CBJ — The clothing company that makes Wrangler and Lee jeans is breaking off its denim division to focus on its fast-growing outdoor and active wear business, including the increasingly popular yoga pants.
The major shift at VF Corp. is in response to the popularity of yoga pants and has seen such companies as Lululemon, Under Armour and Nike really do well in that area.
The change in what people wear is becoming more pronounced with each passing quarter.
Revenue from active wear surged 25% and outdoor revenue rose 6% in the last quarter. Revenue from denim increased 3%.
The company said it expects the tax-free spin-off of its denim business to generate annual revenue of $2.5 billion.
The yet-to-be-named outdoor and activewear division, which includes The North Face and Timberland, Altra, Icebreaker and Williamson-Dickie, is expected to generate annual revenue of around $11 billion.
Shared from The Canadian Business Journal
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