The North Face and Timberland parent, VF Corp, has reported modest sales growth and margin expansion in the second quarter.

The company’s total revenue fell 4 per cent in the quarter ended September 26, but increased 1 per cent when excluding Dickies, which was sold late last year.

Gross margin was up 320 bps to 55.4 per cent, and operating margin expanded 250 bps to 13.7 per cent. Operating income rose from $313 million a year ago to $368 million.

The company reduced its net debt by 20 per cent at the end of the quarter.

CEO Bracken Darrell said the company delivered strong results in the second quarter, ahead of guidance across key metrics.

Both The North Face and Timberland continued their momentum with sales up 4 per cent, while Altra soared 40 per cent. Darrell attributed the uplifts to product design, innovation and brand storytelling that are resonating with consumers. 

Vans sales slid 9.8 per cent, but management remain optimistic about the brand’s future improvement.

“Our plan to reignite Vans is working – global DTC is growing again for the first time in almost five years, and strong orders from wholesale partners continue to give us confidence of a second-half improvement,” Darrell said.

For the full year, VF Corp continues to expect revenue to increase more than 2 per cent.