North Face 2010 Annual Report Download

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International opportunities
Deeper brand experiences
Innovative products
Direct-to-consumer touch points
Best-of-breed social media
VF CORPORATION ANNUAL REPORT 2010
Beyond the
numbers
®

Table of contents

  • Page 1
    International opportunities Bes t-of -bre ed s ocia l me d ces rien e p ex and r b per Dee ia Di re ct -t oco ns um er to uc h po in ts Beyond the numbers In no VF PORPORATION ANNUAL REPORT 2010 ep tiv va ro du ct s ®

  • Page 2
    ...** $5.18 $678 20.2% $4.13 $2.33 $2.37 $2.43 �08 �09 �10 �08 �09 �10 �08 �09 �10 �08 �09 �10 �08 �09 �10 �08 �09 �10 Revenues (Millions) Earnings Per Share Dividends Per Share Cash Flow from Operations (Millions) Debt to Total...

  • Page 3
    ...five years. Another core growth strategy is expanding our direct-toconsumer businesses, through our brands' retail stores and e-commerce. In 2010 our direct-to-consumer revenues grew by 13%. At year-end we had 786 stores across our portfolio of brands, and expect to open about 100 new stores in 2011...

  • Page 4
    ... exclusive new brands to our top customers. Go global Our goal is to generate 40% of revenues from international markets by 2015, with growth concentrated in Europe, China, India, Brazil and Mexico. Serve consumers directly We need to be where our consumers are - both in-store and online. Growth...

  • Page 5
    ... CA ED E .S PT TE TO S RE O RT S 42 As % of VF Total Revenues % Coalition Revenues N SP CTIO Channels of Distribution As % of VF Total Revenues LI R&A IA LT Y ST O RE S 19 % N A L 26 % EC SP R O YA LT Y / O TH ER 11% MA SS DOO 14 % OUT *Includes International Retail 7

  • Page 6
    ... �10 �08 $498 $498 $386 $418 $439 $87 �09 42 �09 $52 �10 $52 �08 $63 �09 $51 �10 $14 �10 �08 �09 �10 �08 Revenues Profits Outdoor & Action Sports Jeanswear Imagewear Sportswear Contemporary Brands 9

  • Page 7
    ...strength, heritage and authenticity, our brands have substantial runway for growth not only in Europe, but in fast growing markets such as China, India and Brazil. Design innovative products that delight consumers Whether it's athlete-inspired The North Face® products, Wrangler people working with...

  • Page 8
    ... markets where passion runs deep DEEPER BRAND EXPERIENCES Birmingham, AL / Boston, MA / Chicago, IL Denver, CO / hartford, Ct / Billings, Mt / New York, NY Portland, Or / raleigh-Durham, NC / Seattle, WA St. Louis, MO / Washington, D.C. ACTIVITY BASED MEDIA MODEL The North Face® brand's Activity...

  • Page 9
    ... San Francisco, the Pacific Northwest, Chesapeake Bay, and the coasts of Maine and Florida came Ocean to Ocean, a new platform for product development and brand communication. Living on the water is more than just a lifestyle. It's a tradition passed on by generations of coastal families. With video...

  • Page 10
    Brand. Building. A 25,000 sq. ft. mecca for art, skateboarding, music and street culture. DEEPER BRAND EXPERIENCES H OU S E OF VANS, BROOKLYN 11222 To bring to life the iconic Southern California Vans® brand on the East Coast, a multifaceted event space named The House of Vans opened last fall in...

  • Page 11
    ... major broadcasters in the past 60 years. Offthewall.tv, a new media outlet developed by Vans, allows the brand to build upon its rightful place among the leaders and tastemakers in youth culture by telling its stories directly to consumers. This online platform (available on the web, on smartphones...

  • Page 12
    DEEPER BRAND EXPERIENCES A storybook ending to a "Salute to Dad" N ASCAR FATHER'S DAY PROMOTION On July 2, 2010, Dale Earnhardt Jr. drove to victory at the Daytona International Speedway in a piece of Wrangler® brand history. His throwback #3 Wrangler Jean Machine was a special tribute to his ...

  • Page 13
    ... the Asia market. The Lee® Diamond Cut jeans include key design features that lift the hip, slim and lengthen the legs, and make women look and feel fabulous. To launch the product, a Diamond Cut road show set up pop-up shops in shopping centers in 12 cities. Each diamond-shaped shop gave consumers...

  • Page 14
    ... With more and more youth consumers around the world responding to its brand message of originality and self-expression, the international momentum behind the Vans® brand continues to build. In 2010, Vans opened more than 149 new stores and shop-in-shops in China, bringing its retail presence...

  • Page 15
    ... marketing budget there was invested in events that encouraged consumers to get outside and experience the spirit of the brand firsthand. During the year The North Face® brand used social media and an online contest to recruit for an expedition to climb China's legendary Haba Mountain. From nearly...

