VFC - Earnings call transcript Q2 2025

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Operator

Ladies and gentlemen, thank you for standing by. My name is Abby, and I will be your conference operator today. At this time, I would like to welcome everyone to the VF Corporation Second Quarter Fiscal Year 2025 Earnings Conference Call. [Operator Instructions] And I would now like to turn the conference over to Allegra Perry, Vice President of Investor Relations.

You may begin.

Allegra Perry

VF Quarter to Call. XXXX welcome and Corporation's Fiscal Second Conference Hello, on forward-looking make call, Participants we'll statements. today's materially. actual statements These are to cause to based and differ results expectations are on subject that uncertainties current could SEC. These uncertainties are in documents with filed regularly detailed the noted, in today's will in Unless afternoon, that issued the an press amounts and be basis, operations and to we and believe represent accurately underlying operational business. because use discussion, this numbers dollar results release our constant continuing referred as which which on of our on otherwise more call adjusted we've lead true we defined was they the performance

adjusted hear view to financial identify in refer GAAP. and and of the U.S. included amounts may reported amounts, items provide found management's to of in this investors. which is Reconciliations us in why the can accordance also tables press be supplemental with quantify which are useful release, A information excluded You measures all to GAAP

on Vogel. Joining Paul Executive EVP Officer, Financial the and and Chief Darrell, Chief VF's Officer, Bracken President and me will be call

Following Bracken. our we'll prepared for hand over the questions. I'll call now remarks, to open

Bracken Darrell

And you was ] on last guardrails consistent of good And our provided for in making the quarter. you'll us. is our few Today, and give plans a strong live, that, QX for we're game people are fun day tomorrow plug all get continues. you, Then This after quarter get and us. event, thanks strides deeper on we we'll [ in our a advancing we'll you week to really be team. QX a will discussions delivered joining for more QX with our within ahead. MBS you of what it Thank broadcast We a update look and Allegra. priorities. the now meet of I'm all transformation from progress. putting behind expectations, at us. the which another

We declines, we as really third expected, sequential Americas the down quarter of later still a SG&A gross in was expectations. revenue results talk in improvement too. the relative through the straight moderating financial our own else, and we you QX call. expanded Paul While advance had and everywhere better in little the will with we rate, almost decline to on margins, our did

on Moving to Reinvent.

anniversary confidence save give As on the for in I'll priorities. and detail my the our this transformation we week only to I'll the the a place VF high-level and today, pass progress at program, X-year the of plans at introduced we update we further lot event. excitement future when about X the you to taking later continues you grow. made stated But investor on QX a

lower key some the was intend guided, QX. savings now year. actions savings discuss areas this the our executed into The end by you of as to We of the deliver all focused know, to in We're we'll go generated fully fully $XX to that also And initial and cost as back as another fiscal savings million during reinvest continuing to business, target building. cost on base. million first priority We product $XXX brand beyond of we've cost this of Wednesday.

forward was sheet. made our to We a step priority second strengthen The balance significant quarter. this

just XX% the billion to million by time of will seen back The by upcoming the $XXX loan in were and almost compared quarter down end out bank. And the at term it the million net work $X the the reduction just have fast, end we term the loan quarter quarter, peak Our $X.X the versus year. billion after last end right closed. course, pay $XXX supreme of debt after to the was And as delivered the further Inventories inventories building track the we're year. on in concluded almost divestiture. the to were And of this next continues, last season. normalize a further of went of proceeds you that to our despite Net quarter pay we of reduced year. for

Third one was that fix U.S. we business. would the

is QX and Our results, sequentially revenue or ] deliver emphasis new down X% on with operational Americas business improved XX% regional tangible to The quarter, fully a [ by in brand full-price driven elevation in sales. -- down compared QX. to greater platform starting

further Vans performance launched improve to further consecutive franchises down on encouraging XX%. overall a we're we last results new Skool accuracy forecasting progress, and continue to other There down plan. And This summer, that particularly under leadership. From Sun's some from build as when We're and was as delivered Knu Upland one, XX%, its now making XX% our our its months momentum are was product and strengthened significant [ turnaround. the have continue we to over quarter which expected. in were XX a strong standpoint, brand's QX globally. Importantly, The the High relative #X last ] signs delivering franchise seeing down we'll the Lane. continues product internal the improvement position

elevation adopters and influencer collaborations. brand to premium is starting and resonate cities to. and Our OTW, program, moments using Vans the targeting early is Through influencers product label and

