 9% in the three and six months ended September 2026, respectively, compared to the 2025 periods. Excluding the impact of the Dickies divestiture, revenues in the Americas region increased 17% and 16% in the three and six months ended September 2026, respectively, and revenues in the Asia-Pacific region increased 26% and 23% in the three and six months ended September 2026, respectively, including a 2% and 3% favorable impact from foreign currency in the respective periods. Excluding the impact of the Dickies divestiture, revenues in the Europe region remained flat and decreased 2% in the three and six months ended September 2026, respectively, including a 1% unfavorable impact from foreign currency in the three months ended September 2026.
VF Corporation Q2 FY27 Form 10-Q 34
Reconciliation of Segment Profit to Income Before Income Taxes | ||
There are three types of costs necessary to reconcile total segment profit to consolidated income before income taxes. These costs are (i) corporate and other expenses, discussed below, (ii) interest expense, net, which was discussed in the “Consolidated Statements of Operations” section, and (iii) profit related to the “All Other” category, discussed below, which includes the following brands: Dickies® (through the date of sale), Altra®, Smartwool®, Napapijri® and Icebreaker®. The “All Other” grouping represents the aggregation of brands that do not meet the quantitative threshold for disclosure and it is not a reportable segment.
| Three Months Ended September | Six Months Ended September | ||||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | 2026 | 2025 | Percent Change | 2026 | 2025 | Percent Change | |||||||||||||||||||||||||||||||||||||||||
| Corporate and other expenses | $ | 74.6 | $ | 95.7 | (22.1 | %) | $ | 147.2 | $ | 200.2 | (26.5 | %) | |||||||||||||||||||||||||||||||||||
| Interest expense, net | 23.7 | 46.2 | (48.7 | %) | 48.3 | 87.3 | (44.7 | %) | |||||||||||||||||||||||||||||||||||||||
“All Other” profit | 32.7 | 43.7 | (25.1 | %) | 17.3 | 48.2 | (64.2 | %) | |||||||||||||||||||||||||||||||||||||||
Corporate and other expenses are those that have not been allocated to the segments for internal management reporting, including (i) information systems and shared service costs, (ii) corporate headquarters costs, and (iii) certain other income and expenses.
The decreases in corporate and other expenses for the three and six months ended September 2026 were primarily due to lower Reinvent restructuring charges and project-related costs,
including the gain on sale of a distribution center in the six months ended September 2026, and structural cost savings in both periods.
The decreases in “All Other” profit for both the three and six months ended September 2026 were due to lower gross margin related to the Dickies divestiture and increased advertising costs. The decrease in the three months ended September 2026 was partially offset by favorable foreign currency impacts.
International | ||
International revenues decreased 5% and 4% in the three and six months ended September 2026, respectively, compared to the 2025 periods, including a 2% favorable impact from foreign currency in the six months ended September 2026 and a 3% unfavorable impact from the divestiture of Dickies in both periods.
Revenues in the Europe region decreased 6% in both the three and six months ended September 2026, including a 1% unfavorable impact from foreign currency in the three months ended September 2026 and a 4% and 3% unfavorable impact from the divestiture of Dickies in the respective periods. In the Asia-Pacific region, revenues decreased 7% and 5% in the three and six months ended September 2026, respectively, including a 3% favorable impact from foreign currency in both periods and a 3% unfavorable impact from the divestiture of Dickies in both
periods. Revenues in Greater China (which includes Mainland China, Hong Kong and Taiwan) decreased 5% and 3% in the three and six months ended September 2026, respectively, including a 4% favorable impact from foreign currency in both periods and a 3% and 4% unfavorable impact from the divestiture of Dickies in the respective periods. Revenues in the Americas (non-U.S.) region increased 4% and 8% in the three and six months ended September 2026, respectively, including a 2% and 4% favorable impact from foreign currency in the respective periods and a 2% unfavorable impact from the divestiture of Dickies in both periods.
International revenues were 58% and 59% of total revenues in the three-month periods ended September 2026 and 2025, respectively, and 56% of total revenues in both the six-month periods ended September 2026 and 2025.
Direct-to-Consumer | ||
Direct-to-consumer revenues increased 1% in both the three and six months ended September 2026 compared to the 2025 periods, including a 2% and 4% unfavorable impact from the divestiture of Dickies in the respective periods.
