North Face 2006 Annual Report Download

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®
SUMMARY ANNUAL REPORT 2006
A Year of from A to Z

Table of contents

  • Page 1
    ® A Year of from A to Z VF CORpORAtiOn SUMMARY ANNUAL REPORT 2006

  • Page 2
    ... our 2006 Annual Report on Form 10-K filed with the Securities and Exchange Commission, accessible on our website, www.vfc.com. The art and science of apparel converge in VF's brands. We are taking advantage of new processes, new technologies and new product enhancements to build lifestyle brands...

  • Page 3
    ... seen with Wrangler ® trademarks on their collars and sleeves, not just during the 10-day competition but throughout the year. Fans come away with the clear impression that if you want to look like an authentic cowboy, you have to wear Wrangler ® apparel. VF CORpORAtiOn SUMMARY ANNUAL REPORT 2006...

  • Page 4
    ...oor fixtures with white painted finishes, intricate displays and elements of the Kipling ® brand's newest ad campaign. Every element of the shops is designed to capture the Kipling® brand essence and personality - hip, fun, stylish and adventurous. 4 VF CORpORAtiOn SUMMARY ANNUAL REPORT 2006

  • Page 5
    ... SIGNING RAFFLE CONTEST Cc narragansett, ri Coast to Coast outdoor REEF B branding san diego, ca los angeles, ca long island, ny ocean city, nj The Reef ® brand has taken its grassroots marketing campaign to the sunny beaches of America, where its target 17- to 24-year-old customers...

  • Page 6
    ...-site, thedeckshirt.com, an energetic national print campaign, outdoor advertising in major markets and specially designed in-store fixtures. The Deck Shirt will also be the new official shirt of the AVP Pro Beach Volleyball tour and the U.S. Sailing Team. 8 VF CORpORAtiOn SUMMARY ANNUAL REPORT...

  • Page 7
    ... backing of such an extraordinary feat. The breathtaking achievement of The North Face ® athletes' expedition attracted global media attention, and served to reinforce the reputation of The North Face ® brand as the ultimate, authentic outdoor brand. VF CORpORAtiOn SUMMARY ANNUAL REPORT 2006 11

  • Page 8
    ... apparel 7 oz. Dress Uniform Shirt Arc Rating 7.7 ATPV calories/cm2 Button Front Plaid Dress Uniform Shirt Arc Rating 7.7 ATPV calories/cm2 Deluxe Coverall Arc Rating 4.8 ATPV Pre-washed 14.75 oz. Denim Jean Arc Rating 11.2 ATPV 12 VF CORpORAtiOn SUMMARY ANNUAL REPORT 2006 Work Pant Arc Rating...

  • Page 9
    ... and KCS instructor Conrad Anker, "It is our responsibility as alpinists to make the work the Nepalis do on our behalf safer." The North Face ® brand recognizes that responsibility as well and is committed to supporting the Khumbu Climbing School. VF CORpORAtiOn SUMMARY ANNUAL REPORT 2006 15

  • Page 10
    ... an award program, open to all law enforcement agencies nationwide, called the Positive Force Award. In 2006, the second annual Positive Force Award was presented at the International Association of Chiefs of Police Conference to Officer Timothy Greene of the Rock Hill, South Carolina, Police...

  • Page 11
    ... iPod® or newer iNteGrated outdoor JANSPORT product innovation bluetooth® mobile phone compatible technology shockshield laptop sleeve fits 15.4" laptop headphone jack ... bluetooth® toggle control After introducing its iPod ®-enabled snowboarding jackets, the JanSport ® brand is taking...

  • Page 12
    ... assortment of products in the stores where they shop. For VF, retailers and consumers, it is a win-win-win program. 1010110 0101010 1101010 VF analyzes daily point-of-sale information from retail partners VF generates Customized assortments replenishment orders of the right number of jeans are...

  • Page 13
    ... place to meet up with friends. Large video screens and professional DJ equipment create the right ambiance for special promotions and product launches, and a "customization lab" has local artists on hand to personalize newly purchased bags to the shoppers' own tastes. The Eastpak ® brand has...

  • Page 14
    ...stars themselves in a Vans® marketing campaign that includes print, film, online, podcast, point-of-sale displays, in-person store appearances and skateboarding contests. In 2006, Vans podcasts made the Top 100 iTunes Podcasts list in the People's Choice category - a sign that its message is right...

