MLB Jersey Supplier VF Seeks Strategic Alternatives for Licensed Sports Unit -- Update

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.

VF--which owns brand including Wrangler, Timberland and The North Face--has also been pressured by soft consumer demand and a stronger U.S. dollar, though it expects these headwinds to be a relatively short-term challenge for its bottom line.

The company's stock has risen 2.9% so far this year through Thursday's close, though shares are still down about 14% from a year ago.

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 13:12 ET (17:12 GMT)

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