What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-10-28 compared with 2025-07-30 · 237 added, 196 removed, 214 unchanged (67% of the section changed)

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The Company's current fiscal year runs from March 30, 2025 through March 28, 2026 ("Fiscal 2026").

Accordingly, this Form 10-Q presents our first quarter of Fiscal 2026.

For presentation purposes herein, all references to periods ended June 2025 and June 2024 relate to the fiscal periods ended on June 28, 2025 and June 29, 2024, respectively.

Accordingly, this Form 10-Q presents our second quarter of Fiscal 2026.

For presentation purposes herein, all references to periods ended September 2025 and September 2024 relate to the fiscal periods ended on September 27, 2025 and September 28, 2024, respectively.

References to March 2025 relate to information as of March 29, 2025.

All per share amounts are presented on a diluted basis and all percentages shown in the tables below and the following discussion have been calculated using unrounded numbers.

References to the three months ended June 2025 foreign currency amounts and impacts below reflect the changes in foreign exchange rates from the three months ended June 2024 when translating foreign currencies into U.S.

References to the three and six months ended September 2025 foreign currency amounts and impacts below reflect the changes in foreign exchange rates from the three and six months ended September 2024 when translating foreign currencies into U.S.

VF’s most significant foreign currency exposure relates to business conducted in euro-based countries.

Additionally, VF conducts business in other developed and emerging markets around the world with exposure to foreign currencies other than the euro.

On September 15, 2025, VF entered into a definitive agreement with Bluestar Alliance LLC to sell the Dickies ® brand business ("Dickies").

The Company determined that the associated assets and liabilities met the held-for-sale accounting criteria and they were classified accordingly in the September 2025 Consolidated Balance Sheet.

The Company determined that the planned sale of Dickies does not represent a strategic shift that will have a major effect on the Company's operations and financial results, and therefore does not qualify for presentation as a discontinued operation.

Refer to Note 4 to VF's consolidated financial statements for additional information on the planned divestiture.

In the first quarter of Fiscal 2026, VF realigned its reportable segments to reflect a change in how the Timberland ® brand is managed and the chief operating decision maker's key areas of focus.

VF began managing its Timberland ® and Timberland PRO ® brands as one operating segment during the first quarter of Fiscal 2026.

This operating segment has been aggregated with The North Face ® brand in the Outdoor reportable segment and the Vans ® , Kipling ® , Eastpak ® and Jansport ® brands have been aggregated in the Active reportable segment.

This operating segment has been aggregated with The North Face ® brand in the Outdoor reportable segment and

the Vans ® , Kipling ® , Eastpak ® and Jansport ® brands have been aggregated in the Active reportable segment.

All other brands that have not been aggregated within the reportable segments described above, which do not meet the quantitative threshold to be disclosed as a separate reportable segment, have been grouped within an "All Other" category.

This group includes the

Dickies ® , Altra ® , Smartwool ® , Napapijri ® and Icebreaker ® brands.

This group includes the Dickies ® , Altra ® , Smartwool ® , Napapijri ® and Icebreaker ® brands.

In the tables below, the Company has recast historical financial information to reflect the new reportable segments.

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Refer to additional discussion in the "Information by Reportable Segment" section below and Note 15 to VF's consolidated financial statements.

On July 16, 2024, VF entered into a definitive Stock and Asset Purchase Agreement (the "Purchase Agreement") with EssilorLuxottica S.A.

On July 16, 2024, VF entered into a definitive Stock and Asset Purchase Agreement with EssilorLuxottica S.A.

to sell the Supreme ® brand business ("Supreme").

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Accordingly, VF has reported the results of Supreme and the related cash flows as discontinued operations in the Consolidated Statements of Operations and Consolidated Statements of Cash Flows, respectively, through the date of sale.

In addition, interest expense and the related interest rate swap impact for the delayed draw Term Loan ("DDTL"), which totaled $14.9 million for the three months ended June 2024, were allocated to discontinued operations due to the requirement within the DDTL Agreement, as amended, that the DDTL be prepaid upon the receipt of the net cash proceeds from the sale of Supreme.

In addition, interest expense and the related interest rate swap impact for the delayed draw Term Loan ("DDTL"), which totaled $16.2 million and $31.1 million for the three and six months ended September 2024, respectively, were allocated to discontinued operations due to the requirement within the DDTL Agreement, as amended, that the DDTL be prepaid upon the receipt of the net cash proceeds from the sale of Supreme.

The related held-for-sale assets and liabilities have been reported as assets and liabilities of discontinued operations in the Consolidated Balance Sheets, through the date of sale.

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RECENT DEVELOPMENTS

Dickies Assets Held-for-Sale

As noted above, VF entered into a definitive agreement to sell Dickies on September 15, 2025 for $600.0 million in cash, subject to customary adjustments for cash, indebtedness, working capital and transaction expenses.

Impact of Tariffs

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Approximately 85% of products purchased for sale in the U.S.

are sourced through Southeast Asia and Central and South America, with Vietnam, Bangladesh, Cambodia and Indonesia comprising the top four sourcing markets.

are sourced through Southeast Asia and Central and South America, with

Vietnam, Bangladesh, Cambodia and Indonesia comprising the top four sourcing markets.

Less than 2% of total U.S.

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Mitigation strategies include sourcing optimization, accelerating production and shipments into the U.S.

during the period of delayed application of the reciprocal tariffs, negotiations with our vendors, and potential price increases.

However, the duration and scope of the tariffs are difficult to predict, along with the extent to which VF will be able to offset the impact through our mitigation efforts.

during the period of delayed application of the reciprocal tariffs, negotiations with our vendors, and planned price increases.

VF has begun paying reciprocal tariffs on product imported into the U.S.

and, due to the timing of implementation of the mitigation strategies, VF expects that gross margin will be negatively impacted (though not materially) throughout the second half of Fiscal 2026.

However, the duration and scope of the tariffs are difficult to predict, along with the

VF Corporation Q2 FY26 Form 10-Q 32

extent to which VF will be able to offset the impact through our mitigation efforts.

On October 30, 2023, VF introduced Reinvent, a transformation program to enhance focus on brand-building and to improve operating performance and allow VF to achieve its full potential.

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VF aims to generate between $500.0 and $600.0 million in net operating income expansion in Fiscal 2028 compared to the end of Fiscal 2024.

Reinvent restructuring charges in the three months ended June 2025 were $17.5 million and cumulative charges were $207.6 million since the inception of the program, which primarily included costs associated with severance and

VF Corporation Q1 FY26 Form 10-Q 26

employee-related benefits and the impact of asset impairments and write-downs.

Reinvent restructuring charges in the three and six months ended September 2025 were $4.1 million and $21.6 million, respectively, and cumulative charges were $211.7 million since the inception of the program, which primarily included costs associated with severance and employee-related benefits and the impact of asset impairments and write-downs.

All restructuring actions related to Reinvent were substantially complete at the end of the first quarter of Fiscal 2026.

In addition, as further discussed in Note 16 to VF's consolidated financial statements, VF has entered into a contract with a

consulting firm to support Reinvent.

In addition, as further discussed in Note 17 to VF's consolidated financial statements, VF has entered into a contract with a consulting firm to support Reinvent.

Fees related to the contract consist of fixed fees for services performed and contingent fees tied to increases in VF’s stock price.

Services provided under the contract are expected to be substantially complete by the third quarter of Fiscal 2026 and contingent fees tied to increases in VF’s stock price will be measured through June 2027.

