VF Corp. (NYSE: VFC) is planning to spinoff its jeans division into a separate, independent and public company, tax-free to shareholders. The reason for this, according to VF, is because they want to focus more on their athletic and outdoor brands such as North Face and Jansport. VF also owns Timberland and Vans. The Company expects those core companies to raise over USD 11 Billion in annual revenue. In the recent years, VF has sold a few other companies including apparel brand Nautica and denim brand Seven for All Mankind with the same goal—to focus on their core outdoor brands. The sales of VF’s jeans fell 1% as their overall sales rose by 12.5%. Last year, VF’s denim division generated USD 422 Million in profit, down 14% and USD 2.66 Billion in sales, down 3%. This might be attributed to retail giants endorsing their own denim brands.
The VF Company headquarters will move to Denver while the unnamed denim Company will move to their established base in Greensboro, North Carolina. The Company will be headed by VF’s current President of America West, Scott Baxter, who led the denim division for 4 years, from 2011-2015. Baxter hopes to increase sales in Asian markets, particularly China. Lee Jeans was VF’s first denim brand, acquired in 1969. Joining Lee will be other jeans brands such as Wrangler, Rustler and Rock & Republic. According to the Company, these brands produce around USD 2.5 Billion a year in revenue.