One of the segments of the behemoth VF Corporation, the Contemporary Brands segment which includes such brands as 7 for All Mankind, has decided to make some significant shifts. Today, July 5, 2016, they announced the sale of denim brand 7 for All Mankind, Splendid, an Ella Moss to Delta Galil Industries for $120 million.
According to VF’s chairman and CEO Eric Wiseman, VF Corp has wanted to reorganize the composition of their business portfolio. “We wanted to ensure that we are well positioned to maximize VF’s growth and return to our shareholders. This announcement illustrates that our work as active portfolio managers is progressing.”
Compared to the other brands in VF’s portfolio, including The North Face and Vans, which continue to perform well, in 2015 the Contemporary Brands division lost 14% sales or $344 million. In 2016 first quarter revenues were down 15% to $74 million, including a 53% decline in operating income.
“This transaction reflects our strategic efforts to grow Delta Galil’s branded business and expand our global footprint,” said Isaac Dabah, CEO of Delta Galil. “We are thrilled to be adding three renowned premium brands to our portfolio, as they further diversify our product offering and distribution channels, while adding significant strength to our structure.”
Delta Galil Industries is mostly known for manufacturing seamless apparel including bras, shapewear and socks, underwear for women and men, activewear, sleepwear and leisurewear.