  • Page 15
    ..., distributed through specialty stores across Europe, extract the best from the past and transform the elements into a dynamically fresh and exciting lifestyle brand. What consumers experience is a passion for denim, both contemporary and romantically historic. VF CORpORAtiOn SUMMARY ANNUAL REPORT...

  • Page 16
    ..., slimmer legs and the no-gap waistband ensures comfort. The result is ï¬,atter-looking abs and grateful women consumers. side seams moved forward for the illusion of longer, slimmer legs straight leg or bootcut creates a slimmer, taller silhouette 28 VF CORpORAtiOn SUMMARY ANNUAL REPORT 2006

  • Page 17
    ... with its name, offering shuttle service to guests and the media. The central locale of Napapijri Café provided a natural venue for a number of social events so that everywhere Olympic fans turned, they were met by the Napapijri ® brand name. VF CORpORAtiOn SUMMARY ANNUAL REPORT 2006 31

  • Page 18
    ... million $1M+ $83K lee national denim day® nautica® "pink collection" wrangler® "tough enough to wear pink" "Tough Enough to Wear Pink" Night at the Wrangler∏ National Finals Rodeo sold out, with 18,000 live fans and 10 million home viewers via ESPN2. 32 VF CORpORAtiOn SUMMARY ANNUAL REPORT...

  • Page 19
    ... cu f f s DIAD jacket ARNUVA 100TR shoe L igh t weigh t , du ra ble EVA midso le w it h X-2 â„¢ cu sh io n in g Tenacio u s Gripâ„¢ f o r excellen t o f f -ro ad t ract io n No rt h o t icâ„¢ ergo n o mica lly design ed f o o t bed THERMASTRETCH tight VF CORpORAtiOn SUMMARY ANNUAL REPORT 2006 35

  • Page 20
    ... Collection, launched in 2000. Mr. Varvatos is a much-lauded designer, recognized by the Council of Fashion Designers of America with an American Fashion Award for New Menswear Designer in 2000 and Menswear Designer of the Year awards in 2001 and 2005. 36 VF CORpORAtiOn SUMMARY ANNUAL REPORT 2006

  • Page 21
    ... there for American, European and Asian markets. Headquartered in Hong Kong, VF Asia today maintains a sourcing team of more than 950 associates and manages over 60 percent of VF's units worldwide. The Asia team focuses heavily on speedto-market and product development and factory compliance, ever...

  • Page 22
    ... tube sleeve teChNoLoGy outdoor THE NORTH FACE product innovation drink tube temperature sensor tt led status indicator The North Face ® brand tackles the bane of winter outdoor athletes with a new HTR ™ heated hydration system that keeps water from freezing even in harsh conditions. Powered...

  • Page 23
    ... Award for its dedication as a Gold supplier and lauded VF Imagewear for its prompt delivery, innovative ideas and superior quality. Such recognition is high praise from a company that prides itself on timely deliveries and service excellence. Credit card purchases facilitated for employees...

  • Page 24
    ... of more than 25 percent annually. New Delhi Agra Baroda South Tukoganj Bhopal Ranchi Kolkatta Bhubaneshwar Mumbai Pune Vizag Hyderabad Bangalore Jayanagar Chennai WRANGLER® STORE Coimbatore Cochin LEE® STORE KIPLING® STORE NAUTICA® STORE 44 VF CORpORAtiOn SUMMARY ANNUAL REPORT 2006

  • Page 25
    ... the longest-running European campaign in the history of the brand. Playing off of the double meaning of the word "wanted," the marketing program evokes the Wrangler ® brand's authentic Western roots while simultaneously appealing to the yearning of today's youth to live on the edge. Featuring eye...

