Oct 28, 2026 earnings call — Product-led brand turnaround and guidance reaffirmed
Q2 revenue up 1%, operating income $364 million and company reaffirmed full-year fiscal 2027 guidance.
Revenue $2.7B (est $2.7B) · EPS $0.70 (est $0.54)
Key quotes
"Our product-led improvement in DTC, in addition to the expected recovery of wholesale, started in Q3 and builds in Q4, is what gives us the confidence to commit to down 2% or better in the second half of fiscal 2027."
"The second form of leverage is a form of leverage from our declining tax rate. Our unique tax structure results in a relatively high tax rate, which will fall steadily from the mid-30s to the low 20s over the next few years."
"Our capital allocation priorities remain unchanged. As part of that, paying down debt remains our first priority, and we expect to prepay the April 2027 maturity in March."
Analyst Q&A 5
Vans demand, wholesale vs DTC, partners
Q (Anna Andreeva · Piper Sandler): Does de-stocking end in Q2 or continue into Q3? How will Vans mix between wholesale and DTC in back half? Are orders coming from new or existing partners? Will product innovation scale faster later in the year?
A: Management said a little de-stocking continues and it might last a bit longer, but they have orders and good visibility for Q3 and Q4 so they are confident about the back half. Q3 is typically a higher DTC quarter and Q4 is higher wholesale; they expect more new product in wholesale in the back half and plan to keep refreshing icons and adding new categories, especially in apparel and women's footwear. Most of the order strength is from existing partners rather than new ones.
"First, the second quarter, yeah, I would say there continues to be a little de-stocking." — Bracken Darrell (CEO)
How wholesale improves to guided Vans growth
Q (Michael Binetti · Evercore): Wholesale was down a lot in Q2; what will drive wholesale from those declines to the guidance of about negative 4% in Q3 and flat or better in Q4? What is different between Q3 and Q4?
A: They said Q2 wholesale weakness in the active segment was driven primarily by Vans and a bit of de-stocking. Management said they have visibility into confirmed and cancelled orders for fall/winter 2026 (which flows into Q3) and spring/summer 2027 (which starts with Q4), and that visibility is factored into guidance of "minus 2% or better." They also reminded that Q3 is a heavy DTC quarter and the wholesale swing shows up more in Q4.
"We do have visibility into the confirmed and the cancellation orders for both fall/winter 2026, which flows into Q3, and spring summer 2027, which actually starts with Q4." — Abhishek Dalmia (CFO)
Wholesale penetration: units, SKUs, doors, regions
Q (Adrienne Yih · Barclays): Will the wholesale rebound be via more units, more SKUs, more doors, or other changes? Which regions will see biggest impact? Also, how insulated is Vans from liquidation pressure in retro lifestyle product?
A: They said the key driver is DTC strength and product "heat," which is convincing wholesale partners to bring in more product. Management said the expansion is mostly existing stores opening more shelf space and some door expansion, so it's a mix of units, SKUs and doors but primarily more shelf allocation in current doors. They also noted Vans has limited distribution in traditional sporting goods versus lifestyle, so their biggest opportunity is lifestyle and they feel good looking at order books.
"To add to that, I think, Adrienne Yih, to your question around units, SKUs, doors, it is all, but it is primarily driven by the existing stores actually opening up more shelf to the brand." — Abhishek Dalmia (CFO)
Gross margin drivers and 53rd week impact
Q (Laurent Vasilescu · BNP): Can you unpack the three drivers behind the 180 basis point gross margin expansion and how to model Q3? Also, how much does the 53rd week help Vans in Q4 and will Nike/Jordan pulls help fill retailer shelves?
A: They said Q2 gross margin expanded 290 basis points, including 110 basis points from FX, and the 180 basis points reflects product mix, price increases, planning, sourcing and vendor work; tariff impact is minimal and they expect $70 million-$80 million of unmitigated tariff in the second half. For Q3 they said gross margin should be up but not as high as 180 basis points, and the 53rd week was expected to add about 50 basis points for the full year (which would translate to roughly 300 to 200 basis points in Q4 alone). On Jordans and sporting goods, they said Vans has limited distribution into sporting goods and their biggest opportunities are in lifestyle, and they are feeling good about order books.
"The best way to think about it is gross margin will be still up for Q3, but it will be not as high as 180 basis points." — Abhishek Dalmia (CFO)
Vans outlook next year and store vs e-commerce trends
Q (Brooke Roach · Goldman Sachs): Can you give guardrails for Vans improvement and margins next fiscal year? Also, how are comps and traffic trending in physical stores versus e-com in the Americas, and is there a halo beyond limited editions?
A: Management declined to give forward guidance now but reiterated a commitment to 10% operating margins in 2029 and said they will provide more detail when they guide for next year. They said e-com is stronger than physical retail, which is stronger than wholesale; e-com is responding to direct marketing and product newness, comp store sales are improving (about 60% of fleet was growing last quarter and it's a little better this quarter), and traffic and e-com trends are improving year over year. They also said product activity—new silhouettes, reinvigorated icons and core styles—is driving heat across channels.
"e-com is stronger than physical retail, which is of course stronger than wholesale." — Bracken Darrell (CEO)