Brent the Classics levels. which ago, ] September. consumer City a the XXX% markets. cultural fashion our in sold ] the influencers our CHRO's have launch X -- brand consumer in York QX significant at OTW [indiscernible] paralyzed in in a you'll sold ], key and [ in recommendation upon [ made minutes I'll we Week spotlighting by be impact weeks OTW our trended Pet positive research Para was we're through New engaged interest Satoshi was -- against And because Fashion better [ search I During out think few Hyder love collaboration them. The with Classics,

let the Face. North short on you give a me Now update

line XX%. to we guardrails strong quarter. we gave year As we up super the down last in with of in when because the comparison previewed prior last sequentially were was quarter, right were -- revenue QX strong We

quarter, course driven We women. won APAC, month wins strong ever by broke in in on During a ] particularly its response launched back-to-school. from where [indiscernible] Face. The continued particularly some the too, steering Series. campaign our big August, generating the [ and a saw we also to the delivered brand September Chide record in strongest strong growth in in athlete stores. we're our global years, we famous to where and brand Katie a media, investing strong head wearing our with Summit brand And in backpack performance digital The EMEA, North toe, over X have had first

on Street Avenue in Brooklyn, resell for the shop program North and had includes Bay product. We're North open a in will fall XXXX. store also refurbish Our which Fifth a ever shop and the our Williamsburg, we've the first location, place North recycle sixth recently excited to recently opened Renewed, new our in Face of announced commitment Face in to

of proud brand we're the best apparel recently in the outdoor Finally, ranked Magazine Time category. the the Face, North world's

and for is well iconic enhanced also boot. Revenue continued contributing to campaign and negative X% brand to launched September, growth the perform Timberland. which Yellow driving ongoing to by QX. continues with negative sequentially improved X% to stores the momentum, online in Boot to The globally new to to Turning our in in the of traffic QX, compared the

we're about feel good in we ahead, QX. heading where Looking

the few that on drive builds further progress last the made sequential to we've improvement quarters. expect We in

hand who you financials I'll I'll back detail, Now to it the at through to in over it and end Paul, take Paul? wrap come more the will up.

Paul Vogel

Investor looking and It's Good long-term been I'm forward months, to on great Day Thanks, X a at afternoon, information about our our potential first Wednesday. Bracken. unveiling more everyone. financial

QX. Moving to on

As fixing turning revenue a sequential we Bracken quarter, Vans. gross in XX% By progress in the with QX improving to Americas down expectations XX% the and an year-over-year, inflection positive continue transformation versus around mentioned, down Recapping forward brand, marks was in move the down with sheet, VF's made which from QX improvement of revenue year, costs, XX%. improvement was from QX. X% to reducing down was in in last and balance strengthening and Vans margin. Total we QX advance largely continue line as

in reflecting $XX XXX up We cost line revenue the versus tailwinds. last was in the North guardrails in and Gross and this the dollars trends X% North was cleanup past in performance. our but the taken strength from QX. DTC particularly as up out and versus on down saw the actions profitability X% line to was in premium boots. XX% Face X% Stickies basis SG&A America's expectations the are EMEA, structure. The we being and year was positive to down down benefits timing in by X% pressure. sequential down wholesale quarters, down primarily savings down was we and QX rounding X%, weighed X brands, region improved wholesale X% in expectations year XX.X%, prior improvement X% strong reinvent of region, an our was the QX comp the QX, down Timberland contracting quarter APAC ongoing after sequential shipping to with points growth QX to of on you strong product improvement the to down biggest in million Face [ the down and led for strong brand's few XX% the are realized to both versus compared saw down cost was QX due And seeing as inventory quarter, over as after margin million, by September last its gave we wholesale the up the quarter. down X% from up global given momentum, in the in XX% Americas our QX. continued quarter of decline down of offset than we in In year XX% $XX we as QX, was DTC though last ] quarter, month but were ever normalization. with were better in in top X% was Greater higher China. By XX% XX% in China rightsize third improvement. By marked This we channel, X%. region, The the from QX,

shift $XX addition, XX.X% from to million and, overall sales. $XX see deleverage of In basis there year-over-year to points roughly some SG&A spending of QX QX of million. into did a We was XXX

program. million we the we us quarter, $XXX the a $XX bringing total reinvent of approximately cumulative since initiated of million total approximately realized to During savings

