How did V.F's revenue and expenses shift in Q3 2025?

V.F Corporation's revenue and expenses in Q3 2025 showed notable shifts, reflecting strategic initiatives and brand performance:

1. Revenue Shifts:
   • Overall Growth: VF Corporation experienced a 2% increase in revenue in Q3 2025, reaching $2.83 billion. This growth was driven by robust performance across various regions and brands.
   • Regional Variations: Revenue in the Americas region increased by 1% year-over-year, while the EMEA region saw a 1% increase on both reported and constant-currency bases. Notably, the APAC region achieved a significant boost, with a 5% increase in revenues.
   • Brand-Specific Performance: The North Face and Timberland brands contributed positively to the revenue growth, with The North Face reporting a 5% increase and Timberland recording an 11% jump compared to the same period last year. Conversely, the Vans brand faced a 9% decline, and the Dickies brand experienced a 10% decrease.
2. Expense Management:
   • Cost Savings: VF Corporation implemented cost-saving measures, leading to a reduction in SG&A (Selling, General, and Administrative) expenses. In Q3 2025, the company achieved $55 million in SG&A savings, contributing to a $300 million run rate in cost savings.
   • Gross Margin Improvement: The gross margin for the company increased by 150 basis points to 56.3% in Q3 2025, indicating enhanced profitability.
   • Operating Margin Enhancement: The operating margin improved by 360 basis points to 11.4%, reflecting better operational efficiency.
3. Financial Health Indicators:
   • Debt Reduction: VF Corporation made significant strides in strengthening its balance sheet, reducing net debt by nearly $2 billion compared to the previous year.
   • Free Cash Flow Guidance: The company raised its free cash flow guidance to $440 million for the full year, up from the prior guidance of $425 million.
   • Inventory Management: VF Corp effectively managed its inventory, reducing net inventories by 14% year-over-year.

In conclusion, V.F Corporation's Q3 2025 financial performance showcased strategic resilience and operational efficiency, despite facing challenges in certain brand segments. The company's focus on cost-saving measures, brand growth initiatives, and effective expense management contributed to improved financial health and profitability.