North Face 2008 Annual Report Download

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VF’s business model combines the strength
to overcome current challenges, the vision
to capture future opportunities and the
diversity of businesses and brands to excel in
all markets. Our team continues to deliver
on the promise, producing uncompromising
results in unprecedented times.
VF Corporation 2008 Annual Report
®

Table of contents

  • Page 1
    VF Corporation 2008 Annual Report VF's business model combines the strength to overcome current challenges, the vision to capture future opportunities and the diversity of businesses and brands to excel in all markets. Our team continues to deliver on the promise, producing uncompromising results ...

  • Page 2
    VF Corporation | 105 Corporate Center Blvd., Greensboro, NC 27408 | (336) 424-6000 | www.vfc.com

  • Page 3
    ...ow was a hallmark, with cash ï¬,ow from operations of $679 million. In short, the strength of VF's business model was proven again in 2008. While we do not expect economic conditions to improve in 2009, we are well positioned to manage the challenge-and to emerge from this period stronger than ever...

  • Page 4
    ... new websites for our The North Face ®, Nautica ® and Kipling® brands. Our direct-to-consumer revenues increased 15% in 2008 and now account for 16% of our total revenues, up from 14% last year. We'll continue to expand our strongest retail concepts in 2009, with about 70 store openings planned...

  • Page 5
    ...will be paramount this year. We're planning on another year of strong cash ï¬,ow, and providing strong shareholder returns through our dividend remains a high priority. Most importantly, VF is built upon a solid foundation of principles and qualities-showcased in this year's annual report- that will...

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    5

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    6 11

  • Page 8
    ... know us as the "world's largest apparel company," there's really so much more that makes VF strong. Like our ability to connect globally with consumers. Our adaptability to fast-changing markets and opportunities. And our discipline for balancing risk and reward. During 2008, we combined these...

  • Page 9
    ... product lines. Our long-established international presence opens doors for expansion around the world. And the popularity of our brands enables us to pursue a robust direct-to-consumer business through both owned retail stores and on-line channels. VF's enormous scale, and our skill at managing...

  • Page 10
    ...included opening new international VF-owned and partnership retail stores for our The North Face ®, Vans ®, Kipling ® and Napapijri ® brands. VF's revenues in Asia increased by more than 50% in 2008, with healthy growth in our jeans business and rapid expansion in our The North Face ® brand. We...

  • Page 11
    12 17

  • Page 12
    ..., opening new retail stores and enhancing their global sourcing capabilities." Stephen Murray President-Action Sports Americas "We design our stores and our website to be destinations, and the ultimate expression of the Vans® brand. We don't just sell to the skateboarding community, we are part of...

  • Page 13
    ...13 % 7% 3% 2% International Retail* Specialty Stores Mass Royalties/Other Chains Upscale Department Stores Mainline Department Stores 13% 3% 2% 7% 28% Diversified Channels of Distribution VF isn't dependent upon any single customer or retail channel of distribution. We market our products through...

  • Page 14
    ... 70 new stores in 2009. Our 7 For All Mankind ® brand helped drive our retail expansion in 2008, growing from two to 15 VF-operated locations, including new stores in New York, San Francisco and Honolulu. During the year, we also launched new e-commerce sites for our Nautica ®, The North Face...

  • Page 15
    18 Nautica® ® 19 Eastpak

  • Page 16
    20 Bulwark® 23 Lee® Latin America

  • Page 17
    ... expand its "True" line of products, building on the success of its True Khaki® casual pant. More than 35 million people in the world now own at least one Kipling® bag. Kipling Since being acquired by VF in 2004, our Kipling® brand has doubled its revenues and delivered consistently growing pro...

  • Page 18
    ...in 2008. The North Face Revenues of our The North Face® brand have more than quadrupled since we acquired the business in 2000. To build on this success, The North Face has restructured its product teams to focus on four activitybased segments-outdoor, action sports, performance athletic and youth...

