VF Corp’s third quarter results were met with a significant negative market reaction, as shares fell following the announcement. Management attributed the quarter’s performance to ongoing turnaround efforts, with particular strength in The North Face and Timberland brands, both of which saw growth across multiple channels. However, persistent underperformance at Vans and continued rationalization of sales channels weighed on results. CEO Bracken Darrell acknowledged the “uncertain and unpredictable environment around the world” and emphasized that improvements were not uniform across the portfolio. The company also highlighted benefits from tighter inventory management and reduced discounting, which supported margins despite lower overall sales.
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VF Corp (VFC) Q3 CY2025 Highlights:
- Revenue: $2.80 billion vs analyst estimates of $2.78 billion (3.5% year-on-year decline, 0.9% beat)
- Adjusted EPS: $0.52 vs analyst estimates of $0.42 (22.5% beat)
- Adjusted EBITDA: $399.9 million vs analyst estimates of $359.9 million (14.3% margin, 11.1% beat)
- Revenue Guidance for Q4 CY2025 is $2.90 billion at the midpoint, roughly in line with what analysts were expecting
- Operating Margin: 11.2%, up from 9.4% in the same quarter last year
- Constant Currency Revenue fell 1% year on year (-6% in the same quarter last year)
- Market Capitalization: $5.54 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From VF Corp’s Q3 Earnings Call
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Jay Sole (UBS) asked about the timeline for Vans’ return to growth; CEO Bracken Darrell and CFO Paul Vogel reiterated that new product launches and marketing will drive gradual improvement, with channel rationalization impacts fading after next quarter.
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Jonathan Komp (Baird) sought clarity on gross margin drivers and the progression of cost savings initiatives; Vogel explained that promotional recapture and markdown discipline are showing benefits, but tariffs and FX remain headwinds.
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Brooke Roach (Goldman Sachs) asked about promotional strategies in the Americas; Darrell confirmed a disciplined approach to discounting, with selective flexibility during the holiday period to protect brand value.
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Michael Binetti (Evercore) inquired about weakness in Asia-Pacific; Darrell described the region as entering a “stabilizing period” after a strong run, with renewed U.S. opportunities seen as more significant for growth.
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Adrienne Yih-Tennant (Barclays) questioned the impact of tariffs and pricing strategies; Vogel explained that most price increases will be implemented next quarter and are expected to offset tariff effects over time, with each brand taking a tailored approach.
Catalysts in Upcoming Quarters
Looking forward, the StockStory team will be watching (1) how effectively VF Corp implements pricing actions to offset tariff pressures, (2) whether the ongoing product pipeline refresh at Vans translates into sustained sales improvements, and (3) the pace of debt reduction following the Dickies divestiture. Execution on expanding Timberland and The North Face in underpenetrated markets, alongside maintaining disciplined cost controls, will be additional markers of progress.
VF Corp currently trades at $14.17, down from $16.60 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free for active Edge members).
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