SUMMARY OF THE FIRST QUARTER OF FISCAL 2026

• Revenues remained flat at $1.8 billion compared to the three months ended June 2024, including a 2% favorable impact from foreign currency.

• Outdoor segment revenues increased 8% to $812.5 million compared to the three months ended June 2024, including a 2% favorable impact from foreign currency.

• Active segment revenues decreased 10% to $699.7 million compared to the three months ended June 2024, including a 1% favorable impact from foreign currency.

• Wholesale revenues increased 1% compared to the three months ended June 2024, including a 1% favorable impact from foreign currency.

• Direct-to-consumer revenues decreased 3% compared to the three months ended June 2024, including a 1% favorable impact from foreign currency.

• International revenues increased 2% compared to the three months ended June 2024, including a 3% favorable impact from foreign currency.

• Revenues in the Americas region decreased 4% compared to the three months ended June 2024, including a 1% unfavorable impact from foreign currency.

• G ross margin increased 270 basis points to 53.9% compared to the three months ended June 2024, primarily driven by favorable foreign currency impacts, higher quality inventory and lower discounts.

• Net loss per share was ($0.30) compared to ($0.39) i n the 2024 period .

Th e decrease in ne t loss per share was primarily driven by increased profitability in the Outdoor segment during the three months ended June 2025 compared to the three months ended June 2024.

The decrease in net loss per share was partially offset by higher Reinvent charges and lower profitability in the Active segment .

SUMMARY OF THE SECOND QUARTER OF FISCAL 2026

• Revenues increased 2% to $2.8 billion compared to the three months ended September 2024, including a 3% favorable impact from foreign currency.

• Outdoor segment revenues increased 6% to $1.7 billion compared to the three months ended September 2024, including a 2% favorable impact from foreign currency.

• Active segment revenues decreased 8% to $760.7 million compared to the three months ended September 2024, including a 2% favorable impact from foreign currency.

• Wholesale revenues increased 3% compared to the three months ended September 2024, including a 3% favorable impact from foreign currency.

• Direct-to-consumer revenues decreased 1% compared to the three months ended September 2024, including a 1% favorable impact from foreign currency.

• International revenues increased 4% compared to the three months ended September 2024, including a 4% favorable impact from foreign currency.

• Revenues in the Americas region decreased 1% compared to the three months ended September 2024.

• G ross margin remained flat at 52.2% compared to the three months ended September 2024.

• Earnings per share was $0.48 compared to $0.52 i n the 2024 period .

The decrease in earnings per share was primarily driven by a higher tax rate in the current year, partially offset by lower Reinvent charges during the three months ended September 2025 compared to the three months ended September 2024 .

ANALYSIS OF RESULTS OF OPERATIONS

Consolidated Statements of Operations

The following table presents a summary of the changes in revenues for the three months ended June 2025 from the comparable period in 2024:

(In millions) Three Months Ended June

The following table presents a summary of the changes in revenues for the three and six months ended September 2025 from the comparable periods in 2024:

(In millions) Three Months Ended September Six Months Ended September

Revenues — 2024 $ 2,757.9 $ 4,527.0

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Revenues — 2025 $ 2,802.7 $ 4,563.4

VF revenues remained flat for the three months ended June 2025 compared to the 2024 period, including a 2% favorable impact from foreign currency.

The operational decline was driven by a decrease in the Active segment, partially offset by an increase in the Outdoor segment.

Revenue declines in the Americas region were offset by increases in the Europe and Asia-Pacific regions, including favorable impacts from foreign currency.

VF reported a 2% and 1% increase in revenues for the three and six months ended September 2025, respectively, compared to the 2024 periods, including a 3% and 2% favorable impact from foreign currency for the respective periods.

The operational declines in both the three and six months ended September 2025 were driven by decreases in the Active segment, partially offset by increases in the Outdoor segment.

Revenue declines in the Americas and Asia-Pacific regions in the three months ended September 2025 were offset by increases in the Europe region,

including favorable impacts from foreign currency.

In the six months ended September 2025, revenue declines in the Americas region were offset by increases in the Europe and Asia-Pacific regions, including favorable impacts from foreign currency.

Additional details on revenues are provided in the section titled “Information by Reportable Segment.”

33 VF Corporation Q2 FY26 Form 10-Q

The following table presents the percentage relationship to revenues for components of the Consolidated Statements of Operations:

Three Months Ended June

Three Months Ended September Six Months Ended September

2025 2024 2025 2024

Gross margin (revenues less cost of goods sold) 52.2 % 52.2 % 52.8 % 51.8 %

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Amounts may not sum due to rounding.

27 VF Corporation Q1 FY26 Form 10-Q

Gross margin increased 270 b asis points in the three months ended June 2025 compared to the 2024 period.

Th e increase in the three months ended June 2025 was primarily driven by f avorable foreign currency impacts, higher quality inventory and lower discounts.

Selling, general and administrative expe nses as a percentage of total revenue s increased 70 b asis points during the three months ended June 2025 compared to the 2024 period.

Selling , general and administrative expenses increased $6.9 million in the three months ended June 2025 compared to the 2024 period.

The increase in the three months ended June 2025 was primarily due to higher Reinvent restructuring charges and project-related costs, and a gain recognized from a sale leaseback transaction in June 2024 , partially offset by cost savings from Reinvent, lower information technology costs and distribution expenses.

Net interest expense increased $0.2 million durin g the three months ended June 2025 compared to the 2024 period.

The increase i n net interest expense in the three months ended June 2025 was primarily due to unfavorable foreign currency impacts, partially offset by the March 2025 early redemption of $750.0 million in aggregate principal amount of its outstanding 2.400% Senior Notes due in April 2025.

Total outstanding debt averaged $5.1 billion in the three months ended June 2025 and $6.1 billion in the same period in 2024, with weighted average

interest rates of 2.9% and 3.1% in the three months ended June 2025 and 2024, respectively.

The effective income tax rate for the three months ended June 2025 was 8.0% compared to 8.1% in the 2024 perio d.

Th e three months ended June 2025 included a net discrete tax expense of $11.5 million, which was comprised primarily of a $7.4 million net tax expense related to unrecognized tax benefits and interest, and a $4.1 million tax expense related to stock compensation.

Excluding the $11.5 million net discrete tax expense in the 2025 period, the effective income tax rate would have be en 17.2%.

T he three months ended June 2024 included a net discrete tax expense of $7.1 million, w hich was comprised primarily of a $3.6 million net tax expense related to unrecognized tax benefits and interest, and a $4.3 million tax expense related to stock compensation.

Excludin g the $7.1 million net discrete tax expense in the 2024 period, the effective income tax rate would have been 12.4%.

Without discrete items, the effective income tax rate for the three months ended June 2025 increased by 4.8% co mpared with the 2024 period primarily due to an increase in tax rates on foreign earnings.

As a result of the above , loss from continuing operations in the three months ended June 2025 was ($116.4) million (($0.30) per diluted share) compared to ($152.0) million (($0.39) pe r diluted share) in the 2024 period.

Gross margin remained flat and increased 100 basi s points in the three and six months ended September 2025, respectively, compared to the 2024 periods.

Th e increase in the six months ended September 2025 was primarily driven by favorable foreign currency impacts, higher quality inventory and lower discounts.

Selling, general and administrative expe nses as a percentage of tot al revenues decreased 130 and 60 basis point s during the three and six months ended September 2025, respectively, compared to the 2024 periods.