  • Page 26
    ...the leader in terms of volume and image in the premium and upper-end price segment of the China jeans market, the Lee ® brand is strengthening consumer loyalty. Plans call for opening eight additional Lee® stores in China in 2007, with more to follow. 48 VF CORpORAtiOn SUMMARY ANNUAL REPORT 2006

  • Page 27
    ... - the fans will be celebrating in VF Imagewear. at the distribution center orders are packed & delivered to customers orders ta mp a ba y Orders filled Product delivered to retailers at the retailer in as few as 4 hours 1 1 1 VF CORpORAtiOn SUMMARY ANNUAL REPORT 2006 51 Satisfied consumers

  • Page 28
    ... dial twist. No straining to tighten frozen laces. The Boa™ Coiler Reel prevents any slack in the cables. Wearers can select the perfect tightness and distribute the fit perfectly across the entire boot, resulting in fewer pressure points than laces. 52 VF CORpORAtiOn SUMMARY ANNUAL REPORT 2006

  • Page 29
    ... dividend to an annual rate of $2.20 per share. A 48% increase in VF's stock price. BUSinESS Mix 73 68 59 '04 27 '05 32 '06 pERCEnt OF tOtAL REVEnUES Heritage Coalitions Lifestyle Coalitions dear sharehoLders, The first relates to our business mix. When we launched our Growth Plan in 2004, over...

  • Page 30
    ... addition of new capabilities and talent across our company. Developing future leaders is paramount to maintaining our momentum. Toward that end, we have initiated programs within VF to give our employees the skills and tools they will need to succeed. VF CORpORAtiOn SUMMARY ANNUAL REPORT 2006 57

  • Page 31
    ... tO REVEnUES) 534 454 13.4 14.2 Mackey J. McDonald Chairman and Chief Executive Officer CASH pROViDED By OpERAtiOnS (DOLLARS in MiLLiOnS) REtURn On CApitAL (pERCEnt) DiViDEnDS pER SHARE (DOLLARS) 1.05 1.10 1.94 14.7 646 19.5 '04 '05 '06 VF CORpORAtiOn SUMMARY ANNUAL REPORT 2006...

  • Page 32
    ... Force, Chef Designs, Byron Nelson Classic*, Chase Authentics*, NFL Red*, NFL White*, Harley-Davidson OUtDOOR The North Face, JanSport, Eastpak, Vans, Reef, Napapijri, Kipling, Eagle Creek SpORtSWEAR Nautica, John Varvatos, Kipling (U.S.) * licensed VF CORpORAtiOn SUMMARY ANNUAL REPORT 2006 61

  • Page 33
    ...policy(1) Net income (loss) Dividends per share Dividend payout ratio(2) Average number of common shares outstanding Financial Position Working capital Current ratio Total assets Long-term debt Redeemable preferred stock Common stockholders' equity...$ $ VF CORpORAtiOn SUMMARY ANNUAL REPORT 2006 63

  • Page 34
    ... 5,171,071 Net Sales Royalty Income Total Revenues Costs and Operating Expenses Cost of goods sold Marketing, administrative and general ...Annual Report on Form 10-K filed with the Securities and Exchange Commission, accessible on our website, www.vfc.com. VF CORpORAtiOn SUMMARY ANNUAL REPORT...

  • Page 35
    ... and notes, along with management's discussion and analysis of results of operations and financial condition, are available in our 2006 Annual Report on Form 10-K filed with the Securities and Exchange Commission, accessible on our website, www.vfc.com. VF CORpORAtiOn SUMMARY ANNUAL REPORT 2006 67

  • Page 36
    ... Resources Boyd A. Rogers Vice President & President - Supply Chain Franklin L. terkelsen Vice President - Mergers & Acquisitions Bradley W. Batten Vice President - Controller & Chief Accounting Officer Martin S. Schneider Vice President & Chief Information Officer VF CORpORAtiOn SUMMARY ANNUAL...

  • Page 37
    ... in the Company's annual report on Form 10-K for the fiscal year ended December 30, 2006. After VF's 2007 Annual Meeting of Shareholders, VF intends to file with the New York Stock Exchange the certification regarding VF's compliance with the NYSE's corporate governance listing standards as...

  • Page 38
    ... York, New York (Private equity firm) Director since 1994, age 61 Raymond G. Viault 1,4 Former Vice Chairman General Mills, Inc. Minneapolis, Minnesota (Consumer food products) Director since 2002, age 62 Ursula O. Fairbairn 2,5 President & Chief Executive Officer Fairbairn Group LLC New York, New...

  • Page 39
    VF Corporation 105 Corporate Center Blvd. Greensboro, NC 27408 (336) 424-6000 www.vfc.com