Jeanswear brand Kontoor Brands Inc. completed its separation from luxury goods retailer V.F. Corp., after the latter's board approved the spinoff April 30.
In a May 23 statement, Kontoor Brands said that as an independent entity it will pursue strategic priorities, including scaling its core denim business; tapping new customers; and expanding in "high-value" segments, channels and geographies.
The Lee and Wrangler apparel brand owner added that it intends to deliver annualized returns in the range of 8% to 10%, inclusive of an approximate 5% dividend yield and 1% to 2% revenue growth. V.F. Corp. had said Kontoor Brands is expected to generate over $2.5 billion in revenue in 2019.
Scott Baxter, former group president of Americas West at V.F. Corp., will be Kontoor Brands' CEO and president.
The company is headquartered in Greensboro, N.C., and will begin trading on the NYSE under the ticker KTB, effective immediately.