VF’s digital business increased 2% and 3% during the three and six months ended September 2026, respectively, including a 1% favorable impact from foreign currency in the six months ended September 2026 and a 6% and 7% unfavorable impact from the divestiture of Dickies in the respective periods. The increase in both the three and six months ended September 2026 was primarily due to increased digital revenues in the Americas region.
Revenues from VF-operated retail stores decreased 1% and remained flat in the three and six months ended September 2026, respectively, including a 1% favorable impact from foreign currency in the six months ended September 2026 and a 1% unfavorable impact from the divestiture of Dickies in both periods, primarily due to increases in the Americas region offset by decreases in the Europe and Asia-Pacific regions in both periods. There were 1,095 VF-operated retail stores at September 2026 compared to 1,105 at September 2025.
Direct-to-consumer revenues were 34% and 32% of total revenues in the three-month periods ended September 2026 and 2025, respectively, and 38% and 36% of total revenues in the six-month periods ended September 2026 and 2025, respectively.
35 VF Corporation Q2 FY27 Form 10-Q
Wholesale | ||
Wholesale revenues decreased 6% and 8% in the three and six months ended September 2026, respectively, compared to the 2025 periods, including a 6% and 7% unfavorable impact from the divestiture of Dickies in the respective periods. The decreases in both the three and six months ended September 2026 were primarily driven by declines in the Americas and Europe regions.
Wholesale revenues were 66% and 68% of total revenues in the three-month periods ended September 2026 and 2025, respectively, and 62% and 64% of total revenues in the six-month periods ended September 2026 and 2025, respectively.
| ANALYSIS OF FINANCIAL CONDITION | ||
Consolidated Balance Sheets | ||
The following discussion refers to significant changes in balances at September 2026 compared to March 2026:
•Increase in accounts receivable — primarily due to the seasonality of the business and the timing of collections, partially offset by IEEPA tariff refunds received.
•Increase in inventories — primarily due to the seasonality of the business.
•Increase in the current portion of long-term debt — primarily due to the reclassification of $500.0 million of long-term notes due in April 2027 to current liabilities.
•Increase in accounts payable — primarily due to the seasonality of inventory purchases and timing of payments to vendors.
•Decrease in long-term debt — primarily due to the reclassification of $500.0 million of long-term notes due in April 2027 to current liabilities.
The following discussion refers to significant changes in balances at September 2026 compared to September 2025:
•Increase in inventories — primarily due to planned inventory purchases and anticipated sales growth in the second half of Fiscal 2027.
•Decrease in other assets — primarily due to the termination of the U.S. qualified pension plan in the fourth quarter of Fiscal 2026.
•Decrease in short-term borrowings — primarily due to lower borrowings under VF’s $1.5 billion senior secured asset based revolving credit facility (the “ABL Credit Facility”) as of September 2026.
•Increase in accounts payable — primarily due to the timing of inventory shipments from and payments to vendors and a $37.6 million payable recorded for reimbursements owed to vendors and partners related to IEEPA tariff refunds.
•Decrease in accrued liabilities — primarily due to a decrease in derivative liabilities, lower accrued income taxes and the timing of services received and payments made for other accruals.
•Decrease in long-term debt — primarily due to the reclassification of $500.0 million of long-term notes due in April 2027 to current liabilities.
Liquidity and Capital Resources | ||
We consider the following to be measures of our liquidity and capital resources:
| (Dollars in millions) | September 2026 | March 2026 | September 2025 | ||||||||||||||||||||
| Working capital | $1,501.5 | $1,828.3 | $1,360.1 | ||||||||||||||||||||
| Current ratio | 1.5 to 1 | 1.8 to 1 | 1.4 to 1 | ||||||||||||||||||||
| Net debt to total capital | 69.2% | 69.2% | 79.4% | ||||||||||||||||||||
The decrease in working capital and the current ratio at September 2026 compared to March 2026 was primarily due to a net increase in current liabilities driven by an increase in the current portion of long-term debt and accounts payable, as discussed in the “Consolidated Balance Sheets” section above. The decrease was partially offset by a net increase in current assets driven by higher inventory and accounts receivable balances, as discussed in the “Consolidated Balance Sheets” section above, partially offset by lower cash balances. The increase in working capital and the current ratio at September 2026 compared to September 2025 was primarily due to a net decrease in current liabilities, driven by lower short-term borrowings and decreased accrued liabilities, partially offset by
an increase in accounts payable, as discussed in the “Consolidated Balance Sheets” section above. The increase was partially offset by a net decrease in current assets, primarily driven by assets held-for-sale in September 2025 in connection with the divestiture of Dickies.
