North Face 2007 Annual Report Download

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VF CORPORATION SUMMARY ANNUAL REPORT 2007

Table of contents

  • Page 1
    VF CORPORATION SUMMARY ANNUAL REPORT 2007

  • Page 2
    ... accounting policy for stockbased compensation in 2005. See details in our 2007 Annual Report on Form 10-K filed with the Securities and Exchange Commission, accessible on our website, www.vfc.com. 3-YEAR COALITION REVENUES AND PROFITS (DOLLARS IN MILLIONS) LIFESTYLE COALITIONS HERITAGE COALITIONS...

  • Page 3
    ... stories with you this year, one for each of our business coalitions. Together, they demonstrate the strength of a business model that's anything but fickle or faddish. VF is designed to perform in any environment. VF CORPORATION | 4 OUTDOOR | 4 CONTEMPORARY | 12 SPORTSWEAR | 18 JEANSWEAR | 24...

  • Page 4
    ...fashionable products for skiing, surfing, skateboarding, climbing, trekking and other adventurous pursuits. The deep connection our brands have with our consumers-and their distinctive lifestyles-has helped make Outdoor our fastest-growing business worldwide. OUTDOOR BRANDS The North Face JanSport...

  • Page 5
    OUTDOOR | 8 In tune with its surf heritage, the Reef ® brand launched a full girls' swim, sportswear and footwear line in late 2007. Sold primarily in Europe, our outdoorinspired Napapijri ® brand continues to grow rapidly and extend into new product categories and markets. OUTDOOR | 9

  • Page 6
    ...collaboration line from the brand and the edgy Belgian designer will hit stores worldwide in late 2008. A popular fashion staple in Europe, the Kipling® brand has successfully expanded into accessories and leather products with its Club, City and Vintage Leather collections. OUTDOOR | 11 OUTDOOR...

  • Page 7
    ...The North Face® brand has stepped up and out with new footwear for 2008, offering technically advanced products as authentic as the athletes who wear them. Athletes don't just wear VF's Outdoor brands. They are our brands-and the ambassadors of our businesses. The biggest names in skiing, climbing...

  • Page 8
    ...to the test in the harshest conditions on earth. In turn, we support their expeditions and endeavors, creating a platform for promoting the superior performance of our products to consumers across the globe. The strategy couldn't be more synergistic- or successful. The North Face ® team members and...

  • Page 9
    ... our products. ® ® By acquiring the 7 For All Mankind and lucy brands in 2007, we've expanded our portfolio and created a new and powerful growth platform-our Contemporary Brands coalition. Inspired by modern design, these dynamic brands market contemporary apparel and accessories to consumers who...

  • Page 10
    ...brand knows that one size fits no one. With an array of styles, colors and fabrications in pants designed for real women, the lucy ® brand offers consumers more of what they love-the best fitting pants available. VF acquired the fast-growing lucy ® brand in 2007 with 50 retail stores. The brand...

  • Page 11
    ... continues to grow in its core denim business as well as new categories such as sportswear and accessories. Owned retail stores and international expansion provide additional avenues for growth. The 7 For All Mankind brand burst onto the fashion scene in fall 2000, quickly earning critical acclaim...

  • Page 12
    ... every garment one more time before manufacturing, making nuanced adjustments before a final pattern is cut. HOLD THE LINE We don't phone anything in. Our quality control team monitors every aspect of production in person. TRUST BUT VERIFY Before a new style leaves our warehouse, our fit model...

  • Page 13
    ... today's consumer wants to both look good and feel good. And they don't want to work hard trying. With its nautical heritage and classic American design, the Nautica® brand has become iconic, marketing men's and women's sportswear and a growing line of licensed products. Our Sportswear coalition...

  • Page 14
    SPORTSWEAR | 20 The Kipling® brand launched its first celebrity-designed collection in the U.S. with pop star Fergie in 2007. A second Fergie for Kipling™ collection will debut in Spring 2008. John Varvatos was named GQ magazine's "Designer of the Year" in 2007. SPORTSWEAR | 21

  • Page 15
    ... include striped options and a women's shirt in 2008. VF is far more than an apparel company. We market lifestyle brands that capture the hearts and imaginations of consumers across a broad range of product categories. Licensing plays a crucial role in this strategy, strengthening the bond we have...

  • Page 16
    ..., watches, eyewear, women's swimwear, children's wear, leather goods and accessories. Nautica® licensed products are marketed in 60 countries around the world, including the U.S. Beginning in 2008, many of these products will also be available on www.nautica.com, the brand's new e-commerce site...

  • Page 17
    ... pairs of jeans-across more brands, styles, price points and geographic markets-than any other company in the world. Our Jeanswear coalition continues to build on this success by extending into additional categories, including shirts, shorts, accessories and other casual apparel products. We also...

