VF management commentary: Gross margin expansion drives fiscal Q2 2027 operating income growth
VFC•VF Corporation reported fiscal second-quarter 2027 revenue growth of 1%, gross margin expansion of 290 basis points to 55.4%, and operating income of $364 million. Earnings per share rose more than 40% to $0.70.
1. Margins and income rise
VF Corporation attributed fiscal second-quarter 2027 revenue growth of 1% to gains at The North Face, Timberland and Altra. Gross margin expanded 290 basis points to 55.4%, reflecting lower product costs, pricing, integrated business planning and favorable foreign exchange. Operating income reached $364 million, nearly $50 million above guidance, though roughly half of the beat reflected spending shifted into the third quarter.
2. Vans remains weak
Vans revenue fell 9.8% amid wholesale weakness, despite global direct-to-consumer growth for the first time in almost five years. Earnings per share rose more than 40% to $0.70, primarily driven by operating income growth, with lower interest expense also contributing.
