North Face 2004 Annual Report Download - page 18

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VF C O R P O R A T I O N 2004 Annual Report
In fact, we sell more pairs of jeans than any
other company in the world. Fashion trends
come and go, but the jeans market continues
to prove remarkably stable and resilient.
Growth comes to those brands that define
their consumers’lifestyles, offering the right
combination of authenticity, innovation
and value.
Our jeans business had a good year in 2004.
Sales were about even with prior year levels,
but profitability improved nicely. We have our
share of challenges — retail consolidation,
pricing pressure, the rise of specialty brands
and private label programs — but our unre-
lenting focus on understanding our consumers
continues to keep us ahead of the pack.
Room to Grow in the U.S. With our Wrangler® ,
Riders®and Rustler® brands, we are the
market share leaders in both the men’s and
women’s branded jeans categories in mass
market stores.
The highlight of the year for our Wrangler®
brand was the successful launch of our
Wrangler Jeans Co.
™initiative in partnership
with NASCAR driver Dale Earnhardt, Jr.
The new line, which is targeted to a younger,
more fashion-conscious male consumer, is the
official jean of Earnhardt Jr. and his #8 racing
team. We’ll continue to build on the line in
2005 with the launch of a new premium shirt
program. O ur Wrangler Hero®brand also
benefited from the expansion of our Five Star
premium denim program into additional fits
and styles. H ere, too, we expect continued
momentum from a new lead product called
Wrangler®Ultra Tough and growth in our
premium khakis program. We capped
2004 with the introduction of a new
licensed line of home furnishings.
The Wrangler Home™collection
features case goods, upholstered furni-
ture and occasional pieces and will
make its retail debut in early 2005.
Our Wrangler®brand also has a
unique position as the authentic icon
of timeless American values, deeply
rooted in Western heritage. We have a
range of products specifically designed
for those who live — or dream about
living — the Western lifestyle. In
2004 we augmented our strong men’s
Western business with the successful
launch of a new women’s line, Aura
from the Women at Wrangler™.
The Wrangler®brand has long been
known for its versatility and durability.
Our Riggs Workwear™by Wrangler®
line was first launched in 2003 to
meet the needs of hard-working men
with exceptionally comfortable,
durable products offering practical details to
get the job done right. The line had another
great year in 2004, with additional growth
planned in 2005.
Our Riders®brand enjoyed double-digit
sales growth in 2004, buoyed by new fashion
styles under the Riders®Coppercollection™ line.
Featuring copper zippers and rivets, as well
as distinct copper accent threading, the line
offers premium styling that appeals to women
who want junior looks with a flattering missy
fit. The brand also got a boost from its
plus-size and casual pant programs.
Our Lee®brand men’s business has experi-
enced healthy growth over the past several
years, fueled by our Lee®Dungarees program
that is capturing a growing share
of the young men’s jeans business.
We leveraged this success in 2004
with the launch of the Buddy Lee
Registered™line. Each pair of jeans
features a unique nine-digit identifi-
cation number, which consumers
can use to register their products
on a special Buddy Lee Registered™
website. In fall 2005 we’ll extend
Lee®Dungarees to the boy’s category.
Our women’s business was a big
focal point for us in 2004 and will
continue to be in 2005. Lee’s One
True Fit™and new Ultimate 5™
programs have given female
consumers a new reason to buy, by
offering young women contemporary
styles with a flattering look and great
fit. A range of new products for more
traditional female consumers is in the
pipeline for 2005.
The rich history and authenticity
of our Lee®brand has led to the launch of
Lee®Authentics, a premium line available
in select specialty retail stores. The line
combines fashionable European product
styling and fabrics to attract sophisticated
upscale consumers. We’ll continue to leverage
this positioning in 2005 with the launch in
mid-tier department stores of the Lee®
H eritage Collection, a new line featuring
premium quality denim with trims and
packaging inspired by the Lee®brand heritage.
Earl Jean® :A Cut Above Our newest brand
is Earl Jean® ,which we obtained through our
acquisition of Nautica, Inc. The brand is sold
through upscale department and specialty
JE AN SW E AR With a portfolio that
includes the Wrangler®
,Lee® ,Riders® ,
Rustler®and Earl Jean®brands, we have
the pulse of jeans consumers around
the world.
Lee
Wrangler
Wrangler Hero
Riders
Rustler
Timber Creek
by Wrangler
Wrangler
Rugged Wear
Riggs Workwear
by Wrangler
Pro Gear
by Wrangler
Aura from the
Women at
Wrangler
20X
Earl Jean
Chic
Gitano
Brittania
UFO*
Hero by Wrangler
H.I.S
Maverick
Old Axe