VF Corporation Completes Separation of Kontoor Brands, Inc.
May 23 2019 - 6:55AM
Business Wire
VF Corporation (NYSE:VFC), a global leader in branded lifestyle
apparel, footwear and accessories, announced today that it has
completed the previously announced separation of VF’s Jeanswear
organization into an independent, publicly traded company. The new
company, named Kontoor Brands, Inc., will include
the Wrangler®, Lee® and Rock &
Republic® brands, and the VF OutletTM business. The separation
was achieved through the distribution to VF’s shareholders of one
share of Kontoor Brands common stock for every seven shares of VF
stock held at the close of business on the record date of May 10,
2019.
Kontoor Brands common stock will begin regular-way trading today
on the New York Stock Exchange under the ticker symbol “KTB.”
About VF
VF Corporation outfits consumers around the world with its
diverse portfolio of iconic outdoor and activity-based lifestyle
and workwear brands, including Vans®, The North Face®, Timberland®
and Dickies®. Founded in 1899, VF is one of the world’s largest
apparel, footwear and accessories companies with socially and
environmentally responsible operations spanning numerous
geographies, product categories and distribution channels. VF is
committed to delivering innovative products to consumers and
creating long-term value for its customers and shareholders. For
more information, visit www.vfc.com.
About Kontoor Brands
Kontoor Brands, Inc. (NYSE: KTB) is a global lifestyle apparel
company, with a portfolio led by some of the world’s most iconic
denim brands: Wrangler®, Lee® and Rock &
Republic®. Kontoor Brands designs, manufactures and distributes
superior high-quality products that look good and fit right, giving
people around the world the freedom and confidence to express
themselves. Kontoor Brands is focused on leveraging its global
platform, strategic sourcing model and best-in-class supply chain
to drive brand growth and deliver long-term value for its
stakeholders. For more information,
visit www.kontoorbrands.com.
Forward-looking Statements
Certain statements included in this release and attachments are
"forward-looking statements" within the meaning of the federal
securities laws. Forward-looking statements are made based on our
expectations and beliefs concerning future events impacting VF and
Kontoor and therefore involve several risks and uncertainties. You
can identify these statements by the fact that they use words such
as “will,” “anticipate,” “estimate,” “expect,” “should,” and “may”
and other words and terms of similar meaning or use of future
dates. We caution that forward-looking statements are not
guarantees and that actual results could differ materially from
those expressed or implied in the forward-looking statements.
Potential risks and uncertainties that could cause the actual
results of operations or financial condition of VF or Kontoor to
differ materially from those expressed or implied by
forward-looking statements in this release include, but are not
limited to: risks associated with the spin-off of VF’s Jeanswear
business, including the risk of disruption to VF’s business in
connection with the spin-off and that VF could lose revenue as a
result of such disruption; the risk that the companies resulting
from the spin-off do not realize all of the expected benefits of
the spin-off; the risk that there will be a loss of synergies from
separating the businesses that could negatively impact the balance
sheet, profit margins or earnings of both businesses; and the risk
that the combined value of the common stock of the two
publicly-traded companies will not be equal to or greater than the
value of VF common stock had the spin-off not occurred. There are
also risks associated with the relocation of VF’s global
headquarters and a number of brands to the metro Denver area,
including the risk of significant disruption to VF operations, the
temporary diversion of management resources and loss of key
employees who have substantial experience and expertise in VF’s
business, the risk that VF may encounter difficulties retaining
employees who elect to transfer and attracting new talent in the
Denver area to replace our employees who are unwilling to relocate,
the risk that the relocation may involve significant additional
costs to us and that the expected benefits of the move may not be
fully realized. Other risks for both companies include foreign
currency fluctuations; the level of consumer demand for apparel,
footwear and accessories; disruption to distribution systems;
reliance on a small number of large customers; the financial
strength of customers; fluctuations in the price, availability and
quality of raw materials and contracted products; disruption and
volatility in the global capital and credit markets; response to
changing fashion trends, evolving consumer preferences and changing
patterns of consumer behavior, intense competition from online
retailers, manufacturing and product innovation; increasing
pressure on margins; ability to implement their business strategy;
ability to grow their international and direct-to-consumer
businesses; each company and its vendors’ ability to maintain the
strength and security of information technology systems; the risk
that facilities and systems and those of third-party service
providers may be vulnerable to and unable to anticipate or detect
data security breaches and data or financial loss; ability to
properly collect, use, manage and secure consumer and employee
data; stability of manufacturing facilities and foreign suppliers;
continued use by suppliers of ethical business practices; ability
to accurately forecast demand for products; continuity of members
of management; ability to protect trademarks and other intellectual
property rights; possible goodwill and other asset impairment;
maintenance by licensees and distributors of the value of VF’s
brands; ability to execute and integrate acquisitions; changes in
tax laws and liabilities; legal, regulatory, political and economic
risks; the risk of economic uncertainty associated with the pending
exit of the United Kingdom from the European Union ("Brexit") or
any other similar referendums that may be held; and adverse or
unexpected weather conditions. More information on potential
factors that could affect VF's financial results is included from
time to time in VF's public reports filed with the Securities and
Exchange Commission, including VF's Annual Report on Form 10-K and
Quarterly Reports on Form 10-Q and more information on potential
factors that could affect Kontoor Brands' financial results is
included in Kontoor Brands’ registration statement on Form 10 filed
with the Securities and Exchange Commission.
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version on businesswire.com: https://www.businesswire.com/news/home/20190523005073/en/
VF CorporationJoe Alkire,
336-424-7711Vice President, Corporate Development, Investor
Relations andTreasuryorCraig Hodges, 336-424-5636Vice President,
Corporate Affairs
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