North Face 2005 Annual Report Download

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What’s on your mind?
VF Corporation 2005 Annual Report

Table of contents

  • Page 1
    What's on your mind? VF Corporation 2005 Annual Report

  • Page 2
    2005 Financial Highlights Dollars in thousands, except per share amounts Summary of Operations Total revenues Operating income Operating margin Income before cumulative effect of a change in accounting policy Cumulative effect of a change in accounting policy* Net income* Return on invested capital ...

  • Page 3
    What's your vision for VF? Damien Huang Product Director, The North Face Strong, steady growth fueled by an expanding portfolio of dynamic lifestyle brands. Mackey J. McDonald Chairman, President and CEO, VF Corporation

  • Page 4
    ... Corporation 2005 Annual Report 03 04 05 Our flagship Wrangler Hero ® brand continues to fuel our mass market jeanswear business in the U.S. VF achieved record revenues and earnings for the third consecutive year. Surf's up! In April 2005, we acquired the Reef ® brand, an authentic surf lifestyle...

  • Page 5
    VF Corporation 2005 Annual Report The North Face® brand Revenues in 2006 will continue to add owned are expected to rise retail stores in 2006. 4% to 5%. The Nautica® brand's new positioning under the Navigate Life™ campaign is strong, highly visible and connecting very well with consumers. ...

  • Page 6
    ... years, have very strong potential for growth. These brands speak to our consumers' aspirations, activities and lifestyles. Outdoor Sportswear Heritage Coalitions 70% Outdoor The North Face, JanSport, Eastpak, Vans, Reef, Napapijri, Kipling 22% Heritage Coalitions 40% Intimates Vanity Fair...

  • Page 7
    What are you doing to restore growth to your North American jeans business? Trisha Hegg Designer, Reef Growth will come from leveraging the strength of our flagship brands with innovative products in new categories and markets. Angelo LaGrega President, Jeanswear-Americas

  • Page 8
    ... print and in-store marketing campaign during the second half of 2005, which highlighted the range of flattering, comfortable styles the Lee® brand offers. Toward the end of 2005, we named a new advertising agency to develop strong new positioning for the Lee® brand in 2006. What's driving...

  • Page 9
    It's more fragmented and fashion-influenced, as jeans are worn more for leisure than for work. Aidan O'Meara President, Jeanswear-International How does the European jeanswear market compare to the U.S.? Nina Flood Senior Director, Marketing, Nautica

  • Page 10
    ... Corporation 2005 Annual Report Authentic, iconic jeans brands, like our Lee® and Wrangler ® brands, resonate with consumers across Europe and Asia. Germany is our biggest market, accounting for 25% of our total International Jeanswear coalition revenues. We opened several new stores last year...

  • Page 11
    VF Corporation 2005 Annual Report Jeanswear Lee Wrangler Wrangler Hero Riders Rustler 2,696 2,706 2,697 3 Year Coalition Revenues (Dollars in millions) Timber Creek by Wrangler Wrangler Rugged Wear 03 Riggs Workwear by Wrangler Wrangler 47 Aura from the Women at Wrangler 20X Chic Gitano Brittania...

  • Page 12
    ... Report In 2005 we made an addition to our list of strategic "growth drivers": to expand our directto-consumer business. We'll be growing our base of branded retail stores to showcase our strongest lifestyle brands and interact more directly with consumers. Eric Wiseman Executive Vice President...

  • Page 13
    What drove the strong performance of The North Face brand in 2005? ® Rob Purvy Director, Footwear Development, Vans Our unrelenting focus on premier, authentic, technical and innovative products drove a revenue increase of more than 20% in 2005.

  • Page 14
    ... we've doubled our research, design and development staff, added category-specific sales people and launched new footwearoriented marketing and advertising programs. We're also selectively adding new retail stores, including store openings in Portland, Oregon and Tysons Corner, Virginia in 2005, and...

  • Page 15
    What's the key to continued strong growth in International Outdoor? Kristin Insana Director, Merchandising, VF Imagewear Great brands that connect with our consumers' lifestyles. Karl Heinz Salzburger President, Outdoor-International

  • Page 16
    ... ® brand of women's casual bags, we plan to open five new stores in 2006 from the current base of 13. We also plan to add over 25 additional partnership stores to the current base of 114. To build our wholesale business in key markets such as the U.K., France, Germany and Spain, we are adding new...

  • Page 17
    VF Corporation 2005 Annual Report Outdoor JanSport Eastpak 1,455 3 Year Coalition Revenues (Dollars in millions) 1,012 The North Face Reef 583 03 Vans Napapijri Kipling 04 05 233 3 Year Coalition Profits (Dollars in millions) 156 96 03 30 04 05 31

  • Page 18
    VF Corporation 2005 Annual Report VF's global supply chain operation is contributing to our overall strategy by achieving cost savings that will help "fuel the growth." We're striving to create an unrivaled and sustainable competitive advantage by having the fastest and most flexible operations ...

