Overview
- Revenue reached $2.80 billion versus $2.74 billion expected, and adjusted earnings were $0.52 per share versus $0.43 forecast.
- Brand performance diverged as The North Face rose 6% and Timberland gained 7% while Vans fell 9% year over year.
- Management forecast third-quarter revenue down 1% to 3% excluding Dickies, and the shares fell more than 10% after the update.
- Tariff-related sourcing disruptions in Vietnam and Indonesia pressured margins, with analysts estimating a $60 million to $70 million second-half profit headwind.
- VF agreed to sell Dickies to Bluestar Alliance for $600 million to reduce debt, as net debt fell about $1.5 billion and operating income exceeded guidance.