V.F. Corporation

Hello, everyone. Thank you for joining us and welcome to the VF Corporation Q2 full year 2026 earnings call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please raise your hand. If you have dialed into today's call, please press star nine to raise your hand and star six to unmute. I will now hand the call over to Allegra Perry, Vice President of Investor Relations. Please go ahead.

Hello and welcome to VF Corporation's second quarter fiscal 2026 conference call. Participants on today's call will make forward-looking statements. These statements are based on current expectations and are subject to uncertainties that could cause actual results to differ materially. These uncertainties are detailed in documents filed regularly with the SEC. Unless otherwise noted, amounts referred to on today's call will be on an adjusted constant dollar and continuing operations basis, which we've defined in the presentation that was posted on Investor Relations website and which we use as lead numbers in our discussion because we believe they more accurately represent the true operational performance and underlying results of our business. You may also hear us refer to reported amounts, which are in accordance with US GAAP. Reconciliations of GAAP measures to adjusted amounts can be found in the supplemental financial tables included in the presentation, which identify and quantify all excluded items and provide management's view of why this information is useful to investors. Joining me on the call today will be VF's President and Chief Executive Officer Bracken Darrell and EVP and Chief Financial Officer Paul Vogel. Following our prepared remarks, we'll open the call for questions. I'll now hand over to Bracken.

