Kontoor Brands has confirmed it has completed its separation from VF
Corporation, which was first announced last August, as it looks to create a
“global lifestyle apparel leader” in denim with its brands, Wrangler, Lee
and Rock and Republic.
The denim apparel group will now be an independent, publicly traded
company, headquartered in Greensboro, North Carolina, and will trade on the
New York Stock Exchange under the ticker symbol ‘KTB’. While VF Corporation
will now just include outdoor, active and workwear brands, Vans, The North
Face, Timberland and Dickies.
“This is historic for everyone connected with Kontoor as we now
accelerate to the next stage of our journey as a public company,” said
Scott Baxter, president and chief executive of Kontoor Brands in a
statement. “Since the separation from VF was first announced last August,
we have planned for this moment and we are fully prepared to succeed.”
Baxter added: “We are grateful to the VF and Kontoor teams that worked
collaboratively to stand-up this terrific organisation. We have a historic
opportunity ahead of us. We are confident that Kontoor and its brands are
positioned for value-creating performance.” v
Kontoor Brands sets strategic priorities
Coinciding with the completion of the separation from VF Corporation,
Kontoor Brands also announced five strategic priorities for the brand:
scaling its advantage in the core denim business; accelerating its
positions in high-value segments, channels and geographies; building
advantaged positions to reach new consumers; driving an unwavering focus on
margin expansion and improving capital efficiency; and creating a highly
engaged and performance-driven team.
The denim group also announced that it will be operating a long-term
Total Shareholder Return operating model, underpinned by strong margins and
cash flow generation. The long-term Total Shareholder Return model assumes
an approximate 5 percent dividend yield, 2 percent to 3 percent margin
expansion and 1 percent to 2 percent revenue growth, equating to 8 percent
to 10 percent annualised returns.
Kontoor Brands announces executive leadership team and board of
directors
Kontoor also announced its new executive leadership team and board of
directors. Baxter, an 11-year VF Corporation veteran will lead the company,
overseeing business globally, including its strategies and business
objectives, and will be responsible for delivering sustainable, long-term
value creation and total shareholder return, while Tom Waldron was named
vice president and global brand president of Wrangler, and Chris Waldeck is
vice president and global brand president of Lee, both will be responsible
for their brand’s global business, including marketing, sales and
distribution.
Other members of the leadership team includes: Rustin Welton, vice
president and chief financial officer; Laurel Krueger vice president,
general counsel and corporate secretary; Sara Bland, vice president, chief
strategy officer; Scott Deitz, vice president, investor and corporate
relations; Randy Fortenberry, vice president, global supply chain; and
Scott Shoener, vice president, chief human resources officer.
The board of directors will be chaired by Robert Shearer, who the brand
states has an “extensive familiarly” with its business and the apparel
industry, having served as senior vice president and chief financial
officer of VF from 2005 to 2015. He will be joined by Kathleen Barclay,
Richard Carucci, Juliana Chugg, Shelley Stewart, Jr., and Scott Baxter.
“Our Board of Directors and Executive Leadership Team feature a unique
range of management experience, both from within VF and from other leading
multi-national companies and global brands. Our team’s depth and breadth of
experience and extensive sector knowledge will help to drive the success of
our company,” added Baxter. “I look forward to working with this talented
group to establish Kontoor as a respected, thriving, independent, publicly
traded company.”
Images: courtesy of Kontoor Brands
