VF CORP. TO SELL ITS NAUTICA BUSINESS
During the fourth quarter of 2017, apparel maker VF Corp. reached the decision to sell its Nautica brand business.
This isn’t the first time VF Corp. has unloaded its brands. On April 28, 2017, the company completed the sale of its Licensed Sports Group (LSG) business, which included the Majestic brand. In conjunction with the LSG divestiture, VF executed its plan to entirely exit the licensing business and completed the sale of the assets of the JanSport brand collegiate business in the fourth quarter of 2017. And, on August 26, 2016, the company completed the sale of its Contemporary Brands businesses, which included the 7 For All Mankind, Splendid, and Ella Moss brands.
The company’s after-tax net loss from discontinued operations was $17 million in the fourth quarter of 2017, which includes the operating results of the Nautica brand business, a noncash impairment charge to adjust the Nautica brand business to its estimated fair value, and the gain on sale of the assets of the JanSport brand collegiate business. The company’s after-tax net loss from discontinued operations was $106 million for the full year 2017, which includes the loss on sale of the licensing business, the noncash impairment charges related to the Nautica brand business, and the operating results of the licensing and Nautica brand businesses.
Along with this news, VF has unveiled its fourth quarter and fiscal 2017 results. Revenue increased 20 percent in the fourth quarter to $3.6 billion (up 18 percent currency neutral), including a $247 million contribution from the Williamson-Dickie acquisition, which closed on October 2, 2017. Excluding the Williamson-Dickie acquisition, revenue increased 12 percent (up 10 percent currency neutral), driven by broad-based strength across VF’s international and direct-to-consumer platforms, Outdoor & Action Sports coalition, and Workwear businesses.
Revenue increased 7 percent for the full fiscal year to $11.8 billion, including a $247 million contribution from the Williamson-Dickie acquisition. Excluding the Williamson-Dickie acquisition, revenue for the year increased 5 percent (up 4 percent currency neutral).
“VF’s fourth-quarter results were stronger than we expected as growth continues to accelerate across core dimensions of our portfolio,” said Steve Rendle, chairman and chief executive officer. “We delivered a top-quartile total return for shareholders in 2017 and our strong performance provided us with the capacity to reinvest about $100 million back into our business. I am confident that our investments will accelerate growth and drive even stronger long-term value for shareholders. We remain in the early phase of a multi-year journey to become a purpose led, agile, consumer-centric organization. I am pleased with our early progress and look forward to building on our momentum in 2018.”