For the ratio of net debt to total capital, net debt is defined as short-term borrowings, current portion of long-term debt and long-term debt, in addition to operating lease liabilities, net of unrestricted cash and cash equivalents. Total capital is defined as net debt plus stockholders’ equity. The net debt to total capital ratio at September 2026 compared to March 2026 remained flat. The decrease in the net debt to total capital ratio
VF Corporation Q2 FY27 Form 10-Q 36
at September 2026 compared to September 2025 was primarily driven by a decrease in net debt due to the early redemption of €500.0 million ($582.2 million) of long-term notes in February 2026 and lower short-term borrowings, as discussed in the “Consolidated Balance Sheets” section above. The decrease in the net debt to total capital ratio at September 2026 compared to September 2025 was also due to an increase in stockholders’ equity, primarily driven by net income in the 12-month period.
VF’s primary source of liquidity is its expected annual cash flow from operating activities. Cash from operations is typically lower
in the first half of the calendar year as inventory builds to support peak sales periods in the second half of the calendar year. Cash provided by operating activities in the second half of the calendar year is substantially higher as inventories are sold and accounts receivable are collected. Additionally, direct-to-consumer sales are highest in the fourth quarter of the calendar year. VF’s additional sources of liquidity include available borrowing capacity against its $1.5 billion ABL Credit Facility, available cash balances and international lines of credit.
In summary, our cash flows were as follows:
| Six Months Ended September | |||||||||||||||||
| (In thousands) | 2026 | 2025 | |||||||||||||||
| Cash used by operating activities | $ | (214,030) | $ | (372,468) | |||||||||||||
| Cash used by investing activities | (103,928) | (90,065) | |||||||||||||||
| Cash provided (used) by financing activities | (56,158) | 401,839 | |||||||||||||||
Cash Used by Operating Activities
Cash flows related to operating activities are dependent on net income, adjustments to net income and changes in working capital. The decrease in cash used by operating activities in the six months ended September 2026 compared to September 2025 was primarily due to an increase in net income, tariff refunds received and a decrease in cash used by working capital.
Cash Used by Investing Activities
The increase in cash used by investing activities in the six months ended September 2026 was primarily due to final working capital adjustments paid for the sale of Dickies of $11.9 million in the six months ended September 2026 and an increase in capital expenditures of $23.9 million in the six months ended September 2026 compared to the 2025 period. The increase in cash used by investing activities was partially offset by an increase in proceeds from the sale of assets of $21.7 million, primarily due to the sale of a distribution center in the six months ended September 2026.
Cash Provided (Used) by Financing Activities
The increase in cash used by financing activities during the six months ended September 2026 was primarily due to a $465.8 million net decrease in short-term borrowings in the six months ended September 2026 as compared to the prior year.
Share Repurchases
VF did not purchase shares of its Common Stock in the open market during the six months ended September 2026 or the six months ended September 2025 under the share repurchase program authorized by VF’s Board of Directors.
As of the end of September 2026, VF had $2.5 billion remaining for future repurchases under its share repurchase authorization. VF’s capital deployment priorities in the near-to-medium term will be focused on reducing leverage and reinvesting a portion of cost savings to drive profitable and sustainable growth.
ABL Credit Facility and Short-term Borrowings
VF relies on its ability to generate cash flows to finance its ongoing operations. In addition, VF has significant liquidity from
its available cash balances and credit facilities. VF maintains a credit agreement that provides the Company with a $1.5 billion senior secured asset based revolving credit facility (the “ABL Credit Facility”), subject to a borrowing base that is composed of eligible credit card receivables, eligible wholesale receivables, eligible inventory and eligible in-transit inventory. The ABL Credit Facility includes up to a $100.0 million letter of credit subfacility and a $100.0 million swing-line subfacility. Multicurrency borrowings are available under the credit agreement, including borrowings in U.S. dollars, Canadian dollars, euros, sterling, and Swiss francs (subject to certain limitations as set forth in the credit agreement).
