North Face 2015 Annual Report Download - page 18

We expect continued long-term growth in our Outdoor & Action Sports coalition as we focus on product
innovation, extend our brands into new product categories, open additional stores, expand geographically and
acquire additional lifestyle brands.
Jeanswear Coalition
Our Jeanswear coalition markets denim and related casual apparel products globally.
The Wrangler®brand offers denim, apparel, accessories and footwear through mass merchants and mid-tier
department stores in the U.S., VF-operated stores, and online at www.wrangler.com. Wrangler®westernwear is
distributed primarily through western specialty stores, as well as various online retail sites.
Lee®brand products are sold through mid-tier and traditional department stores in the U.S., and online at
www.lee.com. The Rustler®and Riders®by Lee®brands are marketed to mass merchant and regional discount
stores in the U.S. Our Rock & Republic®brand has an exclusive wholesale distribution and licensing arrangement
with Kohl’s Corporation that covers all branded apparel, accessories, and other merchandise in the U.S. and
Canada.
Wrangler®and Lee®products outside of the U.S. have a higher fashion consideration and, as a result, higher
selling prices. VF’s largest international jeanswear businesses are located in Europe and Asia, where Wrangler®
and Lee®products are sold through department, specialty and concession retail stores. We also market Wrangler®
and Lee®products to mass merchant, department and specialty stores in Canada and Mexico, as well as to
department and specialty stores in South America. In key international markets, we are expanding our reach
through VF-operated stores, which are an important vehicle for presenting our brands’ image and marketing
message directly to consumers. We currently have more than 75 VF-operated stores primarily located in Europe,
South America, and Asia, and are continuing to expand our brands in emerging markets. In international markets
where VF does not have retail operations, Wrangler®and Lee®products are marketed through distributors, agents,
licensees and over 900 single brand or multi-brand partnership stores.
Our world-class supply chain, including owned manufacturing facilities along with advanced vendor-
managed inventory and retail floor space management programs with many of our major retailer customers, gives
us a competitive advantage in our U.S. jeanswear business. We receive point-of-sale information from these
customers on a daily or weekly basis, at an individual store and style-size-color stock keeping unit level. We then
ship products based on that customer data to ensure their selling floors are appropriately stocked with products
that match their shoppers’ needs. Our system capabilities allow us to analyze our retail customers’ sales,
demographic and geographic data to develop product assortment recommendations that maximize the
productivity of their jeanswear selling space and optimize their inventory investment.
We intend to drive growth through superior product innovation, consumer insight and marketing strategies.
Growth in the U.S. will be balanced across mass merchant, mid-tier and traditional department stores, and
western specialty businesses. International growth will be driven by expansion of our existing businesses in Asia,
Latin America and key European markets.
Imagewear Coalition
Our Imagewear coalition consists of the Image business (occupational workwear apparel and uniforms) and
the Licensed Sports Group (“LSG”) business (owned and licensed athletic apparel). The Image and LSG
businesses represent approximately 53% and 47%, respectively, of total coalition revenues.
The Image business provides uniforms and career occupational apparel for workers in North America and
internationally, under the Red Kap®brand (premium workwear), the Bulwark®brand (flame resistant and
protective apparel primarily for the petrochemical, utility and mining industries) and the Horace Small®brand
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