VF Corporation (VFC) plans to sell its Reef brand to The Rockport Group. The company hasn’t revealed the terms of the deal. However, VF Corporation mentioned that the deal should be completed in October.
After the divestment, Reef—a beach lifestyle brand—will continue to function as an independent entity. VF Corporation has been divesting its brands as it reorganizes its portfolio. Earlier, VF Corporation sold its Nautica brand to Authentic Brands Group. The company also acquired Altria and Icebreaker in 2018.
Talking about the Reef sale, CEO Steve Rendle said, “Reshaping VF’s brand portfolio to deliver sustainable, long-term growth and superior returns to shareholders remains our top priority. Today’s announcement is another step toward delivering on the commitments outlined in our multi-year business strategy.”
VF Corporation has outlined an extensive five-year strategic road map for driving its top line amid a drastically changing retail landscape. Under the strategy, the company aims to drive the revenues at a compound annual growth rate of 5%–7% from 2016 to 2021.
In August, the company stated that it would be breaking up into two separate entities. While VF Corporation will manage the profitable apparel and footwear business, the new company will take care of the jeans (Wrangler and Lee) and VF Outlet businesses.
The company’s jeans business has taken a hit due to growing competition from athleisure wear and private denim brands. The separation is expected to be concluded by the first half of 2019.