VF Corp (NYSE:VFC, XETRA:VFP), the parent company of The North Face, Vans, and Timberland, reported quarterly earnings that topped Wall Street expectations, driven by strong holiday sales and margin expansion.
The company posted third-quarter earnings of $0.58 per share, excluding non-recurring items, $0.13 above the FactSet consensus of $0.45. Revenue rose 1.5% year-over-year to $2.88 billion, exceeding analysts’ estimate of $2.75 billion.
Results reflected a better-than-expected holiday season led by The North Face and Timberland, as well as strength in North America and global direct-to-consumer channels. Gross margin rose 30 basis points to 56.6%, supported by product mix and sourcing savings that offset tariff impacts. Operating income came in at $289 million, compared with $226 million a year earlier.
Jefferies noted that Vans improved sequentially in the quarter, with constant-currency sales down 10% versus 11% in the prior quarter, supported by product innovation, particularly in non-icon styles and new releases in the Americas.
For the fourth quarter, VF expects revenue to be flat to up 2% year-over-year and adjusted operating income of $10 million to $30 million. Fiscal 2026 guidance remains for higher free cash flow, operating income, and operating cash flow versus last year, with year-end leverage expected at or below 3.5 times.
Despite the company’s Q3 earnings and revenue beat, VF Corp shares were down roughly 8.5% Wednesday morning as investors reacted to cautious Q4 guidance and ongoing weakness at Vans.