V.F. Corporation

Ladies and gentlemen, thank you for joining us and welcome to VF Corporate.

we 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 we say otherwise, amounts that Bracken and Paul referred to on today's call are all on an adjusted constant dollar, continuing operations, and excluding Dickies basis, which we've defined in the presentation that was posted this morning on our investor relations website. We use those as lead numbers in our discussion, as we believe they more accurately represent the true operational performance and underlying results of our business. We may also refer to reported amounts which are in accordance with U.S. GAAP. Reconciliations of GAAP measures to adjusted amounts are found in the supplemental financial tables which are included in the presentation where we identify and qualify all excluded items and provide management's view of why this information is useful to investors. Joining me on today's call are 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 your questions. I'll now hand over to Bracken.

Thank you so much, Allegra. Before I get into anything else, I can't help but talk about Alex Honnold. Over the weekend, Alex set a record for the biggest urban free solo climb in history, climbing the 1,667-foot skyscraper Taipei 101. Alex has been an athlete in the North Face for over 20 years, and he's one of the many super impressive and brave human beings we work with as we develop products and marketing. You might remember just last quarter, we highlighted that Jim Morrison completed the first ski descent of the North Face of Mount Everest. That was captured by another athlete of ours, Jimmy Chin, and will be released as a feature film later this year. And Jim's backstory is simply incredible. Our athletes continue to push the boundaries wearing the North Face product, and we continue to push the boundaries of our results. So let me get into the third quarter. We had a strong third quarter. I'm incredibly proud of the team, and I'd like to thank all of our employees for their relentless hard work and dedication. Importantly, our business improved in Q3 relative to the last quarter, returning to growth during our peak holiday quarter. In Q3, total revenue was up 2%, exceeding our own expectations. Over 75% of our business was up by revenue, and excluding Vans and Dickies, revenue was up 5% versus last year. On a global basis, DTC returned to growth, up 3%, driven by the U.S., particularly in digital. We also had one of our strongest performances in the Americas in over three years, up 6%, driven by growth in both DTC and wholesale. As you'll remember, fixing the U.S. has been a top priority of our turnaround. Our revenue performance also helped drive stronger than anticipated operating income of $341 million. Reported net debt, excluding lease liabilities, was down almost $600 million versus last year, or down almost 20%. To summarize, we had a very strong Q3, growing revenue, expanding margins, and reducing debt, exactly as we said we'd do. Let's talk through some of our highlights from our brands, where we continue to see continued progress across the board. Starting with the North Face, which delivered strong growth during the peak season, with revenue up 5%. Both DTC and wholesale were up globally, and I'm particularly proud of the fact that we grew 15% in the Americas. The North Face is generating broad-based growth across categories. In the quarter, all product categories were up versus last year with strength and performance apparel and footwear, which was up double digits again this quarter. Last quarter, we talked about the expanded product offering of Summit Series. That is also performing strongly with double-digit growth in all regions. We're making inroads as well into elevated products and elevated fabrication. Let me give you an example. Our leather collection, I have the jacket right in front of me, with a leather jacket priced at $1,100 sold out in less than 24 hours. The brand was again recognized for design and innovation through multiple awards, including the top outdoor brand in America, in times the world's best brands of 2025 list. You might remember we also won Fast Company's 2025 Innovation by Design Award, Time's Best Innovations of 2025, and the Popular Science 50 Greatest Inventions or Innovations of 2025. In addition to elevating our product offering, we also continue to advance on another key strategic priority to enhance our distribution. During the quarter, we opened our largest global flagship store in New York on Fifth Avenue. which represents how we're reimagining physical retail for the brand. The store has delivered strong results in its initial weeks of trading. We continue to refine and advance our marketing tactics. Our social-first marketing approach is driving brand heat, while broadening reach and Q3 marked our strongest social-first performance to date. And that was before Alex's climb. During the quarter, we launched the second installment of our collaboration