North Face 2011 Annual Report Download

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Table of contents

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    vf 2011 | 01

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    ... the uniqueness of more than 30 brands with steve rendle and scott baxter page 10 international growth If you never stop learning, you never stop growing with karl heinz salzburger page 16 direct-to-consumer Using technology to seamlessly blend communication and commerce with mike gannaway page...

  • Page 4
    ... Group President-International, discusses our international strategies in more detail on page 16. + Serve Consumers Directly, growing direct-toconsumer revenues to 22% of total revenues by adding branded retail stores and building stronger consumer relationships through our websites and social media...

  • Page 5
    ... the success of a company and evaluate its growth prospects. But to Bob Shearer, the most important metric is the one VF's shareholders care most about. "Total shareholder return is the number one metric used by our shareholders," says Shearer, Senior Vice President & Chief Financial Officer. "So...

  • Page 6
    ... in VF's international expansion. In 2012, Timberland should help boost VF's overall percentage of international revenues to 37%. Fueled by aggressive plans for new retail stores and e-commerce growth, VF's direct-to-consumer business should comprise 22% of the company's total revenues by 2015. To...

  • Page 7
    ...the ground in a warm room in Kansas City, Missouri, designers from the Lee ® brand recorded a very different moment. They listened and took notes while real consumers talked about the fit and feel of new jeans they had just tried on for the first time. The North Face ® 10 | vf 2011 vf 2011 | 11

  • Page 8
    ... Hitwise ® music and videos to website designs," says Rendle. "We embrace it as a way to open doors to new ideas, new materials, new distribution, new marketing and, ultimately, new consumers." Collaborations with action sports athletes, designers and iconic brands have helped Vans develop some of...

  • Page 9
    ... research and development process." Insights from ethnographic studies, home and community visits, empirical research, rapid prototyping, wear testing, consumer/ designer collaboration sessions, and ad testing drive the product innovation process, which Baxter calls "consumer-centric from start...

  • Page 10
    ... call Lugano the United Nations of VF because we have over 30 nationalities here," says Karl Heinz Salzburger, Vice President and Group President-International. "In order to build and grow brands that are anchored in the U.S., it's very important to get people who understand local markets, cultures...

  • Page 11
    ... online resources about outdoor activities. In India, VF launched its jeans brands via a majority-owned joint venture in 2006. In 2011 VF acquired full ownership of the business, and is taking the first steps to launch its Vans ® brand because, according to Salzburger, "as a country that adds...

  • Page 12
    ... its international direct-toconsumer business in 2011 by investing in e-commerce and accelerating retail store openings for The North Face ®, Vans ® and 7 For All Mankind ® brands. Through a mix of owned and partnership stores, VF is raising brand awareness and filling voids in the market while...

  • Page 13
    ... sunsets or slow-motion camera work. It's the small product images and red "Order Now" buttons that appear unobtrusively in the lower left-hand corner of the screen. To Gannaway, Vice President-VF Direct/Consumer Teams, this video represents the future. The North Face ® 22 | vf 2011 vf 2011 | 23

  • Page 14
    ... to planning and reporting." Facebook Retail E-mail Websites Twitter Apps Blogs The increase in VF's e-commerce revenues in 2011, excluding Timberland With the press of a button at its headquarters in San Leandro, California, The North Face can instantly share the best of its expedition...

  • Page 15
    ... and interactive tools to learn what the brand and products can do. We want them to connect with activities and stories, and immerse themselves in what the brand is all about." At year-end 2011, VF owned and operated 1,053 stores. Though this is a large number in total, Gannaway is confident that...

  • Page 16
    ... to make the world's largest apparel company become more consistently innovative. In early 2011, VF adopted "Lead in Innovation" as a new growth driver. This more aggressive push was driven by a number of factors, both inside and outside the company. WET Design 28 | vf 2011 vf 2011 | 29

  • Page 17
    ...on growing our market share. And to do that, we need products and services that offer clear and tangible benefits to consumers." In studying the success of other companies VF realized that there was untapped potential to use innovation more aggressively to drive additional revenues, increase margins...

  • Page 18
    ... by retail partners, in addition to 70 new shop-in-shops. The brand opened its 23rd owned store in Mexico, its fifth store in Istanbul and its first store in South Africa. kipling.com Napapijri ® founded: 1966 countries: 170 target: Youth culture: art, music, action sports and street/fashion...

  • Page 19
    ... women ages 20-35 New fits, new jeans WHY NOT? The Riders ® by Lee ® brand continued its work with celebrity spokeswoman, style and fit expert Stacy London, the co-host of TV show What Not to Wear. London was featured in advertising and in-store displays, helping to share the brand's great fits...

  • Page 20
    ... with press and celebrity outreach, advertising in major fashion publications and large scale retail events. Social media efforts included a Flare Facebook ® shop for e-commerce and the "Denim Fit Forum," a weekly live chat with the brand's designers. 7forallmankind.com founded: 2001 countries: 23...

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    ...since 1994, Age 66 laura w. lang 3,5 - Chief Executive Officer Time Inc. New York, New York (Branded media company) Director since 2011, Age 56 w. alan mccollough 4,5 - Former Chairman of the Board Circuit City Stores, Inc. Richmond, Virginia (National retailer) Director since 2000, Age 62 clarence...

  • Page 22
    ...(2) (7) Financial Position Working capital Current ratio Total assets Long-term debt Stockholders' equity Debt to total capital ratio (3) Average number of common shares outstanding Book value per common share Other Statistics (4) Operating margin (7) Return on invested capital (5) (6) (7) Return on...

  • Page 23
    In thousands except per share amounts Net Sales Royalty Income Total Revenues Costs and Operating Expenses Cost of goods sold Marketing, administrative and general expenses Impairment of goodwill and intangible assets 2011 $9,365,477 93,755 9,459,232 year ended December 2010 2009 $7,624,599 77,990...

  • Page 24
    ... to the Company's annual report on Form 10-K for the fiscal year ended December 31, 2011. After VF's 2012 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...

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