VF Corp Forms Action Sports Americas Coalition, Restructures Leadership
josh hunter
- January 20 2009
- 2,706 views
- 20 comments
VF Corporation (VFC) announced that it is restructuring its stable of brands. According to Eric Wiseman, VF’s Chairman and Chief Executive Officer, the company is creating an Action Sports Americas Coalition in order “to best capture future opportunities in these industries.” Vans President Stephen Murray has been promoted to President of the new coalition of brands, which—at this point—only includes Vans and Reef.
Rumors circulating that VF will soon announce the acquisition of DC Shoes remain speculation at this point.
The Outdoor Americas Coalition will be run by Steve Rendle, currently President of The North Face. Dave Gatto, formerly Outdoor Americas Coalition president, has left the company.
There were also changes in other areas of VF Corp.
Here’s the full press release:
GREENSBORO, N.C.–(BUSINESS WIRE)–Jan. 20, 2009–VF Corporation (NYSE: VFC), announced today a new coalition leadership structure designed to enhance our focus on growth in our outdoor, action sports and international businesses. As a result, three leaders are assuming new roles as coalition presidents, effective February 1.
“VF’s Outdoor coalition has enjoyed significant success over the past five years, achieving scale in both the outdoor and action sports industries. To align our coalition structure to best capture future opportunities in these industries, we are replacing the Outdoor Americas coalition with two separate coalitions: Outdoor Americas and Action Sports Americas,” announced Eric Wiseman, VF’s Chairman and Chief Executive Officer.
Steve Rendle, currently the President of The North Face, one of VF’s fastest-growing brands, has been promoted to President of VF’s Outdoor Americas coalition. In his new role he will be responsible for the continued expansion of The North Face(R), JanSport(R) and Eagle Creek(R) brands. Rendle, 49, joined The North Face in 1999 and has been a key leader behind the successful growth of the business since its acquisition by VF in 2000. He also has held leading sales management roles at both Youngone Corporation and W.L. Gore and Associates prior to joining The North Face. He will continue to be based in San Leandro, California.
Stephen Murray, currently President of Vans, which has also shown tremendous growth since being acquired by VF in 2004, has been promoted to President - Action Sports Americas coalition. Murray, 48, will lead the continued growth and development of the Vans(R) and Reef(R) brands. Murray has been with Vans since 1998, when he served as Chief Marketing Officer and Senior Vice President International. Prior to joining Vans, Murray was Vice President of global apparel at Reebok. Murray will continue to be based in Cypress, California.
Rendle and Murray will both report to Wiseman. As a result of these moves, Dave Gatto, President - VF Outdoor Americas, will be leaving the company. “Dave has been a strong leader of our Outdoor Americas coalition. We thank Dave for his many accomplishments over his 4 years with VF and wish him the very best in his future endeavors,” said Wiseman.
In addition, to further support the continued growth of its international business, VF has promoted Martino Scabbia Guerrini, 44, currently President - VF International Sportswear and Packs, to President - Sportswear and Contemporary Brands EMEA coalition, another new VF coalition. In addition to continuing to lead the Kipling(R), Napapijri(R) and Eastpak(R) brands, which have enjoyed superior growth in recent years, he will also oversee the expansion of the 7 For All Mankind(R) brand in EMEA. Prior to joining VF in 2006, Scabbia Guerrini held executive positions with Bruno Magli SpA and TOD’s SpA. He will continue to be based in Lugano, Switzerland, reporting to Karl Heinz Salzburger, President - VF International.
“These moves recognize the superior performance of our outdoor brands and our confidence in continuing our strong international momentum,” said Wiseman. “Each of these outstanding leaders is a key contributor to the success of VF’s growth plan, and I am confident in their ability to manage through these turbulent times to ensure the long-term success of our businesses.”
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January 20th, 2009 at 8:26 am
Well … that pretty much substantiates what we’ve all been hearing. And only a few days after Moody’s downgraded ZQK??? Weird, now the only thing left to talk about is if the 800 million number we’ve all heard thrown around is accurate?
VF/ QUIK: Why don’t you go ahead and make the announcement for God’s sake?
January 20th, 2009 at 8:32 am
Yeah, well I heard that Volcom is buying Electric …wait…I mean DVS….wait I mean Vestal.
Seems like the rumor mill is turning into the prophecy mill.
rumors rumors rumors …. we need sales and job security in this industry, not rumors
January 20th, 2009 at 9:47 am
it’s enough to make you want to start smoking ! 1st. pack is free !
January 20th, 2009 at 11:45 am
No wonder they kept trying to deflect the lay-offs to Quik with gossip and rumours . Damn !
