North Face 2007 Annual Report Download - page 26

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VF Corporation achieved its fifth straight
year of record performance in 2007, as
revenues rose 16% to over $7 billion—
a new milestone—and earnings per share
increased 14% to $5.41. President and
Chief Executive Officer Eric Wiseman and
Chairman Mackey McDonald provide an
“inside” look at VF’s 2007 results and their
strategy for continuing the company’s
momentum over the coming years.
What drove VF’s strong performance in 2007?
Eric Wiseman: Organic growth for starters. It was 10%
in 2007, balanced across many brands and businesses.
In fact, four out of our five coalitions grew their top
lines—driven by new product innovations and line
extensions in some cases; international growth and
retail store expansion in others. Acquisitions were
also key to our 2007 performance. During the year we
acquired the 7 For All Mankind®, Majestic®, Eagle Creek®
and lucy® brands. We also reacquired rights from a
licensee to sell The North Face® products in China.
What were the company’s most important
achievements during the year?
EW: There were many, but three stand out. By acquiring
the 7 For All Mankind® and lucy® brands, we created an
exciting new growth platform—our Contemporary
Brands coalition. We sold our intimate apparel business,
strengthening our portfolio’s top- and bottom-line
growth potential. Outdoor also came up big. In addition
to delivering outstanding performance, the coalition
implemented VF’s suite of common systems to help
support its future growth.
How do the 7 For All Mankind® and lucy® brands fit into
VF’s long-term strategy?
Mackey McDonald: Both are terrific brands with
tremendous long-term growth prospects and a very
strong following among women. The 7 For All Mankind®
brand is the established leader in the premium jeans
market in the U.S., and lucy® is a small, but rapidly
growing, women’s activewear brand. The 7 For All
Mankind® brand has multiple avenues for growth, not
only in its core denim products, but also in sportswear
and accessories, the opening of owned retail stores and
international expansion. The lucy® brand is exciting for
us, as it marks VF’s first “pure play” retail acquisition.
When we acquired the lucy® brand, it had 50 stores
and we see the potential for 300 stores over time.
TO OUR SHAREHOLDERS
VF CORPORATION | 39