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Add Texture to GoogleAt Vans, the most encouraging figure isn’t revenue. The brand’s sales fell another 10 percent, to $547.6 million. But its direct-to-consumer business is returning to growth globally—a first in nearly five years. This contrast underscores the scale of the challenge facing VF Corporation: the parent company of Vans, The North Face, and Timberland has not yet returned to uniform growth. Instead, it is showing signs of a multi-speed recovery, with profitability advancing more decisively than sales.
Vans: A Sign That Should Not Be Mistaken for a Victory
For Vans, these two trajectories reflect different realities. The decline in total revenue remains pronounced. Nevertheless, the return to growth in the direct-to-consumer channel marks a notable turning point after such a long period. It shows that the commercial relationship with consumers can strengthen before the business as a whole regains its momentum. On its own, however, it does not allow us to conclude that the turnaround is complete.
Bracken Darrell, President and CEO of VF Corporation, sees this as confirmation that Vans’ recovery plan is beginning to take effect. The executive’s assessment is optimistic; the financial results still call for patience. With $547.6 million in revenue for the quarter, the brand remains a major player in the portfolio. Its decline therefore still weighs heavily, even as one of its distribution channels begins to grow again.
This is where part of the turnaround’s credibility is at stake: transforming a localized improvement into a broader trend. For now, Vans is providing an initial positive indicator, but not yet a complete answer.
The Real Gain Is Seen in the Margins
The second quarter of fiscal year 2027, which ended on September 26, offers a clearer demonstration of profitability on the ground. VF Corporation posted a gross margin of 55.4%, up 320 basis points. The improvement is significant. It shifts the focus from mere business volume to what the group is able to retain from it.
Adjusted operating income thus reached $364 million, while forecasts had called for approximately $315 million. The adjusted operating margin came in at 13.5%. In other words, the fact that expectations were exceeded is not solely due to sales that were slightly stronger than anticipated; it is primarily reflected in the company’s operating performance.
Net income totaled $285.3 million. Net debt, meanwhile, decreased by $1.1 billion. These figures paint a picture of a financially stronger group, though it’s not possible to attribute this improvement to a specific factor: the reported figures do not break down the respective contributions of costs, prices, or sales mix. One thing is clear, however: the decline in reported revenue does not fully capture VF’s financial position.
The North Face Takes the Lead, Altra Gains Momentum
The portfolio retains a very strong center of gravity. With $1.21 billion in revenue, The North Face remains by far the group’s leading brand. Its 4% growth provides all the more significant support given that it is built on a high revenue base. In a group where Vans is still searching for a turnaround, this growth is significant both for its apparent consistency and its financial scale.
Timberland is growing at the same 4% rate, reaching $525.9 million. Its revenue is now close to that of Vans, even though the two brands are moving in opposite directions this quarter. This similarity in size makes the contrast particularly clear: one is growing, while the other is lagging behind despite the improvement seen in direct sales.
Bracken Darrell also highlights Altra, the running shoe brand, whose growth exceeds 40%. No specific sales figures for Altra are provided in these results. It is therefore important to distinguish between the strength of this growth and its weight in the consolidated financial statements. The pace is remarkable; its contribution in dollars is not specified.
The rest of the brands in the portfolio, including Napapijri, Smartwool, and Icebreaker, account for $414.3 million. For this category, the group reports a 22% decline on a reported basis, but a 6% increase at constant exchange rates. Here again, the interpretation depends heavily on the basis of comparison used.
Direct-to-consumer sales are holding up better than wholesale
The trend observed at Vans reflects a broader contrast among VF’s distribution channels. At the group level, direct-to-consumer sales rose by 1%, and by 3% on a constant-currency basis. Wholesale sales, meanwhile, declined by 6% on a reported basis; excluding currency effects, they remained stable.
The difference is modest in comparable growth terms, but it warrants attention. The direct channel is the one showing growth, while wholesale is merely holding steady at constant exchange rates. It would be an overstatement to conclude that this marks a complete transformation of the distribution model. However, the results do indicate where the most favorable commercial foothold lies this quarter.
This distinction also helps explain why the news from Vans may be encouraging even though its overall revenue is not yet. A brand does not necessarily recover at the same pace across all its distribution channels. At VF, disparities between channels now compound the disparities between brands.
The Americas are driving a geographically uneven recovery
The sales map reveals another dividing line. The Americas generated $1.32 billion in revenue, down 2% on a reported basis but up 6% on a constant-currency basis. On this latter basis, the region shows the most favorable trajectory of the three major regions presented by the group.
The Europe, Middle East, and Africa region reached $1.01 billion. It declined by 6%, or 2% on a constant-currency basis. In Asia-Pacific, revenue totaled $361 million, down 7% on a reported basis and 4% excluding currency effects.
Neutralizing currency fluctuations is therefore not enough to drive growth across the board. The Americas are growing, while the other two regions are lagging behind. For VF, the challenge also lies in broadening the geographic base of this improvement, rather than relying on a single regional market.
A smaller scope, but ambitions remain unchanged
It is important to interpret the consolidated revenue correctly: $2.7 billion, compared to $2.8 billion a year earlier. The decline amounts to 4% on a reported basis, while growth at constant exchange rates stands at +1%. The comparison is also affected by the divestiture of Dickies, which was sold to Bluestar Alliance last November. Excluding this brand, revenue rose by 1%, whereas VF had anticipated overall stable performance.
This change in scope prevents the reported decline from being treated as a simple reflection of weaker demand. The group is different from the one to which it is being compared. Its performance remains mixed, but it exceeds its own quarterly forecasts.
However, VF has not raised its annual targets. For the full fiscal year, it is maintaining a revenue growth target of at least 2% at constant exchange rates and an adjusted operating margin of close to 8%. After a better-than-expected quarter, the bar therefore remains at the same level. The next challenge will be to see whether the uptick in direct sales at Vans can finally translate into the brand’s total revenue.
