|VF Corporation announced today that it has sold its Healthtex Playwear business to Lollytogs, Ltd. |
Under the agreement with Lollytogs, VF Playwear will continue to ship Healthtex products through the 2004 back-to-school period. Lollytogs is hiring a number of VF Playwear associates and retaining the business' administrative offices in Greensboro.
The total impact of the transaction is expected to be about neutral to 2004 earnings. In the second quarter the transaction is expected to result in a gain of approximately $.06 per share. Losses totaling approximately $.07 per share are expected to be recognized in the third quarter, primarily related to the exit of certain leased facilities.
VF's Playwear business accounted for $141 million of VF's total sales in 2003. In 2004, considering the sale of the business, VF expects to include approximately $75 million in Playwear sales through the third quarter.