Apparel Company VF Corp Beats Q3 Expectations: North Face Climbs, Vans Slips

V.F. Corporation VFC shares are trading higher in the premarket on Wednesday after the third-quarter FY25 earnings.

The company reported third-quarter sales of $2.834 billion, beating the analyst consensus estimate of $2.746 billion.

The North Face increased 5% Y/Y to $1.25 billion, Vans declined 9% to $607.6 million, Timberland jumped 11% to $527 million and Dickies plunged 10% to $133.6 million.

Revenue from the Active segment decreased 6% to $766.3 million, the Outdoor segment rose 6% to $1.85 billion, and the Work segment dropped 3% to $216.4 million.

International revenue grew 1% Y/Y. Direct-to-consumer revenue contracted 3%, and wholesale revenue increased 8%.

Gross profit was $1.59 billion with a margin of 56.3% of net sales. It reported an operating margin of 8% and an operating income of $225.7 million.

Adjusted EPS of 62 cents beat the analyst consensus of 34 cents.

The company held $1.37 billion in cash and equivalents as of December 2024. Net cash provided by operating activities for nine months totaled $636.3 million.

“We made strong progress in Q3’25, improving profitability and further strengthening the balance sheet. The pace of VF’s transformation is on track as we deliver against our Reinvent priorities,” said President and CEO Bracken Darrell.

VF’s quarterly dividend of $0.09 per share is payable on March 20, 2025, to shareholders of record at the close of business on March 10, 2025.

Outlook: VF sees fourth-quarter revenue to decline (4)% – (6)%. The adjusted operating income for fourth-quarter FY25 is expected to be $(30) million – $0 million.

VF sees FY25 free cash flow of $440 million, up from the previous guidance of $425 million.

Price action: VFC shares are trading higher by 5.23% at $27.98 in premarket on the last check Wednesday.

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