By Mark Seavy

Brands that were once top sellers are now being sold or spun off and made available for outbound licensing as companies focus on their “core” business.

This strategy of disposing of IPs that were once central to a company’s strategy has picked up speed in recent months.

Levi’s, for example, is selling its Dockers brand. While Dockers helped define business casual dress after it was introduced in 1986, sales for the brand declined 14% in Q3. Levi’s decision to split from the brand is part of a larger restructuring that also included a shutdown of the Denzien jeans label. Moving forward, the company is focused on its name brand and Beyond Yoga, which it acquired in 2021. A growing focus on Levi’s core business was underscored earlier this month when the company embarked on a marketing campaign with singer Beyoncé.

“Sometimes focus is important,” Levi’s Chief Financial Officer Harmit Singh said on a call with analysts. “We have really focused on amplifying the focus on Levi’s and that comes with getting out of Denizen and now Dockers. Strategically, our view is that the exit of Dockers will improve the margin structure of the company and topline growth.”

HanesBrands, meanwhile, recently completed the sale of the Champion brand to Authentic Brands Group (ABG) for $1.2 billion. ABG quickly turned it into a licensing business and gave management responsibility to investment firm Ames Watson for collegiate and teamwear. The Champion brand previously went with HanesBrands when it was spun off from Sara Lee Corp. in 2006.

This sale will leave HanesBrands focused on its innerwear business, which generates 90% of its U.S. sales under the Maidenform, Bali, and Hanes Original labels. The Champion brand, along with its outlet stores—which are being closed—was forecast to generate $1.8 billion in revenue this year.

“HanesBrands is taking a new direction,” HanesBrands CEO Stephen Bratspies told analysts. “Our actions are expected to further simplify operations, reduce overhead, and drive greater optimization. We are creating the right cost structure for a simpler, more focused company.”

Wolverine Worldwide, meanwhile, sold its Sperry brand to ABG to focus on its Merrell, Saucony, and other labels. And Adidas also moved its Reebok IP to ABG. And, earlier this week, ABG announced it is partnering with Saks Global to create a new luxury group that will house its Hervé Léger, Barneys New York, and other labels.

“There was a time when creating or acquiring a large number of brands was an easy way to boost sales, but as business has become tougher, focusing on a smaller rather than larger number of them helps simplify operations and potentially enables companies to focus of those labels that really matter to operations,” a licensing executive said. “That, in turn, can open up more opportunities for licensing.”