  • Page 19
    24For All Mankind® 7 25 Lee® U.S.

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    26 31

  • Page 21
    ... do, including integrating more sustainable business practices." Stephen Dull Vice President-Strategy "Just because many consumers are spending less doesn't mean that they've shelved their aspirations. Our job in Corporate Strategy is to help our brands identify and ignite those aspirations more ef...

  • Page 22
    ... company-wide. Among the keys to VF's marketing success has been the authenticity of our brands. Nothing could be more important when it comes to our sustainability efforts, as VF people bring the same authentic spirit to every initiative we pursue. Building on its outdoor heritage, The North Face...

  • Page 23
    ..., which annually recognizes the 100 VF associates who have contributed the most community service hours. The VF Foundation donates $1,000 on behalf of each VF 100 winner to their charity of choice. (top) Reef Redemption® products incorporate sustainable materials such as recycled car tires, post...

  • Page 24
    32 37

  • Page 25
    ... every day. (opposite) Susan Williams Vice President-Human Resources "HR is a strategic partner in many key corporate decisions. We propel talent development because it is recognized as one of the growth drivers for our company. We believe in leveraging the talent of each associate across VF to...

  • Page 26
    ... and collaborative qualities inherent in team players." Tom Glaser, President- Supply Chain Europe/Asia "Many mission statements collect dust. Ours shines. Everybody who works at VF knows how their job contributes to the success of the company. We celebrate success, but we're never completely...

  • Page 27
    ... of our businesses, and the international scope of our brands, make every day at VF a new day for making discoveries about different people and cultures." Martin Schneider, Vice President and Chief Information Officer "VF's culture truly values diversity. Our employees embody the lifestyle of our...

  • Page 28
    38 Kipling® ® 39 The North Face

  • Page 29
    40 Reef® ® 43 lucy

  • Page 30
    ... to their cultures. Millions of people go to work every day in our Imagewear coalition's workwear products. Bulwark Customization and speed to market are hallmarks of our Imagewear businesses. Positioned for global expansion, our Bulwark ® brand demonstrated its service capabilities in 2008 by...

  • Page 31
    ... resort locations worldwide. The brand plans to open up to 15 additional stores in 2009. Successful product extensions into sportswear and handbags are expanding the "luxury denim-lifestyle" appeal of the brand. In eight short years, Seven For All Mankind, LLC has built a substantial global business...

  • Page 32
    44 Wrangler Rugged Wear® ® 45 Vans

  • Page 33
    ... Counsel & Secretary Stephen Dull Vice President- Strategy Michael Gannaway Vice President- VF Direct / Customer Teams Frank Pickard III Vice President- Treasurer Boyd Rogers Vice President & President- Supply Chain Karl Heinz Salzburger Vice President & President- VF International Martin...

  • Page 34
    ... marketing and branding) Director since 1987, age 71 George Fellows 1,4 President & Chief Executive Officer Callaway Golf Company Carlsbad, California (Sporting goods) Director since 1997, age 66 Robert J. Hurst 2,3,4 Managing Director Crestview Partners LLC New York, New York (Private equity...

  • Page 35
    ... of a change in accounting policy(2) Net income Dividends per share Dividend payout ratio (3) Average number of common shares outstanding Financial Position Working capital Current ratio Total assets Long-term debt Redeemable preferred stock Common stockholders' equity Debt to total capital ratio...

  • Page 36
    ... of operations and financial condition, are available in our 2008 Annual Report on Form 10-K filed with the Securities and Exchange Commission, accessible on our website, www.vfc.com. Audited financial statements and notes, along with management's discussion and analysis of results of operations...

  • Page 37
    .../Low Stock Prices Common Stock Listed on the New York Stock Exchange- trading symbol VFC. Shareholders of Record As of February 10, 2009, there were 4,700 shareholders of record. Dividend Policy Quarterly dividends on VF Corporation Common Stock, when declared, are paid on or about the 20th day of...