The Agent, as defined in the credit agreement, has discretion to establish various reserves against the borrowing base, as outlined in the credit agreement, including a requirement for a Debt Maturity Reserve to be established beginning 90-days prior to the maturity of any Material Indebtedness, as defined in the credit agreement.
The ABL Credit Facility has a stated maturity date of August 26, 2030. Outstanding short-term balances may vary from period to period depending on the level of corporate requirements and operational needs.
The ABL Credit Facility contains various customary affirmative and negative covenants, which include, among other things, required financial reporting, limitations on indebtedness and granting certain liens, restrictions on fundamental changes to the business, restrictions on disposal of assets, restrictions on changes to the nature of the business, restrictions on prepayment of certain indebtedness, restricted payment limitations, along with other restrictions and limitations similar to those typical for credit facilities of this type. Certain actions restricted by the negative covenants are permitted so long as Payment Conditions, as defined in the credit agreement, are satisfied.
The ABL Credit Facility includes a financial covenant that requires VF to maintain a Fixed Charge Coverage Ratio of at least 1.00 to 1.00 for the 12-month period ending on the last day of any applicable fiscal quarter. However, the financial covenant only applies if at any time Global Excess Availability (as defined in the credit agreement) is less than the greater of (i) 10.0% of the Global Line Cap (as defined in the credit agreement), and (ii)
37 VF Corporation Q2 FY27 Form 10-Q
$100.0 million, and ceases to apply when Global Excess Availability has equaled or exceeded the greater of (i) 10.0% of the Global Line Cap, and (ii) $100.0 million for 30 consecutive days. As of September 2026, specified availability under the ABL Credit Facility exceeded the required threshold and, as a result, the financial covenant was not applicable.
The Company was in compliance with all applicable debt covenants as of September 2026.
As of September 2026, the Company had $25.0 million in outstanding borrowings under the ABL Credit Facility. Reserves for outstanding, unfunded letters of credit under the ABL Credit Facility were $0.3 million as of September 2026. Availability under the ABL Credit Facility was $1.47 billion as of September 2026, after giving effect to the borrowing base, outstanding borrowings and outstanding letters of credit.
VF has $82.5 million of international lines of credit with various banks, which are uncommitted and may be terminated at any time by either VF or the banks. Total outstanding balances under these arrangements were $9.2 million at September 2026.
Additionally, VF had $443.0 million of unrestricted cash and cash equivalents at September 2026.
Supply Chain Financing Program
VF facilitates a voluntary supply chain finance (“SCF”) program that enables a significant portion of our inventory suppliers to leverage VF’s credit rating to receive payment from participating financial institutions prior to the payment date specified in the terms between VF and the supplier. At September 2026, March 2026 and September 2025, the accounts payable line item in VF’s Consolidated Balance Sheets included total outstanding obligations of $848.0 million, $466.0 million and $696.6 million, respectively, due to suppliers that are eligible to participate in the SCF program.
Rating Agencies
At the end of September 2026, VF’s long-term debt ratings were ‘BB’ by Standard & Poor’s (“S&P”) Global Ratings and ‘Ba2’ by
Moody’s Investors Service (“Moody’s”). VF’s credit rating outlook was ‘positive’ by S&P and ‘stable’ by Moody’s at the end of September 2026. Further downgrades to VF’s ratings would negatively impact borrowing costs.
None of VF’s long-term debt agreements contain acceleration of maturity clauses based solely on changes in credit ratings. However, if there were a change in control of VF, and as a result of the change in control the notes were rated below investment grade by recognized rating agencies, then VF would be obligated to repurchase the notes at 101% of the aggregate principal amount, plus any accrued and unpaid interest, if required by the respective holders of the notes. The change of control provision applies to all notes, except for the notes due in 2033.
Dividends
The Company paid cash dividends of $0.09 and $0.18 per share during the three and six months ended September 2026, respectively, and the Company declared a cash dividend of $0.09 per share that is payable in the third quarter of Fiscal 2027. Subject to approval by its Board of Directors, VF intends to continue to pay quarterly dividends.
