MLB Jersey Supplier VF Seeks Strategic Alternatives for Licensed Sports Unit
March 25 2016 - 12:18PM
Dow Jones News
By Joshua Jamerson
Apparel conglomerate VF Corp. said Friday it would seek
strategic alternatives for its licensed sports division, which
includes its Majestic brand, the official supplier of Major League
Baseball uniforms and other apparel.
Eric Wiseman, VF's chairman and chief executive, said the move
to explore options for its licensed sports business could help the
company "achieve its future potential."
The business is part of VF's image-wear segment, which produced
revenue of $1.1 billion last year. According to VF, the licensed
sports business represented about half that amount. Majestic
produces jerseys, hoodies, outerwear and other items for teams in
the MLB, and is the official supplier of the league's uniforms. In
March 2015, the MLB agreed to extend Majestic's contract through
2019.
The image-wear segment also includes its workwear business,
which produces apparel for workers in the industrial, service and
government sectors.
The image-wear segment has been challenged, but seemingly not by
the licensed sports business for which VF is seeking alternatives.
In February, VF reported softer-than-expected sales and profit in
the fourth quarter. Sales in the overall image-wear segment
declined because of 20% lower revenue from workwear amid decreased
oil and gas exploration.
VF on Friday said the review of strategic alternatives doesn't
include the part of the image-wear division that produces
workwear.
The company is expected to next report results in April.
Write to Joshua Jamerson at joshua.jamerson@wsj.com
(END) Dow Jones Newswires
March 25, 2016 12:03 ET (16:03 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
VF (NYSE:VFC)
Historical Stock Chart
From Jun 2024 to Jul 2024
VF (NYSE:VFC)
Historical Stock Chart
From Jul 2023 to Jul 2024