What VF Corp. Chose to Name Its Denim Spinoff
VF Corp. has officially announced the name of its denim spinoff: Kontoor Brands Inc.
The Vans owner, which said in August that it was splitting its business into two entities, selected the name — a variation of the word “contour” — for its Lee, Wrangler and Rock & Republic brands, as well as the corporation’s outlet operations and future denim brands.
“In choosing a name for the new company, it was important for us to select something that serves as an umbrella for our iconic Jeanswear brands and provides us with the opportunity to advance our portfolio in the future,” Kontoor CEO Scott Baxter said in a statement. “The selected name was inspired by the idea of a perfect fit, which speaks to the rich legacy and storied history of our brands. This name establishes a strong foundation for our future growth as a global leader in the denim and apparel categories, and I’m excited about the opportunities that lie ahead for Kontoor Brands as an independent, publicly traded company.”
A month after reporting double-digit first-quarter growth, VF revealed that it was breaking off its heritage denim brands from its more profitable athletic and outdoor labels including Vans, Timberland and The North Face — a move that would allow the company to expand into new categories and fine-tune its portfolio. In the past year, the company has purchased Dickies parent Williamson-Dickie Mfg. Co. as well as Icebreaker and Altra.
The separation is expected to be completed in the first half of 2019, subject to final approval by the company’s board of directors and other legal considerations.
Additionally, the Greensboro, N.C.-based corporation is moving its global headquarters to Denver next year after it was offered $27 million in tax incentives, which VF CEO Steve Rendle said the company will match with donations to local charities. The North Face and Altra will relocate to Colorado, while the denim business will remain in North Carolina, joined by the Merriam, Kan., Lee brand. Timberland and Vans will stay in their respective homes of Stratham, N.H., and Costa Mesa, Calif.
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