Contractual Obligations
Management’s Discussion and Analysis in the Fiscal 2026 Form 10-K provided a table summarizing VF’s material contractual obligations and commercial commitments at the end of Fiscal 2026 that would require the use of funds. As of September 2026, there have been no material changes in the amounts of unrecorded commitments disclosed in the Fiscal 2026 Form 10-K, except as noted below:
•Inventory purchase obligations decreased by approximately $606.0 million at the end of September 2026 primarily due to timing of inventory shipments.
Management believes that VF has sufficient liquidity and flexibility to operate its business and meet its current and long-term obligations as they become due.
Recent Accounting Pronouncements | ||
Refer to Note 2 to VF’s consolidated financial statements for information on recently issued accounting standards.
Critical Accounting Policies and Estimates | ||
Management has chosen accounting policies it considers to be appropriate to accurately and fairly report VF’s operating results and financial position in conformity with generally accepted accounting principles in the United States of America. Our critical accounting policies are applied in a consistent manner. Significant accounting policies are summarized in Note 1 to the consolidated financial statements included in the Fiscal 2026 Form 10-K. There have been no material changes in VF’s accounting policies from those disclosed in our Fiscal 2026 Form 10-K.
The application of these accounting policies requires management to make estimates and assumptions about future events and apply judgments that affect the reported amounts of assets, liabilities, revenues, expenses, contingent assets and
liabilities, and related disclosures. These estimates, assumptions and judgments are based on historical experience, current trends and other factors believed to be reasonable under the circumstances. Management evaluates these estimates and assumptions, and may retain outside consultants to assist in the evaluation. If actual results ultimately differ from previous estimates, the revisions are included in results of operations in the period in which the actual amounts become known.
The accounting policies that involve the most significant estimates, assumptions and management judgments used in preparation of the consolidated financial statements, or are the most sensitive to change from outside factors, are discussed in Management’s Discussion and Analysis in the Fiscal 2026 Form 10-K.
VF Corporation Q2 FY27 Form 10-Q 38
Cautionary Statement on Forward-looking Statements | ||
Certain statements contained herein, as well as in other filings that VF makes with the Securities and Exchange Commission ("SEC") and other oral or written statements VF releases regarding VF's future performance constitute “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements are made based on management’s expectations and beliefs concerning future events impacting VF and therefore involve a number of risks and uncertainties. You can identify these statements by the fact that they use words such as “will,” “anticipate,” “believe,” “estimate,” “expect,” “should,” and “may,” and other words and terms of similar meaning or use of future dates. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. All statements regarding VF's plans, objectives, projections and expectations relating to VF’s operations or economic performance and assumptions relating to VF's operations or financial performance, and assumptions related thereto, are forward-looking statements. Forward-looking statements are not guarantees, and actual results could differ materially from those expressed or implied in the forward-looking statements. VF undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Known or unknown risks, uncertainties or other factors that could cause the actual results of operations or financial condition of VF to differ materially from those expressed or implied by forward-looking statements include, but are not limited to: the level of consumer demand for apparel, footwear, equipment and accessories; disruption to VF’s distribution system; changes in global economic conditions and the financial strength of VF’s consumers and customers, including as a result of current inflationary pressures; fluctuations in the price, availability and quality of raw materials and finished products, including as a result of tariffs and geopolitical conflicts; disruption and volatility in the global capital and credit markets; VF’s response to changing fashion trends, evolving consumer preferences and changing patterns of consumer behavior; VF’s ability to maintain the image and value of its brands, including through investment in brand building and product innovation; intense competition from online retailers and other direct-to-consumer business risks; increasing pressure on margins; fluctuations in sales and operating income due to the seasonal nature of its business; retail industry changes and challenges; VF’s ability to execute its turnaround program, “The VF Way” operating principles, and other business priorities, including measures to grow revenue and expand margins, streamline and right-size its cost base and strengthen the balance sheet while reducing leverage; VF’s ability to successfully establish a global commercial organization, and identify and capture efficiencies in its business model; any inability of VF or third parties on which it relies to maintain the strength and security of information technology systems; the fact that VF’s facilities and systems, and those of third parties on which it relies, are frequent targets of cyberattacks of varying levels of severity, and may in the future
