North Face 2011 Annual Report Download - page 4
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Please find page 4 of the 2011 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.with investing in supply chain capabilities
that reduce cost and provide speed, exibility,
value and service.
+ Win with Winning Customers, by leveraging
consumer knowledge and global brand
expertise to grow our market shares and to
help our retail customers win with our global
and exclusive brands.
+ Lead in Innovation, fostering a global culture
of innovation across brands and functions,
supported by new processes, new skills and
talent, as well as new collaborative networks to
accelerate the pace of breakthrough product
introductions. You can read more about our
Innovation agenda on page .
e power of the VF portfolio—diversied, global
and growing—has never been more evident. We
enter with condence that brands will continue
their momentum, with conviction in our ability to
execute our plans, and with a great deal of excite-
ment about the many opportunities that lie ahead.
.
—
Chairman, President &
Chief Executive Ocer
to consumers’ needs and aspirations. Steve
Rendle, Vice President and Group President
—Outdoor & Action Sports Americas, and
Scott Baxter, Vice President and Group
President—Jeanswear Americas and Imagewear,
provide their perspectives on what it takes to
build strong brands beginning on page .
+ Go Global, by growing in both established and
emerging markets, with our eorts concentrated
in Europe, China, India, Brazil and Mexico,
with a goal of of total VF revenues from
international markets by . In , interna-
tional revenues were of total revenues, up
from in . Karl Heinz Salzburger, Vice
President and Group President—International,
discusses our international strategies in more
detail on page .
+ Serve Consumers Directly, growing direct-to-
consumer revenues to of total revenues by
adding branded retail stores and building stronger
consumer relationships through our websites
and social media. In , direct-to-consumer
revenues grew to of total revenues from
in . Mike Gannaway, Vice President—VF
Direct/Customer Teams, provides a deeper look
at our direct-to-consumer business on page .
+ Enable VF’s Future, through investing in our
people’s professional development with training,
tools and development opportunities, along
businesses, as our work to evolve Nautica®
products to a dierentiated, performance-based
positioning around water continues to pay o.
And our Kipling® brand is a fast-growing
and very protable success story in the U.S.
Healthy growth was also achieved by our Contem-
porary Brands coalition, where revenues rose by
in . Our For All Mankind ®, Splendid ®, Ella
Moss® and John Varvatos® brands all achieved
higher revenues during the year. Building these
brands’ direct-to-consumer businesses, including
new stores and e-commerce, continues to be an
important component of our growth plans, and
during the year direct-to-consumer revenues
for Contemporary Brands grew over .
A Roadmap for Growth
In early we updated our ve-year nancial
goals and strategic growth drivers. Simply stated,
we intend to deliver billion in revenue growth
and in earnings per share growth over the
next ve years. More specically, our goals are to
increase revenues and earnings per share by
and annually, respectively—goals which we
surpassed in .
Key to our success has been our focus on VF’s
core Growth Drivers, which now consist of:
+ Build Lifestyle Brands, by emphasizing activity-
based lifestyle brands that speak authentically
1009 11
Outdoor & Action Sports
1009 11
Jeanswear
1009 11
Imagewear
1009 11
Sportswear
1009 11
Contemporary Brands
$637
$493
$828
$3,205
$2,806
$4,562
$432
$371 $413
$2,538
$2,522
$2,732
$87 $111 $146
$909
$865 $1,025
$52$52 $56
$498$498 $544
$14
$51 $36
$439
$418 $485
Revenues
Profits
Dollars
in Millions
|
Outdoor
& Action
Sports29%
11%
Other
Contemporary Brands
Sportswear
1%
5%
48%
Imagewear
Jeanswear
6%
his was a year of records: record
revenues, record earnings and
record cash ow from operations.
e acquisition of e Timberland
Company for . billion also
marked a record for us, as the
largest acquisition in our company’s history. e
addition of two strong, authentic outdoor brands
—Timberland ® and Smartwool ®—demonstrates
our commitment to building the most powerful
portfolio of outdoor brands in the world.
VF’s total revenues in reached . billion,
up from the prior year. e Timberland
acquisition added more than million
to revenues. On an organic basis, excluding
Timberland, revenues grew by more than billion,
or , with solid growth across our Outdoor &
Action Sports, Jeanswear, Imagewear, Sportswear
and Contemporary Brands coalitions.
