In the 1990s, it was the leading brand of American fashion

Issuing time:2018-02-27 14:03

VF Corp, The parent company of outdoor and casual fashion brands such as The North Face, Timberland, Lee, Vans and Wrangler, recently announced plans to sell its casual apparel business. VF Corporation also announced fiscal 2017 fourth quarter and full year results, 2017 sales increased 7%, $11.8 billion, including last year's acquisition of U.S. tooling brand Williamson-Dickie additional revenue of $247 million

  In the fourth quarter of 2017, VF Corporation marked its Nautica casual apparel brand as a "non-going concern" and decided to sell it.

  In 1983, Chinese designer Zhu Qinqi founded the casual clothing brand Nautica in the United States, which has achieved great success with its bright colors and unique lifestyle atmosphere. With its distinctive logo and loose silhouette, Nautica became popular with hip hop and R&B singers in the 1990s. Nautica has grown from a men's outerwear brand to an international brand covering men's, women's, children's, accessories and home products.

  VF Chairman and CEO Steve Rendle stated that the reason for the sale of Nautica was that the brand did not fit with the group's current strategy and could not drive group sales growth. "Nautica deserves to find a better owner to fully leverage its brand value."

In 2003, VF Corporation acquired Nautica for $585.6 million with the intention of entering the more high-end market. But since the acquisition, the brand has gradually lost its status as a trend-driven icon in the 1990s, with consumers rapidly shifting to fast fashion and more cutting-edge brands, leading to years of declining performance. Last year, VF Corporation replaced Nautica's leadership team and enlisted hip-hop artist Lil Yachty to launch a collection in an attempt to help revive Nautica, but it failed to reverse the situation and sales continued to decline. In 2017, the brand's net loss amounted to $95.2 million, while VF Corporation will report a goodwill impairment of $132 million.

  VF did not disclose details of the Nautica sale plan, saying only that it is actively engaged in discussions with a number of potential buyers, but no agreement has been reached at this time.

  VF said its gross margin increased 120 basis points to 50.5%, a record high, thanks to price strength, lower product and restructuring costs. In the future, the Group will further streamline its structure and improve its profit margin.

In recent years, VF has divested a number of businesses, such as:

 In August 2016, it sold its Contemporary Brands business, which includes 7 For All Mankind, Splendid, Ella Moss and other brands

In April 2017, the Group completed the sale of its Licensed Sports Group business, which owns brands such as Majestic

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