Apparel/footwear powerhouse to split into two companies; relocate HQ
VF Corp. is spinning off its denim business as it continues to focus on its active lifestyle brands such as Timberland.
The apparel and footwear giant announced that it is separating into two independent, publicly traded companies: VF Corporation, which will include The North Face, Timberland, Vans, Jan Sport, Kipling and Dickies, with the second, yet-to-be named company consisting of VF’s Lee and Wranger and other denim brands. The VF outlet business will also be part of the new company.
“The separation will sharpen VF’s focus as a global apparel and footwear powerhouse with a portfolio of iconic brands in highly attractive and growing consumer segments and categories, leading to enhanced long-term revenue growth and margin expansion,” said Steve Rendle, president and CEO. He will continue to lead VF.
In line with its enhanced focus on the outdoor and active consumer, VF said it will move its global headquarters from Greensboro, N.C., to the metro Denver area. The company estimates it will have annual revenue of $11 billion.
“Locating these brands, along with select VF leaders, at the base of the Rocky Mountains will enable us to accelerate innovation, unlock collaboration across brands and functions, attract and retain talent and connect with consumers,” said Rendle.
The new, unnamed jeans company will be based in Greensboro. It will generate more than $2.5 billion in estimated annual sales, and be led by Scott Baxter, currently president of VF's Americas West group. Baxter led the jeans brands from 2011 through 2015.
VF expects the spinoff to be completed in the first half of 2019.
The apparel and footwear giant announced that it is separating into two independent, publicly traded companies: VF Corporation, which will include The North Face, Timberland, Vans, Jan Sport, Kipling and Dickies, with the second, yet-to-be named company consisting of VF’s Lee and Wranger and other denim brands. The VF outlet business will also be part of the new company.
“The separation will sharpen VF’s focus as a global apparel and footwear powerhouse with a portfolio of iconic brands in highly attractive and growing consumer segments and categories, leading to enhanced long-term revenue growth and margin expansion,” said Steve Rendle, president and CEO. He will continue to lead VF.
In line with its enhanced focus on the outdoor and active consumer, VF said it will move its global headquarters from Greensboro, N.C., to the metro Denver area. The company estimates it will have annual revenue of $11 billion.
“Locating these brands, along with select VF leaders, at the base of the Rocky Mountains will enable us to accelerate innovation, unlock collaboration across brands and functions, attract and retain talent and connect with consumers,” said Rendle.
The new, unnamed jeans company will be based in Greensboro. It will generate more than $2.5 billion in estimated annual sales, and be led by Scott Baxter, currently president of VF's Americas West group. Baxter led the jeans brands from 2011 through 2015.
VF expects the spinoff to be completed in the first half of 2019.