Apparel giant VF to divest Dickies brand in $600m deal

Core Viewpoint - VF Corporation has agreed to sell its Dickies brand to Bluestar Alliance for $600 million in cash, aiming to stabilize its business and reduce debt levels [1][4]. Group 1: Transaction Details - The sale of Dickies is expected to close by the end of 2025 and is anticipated to support VF's growth on a pro-forma basis [1]. - Dickies, an iconic American workwear brand founded in 1922, was previously acquired by VF in 2017 for $820 million [2]. - Bluestar Alliance has shown interest in the Dickies brand for several years and aims to leverage consumer insights and operational excellence to unlock its full value [3][4]. Group 2: Financial Performance - VF reported revenues of $1.90 billion in Q1 of fiscal 2025, down 9% from $2.08 billion in Q1 of fiscal 2024 [4]. - The North Face and Vans brands experienced revenue declines of 3% and 21% respectively compared to the same quarter of the previous year [5]. - VF's operating loss for the quarter ending July 29, 2024, was $239.89 million, a significant increase from a loss of $8.99 million in Q1 of fiscal 2024 [5].