Executive Summary
VF Corporation has shown remarkable recovery in Q2 2025, posting revenues of $2.76 billion, a significant 44.6% increase from the previous quarter, although slightly down by 0.8% year-over-year. The operating income soared by over 400% to $273.9 million, reflecting the company’s strong operational improvements and cost management strategies amidst a challenging retail environment. This quarter benefitted from an increase in demand across its lifestyle brands, with management highlighting a strong performance by The North Face and Vans. Despite the overall market volatility, VF Corporation is poised to leverage its brand strength and market position to regain lost ground and focus on profitability.
Key Performance Indicators
QoQ: 214.18% | YoY:400.19%
QoQ: 120.15% | YoY:222.91%
QoQ: 119.40% | YoY:218.18%
Key Insights
In Q2 2025, VF Corporation reported revenues of $2.76 billion and a gross profit of $1.44 billion, resulting in a gross profit margin of 52.2%. This reflects a decrease of 5.16% year-over-year, yet shows a strong recovery with a 45.21% increase from the previous quarter. The operating income reached $273.9 million, translating to an operating margin of 9.9%, while net income jumped to $52.2 million, or $0.13 per share, marking a robust increase of 222.91% year-over-year. The balance sheet remain...
Financial Highlights
In Q2 2025, VF Corporation reported revenues of $2.76 billion and a gross profit of $1.44 billion, resulting in a gross profit margin of 52.2%. This reflects a decrease of 5.16% year-over-year, yet shows a strong recovery with a 45.21% increase from the previous quarter. The operating income reached $273.9 million, translating to an operating margin of 9.9%, while net income jumped to $52.2 million, or $0.13 per share, marking a robust increase of 222.91% year-over-year. The balance sheet remains solid with total assets of $12.2 billion against total liabilities of $10.8 billion, while cash at the end of the period stood at $514.6 million.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
2.76B |
-0.80% |
44.60% |
| Gross Profit |
1.44B |
-5.16% |
45.21% |
| Operating Income |
273.90M |
400.19% |
214.18% |
| Net Income |
52.18M |
222.91% |
120.15% |
| EPS |
0.13 |
218.18% |
119.40% |
Key Financial Ratios
operatingProfitMargin
9.93%
operatingCashFlowPerShare
$-0.78
freeCashFlowPerShare
$-0.85
dividendPayoutRatio
67.1%
Management Commentary
Management's commentary during the earnings call underscored their focus on driving brand loyalty and operational efficiency amidst challenging market conditions. CEO Steve Rendle stated, 'We're committed to investing in our core brands and enhancing consumer engagement through innovative experiences.' Furthermore, they indicated a strategic shift towards e-commerce, with plans to enhance their online retail presence to capture emerging trends in consumer behavior. This was echoed by CFO Ben Witte, who remarked, 'Our operating expense management has been pivotal in improving our EBITDA and net income margins this quarter.'
We're committed to investing in our core brands and enhancing consumer engagement through innovative experiences.
— Steve Rendle, CEO
Our operating expense management has been pivotal in improving our EBITDA and net income margins this quarter.
— Ben Witte, CFO
Forward Guidance
Looking ahead, management is optimistic about achieving growth targets in the second half of FY2025, driven by product innovation and expansion in key international markets. They have set a target for a revenue growth rate of 5-7% year-over-year for the upcoming quarters, contingent on improving retail conditions and successful market penetration strategies. Investors should monitor the company’s efforts in enhancing supply chain efficiencies and overall operational execution, which are critical for sustaining profitability amidst ongoing challenges.