VF Corp. will utilize the proceeds from the Dickies sale, amounting to $600 million, to reduce debt and support marketing investments in its core brands. At the Wells Fargo Consumer Conference, CEO Bracken Darrell and CFO Paul Vogel outlined how the group is prioritising Vans, North Face, and Timberland, while targeting more efficient marketing and long-term portfolio balance.
At the Wells Fargo Consumer Conference VF Corp. CEO Bracken Darrell and CFO Paul Vogel confirmed that they had accepted the offer from Bluestar Alliance to acquire workwear label Dickies for $600 million. The executives said the sale was not part of the group’s original portfolio evaluation but came at a favorable time. Dickies, which recently relocated its headquarters and was included in VF’s segment reshuffling, was ranked lowest in investment priority among the company’s key brands.
The proceeds will be used to pay down debt and free up capital for marketing across VF’s main businesses. Management highlighted a shift towards spending more on “working media,” with increased emphasis on social media campaigns over the next 6 to 12 months. Darrell and Vogel noted that resources could be directed flexibly, particularly to accelerate the Vans turnaround.
At Vans, distribution clean-up and store closures are nearing completion, with lingering underperforming outlets expected to shut as leases expire, partially offset by selective new openings. Management expects results to improve from fiscal Q4 2025 onwards, supported by new skate-style product launches for Holiday 2025 and spring 2026.
The North Face is focusing on whitespace in fashion and the women’s market while reinforcing its performance positioning. Regionally, the brand will emphasize accessible price points in the Americas while maintaining a higher-end assortment in APAC and EMEA.
Timberland is benefiting from a revival of its core yellow boot, supported by renewed interest in boat shoes and Euro Hikers as part of a strategy to expand year-round relevance.
Among VF’s smaller labels, Altra is being managed for systematic growth, targeting the top spot in U.S. trail running while aiming to break into the top 10 in road running. Brand awareness remains in the single digits, but growth is said to be steady.
The Global Packs segment, previously considered for divestiture, will remain in the portfolio. Management described it as independently run and consistently delivering growth, profitability, and cash generation.
Those familiar with the outdoor industry view this move as the right strategic decision. It “further clarifies VF’s focus on outdoor/fashion as its core competency, allowing it to share resources and learnings across the brand portfolio,” wrote Eoin Comerford on LinkedIn.
The main source for this article was an article in our US partner publication SGI News
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