In the Americas, we're seeing sequential improvements driven by brand elevation and full price sales. Our ability to deliver on our internal plans has resulted in 10 consecutive months of improvement in forecasting accuracy.
— Bracken Darrell
03Detailed Report
VFC
VF Corporation
Period
Q2 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 26, 2026
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Executive Summary
VF Corporation (VFC) reported its Q2 2025 results with total revenues at $2.76 billion, representing an improvement of 6% year-over-year, with ongoing cost control measures producing $65 million in savings for the quarter. Despite a 6% decline from the previous year, steady progress in reducing the revenue decline rate, particularly at Vans, demonstrates positive momentum. Management indicates that the ongoing transformation efforts are beginning to bear fruit, especially with significant operational changes implemented over the past year. As part of this effort, VF aimed to re-evaluate and enhance its brand strategy particularly around Vans, while also focusing on maintaining a healthy balance sheet amidst industry volatility.
Key Performance Indicators
Revenue
Increasing
2.76B
QoQ: 44.60% | YoY: 148 456.54%
Gross Profit
Increasing
1.44B
52.23% margin
QoQ: 45.21% | YoY: 77 590.96%
Operating Income
Increasing
273.90M
QoQ: 214.18% | YoY: 12 739.73%
Net Income
Increasing
52.18M
QoQ: 120.15% | YoY: 2 507.84%
EPS
Increasing
0.13
QoQ: 119.40% | YoY: 113.00%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue Performance:
- Revenue: $2.76 billion (down 6% YoY, but improving from a decline of 10% in Q1 2025)
- Gross Profit: $1.44 billion, yielding a gross margin of 52.2% (up 120 basis points YoY)
- Operating Income: $315 million (operating margin at 11.4%, down 60 basis points YoY)
- Net Income: $52.2 million; EPS at $0.13 (down $0.03 YoY)
Balance Sheet Health:
- Cash and Cash Equivalents: $492 million
- Total Liabilities: $10.81 billion
- Total Assets: $12.22 billion
- Total Equity: $1.41 billion, with net debt reduced by nearly $450 million YoY
Cash Flow Metrics:
- Free Cash Flow: ($331 million) for Q2, with substantial ongoing capital expenditures planned as part of the strategic initiatives.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
2.76B
148 456.54%
44.60%
Gross Profit
1.44B
77 590.96%
45.21%
Operating Income
273.90M
12 739.73%
214.18%
Net Income
52.18M
2 507.84%
120.15%
EPS
0.13
113.00%
119.40%
Key Financial Ratios
Gross Profit Margin
Good
52.20%
Gross profit margin is healthy and competitive within industry standards
Operating Profit Margin
Fair
9.93%
Operating margin is moderate, room for improvement in cost management
Net Profit Margin
Weak
1.89%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
0.43%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
3.71%
Return on equity suggests inefficient capital allocation
Current Ratio
Adequate
1.30
Current ratio meets minimum requirements but limited cushion
Debt to Equity
High Risk
5.25
Debt-to-equity indicates high leverage and elevated financial risk
P/E Ratio
Growth
36.48x
Elevated P/E suggests growth expectations or premium valuation
Price to Book
Premium
5.41x
Trading at premium to book value, reflects strong intangibles or growth
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