VF Corporation bought Dickies, a well-recognized workwear and streetwear brand, in 2017. At the time, that deal was worth $820 million. Now, VF Corp. plans to sell Dickies at a significant markdown.
The new cash deal, announced on Sept. 15, will see VF Corp. sell Dickies to the brand management firm Bluestar Alliance for $600 million. That transaction would see Dickies leave the VF portfolio. VF owns The North Face, Vans, Timberland and other prominent apparel brands.
VF Corp. ranks No. 48 in the Top 2000, Digital Commerce 360’s database of the largest North American e-retailers by online sales. There, it falls under the Apparel & Accessories category. Digital Commerce 360 projects VF Corp. online sales in 2025 will reach $1.83 billion.
VF Corp. web sales by year
Why VF Corp. wants a new owner for Dickies
VF Corp. did not break out Dickies sales on their own in the company’s most recent quarterly earnings results in July. However, Paul Aaron Vogel, executive vice president and chief financial officer at VF, noted during the retailer’s July earnings call that “Dickies’ decline versus last year moderated significantly” during VF’s fiscal first quarter. At the time, he said VF was “excited about and committed to growing the Dickies brand.”
Going forward, VF’s leadership sees Bluestar as a place where that growth will still be possible.
“Dickies is an iconic American workwear brand with a bright future, and I am confident that under Bluestar Alliance’s ownership, it will continue to improve and realize its significant growth potential,” said Bracken Darrell, president and CEO at VF. “As I’ve said before, we continuously evaluate our portfolio, and this transaction will enable us to bring our net debt level down and will be accretive to our growth on a pro-forma basis.”
Pending approval for the sale, Dickies will join Bluestar’s portfolio, which includes names such as Off-White, Scotch & Soda, Hurley and Brookstone.
What Blue Star Alliance will gain
“Since 1922, Dickies has provided hard-wearing, long-lasting and comfortable clothes, cementing its status as a storied brand in performance workwear,” said Joseph Gabbay, CEO of Bluestar Alliance. “We have followed the brand for many years and have a deep appreciation for its history and legacy, which VF Corporation has successfully begun to rebuild over the past few years.”
Bluestar counts more than 500 licensees in its existing portfolio. In addition, it has more than 500 stores across markets, including North America, Europe, Australia, South America, Asia, the United Arab Emirates, the Middle East and India. Together, those operations account for $10 billion in annual sales.
“We are committed to supporting the Dickies brand’s growth by leveraging our consumer insights and operational excellence to unlock its full value for all stakeholders,” Gabbay stated.
The companies expect the deal to close by the end of the 2025 calendar year.
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