VF Corp CEO Sees Markets “Stabilize” - Looking For Action Sports Aquisitions
mike lewis
- June 12 2009
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VF’s Brands
VF Corp CEO Eric Wiseman told the Reuters Global Retail Summit in London Friday that he has seen the company’s US markets “stabilize” but is not anticipating growth in 2009. However, he also said the company has compiled a war chest for acquisitions and is actively pursuing opportunities.
“The apparel (wholesale) business and the stores that we sell (in), things seem to be stabilizing,” said Eric Wiseman according to Reuters.
“They’re not stabilizing at a great place but compared to December, January and February, when week after week it looked a little bleaker, it’s stable,” he said.
Wiseman said VF had also seen some of its markets in Europe bottom out.
“I don’t think most of western Europe is any better or worse than the U.S., it feels like it’s stabilizing here some too,” he said.Wiseman does not expect any of VF’s markets to return to growth in 2009.
“We are assuming that there is no recovery this year for sure,” he said.
“We think the right assumptions are to assume that it’s going to be very difficult and if it’s better than that we’ll chase business, chase inventory.”
WAR CHEST FOR ACQUISITIONS
Wiseman said VF Corp was keen to do more acquisitions, with the recession having spawned “lots of opportunities,” and was having “a lot of discussions.”
He said the group had the financial firepower to do “a reasonably large” deal.
“By the end of the year … we’ll have $600 million in cash and $1.3 billion in accessed funds, so we’ll be sitting on a $2 billion cheque book that’s accessible for investment and acquisitions.”
Wiseman said VF was particularly keen to expand its portfolio of brands in “outdoor, action sports and contemporary.”
“We have a (potential acquisitions) list that we go through every four months,” he added.
Shares in VF, which have lost 18 percent of their value over the last year, closed Thursday at $59.29, valuing the business at $6.56 billion.
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