  • Page 18
    JEANSWEAR | 26 In 2007, the Wrangler ® WANTED campaign took Europe by storm, reaching consumers with live music performances and digital art displays in uniquely constructed "Wrangler monuments" in three major cities. Wrangler ® jeans are endorsed by legendary country music star George Strait ...

  • Page 19
    ... was signed as a Wrangler ® endorsee in 2007. Wrangler also continues as the official jeans of NASCAR driver Dale Earnhardt, Jr. and the No. 88 racing team. The Wrangler ® National Finals Rodeo will celebrate its 50th Anniversary in 2008. The Lee ® brand was voted "Best Denim Brand of the Year...

  • Page 20
    ... the iconic brand across markets, demographics, distribution channels and geographies. Today, Wrangler jeans sell from $15 to $200 in retail outlets in most countries around the world. And every pair, regardless of style or price, is an American original. That's the power of global branding-VF-style...

  • Page 21
    ...Western lifestyle, delivering the performance and style that our brand has made famous for more than 60 years. The Wrangler ® management team has extended this rich heritage to products across many consumer segments and markets, dialing up different qualities of the brand's authentic personality to...

  • Page 22
    ... and government markets. Every day, our Image apparel business dresses 6 million people for work, providing uniforms for virtually all occupations across the country and service professionals around the world. Our Activewear business provides apparel to the biggest names in sports, including...

  • Page 23
    ...| 34 VF Imagewear's "Customer First" strategy ensures that each garment is constructed with the specific needs of the end-user in mind. The addition of the Majestic ® brand brings a powerful new asset to VF Imagewear, opening up additional opportunities in new channels and markets. VF Imagewear...

  • Page 24
    ...a heartbeat. The businesses of VF's Imagewear coalition understand the formula well, with the ability to respond rapidly and efficiently to the needs of the world's most demanding corporate, government, industrial and sports customers. For us, responsiveness is far more than a service; it's a skill...

  • Page 25
    ... custom-tailored uniform, personalized with the player's name and number, in as little as 24 hours. (Yes, that's the real deal they hold up at the press conference, and Majestic Athletic made it.) The company makes that exact same high quality jersey available to fans in a matter of days-online...

  • Page 26
    ...jeans market in the U.S., and lucy ® is a small, but rapidly growing, women's activewear brand. The 7 For All Mankind ® brand has multiple avenues for growth, not only in its core denim products, but also in sportswear and accessories, the opening of owned retail stores and international expansion...

  • Page 27
    ... our heritage businesses, Jeanswear and Imagewear. MM: International revenues will also account for an increasingly bigger piece of the pie. We see a third of revenues coming from international markets by 2012, up from 28% in 2007. Our direct-to-consumer business, composed of owned retail stores and...

  • Page 28
    OUR FIVE-YEAR VISION FOR SUCCESS VF's outlook for growth and profitability is stronger than ever. In January 2008, we announced a new five-year growth plan, highlighted by the following targets. VF CORPORATION | 42 2007 $7 BILLION 2012 $11 BILLION $11 BILLION IN REVENUES We raised our long-...

  • Page 29
    ...-YEAR VISION FOR SUCCESS VF CORPORATION | 44 22% 14% 2007 $7 Billion 2012 $11 Billion 22% OF REVENUES FROM DIRECT-TO-CONSUMER BUSINESSES We aim to grow our direct-to-consumer business by about 18% annually, totaling 22% of our revenues by 2012. Wrangler, London 7 For All Mankind, Los Angeles...

  • Page 30
    ...expand the distribution of newly acquired brands into Europe, Mexico, Canada and South America. We are also focusing resources to support our rapid growth in such dynamic markets as China, India and Russia. By continuing the global expansion of key brands- including The North Face®, Vans®, Kipling...

  • Page 31
    ... financial statements and notes, along with management's discussion and analysis of results of operations and financial condition, are available in our 2007 Annual Report on Form 10-K filed with the Securities and Exchange Commission, accessible on our website, www.vfc.com. VF CORPORATION | 49

  • Page 32
    ... financial statements and notes, along with management's discussion and analysis of results of operations and financial condition, are available in our 2007 Annual Report on Form 10-K filed with the Securities and Exchange Commission, accessible on our website, www.vfc.com. VF CORPORATION | 51

  • Page 33
    ..., Vice President-Controller & Chief Accounting Officer Martin S. Schneider, Vice President & Chief Information Officer VF CORPORATION HIGH/LOW STOCK PRICES (DOLLARS) COMMON STOCK Listed on the New York Stock Exchange - trading symbol VFC. 90 80 70 60 50 40 30 20 10 SHAREHOLDERS OF RECORD As of...

  • Page 34
    VF Corporation 105 Corporate Center Blvd. Greensboro, NC 27408 (336) 424-6000 www.vfc.com