VF Corp. management confirmed on a Tuesday conference call with analysts that the company began a review of strategic alternatives for its global packs business. SGB Media previously reported speculation regarding the divestment of the Jansport brand this past December.
“As part of our ongoing active portfolio management, we are announcing our intention to explore strategic alternatives for our Packs business, including the Kipling, Eastpak, and JanSport brands as we take another step in streamlining and focusing our portfolio of brands,” VF Corp Interim CEO Benno Dorer shared on the call. “As an outcome of this process, we’re committed to ensuring these brands are optimally positioned to achieve their full potential while enhancing VF’s management focus on our top strategic priorities.”
The company said the “iconic and profitable businesses” are strong contributors of value, but VF is committed to ensuring they are optimally positioned to achieve their full potential while enhancing management focus on the company’s greatest strategic priorities. In short, the brands deserve better.
“Specific to the Packs, active portfolio management, small mini core competency and strength of VF and remains a priority of our Board,” explained VF CFO Matt Puckett. “The evergreen evaluation efforts that are always underway and the process has led us to the determination, we’re likely not the best owner of these brands at this time. And we need to ensure the focus of our management team, and the focus of our capital, while at the same time, giving these great brands the best opportunity to reach their full potential.
“Let me state though, and to those brand teams as well, these brands are core brands and businesses and they are performing well,” Puckett continued. “We’ve seen strong revenue and margin growth in fiscal year 2023 from all these brands, and this is Eastpak, JanSport and Kipling collectively as they are benefiting from a return to the usage occasions that they are leaders in travel gear, school packs, and school care, other activities.”
“It’s a process we’ve begun,” he concluded. “It’s going to take some time. We certainly won’t rush it. We don’t need to do that, but we’re very confident with the term and find the right and best owner of these brands.