V.F. Corporation VFCremains committed toward expanding its business operations to drive growth and boost profitability. In a recent move, the company successfully acquired the Altra footwear brand from ICON Health & Fitness, Inc., a leading Utah-based health & fitness company. As a result, the brand has become a wholly-owned subsidiary of V.
F. Corp. and is anticipated to be immediately accretive to the company’s earnings. However, terms of the deal remained under covers.This acquisition is in sync with V.F. Corp’s five-year strategic growth plan or 2021 growth strategy, which focuses on rapidly responding to the changing marketplace while targeting huge shareholder returns. Also, the company’s four-point strategy is focused on redesigning portfolio and empowering its key brands; adopting a consumer and retail-centric model; enriching direct-to-consumer and digital businesses and directing investments in to Asia, particularly China.
Altra, an exclusive technical footwear brand, is likely to boost growth across V.F. Corp.’s direct-to-consumer and international channels. Launched in 2011, this footwear brand is marketed across 55 countries through more than 1,600 specialty retail outlets as well as via www.altrarunning.com. It is a well-known and high-growth athletic brand with specialized and latest designs for road, trail and lifestyle footwear. Altra will fuel growth at V.F. Corp.’s Outdoor & Action Sports coalition, which contributed nearly 66.2% to the company’s total revenues in first-quarter 2018. Markedly, this segment is the company’s fastest-growing business unit and its revenues grew 19% in the quarter.
In a year’s time, Altra generated roughly $50 million of revenues. After being acquired by V.F. Corp. the brand is likely to strengthen the ICON Health & Fitness’ NordicTrack, ProForm core brands, Freemotion commercial business and iFit.
Recently, V.F. Corp. reported better-than-expected earnings and revenues for the transition period ended Mar 31, 2018, marking the third top- and bottom-line beat in the trailing four quarters. Results gained from strength in the company’s international and direct-to-customer platforms, Outdoor & Action Sports coalition and workwear businesses. The company’s shareholder-friendly moves also bode well.