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.
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.