North Face 2014 Annual Report Download - page 4

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2
TO OUR SHAREHOLDERS:
2014 WAS OUR 115TH YEAR
OF DOING BUSINESS. AND I’M
PLEASED TO REPORT THAT IT
WAS A VERY GOOD YEAR FOR
VF CORPORATION.
Our financial performance was strong: Revenue grew
8 percent to reach a record $12.3 billion, led by 13 percent
growth in our Outdoor & Action Sports coalition. VF’s
international business grew 9 percent; our direct-to-
consumer business was up 19 percent; and, our full-year
gross margin improved by 70 basis points – reaching
48.8 percent.
Operating income, on an adjusted basis, reached
$1.8 billion*, up 11 percent or $1.4 billion on a GAAP basis.
Adjusted net income totaled $1.4 billion* or $1.0 billion
on a GAAP basis. Adjusted earnings per share of $3.08*
represent a 14 percent year-over-year increase. On a
GAAP basis, full-year earnings per share were $2.38.
Our dividend remains a high priority. In 2014, we
increased VF’s quarterly dividend rate by 22 percent.
It was our 42nd consecutive year of higher dividend
payments to shareholders. Our dividend, combined with
share buybacks, returned more than $1.2 billion in cash
to shareholders.
We’re proud of VF’s track record of total shareholder
return (TSR) as benchmarked against the S&P 500 Index.
Our TSR in 2014 was 22 percent compared with 14 percent
for the S&P 500. Annualized TSR during the past three-
and five-year periods was 36 percent compared with
20 percent and 15 percent, respectively, for the S&P 500.
BEYOND THE NUMBERS
As usual, what our company achieved in 2014 went
beyond traditional financial metrics. Here’s a sampling:
› We opened a new distribution center in Kunshan, China,
demonstrating our commitment to growth in China and
our persistent focus on operational excellence throughout
our global supply chain.
*Adjusted numbers are reconciled to GAAP in Footnote 1, Page 28.
ERIC C. WISEMAN
Chairman, President & Chief Executive Officer