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Tag: VF Corporation

  • VF Corporation unveils sustainability commitments for 2020

    VF Corporation unveils sustainability commitments for 2020

    Global apparel, footwear and accessories company VF Corporation has revealed sustainability commitments dubbed as its “Science-Based Targets (SBTs)” for the year ahead.

    VF’s new science-based targets (SBTs) are among the most ambitious in the industry and are aligned with the ideology of using its global scale for good. SBTs are greenhouse-gas emission-reduction targets that are in line with meeting the goals of the Paris Agreement.

    The company underwent a two-year-long collaborative process to develop its new SBTs, partnering with global consultancy, the Carbon Trust. The consultants used data from across its owned-and-operated facilities and its product life cycle from farm to retail store, engaging deeply with its entire value chain.

    As outlined in the report, the company has made measurable progress against its targets. Currently, half of VF’s distribution centers around the world are zero-waste facilities and 16 of VF’s owned buildings are LEED certified.  VF has also improved its workers’ conditions and wellbeing under its “Worker and Community Development (WCD) Program” such as empowering female workers on menstruation in India and providing workplace health-and-nutrition benefits in Cambodia.

    Aside from meeting the UN Sustainable Development Goals, VF will be focusing on three pillars across its business and supply chain: the company aims to seek strength in the commercialization of circular business models to reduce VF’s environmental impact while creating new growth opportunities. Additionally, building on VF’s global scale and influence, the company will drive impact reduction across the broader industry by enabling VF and its brands to serve as a catalyst for powering movements of sustainable and active lifestyles.

    Steve Rendie, VF’s Chairman, president and CEO shares: “Our Made for Change strategy outlines our forward-looking priorities and provides us with a renewed focus to push ourselves harder and farther as we address some of our industry’s most challenging issues.”

    The company is confident that by 2030, all of its top nine materials (which comprise 90 percent of its material-related carbon emissions) will originate from responsible or regenerative sources.

  • VF Corporation incurs consumer wrath over Vans contest ‘censorship’

    VF Corporation incurs consumer wrath over Vans contest ‘censorship’

    American brand Vans, known for its skateboarding culture and popular among youth, is facing backlash over the retraction of protest-themed submissions for its Custom Culture shoe design contest.

    Open to entrants globally, artists were invited to customize the brand’s signature white-canvas Authentic skate shoe with their own design. The contest awards the artist with the highest votes USD$25,000 and production of the winning design on a global scale.

    When voting commenced on October 1 (coincidentally also China’s National Day), a design by Canadian-based artist using the pseudonym “Naomiso” quickly lept to the top of the poll. The design featured a black shoe with a red Hong Kong Bauhinia symbol on top of an eyelet, and a group of masked individuals bearing goggles, mask and a yellow hard hat – all representations of the current anti-extradition protest movement.

    Five days into the voting, Naomiso’s work had drawn 140,579 votes thanks to the efforts of netizens and Hongkongers spreading the word on social media platforms to support the entry. The runner-up had attracted just 10,147 votes.

    The sheer volume of votes caught the attention of Vans, which immediately disqualified Naomiso’s entry, issuing a statement on its Facebook page on Saturday morning: “…As a brand that is open to everyone, we have never taken a political position and therefore review designs to ensure they are in line with our company’s long-held values of respect and tolerance, as well as with our clearly communicated guidelines for this competition.”

    However, those terms and conditions (“guidelines”) referred to “trademarked or copyrighted material, business or brand logos, images of celebrities, professionals, sports team logos or mascots, nudity, images of weapons/violence, images referencing drugs, alcohol or smoking, offensive content, obscenity or hate” as grounds for rejection and Naomiso’s protest-themed design featured none of those. The disqualification was made in fear of repercussions for Vans in the Chinese market.

    Shortly after, another user “Lock.E” also submitted a protest-themed entry from the UK in hopes of bypassing the censorship, but that was ultimately was retracted.

