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Tag: Lee

  • VF Corp names Daughter Company Kontoor Brands

    VF Corp names Daughter Company Kontoor Brands

    Kontoor Brands – that’s the name chosen for the denim-led fashion business being spun off by VF Corporation next month.

    The US branded lifestyle apparel, footwear and accessories company released an update on the plan, announcing its has filed the necessary regulatory paperwork to start the process rolling.

    Kontoor Brands, to be publicly listed, will take over the Wrangler, Lee and Rock & Republic brands, along with VF’s outlet business.

    “Our teams across VF have made tremendous progress to prepare for the successful separation of Kontoor Brands from VF and this filing is a significant next step in this process,” said Steve Rendle, chairman, president and CEO of VF Corporation. “We are highly confident that the separation is the best path forward for both organisations to achieve even greater potential and enhance long-term shareholder value.”

    He said the split is on track to be completed next month, subject to final approval by VF’s board, customary regulatory approvals, and tax and legal considerations.

    “Today’s filing marks an important milestone in the process of establishing Kontoor Brands as an independent company,” said Scott Baxter, named CEO of Kontoor Brands. “As we prepare for life as a separate, publicly traded organisation, I am confident that Kontoor Brands is strongly positioned to thrive as a leader in the global apparel industry and deliver long-term value for all of our stakeholders.”

    VF’s decision to split the business in two was announced last August. Rendle said at the time that since 2017, the company had been reshaping of its brand portfolio to better position the company for long-term success. In that time, VF had bought Williamson-Dickie, and the Icebreaker and Altra brands, and sold Nautica and its Licensed Sports Group, including the Majestic brand. The brands that will remain in VF’s portfolio include Vans, The North Face, JanSport, Timberland, Smartwool and Eagle Creek.

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  • Vans, The North Face boost parents sales

    Vans, The North Face boost parents sales

    VF Brands has posted strong third-quarter results, with balanced growth across its entire portfolio. The US-listed apparel company, which owns and operates Vans, The North Face, Timberland, Wrangler and Lee, among others, says sales grew 8 per cent in the third quarter, to US$3.9 billion. Its share price soared 12.39 per cent after the announcement on Friday (US time) to $82.47.

    Vans sales soared 25 per cent and The North Face’s, by 14 per cent.

    “VF’s third-quarter results were fuelled by strong growth in our largest brands and balanced growth across the core dimensions of our portfolio,” said VF Brands president, chairman and CEO Steve Rendle.

    Revenue from VF’s ‘active’ segment, which includes brands such as Vans and JanSport, increased 16 per cent, while revenue from its ‘outdoor’ segment, which includes brands such as The North Face and Timberland, increased 11 per cent.

    VF reported $592 million in operating income, 22 per cent up on the prior year. Net income for the period was $463 million, a 613 per cent increase over the $90 million loss posted in the same period last year.

    “Based on the strength of our third-quarter performance and the growth trajectory we see for the remainder of fiscal 2019, we are again increasing our full year outlook,” Rendle said.

    The business expects revenue from its ‘work’ segment, which includes brands such as Dickies, is expected to increase 39 per cent, while revenue from its ‘active’ segment is expected to increase 16 per cent and revenue from its ‘outdoor’ segment is expected to grow 8 per cent.

    VF expects revenue from its ‘jeans’ segment, which includes brands such as Wrangler and Lee, to decline 3 per cent, while direct-to-consumer revenue is expected to increase 13 per cent, and digital revenue is set to increase by more than 30 per cent.

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  • VF next plan for Wrangler and Lee business

    VF next plan for Wrangler and Lee business

    Fast-growing apparel brand owner VF Corporation plans to spin off its Wrangler and Lee denim business into a second listed company.

    Dubbed NewCo for now, it would be a global leader in the denim category as well as incorporating the VF Outlet operations. Those businesses contributed US$2.5 billion to VF’s turnover last year.

    VF chairman, president and CEO Steve Rendle said since last year the company has been engaged in a disciplined reshaping of its brand portfolio to better position the company for long-term success in a quickly changing business landscape. In that time, VF has acquired Williamson-Dickie, and the Icebreaker and Altra brands, and sold Nautica and its Licensed Sports Group, including the Majestic brand. That has sharpened the company’s focus on activity-based outdoor, active and work lifestyles. Its brands now include North Face, JanSport, Smartwool and Eagle Creek,

    “The decision to separate these businesses will allow VF to sharpen its focus as a consumer-centric and retail-minded organisation anchored in activity-based lifestyle brands,” said Rendle.

    The Wrangler and Lee jeans business is both successful and sustainable with iconic global brands and a clear path to value creation as a standalone entity, he said.

    “This exciting step forward will mean that both VF and NewCo have the resources, management focus and financial flexibility to thrive in a dynamic consumer marketplace, creating an even brighter future for both organisations and all of their stakeholders.”