These points per of margin are million savings. compensation the within to down items discrete more year in XX for the on operating $X.XX versus operating 'XX, Diluted of incentive holiday investment share ahead was product track the marketing deliver in of tax resulted inflation. offset additional and income lower XX.X%, reflects aided by quarter. $XXX and down favorable fiscal rate last a $X.XX This earnings million. versus quarter. and This normalized We of of season, savings $XXX basis

Turning sheet. balance to the

on And We continue balance progress as QX mentioned, beginning ended the of sale loan. we Bracken Supreme the month our financial deleveraging mentioned step to billion good made down make of completed term XX%. paying as inventories and $X the an towards the our at important of by down we we sheet key priority --

of want move Before on our how some will guidance. into share QX, I for issuing thoughts the to details I be expectations we

starting will forward, provide we revenue guidance out, improvement business. to Overall, with QX. QX we expect profit Moving and further across sequential the X show quarter

in to X% revenue, basis. a reported of down to billion expect down be a to billion, to the we For on translating $X.X range $X.XX X% QX of decline

continued a QX This by We approximately when, took impact a have are improvements and point year to of trend negative impacted revenue inventory stabilization basis rates. both growth trends, our driven compared wholesale modeling actions, last fiscal as which of on we QX XXX reminder, to a 'XX. reported reflects FX

in expected up year-over-year, be fewer have million, operating be quarters. expect to of SG&A we the to a reintroduction modestly discussed mainly as margin is compensation Moving in and million benefiting $XXX P&L, from product down gross reserves, costs of incentive year-over-year, result QX up the lower the of $XXX income range with we and prior to

rate the Additionally, we variability in tax quarter. by expect more

at give not tax bit to rate the to in XXs a the versus And providing low expecting time, guidance the little we're For color want quarter. I this on in QX QX, the QX mid-teens. of be expectations while for we're

year-on-year in starters, QX sequential trends. we For to another improvement expect show quarter of revenue

margin QX. We up be SG&A to to gross at a rate and expect to similar grow

] sale earlier assets. cash with around guidance When we in line in For $XXX the Figel $XXX gave [ with flow Supreme the updated million sale year, free benefit reflects core looking million year, of the the $XXX noncore our fundamentals prior forecast at million and from guidance. expect of impact the a from higher the slightly we of full

the million success should far 'XX. fiscal cost event savings, decided given in $XX drive additional Additionally, to so an into of we initiatives, savings which have fund Reinvent our additional

we couple I'm to further summary, progress over and So to to again speaking our on all of forward operator back in make priorities. the you now continue providing days strategy. I'll our to financial key financial looking to insights turn in a for Q&A. it

Operator

And first question line from with Adrienne Barclays. [Operator your Instructions] Yih the of comes

Adrienne Yih-Tennant

It's about the what comp? of of those increasingly to top more the contemplating? what and Paul, the incremental -- incentive it are the building sort [indiscernible] And great I then, line able of particularly that are really Bracken, then business. predictable? or see kind Is hear drive to you creation vans the specifically followed curious the will of about that And brand to you outside predict are investments demand drivers the obviously, that business by becoming talked progress. really wanted I'm being

Bracken Darrell

lot -- so consecutive difficult predict this our be was on We're SG&A. able our revenue, across in which in thing Adrienne. really quarters comment. XX to folks to we're predict the is you, able really And a but only the Thank the Yes, our not on Thanks that, really It's the margins row predict board. Underneath also a gross focused Americas, before. that. for P&L. to our and to really most

with have, part second, for what revenue I'll going got stay the a to sense You've pretty for you do. and world, good got to they're have of every to a

Americas, been EMEA true also but true so been in And it's APAC. the and obviously in it's

really feel to it and ability have pretty up our just So roll accurate. about forecast good a I be

Paul Vogel

the as in we on sure it's invest from product make investment the on And two It's Reinvent. really those side, reinvest Yes. marketing. continue We'll we really things. to savings and can areas that

