North Face 2004 Annual Report Download - page 26

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management’s discussion
and analysis of results
of operations and
financial condition
VF Corporation (“VF”) is a leading marketer of
apparel in the United States and in many interna-
tional markets. Management’s vision is to grow
VF by building leading lifestyle brands that excite
consumers around the world. VF owns a diversified
portfolio of brands with strong market positions in
several consumer product categories. And, we market
occupational apparel to distributors and major
employers. We are organized around our principal
product categories, and major brands within those
categories. These groupings of businesses, referred
to as “coalitions,” are summarized as follows:
VF has a broad customer base, with products distrib-
uted through leading specialty, department, chain
and discount stores around the world. Approximately
23% of our 2004 sales were in international markets,
and our ten largest customers represented 38% of
total 2004 sales.
Long-term Financial Targets
We have established several long-term financial
targets that guide us in our strategic decisions.
Attainment of these targets would be expected to
drive increases in shareholder value. These targets
are summarized below:
•Sales growth of 8% per year – Despite the apparel
industry having been relatively flat in terms of unit
volume with generally flat to slightly declining
prices in recent years, our 2004 sales increased
Product Category VF-owned Brands
Jeanswear Lee®, Wrangler®, Riders®, Rustler®, Timber Creek by Wrangler®
Outdoor products The North Face®, Vans®, JanSport®, Eastpak®, Kipling®, Napapijri®
Intimate apparel Vanity Fair®, Lily of France®, Vassarette®, Bestform®
Sportswear Nautica®, John Varvatos®, Earl Jean®
Imagewear Lee Sport®, Red Kap®, Bulwark®
overview