Earnings per share rose to ., an increase of
over earnings per share of . (excluding
a noncash impairment charge) in . For the
second consecutive year, cash ow from operations
exceeded billion. Our dividend remains a priority
for our use of cash ow, and marked the th
consecutive year of higher dividend payments
to shareholders.
We are very pleased that our shareholders have
been rewarded for our success. In , VF’s
stock price increased —hitting record highs
—versus at performance for the S&P Index.
Strong Brands Positioned
for Strong Growth
VF’s business model is designed to deliver
consistent, sustainable growth. e diversity of
our portfolio ensures we have strong brands in
place to engage consumers wherever they live,
work or shop. We rely on consumer insights to
guide our brand-building eorts, enabling us to
craft authentic brand experiences and build deep
connections with consumers around the world.
e performance of our coalitions in is a
testament to the power of our brands and the
talent of our teams.
In Outdoor & Action Sports, the momentum
continued in , with revenues rising by .
Our results benetted tremendously from the
Timberland acquisition, but we were just as
excited about the organic growth in revenues
achieved during the year. e North Face® and
Vans® brands had record years, with revenues for
each growing by more than . And for the
rst time in the brand’s history, Vans® revenues
surpassed the billion mark. We also saw
double-digit growth in our Kipling®, Napapijri®,
lucy®, Reef ® and Eastpak ® brands.
Jeanswear revenues rose in , with growth
both domestically and internationally. In the U.S.,
success in both our Lee® and Wrangler® brands
was driven by new product innovations, such as
the Lee Classic Fit and Premium Select lines.
e Lee® and Wrangler® businesses in the U.S.
each continued to gain market share in their
respective channels of distribution, and today are as
well-positioned for future growth as they have ever
been. Internationally, Jeanswear growth was fueled
by rapid expansion in Asia and strong growth in
South America, Mexico and Canada. Higher
product costs aected Jeanswear’s protability in
, but are beginning to subside, pointing to a
year of both top and bottom line growth in .
Revenues in our Imagewear business also exceeded
billion for the rst time in , with strength
in both the Image and Licensed Sports Group
businesses. Our protective apparel business,
powered by the Bulwark® brand, drove our
Image business up nearly in revenues for
the year. Our Licensed Sports Group business
benetted from strong growth in both Major
League Baseball and National Football League
fanwear and a growing women’s business.
Growth in our Nautica® and Kipling® (U.S.)
businesses drove growth in Sportswear
revenues in . e Nautica® brand enjoyed
gains in its sportswear, licensed and outlet
Timberland:
A Transformational Acquisition
With approximately . billion in expected annual
revenues, Timberland marks a new chapter for
VF. In , for the rst time, our Outdoor &
Action Sports coalition will account for more than
half of VF’s total revenues, up from in .
We’re targeting a annual revenue growth
rate for Timberland, or million in revenue
growth over the next ve years. Key initiatives
include developing and launching Timberland ®
apparel in the U.S.; building on the momentum
of the Timberland ® Earthkeepers® collection
of environmentally conscious products in both
footwear and apparel; continuing to grow the
core Timberland ® and Smartwool ® businesses
globally, leveraging our well-established
international platforms in Europe and China; and
driving growth and enhanced protability across
Timberland’s direct-to-consumer touchpoints,
including retail stores and e-commerce.
Timberland is a recognized leader in sustainability
—and our brands will benet from Timberland’s
long experience and track record of environmental
responsibility. Our two largest outdoor brands,
Timberland ® and e North Face®, are both
passionately committed to embedding sustain-
ability across their products and operations. As
authentic outdoor brands, they understand the
importance of getting consumers outside to
enjoy and appreciate the environment—and
to protect and conserve it for future generations.
|
.
—
Chairman,
President &
Chief Executive Ocer
his was a year of records: record
revenues, record earnings and
record cash ow from operations.
e acquisition of e Timberland
Company for . billion also
marked a record for us, as the
largest acquisition in our company’s history. e
addition of two strong, authentic outdoor brands
—Timberland ® and Smartwool ®—demonstrates
our commitment to building the most powerful
portfolio of outdoor brands in the world.