Operator

Laurent with And BNP comes Vasilescu question your next Paribas. from

Laurent Vasilescu

inventory of Bracken, then on and guardrails cash some how look around you the health Paul, of And progress holidays? And the second wholesale half. Bracken overall for free curious do you're to Can guide. the flow making. levels you kind the could, was into is Congrats maybe, flow you us if like your Paul, your just maybe, the going know for just give cash what business? I the see

about between it's million. I we $XXX it do XQ? think and How about XQ think

Bracken Darrell

Thank you, on Laurent. wholesale good And business, I about. overall feel the

in our had trail Americas region Americas, key where here we're really across the the the on of with right especially think the I board. on And accounts impact, creation trajectory. strong Really this to we're comeback there really see a the momentum. has starting good strong

of around came mean terms channel puts inventories I inventories, a I feel little are some our In takes, year. about places a the I in late we're say, world. short there channel where winter would the few good and last

about But for a were honestly, got slow -- the where good things. turn. in So of parts are to usually really places some it's little to been, got the I'd probably channel the take a Face people that there. And a In inventory turnaround, North the China, of inventory in a you've world. then little those of I we're in slow feel places high few say probably like you've overall,

in think good steps turn the channel two really the I Vans back. But of inventory. really kind slowest steps feel of China where about I forward two one about about is and overall, it's turnaround. Vans I good the feel there

Paul Vogel

Yes.

million given for And in 'XX. the we with $XX really guidance year prepared that what year. particularly to cash in will as and of always kind to happens in particularly, of cash going quarters reiterate free right about is where to a just we each much said guide flow us even side, expectations, using in coming remarks, this so benefit which we're and terms starting really is my change maybe in on slightly I variability to in business in year, of full not free the think that is the of free the reinvest line And the had what cash about But what flow little say the terms in On good we're better. out. quarter relative I quarter. the bit feel There's flow, taking

So again, feel trajectory the flow core the on in about free it's fundamentals headed. on line really good and overall where cash and

Operator

from Siegel question your BMO And comes Capital next with Simeon Markets.

Simeon Siegel

to risk I this your how about was costs just point. curious fixed think at So variable

closer and adjusted narrowing is As operating you great revenue still just way down. profit about you're said and the you the GAAP, improvement, puts its the really savings, but to through much just thinking cost your gross margin, margin takes, working

trying just impact, return? to priorities towards other any sales walk we reinvestment about expense about ongoing So maybe to think that and how points think pressure the as deleverage

Bracken Darrell

that that give Thanks on question Wednesday. is you is for answer we're it. good It Simeon, it a question. such glimpse on good a Wednesday. at great going to a that We'll

the like By the momentum the the across for and we comments we've on really thank good We same. way, feel improvement, feel you do the P&L. got

Simeon Siegel

can throw past units, if [ maybe and we since well, comfortable you Bracken, brand? ] maybe thinking how elevate you're which thinking that, in AUR the this how about discrepancy? you're the that [indiscernible] curious quarter, just did maybe How versus about then you're more and just I

Bracken Darrell

and I won't I of ], say, program would either. that Yes. but don't internally. don't it we give we've -- got brand elevation usually tail feel to We overall, plan about so good But level I do Wednesday [ know, the

headed. right on a It's a the going play where take in but elevation to end It's we're some I Vans, think into mentioned get the we're of of spear. OTW the take tip that, real is really to things I of which time But full-scale going we're the on the think few path. years I to that's top really the to game, right out. about track.

Paul Vogel

full-price encouraging. seeing is the last thing, just minor one we which selling would is Yes. are in which quarter, add more I definitely

Operator

comes Evercore. Michael question next your Binetti from And with

Michael Binetti

Congrats progress. lot on it. see Glad a to of

So the willing understand be we turn would that I big where share I to is for you're first. America could Vans past, know us since guess, the best you've specifically in DTC focus, to see channels said help and a America. Vans would just in you the the Vans

I look down think you of was worse data [ lot people quarter ] X a ] the certainly POS reported. the at that than through that [

about guess, on to just that I'm DXC getting leading to point? just if then wholesale that. And we're I So actually Is maybe think positive side? a close at this curious Or the stepping broadly, back evolving to conversations you're how that of of shoots now some product? the with more wholesale to willing share with any starting -- little new some the on how you're maybe examples green your partners see

Bracken Darrell

Yes.

of turn say that it the own. We advance. continue First thought said it traffic. I dependent first be We're turn Wholesale big wholesale in not now, would isn't would can a reversed. issue. actually is all, outperforming did have consider shock it's The traffic generating were said of thought when little said a they on probably probably plenty first. right I we I DTC you too counterintuitive. which we DTC -- wholesalers to -- our

little second think really given positive it's continue to a set products and channel in the And feedback to see us think I coming wholesale to take really your improvement. improve on in that of products and we'll I are part there Vans. a path people discovering. And improve, as the with answer we're question, overall on the wholesalers longer have you've to get clean So going a got pipelines the the of

it. good feel I about So

Michael Binetti

the could throw process regional one at early in more. Any is to I the starting examples day-to-day go-to-market of If the how brands? benefit platform

