North Face 2015 Annual Report Download - page 19

(apparel for law enforcement and public safety personnel). Products include a wide range of functionally
designed shirts, pants, coveralls and outerwear. Image revenues are significantly correlated with the overall level
of employment in the U.S.
Approximately 70% of Image revenues are from industrial laundries, resellers and distributors that in turn
supply customized workwear to employers for production, service and white-collar personnel. Since industrial
laundries and distributors maintain minimal inventories of work clothes, VF’s ability to offer rapid delivery of
products in a broad range of sizes is an important advantage in this market. Our commitment to customer service,
supported by an automated central distribution center with several satellite locations, enables customer orders to
be filled within 24 hours of receipt. As a result, the Red Kap®and Bulwark®brands have a strong presence in the
reseller distributor market and are growing in the workwear retail market.
The Image business also develops and manages uniform programs through custom-designed websites for
major business customers and governmental organizations. These websites provide the employees of our
customers with the convenience of shopping for their work and career apparel via the Internet.
In our LSG business, we design and market sports apparel and fanwear under licenses granted by major
sports leagues, individual athletes and related organizations, including Major League Baseball, the National
Football League, the Major League Baseball Players Association, the National Basketball Association, the
National Football League Players Association, the National Hockey League, the Nippon Professional Baseball
League and selected major colleges and universities. In addition, the LSG business is a major supplier of
licensed Harley-Davidson®apparel to Harley-Davidson dealerships.
Under license from Major League Baseball, the Majestic®brand is the official on-field uniform of all 30
major league teams. Majestic®brand adult and youth-size authentic, replica jerseys and fanwear are sold through
sporting goods and athletic specialty stores, department stores and major league stadiums. Sports apparel and
fanwear marketed under other licensed labels are distributed through department, mass merchant, sporting goods
and athletic specialty stores and e-commerce partners. Our quick response capabilities allow us to deliver
products to retailers within hours following major sporting events such as the Super Bowl, the World Series and
conference or division playoff championships.
We believe there is a strategic opportunity to grow revenues through the continued extension of product and
service capabilities to new industrial and service apparel distribution channels, markets, and geographies.
Sportswear Coalition
The Sportswear coalition consists of the Nautica®brand and the Kipling®brand’s North American business.
The Kipling®brand’s business outside of North America is included in the Outdoor & Action Sports coalition.
Nautica®brand sportswear is marketed through department stores, specialty stores, VF-operated stores and
at www.nautica.com. The Nautica®brand is one of the leading men’s sportswear collection brands in department
stores in the U.S. Other Nautica®product lines include men’s outerwear, underwear and swimwear, and men’s
and women’s sleepwear. We operate over 80 Nautica®brand stores in premium and better outlet centers across
the U.S.
The Nautica®brand is licensed to independent parties in the U.S. for apparel categories not produced by VF
(e.g., tailored clothing, dress shirts, neckwear, women’s swimwear and outerwear, children’s clothing) and for
non-apparel categories (e.g., accessories, fragrances, watches, eyewear, footwear, luggage, bed and bath
products, furniture). Outside the U.S., Nautica®products are licensed for sale in more than 50 countries,
including over 250 Nautica®brand stores operated by independent licensees in Asia, Europe, North and South
America and the Middle East.
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