  • Page 19
    What's the long-term outlook for VF's intimates business? Carla Ugboro Manager, Employee Development, VF Jeanswear Very good-we've stepped up innovation across all our brands with new fabrics and styles. Curt Holtz President, Intimates

  • Page 20
    ... but changing retail dynamics have hindered growth there. A new Vanity Fair ® brand retail store concept is showing promise, with a 7% increase in comparable store sales in 2005. We're also encouraged by the healthy increase in spring/ summer bookings for our licensed Nike® brand swimwear business...

  • Page 21
    VF Corporation 2005 Annual Report Intimates Vanity Fair Lily of France Vassarette 907 832 848 3 Year Coalition Revenues (Dollars in millions) Bestform Curvation Lou 03 Bolero Gemma Intima Cherry 87 04 118 05 3 Year Coalition Profits (Dollars in millions) Belcor Variance Majestic 60 03 38 04...

  • Page 22
    Our ability to provide our customers with the broadest possible range of products faster and more efficiently than our competitors. Ed Doran President, Imagewear What's the key to your success in the image apparel business? Ania Swierkosz Design Manager-Mass Brands, VF Intimates

  • Page 23
    ... agencies, service businesses, industrial laundries and public safety agencies. Our goal is to provide customized apparel solutions from the boardroom to the factory floor. Economic conditions are an important factor, particularly employment trends. The economy was generally favorable in 2005...

  • Page 24
    VF Corporation 2005 Annual Report Imagewear Lee Sport CSA Red Kap Bulwark The Force 770 728 806 3 Year Coalition Revenues (Dollars in millions) Chef Designs Wrangler Hero Lee NFL Red* NFL White* NFL For Her* 03 101 04 117 05 126 3 Year Coalition Profits (Dollars in millions) Harley-Davidson* ...

  • Page 25
    VF Corporation 2005 Annual Report We achieved record sales and earnings for the third consecutive year, and we remain focused on total shareholder return and maintaining a healthy balance sheet. We plan to continue to grow our business through a combination of organic growth and acquisitions that...

  • Page 26
    What was the biggest accomplishment of 2006? Mark Gatehouse Director, Replenishment, VF Jeanswear We're proud to have achieved revenue growth across all Nautica, John Varvatos and Kipling brand businesses. ® ® ® Denise Seegal President, Sportswear

  • Page 27
    ... of Nautica® branded women's sportswear. Total sales in Nautica® brand retail stores in 2005 were up 5% and comparable store sales rose 2%. Merchandising programs geared specifically to warm weather locations and our wear-to-work products both performed well. We expect another good year in 2006...

  • Page 28
    VF Corporation 2005 Annual Report Sportswear Nautica 619 651 3 Year Coalition Revenues (Dollars in millions) John Varvatos 252 03 04 05 100 3 Year Coalition Profits (Dollars in millions) 67 Kipling (U.S.) 37 03 52 04 05 53

  • Page 29
    VF Corporation 2005 Annual Report Operating Committee Mackey J. McDonald Chairman, President and Chief Executive Officer Bradley W. Batten Vice President- Controller and Chief Accounting Officer Eric C. Wiseman Executive Vice President- Global Brands Frank C. Pickard III Vice President- Treasurer...

  • Page 30
    VF Corporation 2005 Annual Report Board of Directors From left to right: Clarence Otis, Jr., Edward E. Crutchfield, Barbara S. Feigin, Daniel R. Hesse, Robert J. Hurst, George Fellows, Juan Ernesto de Bedout, Ursula O. Fairbairn, Mackey J. McDonald, M. ...

  • Page 31
    VF Corporation 2005 Annual Report Board of Directors Corporate Officers Edward E. Crutchfield 2,3,5 Former Chairman and Chief Executive Officer First Union Corporation Charlotte, North Carolina (Banking) Director since 1992, age 64 Juan Ernesto de Bedout 1,3 Group President Latin American ...

  • Page 32
    ... Common Stock Price Information The high and low sales prices on a calendar quarter basis for the periods indicated were as follows: Corporate Office VF World Headquarters 105 Corporate Center Boulevard Greensboro, NC 27408 Telephone: (336) 424-6000 Facsimile: (336) 424-7696 Mail Address: P.O. Box...

  • Page 33
    VF Corporation 105 Corporate Center Blvd. Greensboro, NC 27408 (336) 424-6000 www.vfc.com