VF Corp completes Licensed Sports Group Business sale to Fanatics
VF Corporation announced on Monday that it has completed the sale of its Licensed Sports Group business to Fanatics. The announcement comes just days after the release of VF’s first quarter results.
The Licensed Sports Group contributed as much as $550 million to VF as half of the billion-dollar Imagewear coalition. The Greensboro, South Carolina-based company has been exploring strategic alternatives for the LSG business since March 2016.
VF announced in April that it had entered into an agreement to sells its LSG business to Fanatics. The Jacksonville, FL-based online retailer in 2020 will replace Majestic, one of the brands in the LSG business, as the official partner of Major League Baseball. Majestic has been in partnership with MLB since 2004.
The sale also follows the announcement of VF’s 2021 growth plan that includes the prioritization of digital and direct-to-consumer, increasing focus on the Chinese market, and reshaping its brand portfolio. President and CEO Steve Rendle said the company’s first quarter results were in line with expectations, despite incurring a $5.5 million net loss from the LSG sale.
VF on Friday reported a 2% in total revenue to $2.6 billion and an 8% decrease in earnings per share. The international revenue and direct-to-consumer revenue both increased and digital revenue jumped sharply by 25%.
Copyright © 2023 FashionNetwork.com All rights reserved.