, owner of Lee and Wrangler jeans, said Monday it is planning to spin off its denim business as a separate, publicly traded company.
VF said it hopes to create the yet-unnamed company through a tax-free spinoff to its shareholders. The newly formed company will hold VF’s jeans business, which includes brands such as Wrangler, Lee, Rustler and Rock & Republic, and its outlet operations. These businesses generate about $2.5 billion in annual revenue, the company said.
The Wall Street Journal reported Friday VF was exploring strategic options for its denim business, citing people familiar with the matter.
The apparel conglomerate has moved to pare off some of the classic American brands in its portfolio as it seeks to focus on faster-growing brands. In the past few years, the company has shed the denim brand Seven for All Mankind, the apparel brand Nautica and divested from its stake in Majestic brand, the official supplier of Major League Baseball uniforms.
The moves would allow the company to focus on its active and outdoor brands, like the North Face, JanSport and Eagle Creek. Sales of Wrangler and Lee jeans have slowed in recent years as jeans have fallen out of favor with consumers who instead opt for yoga pants or premium brands like J Brand or Frame.
VF said Monday it plans to move its global headquarters to the Denver metro area from Greensboro, N.C. Meanwhile, the new company will be headquartered in Greensboro.
Shares of VF were unchanged in premarket trading at $96.29. VF shares rose 0.5% in Friday trading, closing at an all-time high after The Journal’s report published late that afternoon.