V.F. (VFC) Q2 Earnings call transcript Oct 28, 2025

VF Corporation, a leading global apparel and footwear company, recently held its second quarter fiscal year 2025 earnings call, providing investors and stakeholders with insights into the company's performance and future strategies. In a call led by Allegra Perry, Vice President of Investor Relations, key executives Bracken Darrell, CEO, and Paul Vogel, CFO, shared updates on the company's financial health, operational improvements, and plans for the future.

Financial Highlights and Performance

VF Corporation reported a sequential improvement in Q2 revenue, marking the third consecutive quarter of decline rate moderation. The company achieved a 6% year-over-year revenue decline, with notable progress in gross margin expansion and SG&A cost management. Notably, VF Corporation has executed all actions to achieve its $300 million cost savings target, which is part of its ongoing transformation plan.

Strategic Priorities and Transformation

Bracken Darrell, CEO, highlighted the company's key priorities, including lowering costs, strengthening the balance sheet, fixing the U.S. business, and delivering the Vans turnaround. The company has made significant strides in all areas, with a particular focus on product innovation and brand elevation. VF Corporation's flagship brands, such as The North Face, Vans, and Timberland, are showing signs of improvement, with Vans experiencing a notable 11% revenue decline in Q2, an improvement from the previous quarter's 21% decline.

Investor Day and Future Outlook

Looking ahead, VF Corporation plans to provide more detailed information about its long-term financial potential at the upcoming Investor Day on Wednesday. The company is optimistic about its future, with a focus on driving further sequential improvement and building on the progress made in the last few quarters. VF Corporation is also committed to reinvesting some of its savings back into the business, particularly in product and brand building initiatives.

Balancing Growth and Financial Health

VF Corporation's management team discussed the importance of maintaining a balance between growth and financial health. The company has been focusing on inventory management and debt reduction, achieving a 13% reduction in inventories and a significant net debt reduction of $450 million. These actions are part of VF Corporation's broader strategy to strengthen its balance sheet and position itself for long-term success.

Investor and Analyst Interactions

During the Q&A session, analysts asked questions about various aspects of VF Corporation's business, including the health of the wholesale business, the impact of reinvestment strategies, and the outlook for individual brands. The company's executives provided detailed responses, demonstrating a clear understanding of the market dynamics and strategic priorities.

Conclusion

VF Corporation's second quarter fiscal year 2025 earnings call provided a comprehensive update on the company's financial performance and strategic plans for the future. With a focus on cost savings, balance sheet strengthening, and brand transformation, VF Corporation is well-positioned for growth. The upcoming Investor Day is expected to provide further insights into the company's long-term financial potential and growth strategies. Overall, VF Corporation's commitment to operational improvements and strategic investments bodes well for its future success.