Selling , general and administrative expenses decreased $16.8 million and $9.9 million in the three and six months ended September 2025, respectively, compared to the 2024 periods.

The decrease in the three months ended September 2025 was primarily due to cost savings from Reinvent, including lower information technology costs.

The decrease in the six months ended September 2025 was primarily due to cost savings from Reinvent, including lower information technology costs and lower distribution expenses, partially offset by a gain recognized from a sale leaseback transaction in June 2024.

The decrease in both periods was also due to lower Reinvent restructuring charges and project-related costs.

Net interest expense increased $3.5 million and $3.7 million durin g the three and six months ended September 2025, respectively, compared to the 2024 periods.

The increase i n net interest expense in both the three and six months ended September 2025 was primarily due to unfavorable foreign currency impacts, partially offset by the March 2025 early redemption of $750.0 million in aggregate principal amount of its outstanding 2.400% Senior Notes due in April 2025.

Total outstanding debt averaged $4.8 billion in the six months ended September 2025 and $6.2 billion in the same period in 2024, with

weighted average interest rates of 3.2% and 2.7% in the six months ended September 2025 and 2024, respectively.

The effective income tax rate for the six months ended September 2025 was 48.2% compared to 22.5% in the 2024 perio d.

Th e six months ended September 2025 included a net discrete tax expense of $2.5 million, which was comprised primarily of a $5.6 million tax expense related to stock compensation and a $3.1 million net tax benefit related to unrecognized tax benefits and interest.

Excluding the $2.5 million net discrete tax expense in the 2025 period, the effective income tax rate would have been 46.5%.

The six months ended September 2024 included a net discrete tax benefit of $5.8 million, w hich was comprised primarily of a $9.5 million net tax benefit related to unrecognized tax benefits and interest and a $5.3 million tax expense related to stock compensation.

Excludin g the $5.8 million net discrete tax benefit in the 2024 period, the effective income tax rate would have been 31.4%.

Without discrete items, the effective income tax rate for the six months ended September 2025 increased by 15.1% compared with the 2024 period primarily due to an increase in tax rates on foreign earnings.

As a result of the above, income from continuing operations in the three months ended September 2025 was $189.8 million ($0.48 per diluted share) compared to $202.5 million ($0.52 per diluted share) in the 2024 period, and income from continuing operations in the six months ended September 2025 was $73.4 million ($0.19 per diluted share) compared to $50.5 million ($0.13 per diluted share) in the 2024 period.

Refer to additional discussion in the “Information by Reportable Segment” section below.

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The primary financial measures used by management to evaluate the financial results of VF's reportable segments are segment revenues and segment profit.

Segment profit (loss) comprises the operating income (loss) and other income (expense), net line items of each segment.

Refer to Note 14 to the consolidated financial statements for a summary of results of operations by segment, along with a reconciliation of segment profit to loss from continuing operations before income taxes.

The following tables present a summary of the changes in revenues a nd segment profit (loss) in the three months ended June 2025 from the comparable period in 2024 and revenues by region for our Top 3 brands for the three months ended June 2025 and 2024:

Three Months Ended June

Segment profit comprises the operat ing income and oth er income (expense), net line items of each segment.

Refer to Note 15 to the consolidated financial statements for a summary of results of operations by segment, along with a reconciliation of segment profit t o income f rom continuing operations before income taxes.

VF Corporation Q2 FY26 Form 10-Q 34

The following tables present a summary of the changes in revenues a nd segmen t profit in the three and six months ended September 2025 from the comparable periods in 2024 and revenues by region for our Top 3 brands for the three and six months ended September 2025 and 2024:

Three Months Ended September

(In millions) Outdoor Segment Active Segment All Other Total

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Revenues — 2025 $ 1,663.5 $ 760.8 $ 378.5 $ 2,802.7

Six Months Ended September

(In millions) Outdoor Segment Active Segment All Other Total

Revenues — 2024 $ 2,320.4 $ 1,601.3 $ 605.4 $ 4,527.0

Organic 106.1 (164.4) 9.8 (48.2)

Impact of foreign currency 49.4 23.5 11.8 84.6

Revenues — 2025 $ 2,475.9 $ 1,460.4 $ 627.0 $ 4,563.4

Amounts may not sum due to rounding.

VF Corporation Q1 FY26 Form 10-Q 28

Segment Profit (Loss):

Three Months Ended June

Segment Profit:

Three Months Ended September

(In millions) Outdoor Segment Active Segment Total

Segment profit (loss)— 2024 $ (72.9) $ 71.5 $ (1.4)

Segment profit— 2024 $ 278.1 $ 93.5 $ 371.6

Organic 14.9 (30.9) (15.9)

Impact of foreign currency 7.7 3.1 10.8

Segment profit (loss)— 2025 $ (42.3) $ 56.8 $ 14.6

Segment profit — 2025 $ 300.7 $ 65.7 $ 366.5

Six Months Ended September

(In millions) Outdoor Segment Active Segment Total

Segment profit— 2024 $ 205.3 $ 164.9 $ 370.2

Organic 46.2 (46.9) (0.7)

Impact of foreign currency 7.0 4.6 11.6

Segment profit — 2025 $ 258.5 $ 122.6 $ 381.1

Amounts may not sum due to rounding.

35 VF Corporation Q2 FY26 Form 10-Q

Top Brand Revenues:

Three Months Ended June 2025

Three Months Ended September 2025

(In millions) The North Face ®

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Global $ 1,157.1 $ 606.9 $ 506.4 $ 2,270.4

Three Months Ended June 2024

Three Months Ended September 2024

(In millions) The North Face ®

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Global $ 1,091.4 $ 667.4 $ 475.3 $ 2,234.1

Six Months Ended September 2025

(In millions) The North Face ®

Americas $ 717.8 $ 663.8 $ 350.7 $ 1,732.3

Europe 623.6 328.5 317.0 1,269.1

Asia-Pacific 373.1 112.6 93.8 579.5

Global $ 1,714.5 $ 1,104.9 $ 761.4 $ 3,580.8

Six Months Ended September 2024

(In millions) The North Face ®

Americas $ 716.0 $ 753.5 $ 312.1 $ 1,781.6

Europe 560.7 357.0 293.8 1,211.5

Asia-Pacific 338.9 138.8 98.9 576.6

Global $ 1,615.6 $ 1,249.3 $ 704.8 $ 3,569.7

Amounts may not sum due to rounding.

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Outdoor Segment

Three Months Ended June

Three Months Ended September Six Months Ended September

(Dollars in millions) 2025 2024 Percent

Change 2025 2024 Percent

Segment revenues $ 1,663.5 $ 1,566.7 6.2 % $ 2,475.9 $ 2,320.4 6.7 %

Segment loss (42.3) (72.9) 42.0 %

Segment profit 300.7 278.1 8.1 % 258.5 205.3 25.9 %

Segment profit margin 18.1 % 17.8 % 10.4 % 8.8 %

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The North Face ® and Timberland ® .

Global revenues for Outdoor increased 8% in the three months ended June 2025 compared to the 2024 period, including a 2% favorable impact from foreign currency.

Revenues in the Europe region increased 11%, including a 5% favorable impact from fore ign currency.

Revenues in the Asia-Pacific region increased 15%.

Reve nues in the Americas region increased 3%.

Global revenues for The North Face ® brand increased 6% in the three months ended June 2025 compared to the 2024 period, including a 1% favorable impact from foreign currency, driven by growth in the Europe and Asia-Pacific regions.

