US apparel giant VF Corp has revealed plans to sell its Nautica brand and, while it does not yet have a definitive agreement, said it is “actively engaged with several parties”.

Speaking during the firm’s fourth-quarter earnings call with analysts, VF Corp Steven Rendle thanked Nautica employees for their hard work and dedication and added he is eager for the brand to move into its next phase of growth and success.

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The news follows the sale of VF’s licensed sports group business to Fanatics for an undisclosed amount last year. The business, which includes the Majestic brand, supplied apparel and fanware through licensing agreements with US and international professional sports leagues and teams. The sale was finalised in May.

Now Rendle says the decision to sell Nautica, which was made in the fourth quarter, comes after the brand failed to hit all of VF’s strategic touch points financially.

“It was not in line with driving our financial aspirations, and we came to a point where we thought perhaps it would be a better owner that could unlock the value that this brand holds.” Rendle told analysts on Friday (16 February).

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And while there is no definitive agreement in place, Rendle said the company is “actively engaged with several parties” and will provide an update as conditions warrant.

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The US apparel giant posted what Rendle called “better than expected” fourth-quarter results, despite a US$90.3m net loss in the three months to December, compared to net income of $264.3m the year before. VF said the transitional impact of the Tax Act resulted in a provisional net charge of approximately $465m for the fourth quarter and full year 2017.

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The firm said it classified the assets and liabilities of the Nautica brand business as held-for-sale during the fourth quarter and included the results of the business in discontinued operations for all periods presented.