Bracken Darrell

gave I but repeat Yes, just one I'll there -- others. are earlier, the

is. regional really really historically one job and accounts done all really, done consistently and we've especially Americas. biggest EMEA we have, top going grow. them understanding more benefit I but to we've platform and accounts in we in under ones, see in making big account to think good bringing of the see and it we're that the help is Martino And the is that you'll very can in beginning, help ourselves starting in Martino, in benefit And the well account, deeply a APAC the and key that grow and we're sure it's every of accounts more. Our every under They'll wholesale things to our

Operator

with next your comes Brook Roach question from Sachs. Goldman And

Brooke Roach

margin could the just we given that hoping puts deeper was the and price expectations each expect gross from one gave, of full better on benefits bit you profit product And a for of should us dive the especially for that your I the what some recapturing understand quarters? of margin? as your comment we couple takes path, forward, of but the selling is your gross cleaner outlook go magnitude into also help and Can benefits those that the you of costs. course over relative we next wholesale strength

Paul Vogel

mentioned, expect getting and would not we're mean were on in have in QX -- we in the last QX detail margin we we again from and some up Keep in do to actions QX. I much as I year up Yes. that in be QX. taken too mind, gross that. say, I are benefit

in general, So also into terms we're some of in we'll more that Wednesday on kind little get on help lot things out of laid we've well bit this. as headed. But a will of and it's detail where a of

keep detail, on share to not answer, but more there's same Wednesday. with little So a that we'll

Bracken Darrell

say Friday. On Wednesday, we'll

you, So Brooke. thank

Operator

Hutchinson Lorraine Bank your with comes from question America. of And next

Lorraine Maikis

more channel progressing? any comments North Face you've reactions North wholesale get little on had I by detail about a to the on was how hoping America. your partners from the season your view or is Any winter

Bracken Darrell

I'm but Yes. little before. the it's and came of our it than are. just chillier getting York did from feels when little less trade where I as ourselves. year. wholesalers it Canada late a We're U.S. year. you our it it from really too already be last chilly, kind sitting here And in New a from today worse like now. say. And than in came here parts definitely seemed of some say always it here to last any it or like I'd it's partners early It can't seems It's more does.

our confident to of of structure I'm independent we're isn't. optimistic. Look, can our a weather going kind including and decide it our interpret I'm is in words. it how I fix you what we a so our or control winter, terrible let's We've But -- think that that know, right the how don't good so those severe things you. But we're going here, have guiding whether got many guidance internally I So go-to-market to goes. we've without to win how think -- got enough what depending see I two in or you we're yes, deliver on we're just our telling now

Operator

And your next JPMorgan. question comes with from Matthew Boss

Matthew Boss

So Vans. Bracken, maybe a to in just dig more bit on

to best some maybe earlier wins So and year, SUNS some ] potential you you balance year where then stand maybe improvement outlined? we about on top of as into the growth And assortment we over actions about of time that of and line as to a had just relative next priorities influence the think maybe just how sequential on this reset and product measure revenue growth? the think [ multiyear

Bracken Darrell

Matthew. Thanks, Yes.

took the of the we I terms think reset lapping coming in described actions, in of up reset last we as Paul mentioned. those, to We're end overall, the actions year.

as rearview the that's good as you. -- they're probably give mean So I could in a mirror. I summary

she the definitely be, And got touch [ of she you top action. them everything. laid out, Vans, if product, middle think I started In her new a you new But those touching she'll know know is. of the program came introducing so And going for who forward everything, continue already before It campaign. every she's Sun ] every would She's products. of already to terms obviously really marketing of here. we've in priorities

path. -- really terms we're the going a it. can right markets I to we're kind coming the In time mentioned some improvement for expect that's I And in level you But the change. And not excited interest world in in really it, you provide and a around think quarter-over-quarter, now, see that. biggest it some on you of see a really line in of of I'm search the of could excitement about opening,

stuff about rearview really but I'm the days, the excited early Sun about good Vans. mirror. it's look, so I'm excited the ] I reset about feel and brand. [ And in