be vulnerable to such attacks, and any inability or failure by VF or such third parties to anticipate or detect data or information security breaches or other cyberattacks could result in data or financial loss, reputational harm, business disruption, damage to VF's relationships with customers, consumers, employees and third parties on which it relies, litigation, regulatory investigations, enforcement actions or other negative impacts; any inability by VF or third parties on which it relies to properly collect, use, manage and secure business, consumer and employee data and comply with privacy and security regulations; VF’s ability to adopt new technologies, including artificial intelligence, in a competitive and responsible manner; foreign currency fluctuations; stability of VF’s vendors’ manufacturing facilities and VF’s ability to establish and maintain effective supply chain capabilities; continued use by VF’s suppliers of ethical business practices; VF’s ability to accurately forecast demand for products; actions of activist and other shareholders; VF’s ability to recruit, develop or retain key executive or employee talent or successfully transition executives; changes in the availability and cost of labor; VF’s ability to protect trademarks and other intellectual property rights; possible goodwill and other asset impairment; maintenance by VF’s licensees and distributors of the value of VF’s brands; VF’s ability to execute acquisitions and dispositions, integrate acquisitions and manage its brand portfolio; VF's ability to execute, and realize benefits, successfully, or at all, from the completed sale of the Dickies® brand business; business resiliency in response to natural or man-made economic, public health, cyber, political or environmental disruptions, including any potential effects from changes in tariffs and international trade policy, or a U.S. federal government shutdown; changes in tax laws and additional tax liabilities; legal, regulatory, political, economic, and geopolitical risks, including those related to the current conflicts in Europe, the Middle East and Asia and tensions between the U.S. and China; changes to laws and regulations; adverse or unexpected weather conditions, including any potential effects from climate change; VF’s indebtedness and its ability to obtain financing on favorable terms, if needed, could prevent VF from fulfilling its financial obligations; VF’s ability to pay and declare dividends or repurchase its stock in the future; climate risks and increased focus on environmental, social and governance issues; VF’s ability to execute on its sustainability strategy and achieve its sustainability-related goals and targets; risks arising from the widespread outbreak of an illness or any other communicable disease, or any other public health crisis; litigation, regulatory proceedings, or any other claims asserted against VF; and tax risks associated with the spin-off of the Jeanswear business completed in 2019. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. More information on potential factors that could affect VF’s financial results is included from time to time in VF’s public reports filed or furnished with the SEC, including VF’s Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q, and Forms 8-K.
ITEM 3 — QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK. | ||
There have been no significant changes in VF’s market risk exposures from what was disclosed in Item 7A in the Fiscal 2026 Form 10-K.
39 VF Corporation Q2 FY27 Form 10-Q
| ITEM 4 — CONTROLS AND PROCEDURES. | ||
Disclosure controls and procedures:
Under the supervision of the Chief Executive Officer and Chief Financial Officer, a Disclosure Committee comprising various members of management has evaluated the effectiveness of the disclosure controls and procedures at VF and its subsidiaries as of the end of the period covered by this quarterly report (the “Evaluation Date”). Based on this evaluation, the Chief Executive Officer and Chief Financial Officer have concluded as of the Evaluation Date that such controls and procedures were effective.
Changes in internal control over financial reporting:
There have been no changes during the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, VF’s internal control over financial reporting.
PART II — OTHER INFORMATION
| ITEM 1 — LEGAL PROCEEDINGS. | ||
Other than as set forth in Note 19, Contingencies, there are no pending material legal proceedings, other than ordinary, routine litigation incidental to the business, to which VF or any of its subsidiaries is a party or to which any of their property is the subject.
SEC regulations require us to disclose certain information about proceedings arising under federal, state or local environmental regulations if we reasonably believe that such proceedings may result in monetary sanctions above a stated threshold. Pursuant to SEC regulations, VF uses a threshold of $1 million for purposes of determining whether disclosure of any such proceedings is required. VF believes that this threshold is reasonably designed to result in disclosure of any such proceedings that are material to VF’s business or financial condition. Applying this threshold, there are no such proceedings to disclose for this period.
| ITEM 1A — RISK FACTORS. | ||
You should carefully consider the risk factors set forth under Part I, “Item 1A. Risk Factors” in the Fiscal 2026 Form 10-K, which could materially affect our business, financial condition and future results. The risks described in the Fiscal 2026 Form 10-K are not the only risks facing the Company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and operating results.
