North Face 2000 Annual Report Download - page 17

15
JanSport
Eastpak
The North Face
distribution complement each other.
We’re now in great shape to maximize
the potential of these brands.
I’d have to say that The North
Face brand is one of the most exciting
acquisitions VF has ever made. It offers
exceptional strength in the outdoor
category, encompassing outerwear,
sleeping bags, tents and packs, among
other products. While the brand is
highly respected by serious climbers
and other athletes, its appeal extends to
urban adventurers as well.
Putting It All Together
While The North Face products have
been enormously popular with con-
sumers for years, the company had a
number of operational issues affecting
profitability when we acquired it.
We’ve added new management and
resources to get the business back
on track, and expect much improved
profitability in 2001. We also see
opportunities to strengthen the brand’s
current offerings in sportswear and
footwear. And we plan to expand the
number of “showcase” retail stores,
providing a total brand experience for
consumers.
Of course, the formation of a
new coalition will be the impetus for
finding ways for all our outdoor
brands to work together and benefit
one another. During 2001, we’ll be
exploring a variety of opportunities to
share resources and take advantage of
our powerful new brand portfolio.
Outdoor
is a fast growing category – and a great opportunity for VF.”
“
Bob Shearer
VP – Finance & Chief
Financial Officer,
VF Corporation
VF is always looking for new product
categories and brands to add to its
portfolio. A couple of years ago, we
targeted the outdoor products area as a
great category to pursue, since it’s such
a natural complement to our existing
JanSport business. Today, we’ve got
leading brands and products that active
consumers know and want.
The JanSport brand, sold in
department, sports and specialty stores,
is the top-selling daypack in the U.S.
In mid-2000, we acquired the Eastpak
brand, a leader in mass merchandise
stores in the U.S. and the number one
brand in Europe as well. Capping the
year was the acquisition of The North
Face, the premium brand of technical
outdoor apparel and products.
The combination of these busi-
nesses gives us critical mass in an
exciting and growing category,
and provides the base for VF’s new
Outdoor coalition.
Growth for All Our Brands
JanSport had a good year in 2000.
The brand is recognized for its contin-
uous product innovation reflected
in products like Air Lift®II, which
offers a superior suspension system to
reduce the stress of carrying heavy
loads. JanSport is also seeing continued
growth in its new line of luggage
targeted to young professional travelers.
We’re pleased by how smoothly
we’ve integrated Eastpak into JanSport
and how well the brands’ products and