VF Corporation Completes Separation of Kontoor Brands, Inc.
The new company, named Kontoor Brands, Inc., will include theWrangler,LeeandRock & Republicbrands, and the VF OutletTM business.
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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190523005073/en/