Altra's 40% Growth Gives VF a Cushion While Vans Still Shrinks

Altra's 40% growth gave VF Corp a useful counterweight in its fiscal second quarter, but it did not erase the central problem: Vans revenue still fell nearly 10%.

VF reported $2.70 billion of revenue for the quarter ended September 26, 2026, down 4% on a reported basis. Excluding Dickies, which VF sold, revenue rose 1%. The distinction matters because the cleaner comparison shows that the remaining portfolio grew slightly even as the headline total declined.

The North Face and Timberland each grew 4%, reaching $1.21 billion and $525.9 million, respectively. Vans fell 9.8% to $547.6 million. VF's other brands, excluding Dickies, grew 6%, led by Altra growth of more than 40%. Retail Dive reported that Altra generated about $300 million of revenue last year, so its rapid expansion is meaningful but still comes from a much smaller base than Vans.

Sales channels told a similarly mixed story. Global direct-to-consumer revenue rose 1% as reported, or 3% excluding Dickies, while wholesale fell 6% as reported and was flat without Dickies. Retail Dive put the channel totals at roughly $915 million for direct-to-consumer and $1.8 billion for wholesale. Management said retailers had been clearing Vans inventory and that orders for the next two quarters were improving, but those orders remain a forecast rather than completed sales.

Profitability and the balance sheet improved more clearly. Adjusted gross margin excluding Dickies reached 55.4%, up 290 basis points, helped by lower product costs and currency. Reported operating income was $368 million and the reported operating margin rose 250 basis points year over year to 13.7%. Adjusted operating income excluding Dickies was $364 million, ahead of the company's $315 million guidance, and the adjusted operating margin rose 170 basis points to 13.5%. Net debt fell by $1.1 billion, or 20%, from a year earlier. Excluding leases, the reduction was 26%.

There is still working-capital risk behind the recovery plan. Inventory rose 7% as VF prepared for second-half demand. That stock can support new product launches, but it also raises the cost of a weaker-than-expected holiday season or slower wholesale orders.

VF maintained fiscal 2027 guidance for constant-currency revenue growth of at least 2% excluding Dickies, an adjusted operating margin of about 8%, and normalized free cash flow that is flat to higher than the prior year's $405 million. The company expects actual free cash flow of at least $515 million and year-end leverage of 2.6 to 2.9 times.

Altra can now offset part of the pressure from Vans, and strength at The North Face and Timberland gives VF more room to execute. The investment case still depends on whether Vans converts better direct sales and a stronger order book into wholesale revenue without leaving VF with excess inventory.