Global apparel and footwear company VF is planning to divest its Nautica apparel brand in order to focus on its profit-making brands.
In the fourth quarter of last year, VF decided to sell its Nautica brand, as well as discontinue the brand business.
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As part of the initiative, the company has classified the assets and liabilities of the brand as held-for-sale.
The decision to sell Nautica was announced by VF in its fourth-quarter earnings statement.
VF chairman and chief executive officer Steve Rendle said: “VF’s fourth-quarter results were stronger than we expected as growth continues to accelerate across core dimensions of our portfolio.
“We delivered a top-quartile total return for shareholders in 2017 and our strong performance provided us with the capacity to reinvest about $100m back into our business. I am confident that our investments will accelerate growth and drive even stronger long-term value for shareholders.
“We remain in the early phase of a multi-year journey to become a purpose-led, agile, consumer-centric organisation. I am pleased with our early progress and look forward to building on our momentum in 2018.”
In the fourth quarter of last year, VF registered a $17m after-tax net loss from its discontinued operations, and also includes the operating results of the Nautica brand business.
Founded in 1899, VF owns a diverse portfolio of lifestyle brands, including Vans, The North Face, Timberland, Wrangler and Lee.
