VF Corp is actually considering a sale or spinoff of its denim business, sources told The Wall Street Journal on Friday. The apparel as well as also also footwear company owns well-liked denim brands Wrangler as well as also also Lee, along with smaller brands Rustlers as well as also also Rock & Republic.
Based on the denim business’ sales, the idea could be valued at several billion dollars. The division posted $2.66 billion in sales as well as also also $422 million in profit last year. Since 2015, sales have fallen 5 percent as well as also also profit has fallen 2 percent.
The decline in VF’s denim business has paralleled overall industry trends. Jeans sales inside the U.S. were $16.2 billion last year, a decrease through 2013, when the industry had $18.8 billion in total sales.
VF Corp shares rose following news of a potential sale or spinoff, reaching a 52-week high of $97.
Last month, the company reported fiscal first-quarter earnings which beat Wall Street analysts’ expectations. VF’s various other top brands include sneaker brand Vans, outerwear retailer The North Face as well as also also boots maker Timberland.
Read more about the potential alterations at VF Corp’s denim business inside the Wall Street Journal.