    Vans’ statement on Facebook kicked off more than 48,000 reactions, with angry netizens leaving comments to share their disappointment. Many loyal owners of Vans claimed the company had backtracked on its mission statement of “celebrating creativity and spreading positivity”, by evidently bowing to China’s “Great Wall”.

    Vans’ parent, VF Corporation, reported that organic revenue in China increased by 17 percent last year and now represents 6 percent of its global sales. The US-headquartered retail group emphasizes as one of its four focuses in its 2021 Global Business Strategy “Distorting our investments toward Asia, with a heightened focus on China”. Recognizing the growth opportunity of China, the group is supported by investments through Demand Creation locally and holds a strong partnership with Tmall and Alibaba.

    Boycott and trashing

    Soon after the phenomena of #boycottVans begin circulating on social media, netizens started sharing images of themselves trashing their Vans collections. Some opted for a more graceful approach: applying their own pro-democratic design onto their existing Vans shoes instead.

    Meanwhile, a netizen on LIHKG (a Hong Kong forum that plays a key role in protests) compiled a list of brands all under Vans parent group – VF Corporation – calling for a boycott of all the labels. That includes denim labels Lee and Wrangler, which were spun off into a new subsidiary, Kontoor Brands earlier this year.

    The Vans label is one of the company’s largest brands, contributing to 24-per-cent growth in their US$13.8 billion revenue last year.

    Disruption in the distribution model

    There are more than 700 VF-owned stores (16 percent of those in Asia), but the brand largely operates through independent distributors and licensees.

    Hong Kong streetwear distributors, especially more well-known retailers Manhood and Dahood, issued statements saying they were removing Vans merchandise from their shelves in response to the censorship controversy.

    However an anonymous employee alleged on LIHKG that Dahood’s statement was deceptive, issued to gain support and business from pro-democratic supporters when the owners and employees of the retailer held an opposing stance.

    As the long-running protests escalate to boycotting businesses – even to the extent of trashing storefronts of businesses considered to be pro-Beijing – many Hong Kong retailers have statements on standby so they can react quickly to any negative commentary on social media in the hope of avoiding vandalism and being blacklisted by protestors.

  • VF Corporation posts first results after Kontoor spinoff

    VF Corporation posts first results after Kontoor spinoff

    Apparel giant VF Corporation has reported a 9 percent increase in same-store sales on a currency-neutral basis in the June quarter, to US$2.3 billion.

    VF Corporation owns a portfolio of outdoor and activity-based lifestyle and workwear brands, including Vans, The North Face, Timberland and Dickies. In May it spun off its denim business, which includes Lee and Wrangler labels, in a new company called Kontoor Brands.

    The company said its gross margin increased by 140 basis points to 54.4 percent, driven by favorable mix and timing of foreign-currency transaction hedge gains.

    Operating income was $133 million.

    “Our first quarter represents a new chapter for VF following the spin-off of Kontoor Brands and our relocation to Denver, Colorado,” said Steve Rendle, chairman, president and CEO.

    “Our first-quarter results demonstrate the power of VF’s evolved portfolio and our progress along our journey to become a purpose-led, performance-driven, value-creating enterprise anchored in our commitment to be more consumer-minded and retail-centric in everything we do.”

    VF Corporation recorded an after-tax net loss from discontinued operations was of $48 million in the first quarter of fiscal 2020, which reflects the operating results of the jeans business, including $59.5 million of separation costs related to the spin-off.

    Figures in the quarterly results above are compared with comparable trading period last year, after the removal of the discontinued (spun-off) business.

  • VF Corporation to collaborate with Redress

    VF Corporation to collaborate with Redress

    Global apparel, footwear and accessories retailer VF Corporation is entering an exclusive collaboration with environmental charity Redress to deliver the Redress Design Award 2019 x VF Challenge in Hong Kong.

    The award is the world’s largest sustainable fashion design competition and works to educate emerging fashion designers around the world about sustainable design techniques to drive growth towards a circular fashion system.

    The collaboration is being supported by financial contributions from VF and charitable grants from the VF Foundation, a private philanthropic foundation funded by VF Corporation.