Revenues in the Europe region increased 15%, including a 6% favorable impact from foreign currency.

Revenues in the Asia-Pacific region increased 16% in the three months ended June 2025.

Revenues in the Americas region decreased 3% in the three months ended June 2025.

Global revenues for the Timberland ® brand increased 11% in the three months ended June 2025 compared to the 2024 period, including a 2% favorable impact from foreign currency, with revenue growth across all regions.

Revenues in the Americas region increased 15% in the three months ended June 2025, including a 1% unfavorable impact from foreign currency.

Revenues in the Europe region increased 5% in the three months ended June 2025, including a 6% favorable impact from foreign currency.

Revenues in the Asia-Pacific region increased 13% in the three months ended June 2025, including a 3% favorable impact from foreign currency.

Global direct-to-consumer revenues for Outdoor increased 9% in the three months ended June 2025 compared to the 2024 period, including a 2% favorable impact from foreign currency, with revenue growth across both brands and all regions.

Global wholesale revenues increased 7% in the three months ended June 2025, compared to the 2024 period, including a 1%

Global revenues for Outdoor increased 6% and 7% in the three and six months ended September 2025, respectively, compared to the 2024 periods, including a 2% favorable impact from foreign currency in both periods.

Revenues in the Europe region increased 10% in both the three and six months ended September 2025, including a 6% favorable impact from foreign currency in both periods.

Revenues in the Americas region increased 5% and 4% in the three and six months ended September 2025, respectively.

Revenues in the Asia-Pacific region increased 3% and 7% in the three and six months ended

September 2025, respectively, including a 1% favorable impact from foreign currency in both periods.

Global revenues for The North Face ® brand increased 6% in both the three and six months ended September 2025 compared to the 2024 periods, including a 2% favorable impact from foreign currency in both periods, driven primarily by growth in the Europe and Asia-Pacific regions.

Revenues in the Europe region increased 10% and 11% in the three and six months ended September 2025, respectively, including a 6% favorable impact

VF Corporation Q2 FY26 Form 10-Q 36

favorable impact from foreign currency, primarily driven by an increase in the The North Face ® brand in the Europe and Asia-Pacific regions and the Timberland ® brand in the Americas region.

Segment profit margi n increased in the three months ended June 2025 compared to the 2024 period, reflecting higher gross margin, prim arily driven by f avorable foreign currency impacts, lower discounts and lower product costs.

from foreign currency in both periods.

Revenues in the Asia-Pacific region increased 7% and 10% in the three and six months ended September 2025, respectively.

Revenues in the Americas region increased 2% and remained flat in the three and six months ended September 2025, respectively, including a 1% unfavorable impact from foreign currency in the six months ended September 2025.

Global revenues for the Timberland ® brand increased 7% and 8% in the three and six months ended September 2025, respectively, compared to the 2024 periods, including a 3% and 2% favorable impact from foreign currency in the respective periods, driven by growth in the Americas and Europe regions.

Revenues in the Americas region increased 11% and 12% in the three and six months ended September 2025, respectively, including a 1% unfavorable impact from foreign currency in the six months ended September 2025.

Revenues in the Europe region increased 9% and 8% in the three and six months ended September 2025, respectively, including a 6% favorable impact from foreign currency in both periods.

Revenues in the Asia-Pacific region decreased 14% and 5% in the three and six months ended September 2025, respectively, including a 1% favorable impact from foreign currency in the six months ended September 2025.

Global direct-to-consumer revenues for Outdoor increased 7% and 8% in the three and six months ended September 2025, respectively, compared to the 2024 periods, including a 3% favorable impact from foreign currency in both periods.

The increase in both periods was primarily driven by growth in The North Face ® brand in the Europe and Americas regions and the Timberland ® brand across all regions.

Global wholesale revenues increased 6% in both the three and six months ended September 2025 compared to the 2024 periods, including a 2% favorable impact from foreign currency in both periods, primarily driven by increases in The North Face ® brand in the Europe and Asia-Pacific regions.

Segment profit margi n increased in both the three and six months ended September 2025 compared to the 2024 periods, reflectin g higher gross margin in both periods.

The increase in the three months ended September 2025 was primarily driven by lower discounts and the increase in the six months ended September 2025 was primarily driven by favorable foreign currency impacts, lower discounts and lower product costs.

Active Segment

Three Months Ended June

Three Months Ended September Six Months Ended September

(Dollars in millions) 2025 2024 Percent

Change 2025 2024 Percent

Segment revenues $ 760.8 $ 824.5 (7.7 %) $ 1,460.4 $ 1,601.3 (8.8 %)

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Vans ® , Kipling ® , Eastpak ® and JanSport ® .

Global revenues for Active decreased 10% in the three months ended June 2025 compared to the 2024 period, including a 1% favorable impact from foreign currency.

Revenues in the Americas region decreased 12%, including a 1% unfavorable impact from foreign currency.

Revenues in the Asia-Pacific region decreased 15%.

Revenues in the Europe region decreased 4%, including a 5% favorable impact from foreign currency.

Vans ® brand global revenues decreased 14% in the three months ended June 2025 compared to the 2024 period, including a 1% favorable impact from foreign currency.

The overall decline w as most significantly impacted by a 15% decrease in the Americas region, including a 1% unfavorable impact from foreign currency.

Revenues in the Europe region decreased 12% in the three months ended June 2025, including a 4% favorable impact from foreign currency.

Revenues in the Asia-Pacific region decreased 17% in the three months ended June 2025.

The decline in Vans ® was partially attributed to deliberate strategic

actions taken in the first quarter of Fiscal 2026, including exiting value-channel wholesale customers and closing unprofitable owned retail stores in the Americas region, and reducing wholesale store fronts and inventory in the Asia-Pacific region (specifically in China).

Global direct-to-consumer revenues for Active decreased 14% in the three months ended June 2025 compared to the 2024 period, including a 1% favorable impact from foreign currency.

The decrease was primarily driven by a decline in the Vans ® brand in the Americas region.

Global wholesale revenues decreased 6% in the three months ended June 2025, including a 1% favorable impact from foreign currency.

The decrease was primarily due to a decrease in the Vans ® brand in the Americas region in the three months ended June 2025.

Segment profit margin decreased in the three months ended June 2025 compared to the 2024 period, primarily due to lower leverage of operating expenses due to decreased revenues.

Three Months Ended June

Global revenues for Active decreased 8% and 9% in the three and six months ended September 2025, respectively, compared to the 2024 periods, including a 2% and 1% favorable impact from foreign currency in the respective periods.

Revenues in the Americas region decreased 10% and 11% in the three and six months ended September 2025, respectively, including a 1% unfavorable impact from foreign currency in the six months ended September 2025 .

Revenues in the Asia-Pacific regio n decreased 14% in both the three and six months ended September 2025, including a 1% favorable impact from foreign currency in the six months ended September 2025 .

Revenues in the Europe regio n decreased 2% and 3% i n the three and six months ended September 2025, respectively, including a 6% and 5% favorable impact from foreign currency in the respective periods.

Vans ® brand global revenues decreased 9% and 12% in the three and six months ended September 2025, respectively, compared to the 2024 periods, including a 2% and 1% favorable impact from foreign currency in the respective periods.

The overall declines were most significantly impacted by a 9% and 12% decrease in the Americas region in the three and six months ended September 2025, respectively, including a 1% unfavorable impact from foreign currency in the six months ended September 2025.

