Categories LATEST, Other Industries

Lee, Wrangler brands to be spun off as a public company

As part of its strategy to focus on profitable businesses, VF Corp (VFC) said on Monday that it would spin off its denim brands – Lee and Wrangler – as a separate public company. The company would, meanwhile, retain its profitable outdoor wear brand The North Face and sneaker brand Vans with itself. Timberland will continue with VF Corp.

VF Corp shares were trading down 3% at 9:40 AM ET.

The jeans brands have been facing heavy headwinds as major retailers including Walmart (WMT) have been pushing their own brands. The company had earlier in April sold its lifestyle brand Nautica to Authentic Brands Group for an undisclosed amount.

VF Corp segment profit trend

VF Corp added that it would shift its headquarters to Denver, while the new jeans company would operate out of its Greensboro, North Carolina headquarters. VF’s Americas West chief Scott Baxter will head the new jeans company and will be tasked with improving sales across Asia.

The company said the spin-off, which is expected to be completed by the first half of next year, will be tax-free to shareholders, though the company would incur certain related charges.

VF Corp added that it would shift its headquarters to Denver, while the new jeans company would operate out of its Greensboro, North Carolina headquarters

The Wall Street Journal had reported on Friday that the apparel giant was mulling strategic options for its denim business.

Last month, VF reported first-quarter results that surpassed analysts’ estimates. The company also raised its full-year outlook, sending shares up 1%. The stock has gained 26% so far this year.

Most Popular

HPE Earnings: Hewlett Packard Q1 2024 profit drops but beats Street view

Information technology solutions provider Hewlett Packard Enterprise (NYSE: HPE) on Thursday reported lower earnings and revenues for the first quarter of 2024. Earnings, however, exceeded analysts’ forecasts. First-quarter profit, excluding

After entering FY24 on a high note, Costco is all set to report Q2 results

Costco Wholesale Corporation (NASDAQ: COST) stands out in the retail space for its unique business model that enables the warehouse behemoth to grow store traffic and market share constantly. Currently,

Hormel (HRL) expects continued momentum from its foodservice business in FY2024

Shares of Hormel Foods Corporation (NYSE: HRL) soared over 13% on Thursday after the company delivered better-than-expected earnings results for the first quarter of 2024 and reaffirmed its outlook for

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top