January 20th, 2009 at 12:26 pm
I heard from DC employees that the deal was already inked for VF to make the purchase, then pulled back for unknown reasoning on Jan 1st. VF is smart and calculated. Maybe they are just waiting for the price to drop a bit more… With the way the Rossi sale went, I wouldn’t doubt it. Maybe VF is waiting until after the trades shows to collect prebooked DC numbers for Q2 deliveries.
January 20th, 2009 at 2:59 pm
The president gets a promotion the same day they do a round of layoffs?? Interesting strategy…
January 20th, 2009 at 3:42 pm
As much as people will hate, VF has run their sub-brands better than any other conglomerate in the industry.
Steve Rendle is a very smart dude. Good on him.
January 20th, 2009 at 4:08 pm
Imagine that! ZQK stock fell another -.29 today. How could they survive, as is? Cut DC, close all Boardriders Clubs that are underperforming and go back to servicing core surf!
Uh…wait. I don’t think they are respected by core surf retail anymore.
January 21st, 2009 at 2:00 am
I HEARD VF STANDS FOR VISUAL FLAVOR
January 21st, 2009 at 2:01 am
I HEARD STEVE MURRAY IS REPTILIAN HFD
January 21st, 2009 at 4:01 pm
Volcom bought Electric awhile back.
January 21st, 2009 at 4:27 pm
i heard julio’s G stands for good head ?
ZJ’S BJ’S , IF they run thier brands so well why have they folded all apparel at reef and laid-off so many people , keep current you dolt !
January 21st, 2009 at 5:20 pm
Dees post ees too mosh! At leest I ees contento weeth my monkee and organ. I weesh I wass back wordking inside dee HQ at Kweek. Layoff ees no bueno amigos! Maybee I can git a yob at Zumees orr at Wolcom, no?
January 21st, 2009 at 5:43 pm
vf stands for vanity fair…the magazine, they Vans, Reef and all the other companies
January 21st, 2009 at 7:58 pm
VF IS smart and calculated. A) they’ve been around a long time, B) they wouldn’t have the bank o’ cash they have if they weren’t smart and couldn’t conceive of looking at this economic climate the same way OC housewives look at a basement sale at Neiman Marcus. Whether the rumours are true, VF is shopping and maybe, just maybe, 2 action sports companies will become 3 in the very near future…
January 21st, 2009 at 9:04 pm
If VF did buy DC, then good for them. That seems to be the fastest growing brand in our industry. I wonder when we will hear if that is true or not?
January 22nd, 2009 at 6:52 am
Too late…
January 22nd, 2009 at 6:52 am
put i’ll take the free pack still times are tuff.
January 22nd, 2009 at 7:05 am
People Quik is not gona sell DC…it is the only brand that has given them any growth in the last few quarters. Did you read the last report on this site? I don’t think VF has any intentions on getting into hard goods it doesn’t fit in the portfolio of brands and the margins are shit. It wouldn’t be a wise move. Vans is already struggling with its own SB boots. Also buying DC would automatically devalue the brand equity of Vans. They are triming the fat and making the operations lean and mean. The last thing they need right now is to nurse a brand with huge R&D and marketing costs.
January 26th, 2009 at 8:34 am
January 26, 2009 8:44 AM EST
Citi reiterates a ‘Buy’ on VF Corp (NYSE: VFC). Price target $74.
Citi analyst says, “VFC may be close to acquiring skate brand DC Shoes from Quiksilver (NYSE: ZQK), according to WWD reports on Friday. We think this could be a positive acquisition for four reasons: 1)
The brand fits well within VFC?s newly created Action Sports Americas coalition, and we think there are opptys to create synergies w/ its Vans & Reef brands, 2) VFC will leverage its global sourcing and distribution to further grow the brand like previous acquisitions; 3) VFC is likely to get an attractive price as a result of market valuations and ZQK?s balance sheet; and 4) We think the deal would be slightly accretive, w/out impacting VFC?s dividend or our est. of ~$200M in repurchases for FY09.”
“Short-Term Potential Positive for ZQK, But Long-Term Impact Uncertain ? The possible cash infusion for ZQK is important as the company needs to refinance its short-term debt, including $167 million which is uncommitted, and a $72 million facility due to mature in March 2009. However, with the possible sale of DC, we think Quiksilver could be losing its growth crown jewel.”
http://www.streetinsider.com/Analyst+Comments/Citi+Reiterates+a+Buy+on+VF+Corp+(VFC),+Comments+on+Potential+Acquisition+of+DC+Shoes+From+Quiksilver+(ZQK)/4328212.html