Operator

question your from with next UBS. And Jay Sole comes

Jay Sole

message Bracken, until guidance know to I give we so when we sure I think know I give guidance because we removed, can just we understand the message is, make going we're want can here the to deliver. the guidance of introducing you not guys was

guidance. that This expectation the is quarterly the it would year think was guidance. time full I be

like -- year have you into little there's we're of do. a why bit is our Logitech the thinking curious like we're sort I'm full of just guide? full of year giving taste a guide, like, it because the like it's explain inflection visibility we sort how kind but more it quarters, the still guidance, look, when we're like work quarterly here, of [ upward sort to at this you're not are bottom saying through to introduce is big at you So ]. -- of that like home here, Or the happened more picture, from

Bracken Darrell

when said at internally. that glad me know. removed looking you said. hard asked so do real do I'm I confidence we described that let Yes, the guidance, question. it's you you're you that. Yes. I exactly in guide When numbers have don't I what to

out. He question, we -- X quarter X So an -- so are year there's could for quarters out instead nothing to asking I quarters of something me. and magical my is A and really guide it quarters immediate X a what you out, year And guide connected a the to why just on year Paul here, talked you're of about out, Paul no just when he don't think which kind common X out. This impact guiding it is us referenced about to out. it got sense, and when out, after sense. try is year. Paul described had We quarters the makes X quarters I

sure most thing So what the make to important us out. quarter end we're that's I for And quarter delivering the think and do. in at day, the of is to exactly going we're

so talk this little a plan, and more on Wednesday. yes, about game our So that's we'll

Operator

with comes And from Paul your Lewis next Citi. question

Tracy Kogan

have mentioned will guys could going the savings did be? that savings efficiencies you with these beyond It's And if $XXX know the you of magnitude you million. in you Tracy the for first be where I and round? the frame wondering like was maybe you proportion Kogan see expected similar then additional a Paul. And you might I reinvesting

Bracken Darrell

I say until we're on savings first question say about to going the Wednesday. wait to to really that. would But Tracy, excited that What The we I'm have to did. hate answer round is I of this.

growth taking some and of really a on really I to deliver of be here more think good fruit. and to deeper little the we job from some level do and removing setting focused most going of is we about the of reengineering inefficiencies Anything did more some the lowest-hanging a -- growth.

talk that we about So will Wednesday.

Tracy Kogan

it. Can just the Face about one in in America. sneak North I North Got

So you whether was by wondering why it if weather the pressure, something month as anything might quarter was progressed, kind that or of saw indicate you I the else? saw

Bracken Darrell

No, first. guess, it's year I it's to wouldn't say is really and here, look, -- I this say, Paul's hard I'd that. my second so

So other. at we signal one and way month the by anything said, I we a looked don't see think or

to. think like And see. are we we'll about probably things I expected them

me. and York, the we're cold little in -- we're in Now sitting luckily, to New a it feels now

yesterday and I to [indiscernible] Face. So buy from North the had go out

Paul Vogel

exactly given the it Yes, in where just sequentially that where last from we to add, that's just came and expected said I slightly down year was on on comp we North from be QX, quarter we it last in. would that Face tough

just basically right So the North after regions, specifics but came line guardrails not in Face with what the holistically, into in and in the expected we quarter. last previewed had getting of

Operator

from Fargo. comes question with Ike Wells next your And Boruchow

Irwin Boruchow

I'm try. my but know going to if Let you'll I me add which Two answer, questions, congrats. don't

second us the round -- you noncore I specific kind the to just was million number, the Bracken, kind there Is give million it out can $XX that to help ] for feel the kind XXX asset but just there? And the way On -- of like one -- never get [ any guess, of was a you. I $XXX I of then number us before. thought sales, know to

Should review? done we business? are started, officially be asset is we And talked Just the something the at that Or anything? for running future? there that on to asking in or review longer the foreseeable portfolio just potential no about divestitures since you are length about we still happen you with

Bracken Darrell

officially last that? quickly, you're the the one. I'll I done. first How answer We're Because done and now. Yes, is real really think let answer never I'll one for Paul

So and we'll fit or the fit their strategic -- expected be only performance. on based portfolio always performance and things but their re-examining deciding their not if not

at yes, say, would now, Paul? we're I it. we'll keep but for So looking done

Paul Vogel

asset had we we expected better sales $XX that about million. Yes. what And did and on or million so was than $XX I said the by think we about