    “This collaboration presents a unique opportunity for VF to provide mentorship to the next generation of fashion leaders while also learning from them,” said VF executive VP & group president APAC region Kevin Bailey, “all with an emphasis on advancing a more sustainable business model for our industry.”

    VF’s collaboration with Redress will provide 10 shortlisted emerging designers the opportunity to learn from one of the world’s foremost leaders in apparel and footwear.

    Designers will present their competition collections on September 5th at the live Grand Final at Centrestage in Hong Kong.

  • 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.

  • VF Corporation finalized Icebreaker takeover

    VF Corporation finalized Icebreaker takeover

    Outdoor apparel brand Icebreaker is now under US ownership after New Zealand’s Overseas Investment Office approved the NZ$100 million+ deal.

    The purchaser is VF Corporation, which owns a diverse portfolio of lifestyle brands, including Vans, The North Face, Timberland, Wrangler and Lee.

    In a media release, North Carolina-based VF Corp said the acquisition “is an ideal complement to VF’s Smartwool brand, which also features merino wool in its clothing and accessories”.

    “Together, the Smartwool and Icebreaker brands will position VF as a global leader in the merino wool and natural fibre categories.”

    The deal was originally sealed, subject to regulatory approval, last November. At the time, founder Jeremy Moon said it was always his plan to build a global brand from New Zealand.

    “Our partnership with VF provides us with the largest platform in the world to tell our story, access new markets and reach new consumers at an accelerated pace. This is a once-in-a-lifetime opportunity for our global Icebreaker brand team and for our wool suppliers to introduce a whole new universe of consumers to the benefits of sustainably farmed, ethically sourced, New Zealand Merino wool,” he said.

    The brand is sold in 47 countries through wholesale, branded retail stores and online. Sales were estimated at in excess of US$150 million last year.

  • VF Corporation to acquire Altra footwear

    VF Corporation to acquire Altra footwear

    VF Corporation, parent of Wrangler, Timberland, Vans and the North Face, among others, has bought fast-growing footwear brand Altra.

    Terms of the deal were not disclosed, but Altra, launched in 2011 by Icon Health & Fitness, has already expanded into 1600 points of sale in 55 countries. In the last year it achieved sales of US$50 million.

    Altra’s point of difference is its specialised, innovative design technology for road, trail, and lifestyle footwear which has attracted awards and a strong and dedicated consumer following.

    “The acquisition of the Altra brand is another example of our efforts to reshape and evolve our portfolio of powerful brands to align with our enterprise value creation model,” said Steve Rendle, chairman, president and CEO of VF Corporation. “The active outdoor and performance sector is a large and attractive growth space. The addition of the Altra brand brings to VF a unique and differentiated technical footwear brand and a capability that when applied across VF’s outdoor footwear, direct-to-consumer and international platforms will serve as a catalyst for growth.”

    The deal will be settled next month.

    Scott Watterson, Icon chairman and CEO, said the sale of Altra would allow the company to accelerate the continuing growth of its core NordicTrack and ProForm brands, its Freemotion commercial business, and iFit, its connected fitness subscription program.

    “The global health and wellness industry is exploding, and we’re doubling down on that growth.”

  • Timberland Asia launches online

    Timberland Asia launches online

    Footwear and apparel brand Timberland Asia has partnered SP eCommerce, a Singapore Post company, to launch its official eCommerce store for the Southeast Asian region.

    The Singapore-based online store uses SP eCommerce’s security, management, digital marketing, store operations and customer-care technology. Order fulfillment is being handled across Singapore through SingPost’s last-mile distribution network.

    This gives Timberland the ability to deliver a seamless shopping experience, with exclusive online promotions as well as its full retail catalog.

    “This is a natural next step for Timberland,” says Malaysia/Singapore GM Daisy Tan of Timberland owner VF Corporation. “Working with one partner for the entire shop-to-ship process lets us focus our attention on serving our customers and growing our business.”

  • 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.

  • 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.