Revenues in the Europe region decreased 5% and 8% in the three and six months ended September 2025, respectively, including a 6% and 5% favorable impact from

foreign currency in the respective periods.

Revenues in the Asia-Pacific region decreased 22% and 19% in the three and six months ended September 2025, respectively.

Th e declines in Vans ® were partially attributed to deliberate strategic actions, including exit ing value-channel wholesale customers and closing unprofitable owned retail stores in the Americas region, and reducing wholesale store fronts and inventory in the Asia-Pacific region.

Global direct-to-consumer revenues for Active decreased 9% and 11% in the three and six months ended September 2025, respectively, compared to the 2024 periods, including a 1% favorable impact from foreign currency in both periods.

The decreases were primarily driven by declines in the Vans ® brand in the Americas region in both periods.

Global wholesale revenues decreased 7% and 6% in the three and six months ended September 2025, respectively, including a 2% favorable impact from foreign currency in both periods.

The decreases were primarily due to decreases in the Vans ® brand in the Americas region in both the three and six months ended September 2025.

Segment profit margin decreased in both the three and six months ended September 2025 compared to the 2024 periods, primarily due to lower gross margin, which was driven by increased product costs, and lower leverage of operating expenses due to decreased revenues.

37 VF Corporation Q2 FY26 Form 10-Q

Three Months Ended September Six Months Ended September

(Dollars in millions) 2025 2024 Percent

Change 2025 2024 Percent

Revenues $ 378.5 $ 366.7 3.2 % $ 627.0 $ 605.4 3.6 %

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The "All Other" grouping represents the aggregation of brands that do not meet the quantitative threshold for disclosure and it is not a reportable segment.

Global "All Other" revenues increased 4% in the three months ended June 2025 compared to the 2024 period, including a 1% favorable impact from foreign currency.

Revenues in the Americas region increased 4%.

Revenues in the Asia-Pacific

region increased 18%, including a 2% favorable impact from foreign currency.

Revenues in the Europe region remained flat, including a 5% favorable impact from foreign currency.

VF Corporation Q1 FY26 Form 10-Q 30

Reconciliation of Segment Profit to Loss From Continuing Operations Before Income Taxes

There are three types of costs necessary to reconcile total segment profit t o con solidated loss from continuing operations before income taxes.

These costs are (i) corporate and other expenses, discussed below, (ii) interest expense, net, which was discussed in the “Consolidated Statements of Operations” section, and (iii) profit (loss) re lated to the "All Other" category, discussed below, which includes the following brands:

Global "All Other" revenues increased 3% and 4% in the three and six months ended September 2025, respectively, compared to the 2024 periods, including a 2% favorable impact from foreign currency in both periods.

Revenues in the Europe region increased 9% and 6% in the three and six months ended September 2025, respectively, including a 7% and 6% favorable impact from foreign currency in the respective periods.

Revenues in the Americas region increased 2% and 3% in the three and six months ended September 2025, respectively.

Revenues in the Asia-Pacific region decreased 12% and increased 1%, in the three and six months ended September 2025, respectively, including a 1% favorable impact from foreign currency in both periods.

Reconciliation of Segment Profit to Income From Continuing Operations Before Income Taxes

There are three types of costs necessary to reconcile total segment profit t o con solidated income from continuing operations before income taxes.

These costs are (i) corporate and other expenses, discussed below, (ii) interest expense, net, which was discussed in the “Consolidated Statements of Operations” section, and (iii) profit re lated to the "All Other" category, discussed below, which includes the following brands:

Dickies ® , Altra ® , Smartwool ® , Napapijri ® and Icebreaker ® .

The "All Other" grouping represents the aggregation of brands that do not meet the quantitative threshold for disclosure and it is not a reportable segment.

Three Months Ended June

Three Months Ended September Six Months Ended September

(Dollars in millions) 2025 2024 Percent

Change 2025 2024 Percent

Corporate and other expenses $ 95.7 $ 138.2 (30.8 %) $ 200.2 $ 253.8 (21.1 %)

Interest expense, net 46.2 42.7 8.2 % 87.3 83.6 4.4 %

"All Other" profit (loss) 4.5 (7.6) *

*Calculation not meaningful

"All Other" profit 43.7 39.9 9.5 % 48.2 32.3 49.1 %

Corporate and other expenses are those that have not been allocated to the segments for internal management reporting, including (i) information systems and shared service costs, (ii) corporate headquarters costs, and (iii) certain other income and expenses.

The decrease in corporate and other expenses for the three months ended June 2025 was primarily due to cost savings from

Reinvent and lower information technology costs, partially offset by higher Reinvent restructuring charges and project-related costs.

The increase in "All Other" profit (loss) for the three months ended June 2025 was primarily due to higher gross margin, driven by higher quality inventory and f avorable foreign currency impacts.

The decrease in corporate and other expenses for both the three and six months ended September 2025 was primarily due to cost savings from Reinvent, lower information technology costs and

lower Reinvent restructuring charges and project-related costs.

The increase in "All Other" profit for the three months ended September 2025 was primarily due to higher gross margin, driven by higher quality inventory and lower discounts.

T he increase in "All Other" profit for the six months ended September 2025 was primarily due to higher gross margin, driven by h igher quality inventory, lower discounts and favorable foreign currency impacts.

International

International revenues increased 2% in the three months ended June 2025 compared to the 2024 period, including a 3% favorable impact from foreign currency.

Revenues in the Europe region increased 4%, including a 6% favorable impact from foreign currency.

In the Asia-Pacific region, revenues increased 4% in the three months ended June 2025.

Revenues in Greater China (which includes Mainland China, Hong Kong and Taiwan) decreased 5% in the three months ended June 2025, including a

1% favorable impact from foreign currency.

R evenues in the Americas (non-U.S.) region decreased 11% in the three months ended June 2025, including a 5% unfavorable impact from foreign currency.

Inte rnational revenues were 53% and 51% of total revenues in the three-month periods ended June 2025 and 2024, respectively.

Direct-to-Consumer

Direct-to-consumer revenues decreased 3% in the three months ended June 2025 compared to the 2024 period, including a 1% favorable impact from foreign currency.

VF's e-commerce business decreased 2% during the three months ended June 2025, including a 2% favorable impact from foreign currency.

The decrease was primarily driven by declines in the e-commerce business in the Americas and Asia-Pacific regions.

Revenues from VF-operated retail stores decreased 3% during the three months ended June 2025, including a 1% favorable impact from foreign currency.

There were 1,113 V F-operated retail stores at June 2025 compared to 1,158 at June 2024.

Direct-to-consumer revenues were 41% and 42% of total revenues in the three-month periods ended June 2025 and 2024, respectively.

Wholesale revenues increased 1% in the three months ended June 2025 compared to the 2024 period, including a 1% favorable impact from foreign currency.

The increase was primarily driven by increases in the Europe and Asia-Pacific regions, partially offset by a decrease in the Americas regions.

Wholesale revenues were 59% and 58% of total revenues in the three-month periods ended June 2025 and 2024, respectively.

International revenues increased 4% and 3% in the three and six months ended September 2025, respectively, compared to the 2024 periods, including a 4% and 3% favorable impact from foreign currency in the respective periods.

Revenues in the Europe region increased 6% and 5% in the three and six months ended September 2025, respectively, including a 6% and 5% favorable impact from foreign currency in the respective periods.

In the Asia-Pacific region, revenues decreased 2% and increased 1% in the three and six months ended September 2025, respectively, including a 1% favorable impact from foreign currency in the six months ended September 2025 .