    With annual sales estimated at more than $11 billion, the trimmed-down VF business will have more flexibility to pursue its merger and acquisition strategy, explore new growth vectors and apply even more investment behind its organic brand portfolio, he said in a statement.

    Post split, VF would move its headquarters to metro Denver, a location it believes is more in keeping with its outdoor wear focus and an ideal home for its Global Innovation Center for technical fabrics and Digital Lab.

    “Locating these brands, along with select VF leaders, at the base of the Rocky Mountains will enable us to accelerate innovation, unlock collaboration across brands and functions, attract and retain talent and connect with consumers,” said Rendle, who will remain in his current role.

    NewCo’s Asian focus

    Meanwhile, the new Wrangler and Lee denim business will be free to pursue further expansion of its global footprint, with a sharp focus on Asia, building on its established presence in China. The company expects to unlock significant scale and cost efficiencies by streamlining operations, providing flexibility to pursue strategic acquisitions over time.

    Scott Baxter has been designated CEO of the new company and  Rustin Welton as CFO.

    NewCo will be headquartered in Greensboro, North Carolina where Lee will relocate its headquarters from Kansas City, joining Wrangler.

    The separation is anticipated to be complete in the first half of next year, following customary regulatory approvals and tax and legal considerations.

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  • Lee’s Coffee Expands to New Markets in Southeast Asia

    Lee’s Coffee Expands to New Markets in Southeast Asia

    Lee’s Coffee, a subsidiary of Lee’s Sandwiches, is exporting their famous “Cà Phê Sữa Đá” to the Philippines, building on its partnership with S&R Membership Shopping. S&R offers high quality products with a wide- variety selection of imported grocery items from all over the world. In this world class shopping club, customers can purchase a variety of Lee’s Coffee concentrated latte, vanilla latte, and triple shot latte 16oz bottles.

    “We are proud to bring an elevated and unique coffee experience to Philippines with the introduction of our America’s #1 Vietnamese Coffee,” said Chieu Le, President of Lee’s Coffee. “For many Filipino Americans returning to their homeland, the coffee will also bring to their delight a familiar taste of the California refreshment.”

    Lee’s Coffee embarked on a mission to share their love and passion for Vietnamese style coffee in the United States. Through their family recipe, the “Cà Phê Sữa Đá” became a community favorite, propelling the flavors of their country into the mainstream with availability in Costco Wholesale, Lee’s Sandwiches, and leading Asian supermarket chains in the USA, Philippines, and Vietnam.

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  • CityOn.Zhengzhou to open fully leased

    CityOn.Zhengzhou to open fully leased

    Taubman Asia, a subsidiary of US shopping centre group Taubman Centers, and China’s Wangfujing Group, have announced the line-up of retailers for its CityOn.Zhengzhou mall in Henan province, set to open on March 16.

    When it opens, the centre will be 100 per cent leased and 90 per cent occupied with nearly 200 stores and restaurants. In the heart of Zhengdong New District, the six-level, 94,000 sqm shopping and dining destination will offer domestic, international and lifestyle brands from fast fashion to accessible luxury, anchored by a four-level Wangfujing department store.

    “We are thrilled to see our second China project coming to life in Zhengzhou,” says Taubman Asia president Rene Tremblay.

    Local, regional and international cuisine at all price points and in both seated restaurants and quick-serve formats will be a feature of the centre, which will also offer family-friendly experiential, educational and entertainment offerings.

    Many international brands will be making their central China debut at the centre, says Taubman Asia group VP Paul Wright.

    Outlets at the mall include…

    Fashion: Adidas, Ajidou, Basic House, Bershka, Charles & Keith, Columbia, Converse, Ecco, Five Plus, Forever 21, H&M, Innisfree, Jack & Jones, KIKC, Kipling, La Chapelle, Lee, Levi’s, Mango, Massimo Dutti, Miniso, Mishka, Mobi Garden, Nike, Pandora, Polo, Sand & Foam, Sephora, Skechers, Stradivarius, The North Face, Uniqlo, Vans, Vero Moda, Westlink and Zara.

    F&B/entertainment/kids/lifestyle/electronics: Acasia Food Village (featuring 14 food vendors), Benfu Sushi, Boat Noodle, Chatime, Chez Choux, Chicken Container, Coco, Dollar Shop, FrozenYo, GB Kids Station, Gong Cha, Grandma’s Kitchen, Guoguo Mutton Soup Restaurant, Guxiang No. 9 Catering, Hallmark Babies, Homao, Huawei, iSpace, La Chapelle Kids, Lenovo, MagicSalad, MM by Haircode, Mr Wish, NaughtyKids, New York Fries, Oscar CityOn Cinema, PapaBubble, Pizza Zone, Rbike, Siwuke Tea, Starbucks, Strawberry Forever, Subway, Teppanyaki Xiang, Toot Science, Udon & Tempura, Uncle, Wan Quan Bu Tong, Xiang Tian Xia Huo Guo, Xiao Liu Jia, Xiao Zhu Zhu Kao Rou, Xue Mi Da, Yang Xiang Dou Pi Shuan Niu Du, YuYuTo, ZBX Fresh Fish Hot Pot, Zheng Shi Yi and Zoo Steak.

