Wrangler, Lee jeans to form new company as VF Corp plans spinoff
In this Feb. 4, 2011, File photo, Wrangler jeans are displayed at a store in Hayward, Calif. (AP Photo/Paul Sakuma, File)
Apparel maker VF Corp announced on Monday that it will spin off its Wrangler and Lee jeans brands into a separate publicly traded company.
VF Corp has seen profits from its jeans business decline, and the company had explored an outright sale of Wrangler and Lee. A spinoff will allow VF Corp to turn its attention to more profitable brands in its portfolio, such as Vans and The North Face.
The yet-to-be-named jeans company will have annual revenue of more than $2.5 billion, compared to $11 billion for the remainder of VF Corp. In addition to Vans and The North Face, VF Corp’s brands include Timberland, JanSport and Eagle Creek.
Steve Rendle, chairman and CEO of VF Corp, said spinning off Wrangler and Lee – along with the VF Outlet business – will refocus the company on activity-based lifestyle brands.
“Our jeans platform is a successful, sustainable business with iconic global brands and a clear path to value creation as a standalone entity,” Rendle said in a statement.
VF Corp also announced that it will move its headquarters to Denver. The jeans company will be based in VF Corp’s current home of Greensboro, North Carolina.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| VFC | VF CORP. | 19.74 | +0.95 | +5.06% |
VF Corp has sought to revamp its brand portfolio in recent years. The company has already sold Nautica and Majestic, the sportswear and jersey maker acquired by Fanatics.
Shares fell more than 3% in Monday afternoon trading.