Revenues in Greater China (which includes Mainland China, Hong Kong and

Tai wan) decreased 2% and 3% in the three and six months ended September 2025, respectively, including a 1% favorable impact from foreign currency in the six months ended September 2025 .

R evenues in the Americas (non-U.S.) region increased 6% and decreased 1% in the three and six months ended September 2025, respectively, including a 2% unfavorable impact from foreign currency in the six months ended September 2025.

Inte rnational revenues were 59% and 57% of total revenues in the three-month periods ended September 2025 and 2024, respectively, and 56% and 55% of total revenues in the six-month periods ended September 2025 and 2024, respectively.

VF Corporation Q2 FY26 Form 10-Q 38

Direct-to-Consumer

Direct-to-consumer revenues decreased 1% and 2% in the three and six months ended September 2025, respectively, compared to the 2024 periods, including a 1% favorable impact from foreign currency in both periods.

VF's e-commerce business increased 1% and decreased 1% during the three and six months ended September 2025, respectively, including a 2% and 1% favorable impact from foreign currency in the respective periods.

The operational declines in both the three and six months ended September 2025 were primarily due to lower e-commerce revenues in the Asia-Pacific region.

Revenues from VF-operated retail stores decreased 2% and 3% in the three and six months ended September 2025, respectively, including a 2% and 1% favorable impact from foreign currency in the respective periods.

The decreases in both periods were due to declines in the Americas region.

There were 1,105 VF-operated retail stores at September 2025 compared to 1,160 at September 2024.

Direct-to-consumer revenues were 32% and 33% of total revenues in the three-month periods ended September 2025 and 2024, respectively, and 36% and 37% of total revenues in the six-month periods ended September 2025 and 2024, respectively.

Wholesale revenues increased 3% and 2% in the three and six months ended September 2025, respectively, compared to the 2024 periods, including a 3% and 2% favorable impact from foreign currency in the respective periods, primarily driven by increases in the Europe region, which were partially offset by declines in the Americas regions.

Wholesale revenues were 68% and 67% of total revenues in the three-month periods ended September 2025 and 2024, respectively, and 64% and 63% of total revenues in the six-month periods ended September 2025 and 2024, respectively.

ANALYSIS OF FINANCIAL CONDITION

Consolidated Balance Sheets

The following discussion refers to significant changes in balances at June 2025 compared to March 2025:

• Decrease in accounts receivable — primarily due to the seasonality of the business and the timing of collections.

• Increase in inventories — primarily due to the seasonality of the business and planned inventory purchases.

• Increase in short-term borrowings — primarily due to $350.0 million of borrowings under VF's $2.25 billion senior unsecured revolving line of credit (the “Global Credit Facility”) as of June 2025, to support seasonal working capital requirements.

The following discussion refers to significant changes in balances at September 2025 compared to March 2025:

• Increase in accounts receivable — primarily due to the seasonality of the business and the timing of collections, partially offset by the reclassification to held-for-sale assets in connection with the planned divestiture of Dickies.

• Increase in inventories — primarily due to the seasonality of the business and planned inventory purchases, partially offset by the reclassification to held-for-sale assets in connection with the planned divestiture of Dickies.

• Decrease in intangible assets — primarily due to the reclassification to held-for-sale assets in connection with the planned divestiture of Dickies.

• Increase in short-term borrowings — primarily due to $491.3 million of borrowings under VF's $1.5 billion senior secured asset based revolving credit facility (the "ABL Credit Facility") as of September 2025, to support seasonal working capital requirements.

• Increase in accounts payable — primarily due to the seasonality of inventory purchases.

The following discussion refers to significant changes in balances at June 2025 compared to June 2024:

• Increase in accounts receivable — primarily due to foreign currency fluctuations and timing of collections from customers.

• Increase in accrued liabilities — primarily due to an increase in derivative liabilities and the timing of services received and payments made for other accruals.

The following discussion refers to significant changes in balances at September 2025 compared to September 2024:

• Decrease in inventories — primarily due to the reclassification to held-for-sale assets in connection with the planned divestiture of Dickies.

• Decrease in intangible assets — primarily due to the reclassification to held-for-sale assets in connection with the planned divestiture of Dickies.

• Increase in other assets — primarily due to an increase in deferred income tax assets.

• Increase in short-term borrowings — primarily due to $350.0 million of borrowings under the Global Credit Facility as of June 2025, to support increased working capital requirements.

• Decrease in the current portion of long-term debt — primarily due to the prepayment of $1.0 billion of long-term debt due in December 2024 related to the DDTL and the early redemption of $750.0 million of long-term notes in March 2025, partially offset by the reclassification of €500.0 million of long-term notes due in March 2026 to current liabilities and foreign currency fluctuations.

• Decrease in long-term debt — primarily due to the reclassification of €500.0 million of long-term notes due in March 2026 to current liabilities, partially offset by foreign currency fluctuations.

39 VF Corporation Q2 FY26 Form 10-Q

Liquidity and Capital Resources

We consider the following to be measures of our liquidity and capital resources:

June March June

(Dollars in millions) 2025 2025 2024

(Dollars in millions) September 2025 March 2025 September 2024

Working capital $1,360.1 $1,088.2 $33.2

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Net debt to total capital 79.4% 76.8% 83.6%

The decrease in working capital and the current ratio at June 2025 compared to March 2025 was primarily due to a net increase in current liabilities driven by increased short-term borrowings and accounts payable, as discussed in the "Consolidated Balance Sheets" section above.

The decrease was partially offset by a net increase in current assets driven by higher inventory balances and cash and cash equivalents, partially offset by lower accounts receivable, as discussed in the "Consolidated Balance Sheets" section above.

The increase in working capital and the current ratio at June 2025 compared to June 2024 was primarily due to a net decrease in current liabilities driven by decreased current portion of long-term debt, as discussed in the "Consolidated Balance Sheets" section above.

The increase in working capital at September 2025 compared to March 2025 was primarily due to a net increase in current assets driven by higher accounts receivable, assets held-for-sale in connection with the planned divestiture of Dickies and higher inventory balances, as discussed in the "Consolidated Balance Sheets" section above.

The increase was partially offset by a net increase in current liabilities driven by increased short-term borrowings, accounts payable and accrued liabilities, as discussed in the "Consolidated Balance Sheets" section above.

The increase in working capital and the current ratio at September 2025 compared to September 2024 was primarily due to a net decrease in current liabilities driven by decreased current portion of long-term debt, as discussed in the "Consolidated Balance Sheets" section above.

For the ratio of net debt to total capital, net debt is defined as short-term borrowings, current portion of long-term debt and long-term debt, in addition to operating lease liabilities, net of unrestricted cash and cash equivalents.

Total capital is defined as net debt plus stockholders’ equity.

The increase in the net debt to total capital ratio at June 2025 compared to March 2025 was primarily driven by an increase in net debt due to increased short-term borrowings, as discussed in the "Consolidated

Balance Sheets" section above, and foreign currency fluctuations on long-term debt.

The increase in net debt was partially offset by higher cash and cash equivalents at June 2025.

The decrease in the net debt to total capital ratio at June 2025 compared to June 2024 was primarily driven by a decrease in net debt due to the prepayment of $1.0 billion of long-term debt in October 2024 related to the DDTL and the early redemption of $750.0 million of long-term notes in March 2025, as discussed in the "Consolidated Balance Sheets" section above, partially offset by foreign currency fluctuations.