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  • China to fuel VF Corporation brands

    China to fuel VF Corporation brands

    Multibrand fashion group VF Corporation sees Asia – and especially China – as the primary driver of growth in the years ahead.

    VF Corporation brands include Vans, Kipling, Lee and The North Face.

    The US-headquartered company says it is focused on expanding geographically to take advantage of its scale in markets around the world.

    “The Asia Pacific (APAC) market, and in particular China, represent robust growth opportunities for VF, according to the company’s business lead,” the company revealed in an online newsletter.

    “Asia Pacific is an important region for business development and remains a priority focus for the company,” said Aidan O’Meara, VF’s Asia Pacific president. “Our plan is to continue to focus on locally relevant innovation, further invest in demand creation and leverage our scale and capabilities as ‘One VF’ to fully capitalise on the growth opportunities and take market share.”

    VF’s APAC business continues to expand. In 2015, currency neutral revenues in the region were up 10 per cent reaching US$1.2 billion.

    China, which accounts for roughly half of APAC revenue, has seen consistent, strong growth from the country’s three largest brands: The North Face, Lee and Vans. In particular, Lee in China has experienced consistently strong growth over the years for the company, with product innovations driving recent success.

    Denim leads the charge in China

    VF brands currently maintain presences in more than 170 Chinese cities. And, that number is expected to increase in coming years.

    “We see growth potential in a market with increasing affluence, a burgeoning middle class and increasing sophistication and demand for quality jeanswear,” O’Meara said.

    The company sees a competitive edge in the market, particularly at Lee. VF launched Lee as the company’s first owned business in China in 1995.

    “Statistics show that while jeans ownership is about eight pairs per person in North America,” O’Meara said. “In China, it is less than one pair per person, and if you look at India, there is still a lot of room as jeans ownership averages about three pairs per person.”

    O’Meara noted there was a time when many jeans manufacturers rested on their laurels. However, as competition intensified, many consumers lost excitement with the products available on the market, opening a door for an innovative new product.

    Lee saw this opportunity and put its research and development to the test. The resulting JadeFusion Denim has been a resounding success and garnered a Bronze Innovation Edison Award in the Materials Science category.

    JadeFusion immediately accounted for 13 per cent of China’s denim sales in its first season on the market in the spring and summer of 2015.

    “Lee exemplifies VF’s continuous innovation as one of the key strategies which differentiate us from our competitors,” O’Meara said.

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  • 7 for All Mankind sold by VF Corporation

    7 for All Mankind sold by VF Corporation

    Hip denim lifestyle brand 7 for All Mankind has been sold along with two sister brands.

    VF Corporation says it has sold its Contemporary Brands businesses to Tel Aviv-based Delta Galil Industries.

    The other brands are Splendid and Ella Moss.

    VF chairman and CEO Eric Wiseman said the brands included in this transaction are leaders in their sectors, and have talented, passionate people who are motivated by serving the marketplace with distinctive apparel design and exceptional service.

    “Earlier this year we said that we are taking a focused and proactive look at the composition of our business portfolio to ensure that we are well positioned to maximise VF’s growth and return to our shareholders. This announcement illustrates that our work as active portfolio managers is progressing.”

    The transaction, which is expected to close in the third quarter of this year, is subject to various regulatory approvals and other customary closing conditions that must be accomplished in order for a closing to occur. The selling price is US$120 million, subject to various working capital adjustments.

    VF Corporation owns a diversified portfolio of brands around the globe, including The North Face, Vans, Timberland, Wrangler, Lee and Nautica.

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  • Myntra India pins hopes on sportswear

    Myntra India pins hopes on sportswear

    Adding more products and international brands to its portfolio, online fashion retailer Myntra India aims to grow its outdoor and sports range revenue by 20 per cent over the next 15 months.

    Owned by Flipkart, the company earns about 15 per cent of its revenue from sportswear and has just introduced apparel and footwear from US brand The North Face (TNF), reports The Times of India.

    “The North Face is an important addition to our list of international exclusive brands,” says Myntra head of eCommerce Prasad Kompalli.

    He says the outdoor category is expected to double its growth in 2016-17.

    TNF’s range went on sale this month. Part of VF Inc, it was founded in California in 1966 and specialises in outerwear, fleece and coats. It competes directly with Columbia Sportswear, which entered India in December 2013.

    VF Asia executive Bruno Feltracco says India offers a huge opportunity as a market.

    “Our experience in China helped us decide to first go online and understand the market. There is nothing that prevents us to go offline after we reach a certain stage,” he says. “We already have some of our other brands here doing really well.”

    VF Asia’s other brands include Lee, Wrangler and Nautica.

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