VF Corp. will explore a strategic review of the sports apparel business

VF Corp., the owner of the North Face, Lee and Wrangler clothing brands, is exploring alternatives for a business that makes licensed athletic apparel amid sluggish consumer demand in the U.S.

“As active portfolio managers, we constantly assess the composition of our company to ensure VF’s portfolio is aligned with our strategic objectives and positioned to maximize growth and return to our shareholders,” Eric Wiseman, VF’s chief executive officer, said in a statement.

The Licensed Sports Group business includes the Majestic brand and supplies apparel and fanware through licensing with professional sports teams, colleges and lifestyle brands, the company said.

The business produced about $550 million in revenue last year, according to the statement. Those sales rose 4 percent from a year earlier, helped by demand for Major League Baseball and National Basketball Association items, VF said in its annual regulatory report.

VF, which has Lee jeans operations in Merriam, delivered fourth-quarter sales and profits last month that missed analysts’ estimates, citing a softer consumer environment, record warm weather and the strengthening U.S. dollar.

Wiseman said in an interview then that sluggish consumer demand had led VF to re-evaluate what was not working and missing in its business and that the company was likely to reshape its portfolio, including buying or divesting brands.

Retailers, ranging from discounters such as Wal-Mart to luxury department stores such as Nordstrom, have cited similar challenges.

VF hasn’t made a major acquisition since it bought shoe company Timberland for about $2.3 billion in 2011.

This story was originally published March 25, 2016 at 2:17 PM with the headline "VF Corp. will explore a strategic review of the sports apparel business."