VF’s total revenues in reached . billion,
up from the prior year. e Timberland
acquisition added more than million
to revenues. On an organic basis, excluding
Timberland, revenues grew by more than billion,
or , with solid growth across our Outdoor &
Action Sports, Jeanswear, Imagewear, Sportswear
and Contemporary Brands coalitions.
Earnings per share rose to ., an increase of
over earnings per share of . (excluding
a noncash impairment charge) in . For the
second consecutive year, cash ow from operations
exceeded billion. Our dividend remains a priority
for our use of cash ow, and marked the th
consecutive year of higher dividend payments
to shareholders.
We are very pleased that our shareholders have
been rewarded for our success. In , VF’s
stock price increased —hitting record highs
—versus at performance for the S&P Index.
Strong Brands Positioned
for Strong Growth
VF’s business model is designed to deliver
consistent, sustainable growth. e diversity of
our portfolio ensures we have strong brands in
place to engage consumers wherever they live,
work or shop. We rely on consumer insights to
guide our brand-building eorts, enabling us to
craft authentic brand experiences and build deep
connections with consumers around the world.
e performance of our coalitions in is a
testament to the power of our brands and the
talent of our teams.
In Outdoor & Action Sports, the momentum
continued in , with revenues rising by .
Our results benetted tremendously from the
Timberland acquisition, but we were just as
excited about the organic growth in revenues
achieved during the year. e North Face® and
Vans® brands had record years, with revenues for
each growing by more than . And for the
rst time in the brand’s history, Vans® revenues
surpassed the billion mark. We also saw
double-digit growth in our Kipling®, Napapijri®,
lucy®, Reef ® and Eastpak ® brands.
Jeanswear revenues rose in , with growth
both domestically and internationally. In the U.S.,
success in both our Lee® and Wrangler® brands
was driven by new product innovations, such as
the Lee Classic Fit and Premium Select lines.
e Lee® and Wrangler® businesses in the U.S.
each continued to gain market share in their
respective channels of distribution, and today are as
well-positioned for future growth as they have ever
been. Internationally, Jeanswear growth was fueled
by rapid expansion in Asia and strong growth in
South America, Mexico and Canada. Higher
product costs aected Jeanswear’s protability in
, but are beginning to subside, pointing to a
year of both top and bottom line growth in .
Revenues in our Imagewear business also exceeded
billion for the rst time in , with strength
in both the Image and Licensed Sports Group
businesses. Our protective apparel business,
powered by the Bulwark® brand, drove our
Image business up nearly in revenues for
the year. Our Licensed Sports Group business
benetted from strong growth in both Major
League Baseball and National Football League
fanwear and a growing women’s business.
Growth in our Nautica® and Kipling® (U.S.)
businesses drove growth in Sportswear
revenues in . e Nautica® brand enjoyed
gains in its sportswear, licensed and outlet
Timberland:
A Transformational Acquisition
With approximately . billion in expected annual
revenues, Timberland marks a new chapter for
VF. In , for the rst time, our Outdoor &
Action Sports coalition will account for more than
half of VF’s total revenues, up from in .
We’re targeting a annual revenue growth
rate for Timberland, or million in revenue
growth over the next ve years. Key initiatives
include developing and launching Timberland ®
apparel in the U.S.; building on the momentum
of the Timberland ® Earthkeepers® collection
of environmentally conscious products in both
footwear and apparel; continuing to grow the
core Timberland ® and Smartwool ® businesses
globally, leveraging our well-established
international platforms in Europe and China; and
driving growth and enhanced protability across
Timberland’s direct-to-consumer touchpoints,
including retail stores and e-commerce.
Timberland is a recognized leader in sustainability
—and our brands will benet from Timberland’s
long experience and track record of environmental
responsibility. Our two largest outdoor brands,
Timberland ® and e North Face®, are both
passionately committed to embedding sustain-
ability across their products and operations. As
authentic outdoor brands, they understand the
importance of getting consumers outside to
enjoy and appreciate the environment—and
to protect and conserve it for future generations.
|
.
—
Chairman,
President &
Chief Executive Ocer