North Face 2013 Annual Report Download - page 23

As a proven catalyst for growth
outside the United States, VF’s
international platform gives us
a strong competitive advantage.
In 2013, our international revenue
reached $4.3 billion, representing
growth of 8 percent over 2012. We
expect VF’s international revenue
to reach $7.4 billion by 2017,
representing a five-year compound
annual growth rate of 13 percent.
As a percentage of total revenues, VF’s
international business represented
38 percent of total sales in 2013. Our
goal is for international revenues to
reach 43 percent of total sales in 2017.
That’s strategic business change that
delivers growth and value creation.
Our international business platform
is one more example of how we’re
transforming VF to provide a clear
path to growth in a changing global
marketplace. From mature markets
such as Western Europe and Japan,
to emerging markets such as Eastern
Europe, China and South America,
VF is there. And we’re there with our
amazing portfolio of scalable brands
— listening to and inspiring existing
and future brand loyalists. In many
cases, we’re leading the conversation.
Whether it’s The North Face® brand
inspiring people in China to get
outdoors for the first time or the
Vans® brand giving a new palette of
self-expression to the street culture
of European youth, we’re really just
getting started.
The Timberland® brand’s integration
into our global family is a strong
example of our international
platform’s ability to grow. VF has
helped the Timberland® brand build
on its strengths by commissioning
a global consumer segmentation
study and providing operational
support in key regions, as well
as by offering efficient and reliable
supply chain resources and access
to capital. As a result, the Timberland®
brand has maintained its core DNA
and is better positioned than ever
to establish vital retail partnerships
and attract new consumers in key
markets across Europe and Asia.
The outcome? A strong brand got
even stronger … achieving higher-
quality revenue, improved market
share and profitability, lower
inventories and improved on-time
deliveries — thanks to the One VF
approach to global growth.
STABIO: WHERE COLLABORATION IS RIGHT AT HOME
“One of the keys to our global success is tapping the knowledge of our team and ensuring
that we share the best ideas and approaches across brands and regions. To facilitate that
collaboration, VF established a new international headquarters in Stabio, Switzerland, in 2013.
Thirty-five nationalities are represented among our 700 employees. It’s home to brands with
global reach across geographies and markets, and it’s already setting a new standard
for cross-brand sharing and teamwork.”
Karl Heinz Salzburger
Vice President & Group President  International
International Revenue Growth by Region
2008-2013 (5-year CAGR)
10%
AMERICAS (non-United States)
9%
EUROPE
34%
ASIA PACIFIC