Operator

Jonathan And your next from Komp Baird. with question comes

Jonathan Komp

are think had parts broadly, at when anything ahead the that might you hoped? areas outperforming running business that the you lessening there are of expected? Bracken, does sequential I think just want to you any ask, improvement continued of sort on as third the fourth as you Or then about quarter, come or and look about what detail you more quarter declines? And of mind what be to

Bracken Darrell

to a But really expected. except Thanks for things with say little I along are better, have that anything meaningful we don't gone worse. I overall, a to think the question, have little what bit Jonathan. bit kind of things there's always consistent that surprisingly you,

very consistent. improvement it's and kind we what think not -- on, about And we're the so going forward. continue. excited rate very, I I'm going while we're and dimensionalize the it's think path to of to as And of I go

Operator

Stifel. next question from Duffy your And comes Jim with

Jim Duffy

the I'm boots. franchise? that seeing interest the you beyond global Timberland, go is an good some [indiscernible] Are deserves collaborations? more commentary? area sounds premium elevated Perhaps does that it around in curious, And that like attention enthusiasm your

Bracken Darrell

but Thanks buying ]. what's numbers. in mean the show X.X solid QX. [ up it'll still world. we'll bought more more Levitan quarters up collaboration, I and Boots had but and down, so yes, the good, So well. [ Probably another Maybe tuned. Yellow It's the to now. in question. down yet the showing keep was just which it's good more. Yes. down, I is ] of up. around I still doing pair this than better ago we great But [indiscernible] right? is not continue for we again And stay less so strength about see far it

and where this from see here. watching goes keep it let's So

Jim Duffy

you there wasn't stabilization where lot to brand a your thoughts are with another then on And there Okay. business? Dickies, of discussion, that respect where just of

Bracken Darrell

love it's brands, Dickies. special really brand. like say the our I history a old. gets I have it's Dickies it's I I all [indiscernible] -- but deep just love just to because love so It cool a such and --

our wearing such you've the where cool -- beach them right I go to we've from and level really do. did I [ I've brand, he we've so say a took relinquished because got my am come Chris Chris brand. I'd we're a As ] We've was before a the has there. it. the a I star I anyway. the it's He big advance making like terrific and the [indiscernible] a of there think of temporarily be on he'll -- over He'll Global down focus the are job winning work be he's [indiscernible] just think stabilization? [ the I we're over and there, really over And here and reset was in sure then North ] beyond -- star I -- over turnaround of kids, done that a he we here. -- now in eventually right right excited gap. He's And he'll surfing and Dickies. lead America, on Manager of General over job. in was XX-year-old turnaround part in that. I did strategy, going off at got or middle the

different Dickies the So I'm it's But that's Chris. really led a at excited really definitely We're to stabilization about by to it back we'll getting just growth, It's be period story, within him. going early. see. and

brand because about to won't the too we're Dickies the on to remember, You hear stuff -- do all we're going much going Wednesday later year. in

So it. very going be this focused to is much on

Jim Duffy

lot I wouldn't until questions. you answer figured Wednesday anyway. a of had I

So...

Bracken Darrell

Okay.

it. Okay. feel Well, to can wear free you

may you you more answer wear questions. If Dickies,

Operator

from next Guggenheim. Drbul Bob And question your comes with

Robert Drbul

two questions. got just I

X% should look resume what in you add XX% some the Second you your trends sort where sort on current one at sort of of expand -- on is, forward, forward? of is you revenue against there more plan down Or that China? And can to like we going question first looking how inventories minus across when to how expect more sort just just inventory The that quarter inventory you're levels you seeing towards that backs of then company, as X% run is growth? minus are is you China, the need is by sort of last in brand

Bracken Darrell

last let I I days come XXX said and question. Overall, inventory like Let me or think me of I answer the -- we'll then in the a take one first, that to have I back think would call, something. a actually room And further I said, were say, number. China bring last But the it's But down good It's there. a from get operate down we still I but that's it time, we number. from change pretty not to -- there. we have can there to bad we'll way we over think

think the -- that. there's end time, going worried been. it the same think in bet and seems I'm the over be I it term China, And in in macro than and that long I we're we'd North macro than little is not there's some it are It's about I China. happen. that highlight. is secular. don't up we is But things our -- reading be control, It to continues softer China but that's the so has will overall, Face have think much strong. a to be to required really -- down. On we'll work for go come long-term further down to that's anything, secular up. here in suddenly than I internal going that to The our so too environments, So true reason but we're get trend inventory not you're us don't lower If back why that. On

So it. and business far excited that's we're And China it's exciting. now. the biggest about by in

probably is bring too rest turnaround more of of we different But businesses [indiscernible] I'd not really North the talking are for there. info. probably Vans brands focus you all in mode there. rest And They're on the the it's worth until in places. the various in much now So Face about the really

Operator

question comes from And with your Telsey Telsey Advisory next Dana Group.

