V.F. Corp. Sold Dickies to Bluestar Alliance: Here's What You Should Know

V.F. Corporation VFC remains on track with its turnaround strategy, making steady progress in reshaping and optimizing its brand portfolio. The company is selling off non-core assets like Dickies to focus on its most profitable and strategically important labels.

In the latest revelation, management has successfully concluded its earlier-announced transaction to divest the Dickies brand to Bluestar Alliance LLC, for an aggregate base cash value of $600 million, subject to customary adjustments. Bluestar Alliance is a major global brand management firm.

Dickies, purchased by V.F. Corp. in 2017 for roughly $820 million, has struggled with declining sales for more than a year. By selling the brand, VFC aims to lower its debt levels and redirect resources toward categories with higher growth potential. Although performance has softened recently, Dickies still holds an iconic place in American fashion. Known for its rugged workwear and crossover appeal in streetwear, the brand continues to resonate with diverse consumer groups.

The divestiture will support VFC’s efforts to reinforce its balance sheet and improve financial flexibility, moving it closer to achieving its medium-term leverage goals. It will further enable the company to concentrate its time, energy and resources on its key brands for continued progress and sustainable growth. For VFC, the sale of Dickies reflects a sharpened strategic focus and a step toward financial discipline.

What’s More?

The Zacks Rank #3 (Hold) company's shares have gained 16.9% in the past three months against the industry’s 9.3% drop.

The company is progressing smoothly on its Reinvent transformation program. It is driving growth through disciplined cost management, balance sheet improvements and strategic brand focus. Strength in the Outdoor segment, led by The North Face and Timberland, positions VFC well against durable consumer trends. The ongoing investments in digital and supply-chain capabilities further enhance efficiency, supporting long-term growth, stronger margins and improved shareholder confidence.

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This article originally published on Zacks Investment Research (zacks.com).

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