North Face 2013 Annual Report Download - page 9

For nearly 50 years, The North Face® brand has
partnered with the world’s best outdoor athletes to create
our industry’s most innovative performance products.
In 2013, we went to the extremes to equip our athletes
as they pushed the edge of their physical potential and
further expanded the boundaries of our technology.
One expedition team went to Antarctica to snowboard the
treacherous terrain of the earth’s southernmost landmass
— the ultimate test lab to confirm the authenticity
of Steep Series™, our latest line of big-mountain riding
gear. At the other end of the globe, some of the world’s
most accomplished extreme skiers helped us analyze
product design features in Alaska’s Denali National
Park and British Columbia’s rugged western ranges.
Then there was Iceland — the ultimate proving ground
for two of our ultra-runners and an all-new collection
of cold-weather running apparel.
2013 was a good year for The North Face® brand. One
product highlight — the first in our Science of Warmth
platform — was our ThermoBall™ technology. This
proprietary, synthetic insulation is lightweight and
compressible. It serves as a sustainable substitute for
down that doesn’t lose precious heat when it becomes
wet. Sales exceeded our expectations, giving us great
confidence in our ability to further expand this science
and drive more innovation in heat management.
Additionally, as a sponsor of the U.S. Ski and Snowboard
Association, we worked with our U.S. Freeskiing athletes
to create a unique uniform collection for those competing
at the Winter Olympics in Sochi.
Global revenues for The North Face® brand were up
7 percent in 2013 compared with 2012, driven by a mid
single-digit increase in the Americas and European
businesses and greater than 20 percent growth in the
Asia Pacific region.
In 2014, we’re looking forward to another year of growth
for The North Face® brand. With continued emphasis
on industry-leading product innovations, including the
launch of our Mountain Athletics training apparel and
the continued expansion of our Ultra footwear collections
and ThermoBall™ products, we’ve never been more excited
about the chance to grow this brand into a four-season
consumer opportunity, while delivering value
to shareholders.
As part of our five-year plan, we expect The North Face®
brand to reach $3.3 billion by 2017, based on a five-year
compound annual growth rate of 12 percent. That includes
double-digit growth rates in the Americas, Europe and
Asia Pacific regions.
As we keep that goal in our sights, we’re as passionate
as ever about pushing our limits and driving product
innovation that benefits everyone who draws inner
strength from the great outdoors. While we’ll always focus
on outfitting the most accomplished outdoor athletes
for the world’s most extreme conditions, we’ll also keep
working to inspire all those among us who never stop
exploring — whoever they are, wherever they go.
$2B
in revenues in 2013
35%
increase in e-commerce
sales in 2013