Dana Telsey

easy seeing flow specific industry segments? of that product terms As changed guidance, what in geography? or you're channel in provided, performance, brand's guidance then how or you've drive about with by either much comparisons any seen what's was was you the you think within How that of the helped of the that the brand, the And improvement think expansion free cash it the that? do any was in much it of

Bracken Darrell

and answer hard kind -- it's I'll I'll and first, the one try which of first answer. answer is not the and Paul one because a to last let one,

we've get terms it better in I combination compares brands think easy. think I we the easy X time. quarters to the And We've We've I'd get direction. in various do going will took I of example, us things. the They of in are, are it's and an in Vans. But channel, got a in where cases, changes In for a it's a thing. a think -- about set some of amount integrated the over ago. the got overall, that, and out -- we've business. where they quarters reduced as of say quarter were each element X They're would products couple of particularly better, say places coming channel like Vans. and I better, value got wrong ago, X in of X that progressively and

to synchronized went of quarter. each we're or figure on those year short term, across to plan, can apologize changes, -- next getting over through progressively transformation particularly these the the I And trying growth business impact to work X. I you more is brands you bigger a synchronized, you plan are X Ps with the their marketing, impact. one If the of each have and changes each total a out through element something. gauge tell either how will and who their and way they or of real those they're What more when a has

exactly out those really we'll parse to although So I of overall could good contribution about on the that we're a on, don't is I little think what feel talk current more each bit making but path one Wednesday, the about numbers. I

Paul Vogel

Yes.

level think thanks. of would never flow, that get detail view, but Bracken's on I free cash we to

Operator

question Stichter your comes with And next from BTIG. Janine

Unknown Analyst

as are wondering, and in the the was just Janine. the terms Sage [ heading Face than seeing environment in Ethan got into You've promotional on just both you the industry what North at ] well fans for overall I season? holiday of

Bracken Darrell

and we're Well, are sitting great. to wholesale promotion, have much I is Doesn't mean on selling, we're price we're than lot of full good. except We mean it Paul to have inventory last say more so doing partner, much wouldn't which it. on last I And were too. Other alluded retail which year, to, we about like. we're I as don't year, better. say that's looks than mean, -- our I year, sitting but too partners better that, this without a not, it is we're less

Operator

And from your Kernan comes question final TD John with Cowen.

John Kernan

as United a it's [indiscernible] versus geographies How comfortably just look domestic company. larger would internationally in certain obviously? the versus is how Vans, the curious you States? Vans larger, than VF is characterize domestic when I'm for now you trending business at Business consolidated

Bracken Darrell

way. which that say on internationally. the what deep think is I not I would underdeveloped deep is is Vans But probably won't I Well, go that

to I I that easy here. think thing say harder to here, thing feel that I a an unlock. got much I now -- that But before felt and am I that's

have our I the where world? But do be in underestimate within to opportunity U.S.. ourselves can in be how position back have ought the might So the we right a that get now. where I a we mean we we biggest of If really upside company, the Americas. how really opportunity we single to we're I get strong growth this not think as is around part much really would

growth there. of lot opportunity a have We

the So particularly and parts businesses, the we've the U.S. -- both international of business our got opportunity business. on and

a the question. John, So of things company. was excited about. I'm great one that really me It's about excite the

for the because of and will one is bring that will all like our transformation I actually We've especially one. the and I next you Paul for to call, next leadership info you but what we've This Good. had listening on Okay. priorities game our some and thank program. our is. And the be you thank new share together, had, progress so advance miss made of kind together, track. or of a the have Wednesday, with Day against our a too, to this kind want to I first we're you we'll to to teams on and think does we're excited of Investor the stated of this in it. of close all at sound want lot attending I I it had don't plan for end have attaining

Operator

Ladies concludes thank you gentlemen, participation. your and for this conference today's call, and we

disconnect. now may You

V.F. (VFC) 28 Oct 242025 Q2 Earnings call transcript