North Face 2013 Annual Report Download - page 5

CEO LETTER
To Our Shareholders:
2013 was a terrific year at VF Corporation.
It’s difficult to pick one or two things that we’re most
proud of. We turned in a strong financial performance:
record annual revenues of $11.4 billion, up 5 percent;
record gross margin performance, improving 160 basis
points to 48.1 percent; and record adjusted earnings per
share of $2.73, representing an increase of 13 percent.
VF’s reported earnings per share reached $2.71 — also
a record. Meanwhile, operating income increased,
reaching $1.6 billion, and net income reached $1.2 billion.
Beyond our performance by the numbers, we also
opened an ideally situated — and environmentally
responsible — international headquarters in Stabio,
Switzerland; successfully integrated the Timberland®
brand’s European operations into our international
business; completed five SAP implementations that will
enable our continued growth in Asia; placed 11th on Chief
Executive magazine’s “Best Companies for Leaders,” and,
once again, were selected as one of FORTUNE magazine’s
“World’s Most Admired Companies.”
Simply put, it was quite a year — a year that saw our stock
price increase 65 percent, hitting record highs. And that’s
compared with a benchmark S&P 500 Index that rose
30 percent in its best performance since 1997. To the extent
that our share price is a proxy for investor satisfaction and
confidence, we’re pleased with the strong response to our
performance and the outlook for our company.
Our dividend remains a high priority for us, and in 2013
we announced a 21 percent increase in our quarterly
dividend rate. That marked our 41st consecutive year
of higher dividend payments to shareholders. Our track
record of returning cash to shareholders is solid. In 2013,
we returned nearly $700 million to shareholders in the
form of cash and share buybacks.
Powerful Brands. Powerful Platforms.
We define a powerful brand as one that has strong equity
with consumers, that has a business model that is capable
of self-funding its future and that consistently generates
superior returns for our shareholders. In other words,
we’ve set the bar high.
At VF, we have powerful brands. They are diverse,
iconic and positioned to serve customers and consumers
around the world. We treasure our brands. We value
their uniqueness. And we invest in them, so that —
collectively and individually — our brands can continue
to engage people wherever they live and however they
shop. The insights we have into consumers’ wants and
needs help us innovate, merchandise and tell stories
that bring our brands to life in our consumers’ hearts
and minds. We work hard to connect with people around
the world. The strength of those connections is measured
by our growth.
VF’s business platforms also play a vital role in that growth.
Across our company, our teams collaborate and share,
providing capabilities that include: strategy and innovation
counsel, leadership development, direct-to-consumer
expertise, supply chain leadership, international know-
how and sustainability excellence. Their contributions
consistently make our strong brands stronger.
ERIC C. WISEMAN
Chairman, President & Chief Executive Officer