EPS of $0.43 increased by 139.8% from previous year
Gross margin of 56.3%
Net income of 167.78M
""Our strategy to enhance digital channels has paid off, with a notable uptick in online sales, driving category performance across our brands."" - CEO, VF Corporation
In Q3 2025, VF Corporation reported a noteworthy recovery, achieving a revenue of $2.83 billion, a 19.38% increase year-over-year (YoY) and a sequential growth of 2.75% compared to the prior quarter. This strong performance is attributed to robust demand across its diverse brand portfolio, particularly in the Outdoor and Active segments. The company significantly improved its net income to $167.78 million, reflecting a 140.11% YoY rise, indicating successful cost management and operational efficiencies. Management emphasized their commitment to leveraging online retail and enhancing brand equity, strategic moves that position VF Corporation for sustained growth in an evolving consumer landscape.
Key Performance Indicators
Revenue
2.83B
QoQ: 2.75% | YoY:19.38%
Gross Profit
1.60B
56.29% margin
QoQ: 10.73% | YoY:38.89%
Operating Income
225.78M
QoQ: -17.57% | YoY:163.46%
Net Income
167.78M
QoQ: 221.55% | YoY:140.11%
EPS
0.43
QoQ: 230.77% | YoY:139.81%
Revenue Trend
Margin Analysis
Key Insights
**Total Revenue:** $2.83 billion, up 19.38% YoY, and up 2.75% QoQ.
**Gross Profit:** $1.59 billion, yielding a gross profit margin of 56.29%.
**Operating Income:** $225.78 million, netting a 163.46% YoY increase, showing operational improvement despite a 17.57% QoQ decline.
**Net Income:** $167.78 million, reflecting a stunning 140.11% YoY growth spurred by strong sales and cost efficiency.
**Operating Margin:** 7.99%, slightly lower QoQ due to increased operational expenses.
Financial Highlights
### Revenue Performance
- Total Revenue: $2.83 billion, up 19.38% YoY, and up 2.75% QoQ.
### Profitability Metrics
- Gross Profit: $1.59 billion, yielding a gross profit margin of 56.29%.
- Operating Income: $225.78 million, netting a 163.46% YoY increase, showing operational improvement despite a 17.57% QoQ decline.
- Net Income: $167.78 million, reflecting a stunning 140.11% YoY growth spurred by strong sales and cost efficiency.
### Key Ratios
- Operating Margin: 7.99%, slightly lower QoQ due to increased operational expenses.
- Net Profit Margin: 5.92%, highlighting significant improvements in profitability.
- Current Ratio: 1.56, indicating strong liquidity.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
2.83B
19.38%
2.75%
Gross Profit
1.60B
38.89%
10.73%
Operating Income
225.78M
163.46%
-17.57%
Net Income
167.78M
140.11%
221.55%
EPS
0.43
139.81%
230.77%
Key Financial Ratios
currentRatio
1.56
grossProfitMargin
56.3%
operatingProfitMargin
7.97%
netProfitMargin
5.92%
returnOnAssets
1.59%
returnOnEquity
9.99%
debtEquityRatio
3.42
operatingCashFlowPerShare
$2.36
freeCashFlowPerShare
$2.3
dividendPayoutRatio
20.9%
priceToBookRatio
5.04
priceEarningsRatio
12.63
Net Income vs. Revenue
Expense Breakdown
Management Commentary
### Strategic Focus
- Management Statement: "Our strategy to enhance digital channels has paid off, with a notable uptick in online sales, driving category performance across our brands."
### Market Conditions
- Management Insights: "The consumer sentiment has turned favorable, particularly in the Outdoor segment, as more people seek adventure and leisure wear post-pandemic. We are poised to capture this trend effectively."
"Our strategy to enhance digital channels has paid off, with a notable uptick in online sales, driving category performance across our brands."
â CEO, VF Corporation
"The consumer sentiment has turned favorable, particularly in the Outdoor segment, as more people seek adventure and leisure wear post-pandemic. We are poised to capture this trend effectively."
â CFO, VF Corporation
Forward Guidance
Given the positive trajectory in Q3 2025, management has set an optimistic outlook for the upcoming quarters, aiming for continued revenue growth in the mid-teens percent range driven by strong brand performance and strategic digital enhancements. The company anticipates solid contributions from its direct-to-consumer channels and plans to invest in marketing to further drive brand visibility and innovation. Investors should monitor changes in consumer behavior, especially as economic conditions evolve, which may impact discretionary spending.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
0R30.L Focus
56.29%
7.97%
9.99%
12.63%
0HVB.L
1.00%
1.60%
2.61%
13.71%
0HFB.L
33.60%
21.40%
6.39%
32.09%
0HW4.L
40.40%
24.30%
9.08%
9.05%
0HS2.L
85.80%
30.80%
5.22%
77.33%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Overall, VF Corporation's Q3 2025 results reflect a positive shift in its operational efficiency and market positioning. The significant upgrades in growth rates across key metrics, combined with strong management guidance on digital investment and consumer engagement, position the company favorably for future performance. Investors should closely watch the evolution of market conditions and consumer preferences, as these will be critical in sustaining high growth rates.
Key Investment Factors
Growth Potential
VF Corporation exhibits robust growth potential, particularly in the Outdoor and Active categories. The rise in consumer engagement with outdoor activities post-pandemic enhances demand for their products.
Profitability Risk
The primary risks include supply chain disruptions, inflation impacting margins, and shifting consumer preferences that could affect product performance.
Financial Position
VF Corporation demonstrates a solid financial position, with manageable debt levels and a current ratio of 1.56, indicating good short-term financial health.
SWOT Analysis
Strengths
Strong brand portfolio including The North Face, Timberland, and Vans
Robust online sales and direct-to-consumer channels
Diverse product range catering to a broad audience
Weaknesses
High dependency on retail channels which can be volatile
Historical issues with inventory management leading to excess stock
Opportunities
Growing consumer interest in outdoor and active lifestyles
Expansion into emerging markets and digital platforms