V.F. Corp. Sold Dickies to Bluestar Alliance: Here's What You Should Know

V.F. Corporation VFC remains on track with its turnaround strategy, making steady progress in reshaping and optimizing its brand portfolio. The company is selling off non-core assets like Dickies to focus on its most profitable and strategically important labels.In the latest revelation, management has successfully concluded its earlier-announced transaction to divest the Dickies brand to Bluestar Alliance LLC, for an aggregate base cash value of $600 million, subject to customary adjustments. Bluestar Alliance is a major global brand management firm.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 continues to resonate with diverse consumer groups.The divestiture will support VFC’s efforts to reinforce its balance sheet and improve financial flexibility, moving it closer to achieving its medium-term leverage goals. It will further enable the company to concentrate its time, energy and resources on its key brands for continued progress and sustainable growth. For VFC, the sale of Dickies reflects a sharpened strategic focus and a step toward financial discipline.What’s More?The Zacks Rank #3 (Hold) company's shares have gained 16.9% in the past three months against the industry’s 9.3% drop.Image Source: Zacks Investment ResearchThe company is progressing smoothly on its Reinvent transformation program. It is driving growth through disciplined cost management, balance sheet improvements and strategic brand focus. Strength in the Outdoor segment, led by The North Face and Timberland, positions VFC well against durable consumer trends. The ongoing investments in digital and supply-chain capabilities further enhance efficiency, supporting long-term growth, stronger margins and improved shareholder confidence.Key Consumer Discretionary PicksRalph Lauren Corporation RL, which is a major designer and distributor 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 9.8%, on average. The Zacks Consensus Estimate for RL’s current financial-year EPS indicates growth of 25% from the year-ago number. Crocs, Inc. CROX, which is a major footwear brand, currently sports a Zacks Rank of 1. CROX delivered a trailing four-quarter earnings surprise of 14.3%, on average. The Zacks Consensus Estimate for Crocs’ current financial-year sales indicates a drop of 2.5% from the year-ago number. Kontoor Brands, Inc. KTB, which is an apparel company, currently carries a Zacks Rank #2 (Buy).The Zacks Consensus Estimate for KTB’s current financial-year EPS is expected to rise 12.5% from the corresponding year-ago reported figure. KTB delivered a trailing four-quarter earnings surprise of 14%, on average.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant 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 Crocs, Inc. (CROX): Free Stock Analysis Report Kontoor Brands, Inc. (KTB): 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