The increase in the net debt to total capital ratio at September 2025 compared to March 2025 was primarily driven by an increase in net debt due to

increased short-term borrowings, as discussed in the "Consolidated Balance Sheets" section above, and foreign currency fluctuations on long-term debt.

The decrease in the net debt to total capital ratio at September 2025 compared to September 2024 was primarily driven by a decrease in net debt due to the prepayment of $1.0 billion of long-term debt in October 2024 related to the DDTL and the early redemption of $750.0 million of long-term notes in March 2025, as discussed in the "Consolidated Balance Sheets" section above, partially offset by foreign currency fluctuations.

VF’s primary source of liquidity is its expected annual cash flow from operating activities.

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Additionally, direct-to-consumer sales are highest in the fourth quarter of the calendar year.

VF's additional sources of liquidity include available borrowing capacity against its Global Credit Facility, available cash balances and international lines of credit.

VF Corporation Q1 FY26 Form 10-Q 32

VF's additional sources of liquidity include available borrowing capacity against its ABL Credit Facility , available cash balances and international lines of credit.

In summary, our cash flows from continuing operations were as follows:

Three Months Ended June

Six Months Ended September

(In thousands) 2025 2024

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Cash used by investing activities (90,065) (16,421)

Cash provided (used) by financing activities 338,955 (37,444)

Cash provided by financing activities 401,839 125,974

Cash Used by Operating Activities

Cash flows related to operating activities are dependent on loss from continuing operations, adjustments to loss from continuing operations and changes in working capital.

The increase in cash used by operating activities in the three months ended June 2025 compared to June 2024 was primarily due to an increase in net cash used by working capital.

The increase in net cash used for working capital was needed to support inventory purchases and higher performance-based annual bonus payouts.

Cash flows related to operating activities are dependent on income from continuing operations, adjustments to income from continuing operations and changes in working capital.

The increase in cash used by operating activities in the six months ended September 2025 compared to September 2024 was primarily due to an increase in net cash used by working capital.

The increase in net cash used for working capital was driven by the timing of receipts of accounts receivable and payment of accrued liabilities.

Cash Used by Investing Activities

The increase in cash used by investing activities in the three months ended June 2025 was primarily due to proceeds from the sale of assets of $45.6 million in the three months ended June 2024, related to a sale leaseback transaction of a distribution center and sale of a corporate-owned aircraft.

Cash Provided (Used) by Financing Activities

The increase in cash provided by financing activities during the three months ended June 2025 was primarily due to a $380.7 million net increase in short-term borrowings for the periods compared to support working capital requirements.

The increase in cash used by investing activities in the six months ended September 2025 was primarily due to proceeds from the sale of assets of $76.7 million in the six months ended September 2024, related to a sale leaseback transaction of a distribution center, sale of a corporate-owned aircraft and sale of an aircraft hangar.

Cash Provided by Financing Activities

The increase in cash provided by financing activities during the six months ended September 2025 was primarily due to a $290.7 million net increase in short-term borrowings for the periods compared to support working capital requirements.

Share Repurchases

VF did not purchase shares of its Common Stock in the open market during the three months ended June 2025 or the three months ended June 2024 under the share repurchase program authorized by VF's Board of Directors.

As of the end of June 2025, VF had $2.5 billion remaining for future repurchases under its share repurchase authorization.

VF did not purchase shares of its Common Stock in the open market during the six months ended September 2025 or the six months ended September 2024 under the share repurchase program authorized by VF's Board of Directors.

As of the end of September 2025, VF had $2.5 billion remaining for future repurchases under its share repurchase authorization.

VF's capital deployment priorities in the near-to-medium term will be focused on reducing leverage and reinvesting a portion of cost savings to drive profitable and sustainable growth.

Revolving Credit Facility, DDTL Agreement and Short-term Borrowings

VF Corporation Q2 FY26 Form 10-Q 40

ABL Credit Facility and Short-term Borrowings

VF relies on its ability to generate cash flows to finance its ongoing operations.

In addition, VF has significant liquidity from its available cash balances and credit facilities.

VF maintains a Global Credit Facility that expires in November 2026.

VF may request an unlimited number of one-year extensions so long as each extension does not cause the remaining life of the Global Credit Facility to exceed five years, subject to stated terms and conditions;

however, granting of any extension is at the discretion of the lenders.

The Global Credit Facility may be used to borrow funds in U.S.

dollars or any alternative currency (including euros and any other currency that is freely convertible into U.S.

dollars, approved at the request of the Company by the lenders) and has a $75.0 million letter of credit sublimit.

The Global Credit Facility supported VF's global commercial paper program for short-term, seasonal working capital requirements

and general corporate purposes.

On August 26, 2025, VF entered into a credit agreement that provides the Company with a $1.5 billion senior secured asset based revolving credit facility (the "ABL Credit Facility"), subject to a borrowing base that is composed of eligible credit card receivables, eligible wholesale receivables, eligible inventory and eligible in-transit inventory.

The ABL Credit Facility includes up to a $100.0 million letter of credit subfacility and a $100.0 million swing-line subfacility.

Multicurrency borrowings are available under the credit agreement, including borrowings in U.S.

dollars, Canadian dollars, euros, sterling, and Swiss francs (subject to certain limitations as set forth in the credit agreement).

The ABL Credit Facility has a stated maturity date of August 26, 2030 and replaces VF's previous $2.25 billion senior unsecured revolving line of credit, dated November 24, 2021 (as amended, the "Terminated Agreement").

Outstanding short-term balances may vary from period to period depending on the level of corporate requirements.

VF has restrictive covenants on its Global Credit Facility and had restrictive covenants on the DDTL Agreement.

The agreement for the Global Credit Facility, as amended in May 2025, includes a consolidated net indebtedness to consolidated net capitalization financial ratio covenant, starting at 70% with future step downs.

The calculation of consolidated net indebtedness is net of unrestricted cash and cash equivalents and the calculation of consolidated net capitalization permits certain addbacks, including non-cash impairment charges and material impacts resulting from adverse legal rulings, as defined in the amended agreement.

The covenant calculation also excludes consolidated operating lease liabilities.

The agreement requires the pledge of certain assets of VF and certain of its subsidiaries pursuant to the agreement.

Additionally, the amended agreement restricts the total amount of cash dividends and share repurchases to $500.0 million annually, on a calendar-year basis.

The terms for the DDTL Agreement, as amended in August 2024, required the repayment of the DDTL upon the completion of the Supreme sale.

O n October 4, 2024, VF made an aggregate $1.0 billion prepayment of the DDTL using the net cash proceeds from the sale of Supreme.

As of June 2025, VF was in compliance with all covenants.

VF had a global commercial paper program that allowed for borrowings of up to $2.25 billion to the extent that it had borrowing capacity under the Global Credit Facility.

The ABL Credit Facility contains various customary affirmative and negative covenants, which include, among other things, required financial reporting, limitations on indebtedness and granting certain liens, restrictions on fundamental changes to the business, restrictions on disposal of assets, restrictions on changes to the nature of the business, restrictions on prepayment of certain indebtedness, restricted payment limitations, along with other restrictions and limitations similar to those typical for credit facilities of this type.

Certain actions restricted by the negative covenants are permitted so long as Payment Conditions, as defined in the credit agreement, are satisfied.

The ABL Credit Facility includes a financial covenant that requires VF to maintain a Fixed Charge Coverage Ratio of at least 1.00 to 1.00 for the 12-month period ending on the last day of any applicable fiscal quarter.

