Kontoor’s Stock Slides in Public Debut

The first of 2019’s slew of planned corporate retail breakups has happened — and it got off to a shaky start. VF Corp. officially spun off its jeans and outlet business into a brand-new company called Kontoor Brands Inc. by listing it on the New York Stock Exchange on Thursday. Despite its new management team unveiling global expansion plans for its main denim labels Lee and Wrangler, its stock closed down almost 8 percent at $37.15, giving it a $2.1 billion valuation. This is in stark contrast to rival Levi’s Strauss & Co., which has enjoyed a meteoric rise over the past few years. That culminated in a blockbuster return to the stock market in March, with its stock jumping 32 percent to $22.41 for a sizable $8.1 billion market cap. Kontoor’s lackluster debut may be linked to the very reason behind the spin-off — the companies, which include Rock & Republic, are weaker in comparison to VF’s powerhouse brand, sneakers giant Vans and outdoorwear retailer The North Face. This divergence was laid bare in VF’s 2019 full-year results, released earlier this week. While Vans’ global revenue was up 24 percent and The North Face by 9 percent, Lee and Wrangler saw a 7 percent

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