Thank you. Thank you, Allegra. We picked a strange day to do a video conference call because many of us were up for 18 straight innings of baseball. And probably, even though this is the most important event happening today is our conference call in the world, the second most important event will be one of the two Major League Baseball games. It's also happening today because it's never happened, I guess, or maybe rarely. You'll hear more later as Paul talks about it. Let me talk you through the financials, but at a really high level. It was a good quarter. We delivered on our commitments and we made further progress on our turnaround. And we delivered this performance despite, admittedly, a pretty uncertain, unpredictable environment around the world. Total revenue was up 2% in reported dollars and down 1% in constant dollars. A little better than planned and showed an improving trend versus last quarter. Operating income was $330 million, well above our guidance range of $260 to $290. Net debt, excluding lease liabilities, was down $1.5 billion versus last year, or down 27%. We're focused on returning the entire company to growth. Last quarter, I highlighted that 60% of our business by revenue was growing, up from just 10% in the prior year. In Q2, so this quarter, that figure expanded to over 65%. And if you took out Dickies, that would be almost 70%. Speaking of Dickies, during the quarter we announced our plans to sell the brand. I'm confident it's a very good move for the company and for our shareholders. As we've said before, we'll always evaluate any offer we receive reflecting our commitment to shareholder value creation. We had an inbound with a very good price of $600 million. We've done a lot of terrific work behind the scenes on the brand and the product portfolio, and I believe this positions the brand well for growth. This was a unique opportunity. On our end, we'll use the proceeds to pay down debt, consistent with our capital allocation priorities. This allows us to accelerate our path towards our medium-term leverage target of 2.5x or below. We're well on track. Let me now give you some of the highlights from the quarter on our biggest brands. Let's start with the North Face. The brand delivered another quarter of growth with the revenue up 4%. All three regions grew versus last year. We grew in wholesale and in DTC. In terms of categories, performance apparel was up in every region with momentum and core styles. Transitional outerwear was strong, and footwear continues to gain traction and grew double digits in every region. Across categories, product innovation, newness, and elevation drove growth as we continued to show the extraordinary reach of the North Face from the summit to the street. We also celebrated 25 years of the Summit Series, expanding the collection with innovation, adding exciting new colors and designs. This was supported by an athlete-led campaign featuring our incredible stable of North Face athletes, including the mountaineer Jim Morrison, who recently, with Jimmy Chin, became the first person ever to climb and ski down the North Face of Mount Everest. Across our marketing strategy, we're driving high consumer engagement and brand experiences and amplifying that through social channels. In addition to Ultra Trail du Mont Blanc, or UTMB, this included ClimbFest in San Francisco, community hiking events in APAC, and a Beijing 100K Ultra Trail race. As you know, as good as I feel about the North Face, I can't help but express what an enormous opportunity remains to be realized. We have potential in new categories, an ability to develop the women's business, and to build across all seasons of the year. Timberland revenue is up 4% in Q2, with growth across both wholesale and DTC as well. America's is up double digits, reflecting a strong back-to-school period. In terms of product, demand for the six-inch premium boot remains very strong. But today, the premium 6-inch icon represents only about 20% of our global revenue, so we have a lot of opportunity for growth. We can continue to grow the 6-inch business through colors, materials, innovations, collaborations, and more, while we also pursue the huge opportunity to grow this brand across other footwear and apparel categories. Closer to home, the strategy is already showing up with our recent launch of the Timberland 25, a lightweight version of the boot, which is very small now, but it's resonating well in its early weeks in our stores. A step further away from the boot, we're building our growing business around boat shoes. These sales are growing very strongly in all regions as we diversify the product lineup and give the brand more versatility and firepower during the warmer seasons. Timberland's adoption of a social-first marketing strategy has been instrumental in driving brand heat globally. During the quarter, the brand launched its Advice of an Icon campaign with high visibility events in New York, London, Shanghai, and Tokyo. Brand interest grew during the summer months with consumer search interest positive in key markets in the U.S. and in EMEA. The opportunity in Timberland is really significant because we can continue to grow the boot We can grow in other franchises, and we can unlock apparel around the world, all at the same time. And in the U.S. especially, this will be supported by expanded and enhanced distribution. We have the game plan to do that now. Altra accelerated further with revenue up over 35% versus last year, the third consecutive quarter of strong double-digit growth for the brand. Key franchises that represent a mix of road running and trail running styles show our broad-based approach to building this brand. The growth opportunity for Altra across both road and trail is significant. We're fueling this growth and driving higher brand awareness with targeted marketing investments, which as a reminder, Our awareness is less than 10% in the US and even lower in other regions. Let me repeat that. Our brand awareness in the US is less than 10%, yet we still have this size business and it's growing fast. This is helping e-commerce deliver particularly strong growth, driven by higher traffic and stronger conversion. Altra is on track to exceed $250 million in revenue this year, and I'm confident the brand has a long, strong runway for growth for many years to come. Let's turn to Vans. Performance was a little better this quarter with revenue down 11% versus last year. We're really focused on getting the commercial moments right as we upgrade our portfolio of products. I told you that Sun's impact on product would be visible in the back-to-school period, and it is. Product newness across footwear is drawing in new consumers, particularly women, but also youth and kids. In terms of new styles, non-icons are up in the quarter, driven by the Super Low Pro, which continues to perform well. The new Skate Loafer, which I decided to show you this one because many of you haven't seen it, which had a very strong debut and has sold out in most sizes, and the CrossPath XC, which has had a very strong launch. Within existing styles and icons, we're also beginning to realize the impact of elevation, innovation, and newness. For example, the Authentic is up globally as a franchise, helped by the halo effect of the Valentino CoLab, which drove positive search trends in key markets. Within the old school franchise, Nunes has driven higher sales of women's styles. And just last week at ComplexCon, the largest event for young shoe dogs in the world, I think, mostly guys, by the way, it's in Las Vegas. In that event, Vans had one of the longest, if not the longest line of people waiting for the pearlized old school shoe we launched there. This is just the start. More Nunes is coming as we head into holiday and into spring of 2026. In the meantime, our shift in marketing strategy is starting to yield results. Digital traffic trends improved in the Americas and EMEA, particularly during relevant consumer moments like back to school, when digital traffic was up in the Americas. And looking ahead, we're excited about the recently announced new partnership with SZA as the brand's first ever artistic director. It's early days, but in coming seasons, she'll add her voice and her touch to product and marketing. To wrap it up on Vans, each quarter we're making great progress. We took actions to clean up the marketplace and set the stage for a very exciting product pipeline that started to roll in and is delivering early results. I'm as confident as ever in Sun and her team leading us to return to growth at Vans. Looking ahead, we're making progress on the turnaround of VF, and I'm super confident in our ability to deliver both our near-term and our medium-term targets. Our teams are energized for the upcoming holiday season. I'll now hand it over to Paul, who will dive in deeper into the numbers. Paul?