  • Page 16
    ... MEDIA TO BUILD TRUST THAT SPREADS ONLINE Every day, consumers around the world give valuable suggestions via online reviews and comments, but capitalizing on them means knowing how to listen. So when the Lee® brand's social media team noticed consumers writing online about how to improve the fit...

  • Page 17
    ... about their first pair of 7 For All Mankind® jeans. After an overwhelming number of responses, the brand used the best ones on in-store posters to promote a new collection of 10 special limited edition styles based on its 10 most iconic fits to be sold exclusively at 7 For All Mankind® retail...

  • Page 18
    ... of digital properties. With the push of a button in the brand's San Leandro headquarters, rich stories, videos, and experiences can be instantly distributed online, in-store, and to a community of The North Face® followers on various social media outlets such as Facebook® and Twitter® . 32

  • Page 19
    63 years young DIRECT-TO -CONSUMER TOUCH POINTS N EW WAYS TO CONNECT WITH CONSUMERS 2010 was a year of two important firsts for the Wrangler® brand. The brand opened its first Wrangler® retail store, a 5,000-square-foot space in Denver, Colorado. It's an investment in a deeply immersive brand ...

  • Page 20
    ... every day for decades, the Wrangler® 13MWZ jean is a product legend, so a reengineered version was a potentially risky undertaking. Product designers at Wrangler conducted ethnographic research with 50 working cowboys. They visited their homes to learn about how they live and what they wear. They...

  • Page 21
    ... three years, the Kipling® brand in Europe has collaborated with young designers to create new product collections that keep the brand fashion-forward and generate buzz in the ever-changing bag and accessories markets. In 2010, the brand collaborated with Peter Pilotto, world-renowned digital print...

  • Page 22
    .... The limited-edition, reversible packs quickly caught the attention of youth consumers around the world, selling out within days. FOUNDED : 1987 COUNTRIES : 63 TARGET : Active, fashionable women Attitude included. OUTDOOR & ACTION SPORTS kipling.com DIRECT -TO - CONSUMER TOUCH POINTS In 2010, the...

  • Page 23
    ... B EST - OF - BREED SOCIAL MEDIA The Wrangler® Western brand's Facebook® page added tens of thousands of new fans from its "Wrangler Race to the Rodeo" and the "Wrangler Rocks Country Music" promotions. FOUNDED : 1975 COUNTRIES : 30 TARGET : World travelers INTERNATIONAL OPPORTUNITIES In 2010...

  • Page 24
    ... fit. FOUNDED : 2002 COUNTRIES : 18 TARGET : Men and women ages 20-50 splendid.com DIRECT -TO - CONSUMER TOUCH POINTS The Splendid® brand opened two new full-priced stores in Newport Beach, California, and Aventura, Florida. FOUNDED : 1949 COUNTRIES : 5 TARGET : Female traditionalists ages...

  • Page 25
    ... superior water repellency and comfort. FOUNDED : 1937 COUNTRIES : 12 TARGET : Public safety officers DEEPER BRAND EXPERIENCES In 2010, VF Imagewear rebranded its public safety uniform business under the Horace Small® brand. An American legacy brand that began making military uniforms, it...

  • Page 26
    .... Minneapolis, Minnesota (Consumer food products) Director since 2009, age 43 JUAN ERNESTO DE BEDOUT 1,3 Group President Latin American Operations Kimberly-Clark Corporation Roswell, Georgia (Consumer products) Director since 2000, age 66 URSULA O. FAIRBAIRN 2,4,5 President & Chief Executive Officer...

  • Page 27
    ...,860 571,362 571,362 2010 2009 Summary of Operatiots(1) Total revenues Operating income Income from continuing operations attributable to VF Corporation Discontinued operations attributable to VF Corporation Net income attributable to VF Corporation Earnings (loss) per common share attributable...

  • Page 28
    ... per share amounts Consolidated Statements of Cash Flows Year Ended December Net Sales Royalty Itcome total Revetues Costs atd Operatitg expetses Cost of goods sold Marketing, administrative and general expenses Impairment of goodwill and intangible assets 2010 $ 7,624,599 77,990 7,702,589 4,105...

  • Page 29
    ... to the Company's annual report on Form 10-K for the fiscal year ended January 1, 2011. After VF's 2011 Annual Meeting of Shareholders, VF intends to file with the New York Stock Exchange (NYSE) the certification regarding VF's compliance with the NYSE's corporate governance listing standards as...

  • Page 30
    ..., Done Right, Therma Base, House of Vans The following trademarks owned by other companies also appear in this report: NASCAR, Facebook, Twitter, YouTube, Yo Gabba Gabba!, MadeMe, Filson, Fortune, Human Resource Executive, Informationweek, Outside, Runner's World CONCEPT / DESIGN And Partners, NY...

  • Page 31
    VF PORPORATION 105 Corporate Center Blvd. Greensboro, NC 27408 336.424.6000 vfc.com ® For additional content visit: REPORTING.VFP.POM