North Face 2005 Annual Report Download - page 23

VF Imagewear offers
abroad array of uniforms
and protective apparel
under our Red Kap®brand.
Our “Customer First”
focus—providing
consumers with more
customized products
and services—has been
awinning strategy.
Wehave set our sights
on achieving $1 billion
in annual revenues over
the next five years.
What were the key
accomplishments of 2005?
What kinds of markets
and customers does your
Image business serve?
What factors drive
your Image business?
What’s the vision
for Imagewear?
What benefits are you seeing
from your e:business efforts?
What about
international markets?
What does the future
hold for Imagewear?
VF Corporation 2005 Annual Report
42 43
1
Imagewear turned in a strong year for 2005, with increases in both rev-
enues and profits. Our “Customer First” strategy, which we launched
two years ago, contributed to our success in providing consumers
with more customized products and services. Our acquisition in early
2005 of a licensee of the Harley-Davidson Motor Company, Inc. has
performed above our expectations, and we’re excited about our role
in growing this iconic lifestyle brand. Our Licensed Sports Apparel
business continued to benefit from leveraging our exclusive agree-
ments with the major sports leagues, including the National Football
League (NFL) and Major League Baseball (MLB).
We offer a broad array of uniforms and protective apparel to corporate
customers, government agencies, service businesses, industrial laun-
dries and public safety agencies. Our goal is to provide customized
apparel solutions from the boardroom to the factory floor.
Economic conditions arean important factor,particularly employment
trends. The economy was generally favorable in 2005, and we expect
that to continue in 2006. Unemployment decreased slightly and about
two million jobs wereadded during the year. New regulations pertaining
to protective apparel—an important and growing market for us—are
opening up new opportunities. Two other important markets for uni-
forms—public safety and government—arealso seeing growth.
Our vision revolves around our “Customer First” strategy, which is the
complete and thorough understanding of our consumers, our corporate
customers and the professional sports leagues, to provide the right
brands, products, services and technologies that best meet their
apparel needs.
Our e:business capabilities provide us a tremendous competitive
advantage. Through over 30 websites, hundreds of thousands of our
customers have the ability to order customized uniforms and access
important company and product information around the clock. In 2005
we generated over $80 million in transactions through our e:business
sites, up about 30% from 2004 levels.
Imagewear’s international business is currently small, but we have
great customers and a good base of business that is growing in both
Canada and Mexico. Some of our Image customers are international
in scope, and we support them in each of the countries in which they
operate. We are also starting to expand our licensed sports business
to other parts of the world.
Wehave a clear vision for both our Image and Licensed Sports Apparel
businesses. We’recommitted to steady top line growth and have set
our sights on achieving $1 billion in annual revenues over the next five
years. Our “Customer First” strategy will continue to serve as our plat-
form for growth, supported by a total dedication to our consumers and
the occupations that represent their lifestyles and activities. We’ll focus
on growing markets with expanding employment and uniform usage,
and on boosting our exclusive rights and adding new properties in our
Licensed Sports Apparel business. Behind all of this will be the strength
of our supply chain, which we view as the fastest and most efficient in
the world, as well as our extensive e:business capabilities.
Imagewear