with Skims, which also delivered strong results. As you can see, lots of great developments at the North Face. Moving on to Timberland. This is another brand with great momentum. Brand revenue was up 5% in Q3, with global growth across both wholesale and DCC. America's had another strong quarter, up 9%. From a product perspective, the six-inch premium boot was a key driver behind the brand's strong momentum. And we're innovating against this core icon while also continuing to develop products across other categories. The boat shoe continues to grow strongly, up double digits in all regions, and we're developing the brand's product lineup, including new transitional styles for the warmer seasons. Timberland has incredible energy, and we're amplifying that brand's cultural relevancy and reach through social-first marketing as well. Building on last quarter's trends, search interest continues to grow in the U.S. and key EMEA markets. The brand consistently shows up in key cultural moments and is embraced by celebrities everywhere, from courtside to the red carpet. As you can probably tell, I couldn't be more excited about Timberland's growth opportunity over the long term. More to come. Moving on to Altra. It's clearly a smaller brand today than our top three, but I have to tell you, I love the brand's energy and distinctive products. The potential here is large and probably underappreciated. The brand delivered another quarter of extremely strong growth, up 23% versus last year. Key franchises in both trail and road running continue to drive growth and refueling this growth with more and more innovation. New products are delivering, including Via and Temp6. We're investing strongly in marketing, given the very high ROI. We're well on track to exceed $250 million in revenue for Ultra in fiscal 26, but the addressable market is large and growing. Now let's turn to Vans. We continue to make progress here, and we're seeing green shoots. In line with our expectation, revenue is down 10%, similar to last quarter. You already know that we're focused on executing the key commercial moments as we continue to refresh and upgrade the product lineup. This strategy is starting to deliver. In fact, global digital revenue grew in the quarter, grew in the quarter, led by the Americas. In terms of product newness, or in terms of product, new products delivered growth again this quarter with consistently strong trends delivered by the Super Low Pro, the Skate Loafer, which I'm wearing right now, and the CrossFath XC, where we continue to innovate with design colors and materials. Elevation, innovation, and newness are also increasingly visible and having an impact across our icons. The authentic and the slip-on are delivering improving trends, benefiting from a rising interest among the high fashion brands in skate-inspired shoes. The K-pop Demon Hunters collaboration launched in early December, just a few months after the movie hit the screens. In this one, we showed how fast we can bring a product to market. We went from idea to store shelf in 10 weeks. We're working on product creation spree to cross our portfolio now for 2027. Turning to marketing, our shift in strategy is visible. Our holiday campaign, Meet the Vans, featured lifestyle product and drove online energy during the gift-giving holiday period. Our digital traffic trends improved in the Americas and anemia, which led to growth in our global e-commerce sales for the first time in over four years, led by the Americas. We are excited about the influence we see as well. We'll see later this year from SZA in a role as artistic director. Just last week, SZA was in Paris at Paris Fashion Week, seated in the front row at the Louis Vuitton and Dior fashion shows, wearing bespoke Vans, old school and authentic, bejeweled with gemstones by New York-based jewelry designer Rachel Goatley. We'll see more of SZA and her artistic vision for the brand in the coming months. In summary, Vans continues to make progress. I'd like to share a planned transition now within our global leadership team. Our Chief Commercial Officer, Martino Scavia-Agrini, is stepping down from his role. Martino will continue to support the company as an advisor to me to ensure a smooth transition. Brent Hyder will assume the role of Chief Commercial Officer, in addition to his continuing role as President for the Americas, a role he's held since last spring with strong results. I want to sincerely thank Martino for his 20 years of outstanding contributions to the company. Martino's energy, passion, and deep focus on design and consumer-led brands have left an enduring impact on our business and on me. I'm confident this leadership team, comprised of best-in-class talent, will enable us to fulfill VF's significant growth opportunities ahead. To conclude, we have momentum, and now we've gone positive for the first time in a while We're on track to deliver our targets. I'll now hand it over to Paul, who will dive in deeper into the numbers. Paul?