There have been no material changes to the risk factors identified in Part I, “Item 1A. Risk Factors” in the Fiscal 2026 Form 10-K.
| ITEM 2 — UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS. | ||
(c)Issuer purchases of equity securities:
The following table sets forth VF’s repurchases of our Common Stock during the fiscal quarter ended September 26, 2026 under the share repurchase program authorized by VF’s Board of Directors in 2017.
| Second Quarter Fiscal 2027 | Total Number of Shares Purchased | Weighted Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Programs | Dollar Value of Shares that May Yet be Purchased Under the Program | ||||||||||||||||||||||
| June 28 - July 25, 2026 | — | $ | — | — | $ | 2,486,971,057 | ||||||||||||||||||||
| July 26 - August 22, 2026 | — | — | — | 2,486,971,057 | ||||||||||||||||||||||
| August 23 - September 26, 2026 | — | — | — | 2,486,971,057 | ||||||||||||||||||||||
| Total | — | — | ||||||||||||||||||||||||
VF will continue to evaluate future share repurchases available under its authorization, considering funding required for reducing leverage and reinvesting a portion of cost savings to drive profitable and sustainable growth.
| ITEM 5 — OTHER INFORMATION. | ||
| RULE 10B5-1 TRADING PLANS | ||
During the three months ended September 26, 2026, no director or officer of VF adopted terminated
VF Corporation Q2 FY27 Form 10-Q 40
| ITEM 6 — EXHIBITS. | ||
| Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |||||
| Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |||||
| Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |||||
| Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |||||
| 101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | ||||
| 101.SCH | XBRL Taxonomy Extension Schema Document | ||||
| 101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | ||||
| 101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | ||||
| 101.LAB | XBRL Taxonomy Extension Label Linkbase Document | ||||
| 101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | ||||
| 104 | Cover Page Interactive Data File - the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | ||||
41 VF Corporation Q2 FY27 Form 10-Q
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| V.F. CORPORATION | |||||||||||
| (Registrant) | |||||||||||
| By: | /s/ Abhishek Dalmia | ||||||||||
| Abhishek Dalmia | |||||||||||
| Executive Vice President, Chief Financial Officer and Chief Operating Officer (Principal Financial Officer) | |||||||||||
| Date: October 28, 2026 | By: | /s/ Michael E. Phillips | |||||||||
| Michael E. Phillips | |||||||||||
| Vice President, Chief Accounting Officer (Principal Accounting Officer) | |||||||||||
VF Corporation Q2 FY27 Form 10-Q 42
Exhibit 31.1
CERTIFICATION OF CHIEF EXECUTIVE OFFICER
PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Bracken Darrell, certify that:
1. I have reviewed this quarterly report on Form 10-Q of V.F. Corporation;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
| October 28, 2026 | /s/ Bracken Darrell | ||||
| Bracken Darrell | |||||
| President and Chief Executive Officer | |||||
Exhibit 31.2
CERTIFICATION OF CHIEF FINANCIAL OFFICER
PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Abhishek Dalmia, certify that:
1. I have reviewed this quarterly report on Form 10-Q of V.F. Corporation;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
| October 28, 2026 | /s/ Abhishek Dalmia | ||||
| Abhishek Dalmia | |||||
| Executive Vice President, Chief Financial Officer and Chief Operating Officer | |||||
Exhibit 32.1
CERTIFICATION OF CHIEF EXECUTIVE OFFICER
PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of V.F. Corporation (the “Company”) on Form 10-Q for the period ending September 26, 2026 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Bracken Darrell, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:
(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
| October 28, 2026 | /s/ Bracken Darrell | ||||
| Bracken Darrell | |||||
| President and Chief Executive Officer | |||||
Exhibit 32.2
CERTIFICATION OF CHIEF FINANCIAL OFFICER
PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of V.F. Corporation (the “Company”) on Form 10-Q for the period ending September 26, 2026 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Abhishek Dalmia, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:
(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
| October 28, 2026 | /s/ Abhishek Dalmia | ||||
| Abhishek Dalmia | |||||
| Executive Vice President, Chief Financial Officer and Chief Operating Officer | |||||