V.F. Corp Set to Offload Dickies as Part of Turnaround Strategy

V.F. Corporation VFC, the owner of Vans and The North Face, is reshaping its business with the sale of its Dickies brand to Bluestar Alliance in a $600 million cash deal. The agreement marks an important step in VFC’s broader turnaround efforts as the company works to regain momentum in a challenging retail landscape.The move underscores VFC’s strategy of streamlining its portfolio to focus on its strongest-performing lifestyle and performance labels. Dickies, purchased by V.F. Corp in 2017 for roughly $820 million, has struggled with declining sales for more than a year. By selling the brand, VFC aims to lower its debt levels and redirect resources toward categories with higher growth potential.Although performance has softened recently, Dickies still holds an iconic place in American fashion. Known for its rugged workwear and crossover appeal in streetwear, the brand is sold in more than 50 countries and continues to resonate with diverse consumer groups. Bluestar Alliance, which specializes in managing and expanding heritage labels, plans to leverage its expertise to revitalize Dickies and maximize its long-term potential.The sale also comes at a time when V.F. Corp is working to manage broader industry headwinds, including tariffs and supply chain disruptions tied to its reliance on Southeast Asian manufacturing hubs. With Vietnam, Bangladesh, Cambodia and Indonesia supplying the majority of its products, VFC is under pressure to control costs while keeping production flexible. Trimming its portfolio allows the company to focus on stronger global brands that can better withstand economic pressures.The transaction is set to close before the end of 2025, pending customary approvals. For VFC, the sale of Dickies reflects a sharpened strategic focus and a step toward financial discipline. For Bluestar Alliance, the acquisition offers the chance to reinvigorate a century-old brand and strengthen its presence in both the workwear and lifestyle apparel markets.VFC Streamlines Segments to Drive Long-Term GrowthVFC is making solid progress on its Reinvent transformation program, which focuses on operational discipline, brand strength and long-term profitable growth. The strategy includes reducing costs, strengthening the balance sheet, fixing the Americas business and reviving Vans. Segment realignment has also sharpened focus, grouping Timberland and The North Face under Outdoor, Vans and other lifestyle brands under Active, and smaller labels under “All Other,” streamlining oversight and improving resource allocation.The Outdoor segment remains VFC’s strongest growth driver, led by The North Face and Timberland, both benefiting from brand strength, product innovation and sustained consumer demand. Outdoor revenues grew 8% year over year in the first quarter, supported by durable trends in performance wear, sustainability and outdoor lifestyles. Core brands such as The North Face, Timberland and Altra are expected to continue driving momentum through innovation and strong consumer demand, reinforcing Outdoor as VFC’s primary growth catalyst.Shares of this Zacks Rank #3 (Hold) company have gained 24% in the past three months against the industry’s decline of 4.1%.VFC Stock's Price Performance Image Source: Zacks Investment ResearchKey PicksRalph Lauren Corporation RL, which is a designer and marketer of premium lifestyle products, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.RL delivered a trailing four-quarter earnings surprise of 8.5%, on average. The Zacks Consensus Estimate for Ralph Lauren’s current financial-year sales indicates growth of 5.9% from the year-ago number.Revolve Group, Inc. RVLV operates as an online fashion retailer for millennial and Generation Z consumers in the United States and internationally. RVLV currently carries a Zacks Rank #2 (Buy). RVLV has a trailing four-quarter earnings surprise of 48.8%, on average.The Zacks Consensus Estimate for Revolve Group’s current financial year’s sales growth of 6.8% and earnings implies a decline of 26.1% from the year-ago reported numbers.Boyd Gaming BYD, which is a gaming company, currently has a Zacks Rank #2.BYD delivered a trailing four-quarter earnings surprise of 9.1%, on average. The Zacks Consensus Estimate for BYD’s current financial-year EPS indicates growth of 5.2% from the year-ago number.See our %%CTA_TEXT%% report – free today!7 Best Stocks for the Next 30 DaysWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report V.F. Corporation (VFC): Free Stock Analysis Report Ralph Lauren Corporation (RL): Free Stock Analysis Report Boyd Gaming Corporation (BYD): Free Stock Analysis Report Revolve Group, Inc. (RVLV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks