VF Corporation looking at additional $45 million of growth-focused investments
VF’s third quarter results are stimulating for the company which is now looking at growth in its largest brands and balanced growth across the core dimensions of its portfolio. Steve Rendle, Chairman, President and Chief Executive Officer remarks, “Based on the strength of our third quarter performance and the growth path we see for the remainder of fiscal 2019, we are again increasing our full year outlook, including an additional $45 million of growth-focused investments aimed at accelerating growth and value creation into fiscal year 2020. We remain sharply focused on executing our integrated growth strategy and transforming VF into a purpose-led, performance-driven enterprise committed to delivering superior returns to shareholders.”
Integration through selling & acquiring brands
To consolidate and make its business more profitable, VF pulled out itself from two of its businesses and acquired two new brands in its folio in 2017-18. The company sold off its Licensed Sports Group (LSG) business, including the Majestic® brand in 2017. With the LSG divestiture, VF executed its plan to entirely exit the licensing business. In the same year, VF announced definitive agreement to acquire Williamson-Dickie, a leading workwear manufacturing company; the acquisition created a global leader in workwear and revenue and earnings per share was expected to exceed $15 billion and $5.00, respectively; Williamson-Dickie is expected to add more than $1 billion of revenue by 2021.
Similarly in 2018, it sold Nautica brand business and in the same year acquired Icebreaker Holdings, Ltd., a privately held company based in Auckland, New Zealand. This acquisition of Icebreaker was an ideal complement to VF’s Smartwool brand, which also features Merino wool in its clothing and accessories. Together, the Smartwool and Icebreaker brands are positioning VF as a global leader in the Merino wool and natural fibre categories.
VF Corporation has diverse portfolio of iconic lifestyle brands, including Vans®, The North Face®, Timberland®, Wrangler® and Lee®. Founded in 1899, VF is one of the world’s largest apparel, footwear and accessories companies with socially and environmentally responsible operations spanning numerous geographies, product categories and distribution channels.News US