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Report: V.F. looking to exit denim business

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Report: V.F. looking to exit denim business

Apparel maker V.F. Corp. is exploring strategic options for its denim business that could include a sale or spinoff of its jeans brands including Lee and Wrangler, The Wall Street Journal reported Aug. 10, citing people familiar with the matter.

The report noted the North Carolina-based company's jeans sales have slowed in recent years as more women turn toward yoga pants or premium denim brands.

The company in its recent full-year forecast said it expects revenue growth during fiscal 2019 in all segments, except the jeanswear. Outdoor revenue is projected to increase 6% to 8%, the active division is expected to increase 13% to 14% and the work division revenue is expected to jump more than 35%, while the revenue for jeans is anticipated to remain flat.

The WSJ report also said that retailers including Walmart Inc. and other department stores have reduced orders for V.F. jeans in the recent months.

The apparel maker in March sold its Nautica clothing brand to Authentic Brands Group. The apparel giant also divested its athletic brand Majestic to Fanatics Inc. in 2017.

V.F., which also owns Vans and Timberland brands, did not immediately respond to S&P Global Market Intelligence's request for comment.