// VF Corp CEO said the company is seeking new acquisitions
// The group said now is the best time to expand its portfolio despite the Covid-19 pandemic
Vans owner VF Corp has reportedly said it is seeking new acquisitions despite the uncertainty brought on by Covid-19.
The company, which also owns retailers Timberland and The North Face, is looking to increase its portfolio as it said now is a good time to search for acquisitions of clothing, footwear and accessories brands, Financial Times reported.
VF Corp chairman and chief executive Steve Rendle said some of the “greatest returns could be generated through acquiring”.
READ MORE: VF Corp expects Q1 sales to halve
Rendle added that organic growth was VF’s biggest priority, but he saw potential opportunities to buy smaller rivals in subsectors including athleisure, outdoor and activewear.
Since the company was established back in 1899, VF Corp has acquired a variety of brands.
Most recently, it has focused on disposals. VF spun off its Wrangler and Lee jeans businesses, among other assets.
Today the company is focused on 12 brands, mostly outdoor and activewear related, including the JanSport and Eastpak backpack divisions and Napapijri, an upmarket label known for its Skidoo jackets.
Rendle said the company has access to $5 billion (£3.9 billion) in cash following a recent bond offer and revolver.
VF has about 1500 stores globally under the Vans, Timberland, The North Face, and other brands, and direct to consumer channels at present account for about 40 per cent of revenues.
In mid-May, VF Corp reported a slight increase in full-year sales but warned of a potential halving of its first quarter revenue as countries slowly start to ease their Covid-19 lockdowns.
For the year ending March 28, VF Corp saw full-year revenue increase by two per cent, or four per cent in constant dollars, to $10.5 billion (£8.53 billion).
However, for the final quarter of that year, revenue tumbled by 11 per cent – or 10 per cent constant dollars – to $2.1 billion (£1.7 billion) due to plummeting consumer demand amid lockdowns.