VF's

VF's denim holdings, including Lee, Wrangler and Seven for all Mankind, are the most at risk, as cotton makes up about a quarter of the cost of a garment.

Sales Up, But Stores Fret Over Outlook Sara Murray 2011

Cotton accounts for half the production cost of jeans, which make up about one-third of VF's sales, Wiseman told investors in November.

Clothing Prices To Rise 10 Percent Starting In Spring AP 2011

The category accounted for 42% of VF's revenue last year, up from just 2% a decade ago, Mr. Wiseman said.

Sale Gives Timberland Leg Up Elizabeth Holmes 2011

VF's outdoor and action sports portfolio already includes Jansport backpacks and Vans sneakers.

Sale Gives Timberland Leg Up Elizabeth Holmes 2011

Despite the high markup, investors sent VF's shares up 10% to $101. 01 at 4 p.m.

Sale Gives Timberland Leg Up Elizabeth Holmes 2011

VF plans to focus on Timberland's operating margin—just 9% last year, well below VF's 20%.

Sale Gives Timberland Leg Up Elizabeth Holmes 2011

But the bigger surprise was a 10% rise in VF's stock, adding $1 billion to its market capitalization.

Overheard 2011

"Consumers in China are even more discerning than their counterparts in the Western world," says Aidan O'Meara , president of VF's Asia-Pacific division.

Chinese Shoppers Lose Taste for Fakes Laurie Burkitt 2012

Timberland's costs are higher than VF's, and profitability at North American stores can be improved, VF said on a conference call to discuss the deal.

Sale Gives Timberland Leg Up Elizabeth Holmes 2011

Timberland, which owns about 230 stores and had sales of $1.43 billion last year, would be one of VF's largest brands.

Sale Gives Timberland Leg Up Elizabeth Holmes 2011