However, the financial covenant only applies if at any time Global Excess Availability (as defined in the credit agreement) is less than the greater of (i) 10.0% of the Global Line Cap (as defined in the credit agreement), and (ii) $100.0 million, and ceases to apply when Global Excess Availability has equaled or exceeded the greater of (i) 10.0% of the Global Line Cap, and (ii) $100.0 million for 30 consecutive days.

As of September 2025, specified availability under the ABL Credit Facility exceeded the required threshold and, as a result, the financial covenant was not applicable.

The Company was in compliance with all applicable debt covenants as of September 2025.

VF had a global commercial paper program that allowed for borrowings of up to $2.25 billion to the extent that it had borrowing capacity under the Terminated Agreement.

commercial paper borrowing program was terminated as of May 2025 and the euro commercial paper borrowing program was terminated as of January 2025.

Short-term borrowings under the Global Credit Facility as of June 2025 were $350.0 million.

Standby letters of credit issued u nder the Global Credit Facility as of June 2025 were $0.3 million, leaving approximately $1.9 billion available for borrowing against the Global Credit Facility at June 2025 , subject to applicable financial covenants.

As of September 2025, the Company had $491.3 million of outstanding borrowings under the ABL Credit Facility, with a weighted average interest rate of 5.4%.

Reserves for outstanding, unfunded letters of credit under the ABL Credit Facility were $0.6 million as of September 2025.

Availability under the ABL Credit Facility was $994.6 million as of

September 2025, after giving effect to the borrowing bas e, outstanding borrowings and outstanding letters of credit.

VF h as $91.4 million of international lines of credit with various banks, which are uncommitted and may be terminated at any time by either VF or the banks.

Total outstanding balances under these arrangements were $42.9 million a t June 2025.

Additionally, VF had $642.4 million of unrestricted cash and cash equivalents at June 2025.

Total outstanding balances under these arrangements were $10.9 million a t September 2025.

Additionally, VF had $419.1 million of unrestricted cash and cash equivalents at September 2025.

Supply Chain Financing Program

VF facilitates a voluntary supply chain finance ("SCF") program that enables a significant portion of our inventory suppliers to leverage VF's credit rating to receive payment from participating financial institutions prior to the payment date specified in the terms between VF and the supplier.

At June 2025, March 2025 and June 2024, the accounts payable line item in VF’s Consolidated Balance Sheets included total outstanding obligations of $887.1 million, $481.7 million and $843.0 million,

33 VF Corporation Q1 FY26 Form 10-Q

respectively, due to suppliers that are eligible to participate in the SCF program.

At September 2025, March 2025 and September 2024, the accounts payable line item in VF’s Consolidated Balance Sheets included total outstanding obligations of $696.6 million, $481.7 million and $804.9 million, respectively, due to suppliers that are eligible to participate in the SCF program.

Rating Agencies

At the end of June 2025, VF’s long-term debt ratings were ‘BB’ by Standard & Poor’s ("S&P") Global Ratings and 'Ba2' b y Moody’s Investors Service ("Moody's").

VF's credit rating outlook was 'stable' by S&P and 'negative' by Moody's at the end of June 2025.

At the end of September 2025, VF’s long-term debt ratings were ‘BB’ by Standard & Poor’s ("S&P") Global Rating s and 'Ba2' b y Moody’s Investors Service ("Moody's").

VF's credit rating outlook was 'stable' by S&P and 'negative' by Moody's at the end of September 2025 .

Further downgrades to VF's ratings would negatively impact borrowing costs.

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The change of control provision applies to all notes, except for the notes due in 2033.

The Company paid cash dividends of $0.09 per share during the three months ended June 2025, and the Company declared a

cash dividend of $0.09 per share that is payable in the second quarter of Fiscal 2026.

The Company paid cash dividends of $0.09 and $0.18 per share during the three and six months ended September 2025, respectively, and the Company declared a cash dividend of $0.09 per share that is payable in the third quarter of Fiscal 2026.

Subject to approval by its Board of Directors, VF intends to continue to pay quarterly dividends.

1 unchanged sentence

Management’s Discussion and Analysis in the Fiscal 2025 Form 10-K provided a table summarizing VF’s material contractual obligations and commercial commitments at the end of Fiscal 2025 that would require the use of funds.

As of June 2025, there have been no material changes in the amounts of unrecorded commitments disclosed in the Fiscal 2025 Form 10-K, except as noted below:

• I nventory purchase obligations decreased by approximately $534.0 million at the end of June 2025 primarily due to timing of inventory shipments.

As of September 2025, there have been no material changes in the amounts of unrecorded commitments disclosed in the Fiscal 2025 Form 10-K, except as noted below:

• I nventory purchase obligations decreased by approximately $531.0 million at the end of September 2025 primarily due to timing of inventory shipments.

Management believes that VF has sufficient liquidity and flexibility to operate its business and meet its current and long-term obligations as they become due.

41 VF Corporation Q2 FY26 Form 10-Q

Recent Accounting Pronouncements

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changes in global economic conditions and the financial strength of VF’s consumers and customers, including as a result of current inflationary pressures;

VF Corporation Q1 FY26 Form 10-Q 34

fluctuations in the price, availability and quality of raw materials and finished products, including as a result of tariffs;

5 unchanged sentences

retail industry changes and challenges;

VF's ability to execute its Reinvent transformation program, "The VF Way" and other business priorities, including measures to streamline and right-size its cost base and strengthen the balance sheet while reducing leverage;

VF's ability to execute its Reinvent transformation program, "The VF Way" and

other business priorities, including measures to streamline and right-size its cost base and strengthen the balance sheet while reducing leverage;

VF’s ability to successfully establish a global commercial organization, and identify and capture efficiencies in its business model;

5 unchanged sentences

stability of VF's vendors' manufacturing facilities and VF's ability to establish and maintain effective supply chain capabilities;

continued use by VF’s suppliers of

ethical business practices;

continued use by VF’s suppliers of ethical business practices;

VF’s ability to accurately forecast demand for products;

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maintenance by VF’s licensees and distributors of the value of VF’s brands;

VF’s ability to execute acquisitions and dispositions, integrate acquisitions and manage its brand portfolio;

business resiliency in response to natural or man-made economic, public health, cyber, political or environmental disruptions, including any potential effects from changes in tariffs and international trade policy;

VF’s ability to execute acquisitions and dispositions, integrate acquisitions and manage its brand portfolio, including the proposed sale of the Dickies ® brand;

whether and when the required regulatory approvals for the proposed sale of the Dickies ® brand will be obtained, whether and when the closing conditions will be satisfied and whether and when the proposed sale of the Dickies ® brand will close, if at all;

VF’s ability to execute, and realize benefits, successfully, or at all, from the proposed sale of the Dickies ® brand;

VF Corporation Q2 FY26 Form 10-Q 42

resiliency in response to natural or man-made economic, public health, cyber, political or environmental disruptions, including any potential effects from changes in tariffs and international trade policy, and the U.S.

federal government shutdown;

changes in tax laws and additional tax liabilities;

2 unchanged sentences

adverse or unexpected weather conditions, including any potential effects from climate change;

VF's indebtedness and its ability to obtain financing on favorable terms, if needed, could prevent VF from fulfilling its financial obligations;

VF's indebtedness and its ability to obtain financing on favorable terms, if needed, could prevent VF from fulfilling its financial

VF's ability to pay and declare dividends or repurchase its stock in the future;

7 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis