Dive Brief:
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Greensboro, NC-based VF Corporation, which runs The North Face, Vans, Wrangler, and Timberland brands, may be contemplating the acquisition of Lululemon or Lands’ End (which recently spun off from Sears), analysts at ISI Group are speculating.
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VF Corporation has grown rapidly through acquisitions, and analysts say buying Lululemon, which has faltered recently in the face of increased competition, would benefit both companies.
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Investors apparently like the idea, sending share prices of Lululemon and Lands’ End higher on the rumors.
Dive Insight:
Lululemon would make sense for both the yoga gear retailer and VF Corp. VF Corp could bring Lululemon what it needs right now, including brand-building, product innovation, and supply chain capabilities, according to ISI Group analyst Omar Saad.
Lands’ End, which was battered by its Sears relationship but retains a strong brand, would enable VF Corp to jump into the middle-price arena, he said.
