VF Corp. has announced the acquistion of the iconic Premium Denim Brand ‘ 7 for all Mankind‘. They paid about USD 775 million for the purchase of ‘Sevens'(as it is commonly known) which is currently having a turnover of about USD300 million.
‘Sevens’ was started in 2000 by Peter Koral and based in LA ,launched the craze for premium denim in the US. The brand quickly earned critical acclaim due to its innovative use of fits,fabrics and washes in denim.The company is growing as a true lifestyle denim brand and expanding its product line to include sportswear,handbags,footwear etc. It is sold at luxury stores like Barneys NY, Neiman Marcus,Saks and speciality boutiques in over 80 countries around the world.
It seems a sensible purchase for VF since they were struggling to have a recognised premium denim line in their collection. Also with about 20% margins and an expected growth of 15% p.a, the ‘Sevens’ makes financial sense. ‘Sevens’ will be included in the VF’s new lifestyle based brand coalition – ‘ VF Contemporary Brands‘ which will currently also include another acquired brand – Lucy Activewear.