North Face 2006 Annual Report Download - page 29

Download and view the complete annual report

Please find page 29 of the 2006 North Face annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 39

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39


 SUMMARY ANNUALREPORT 2006
I am pleased to report that 2006
marked another year of record financial
performance, great progress in our efforts
to transform VF and excellent returns
for our shareholders. We enter 2007
looking forward to a fifth consecutive
year of record revenues and earnings,
bolstered by a newly rebalanced business
portfolio designed to drive strong growth
and profitability.
We began 2007 with a historic announce-
ment — the planned sale of our global
Intimates business. This important step is
part of our ongoing transformation toward
becoming a higher-growth, higher-margin
lifestyle brand company. Contributing
revenues of over $800 million and operating
income of approximately $50 million in
2006, Intimates has played an important
and positive role in our success over our
100-plus-year history. However, the
time has come to rebalance our portfolio
strategically and focus our energies and
resources on the many growth opportunities
within our Jeanswear, Outdoor, Imagewear
and Sportswear businesses instead. The
main implications of this sale are threefold.
The first relates to our business mix.
When we launched our Growth Plan
in 2004, over 70 percent of our revenues
came from our heritage businesses —
Jeanswear, Imagewear and Intimates —
and nearly 30 percent came from our
lifestyle segments — Outdoor and Sports-
wear. The Plan established a target of
60 percent of revenues from our lifestyle
businesses. As a result of the sale of our
Intimates business, and the continued






Growth in revenues
and earnings per
share from continuing
operations of
10%
and 12%, respectively.
A 90% increase in our
quarterly cash dividend
to an annual rate of
$2.20 per share.
A 48% increase in
VF’s stock price.
