VF Corporation
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List 2-3 reasons why you are interested in VF Corporation?
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General Company Information:
VF Corporation is the name behind the names. The world's #1 jeans maker's bevy of brands includes Lee,
Riders, Rustler, and Wrangler jeans. Others holdings include JanSport (#1) and Eastpak (backpacks); Lee
Sport (knitwear); The North Face and Eagle Creek (outdoor gear/apparel); Red Kap and Bulwark
(industrial work clothes); Nautica and John Varvatos (men's and women's apparel); and Vans (hip
footwear). VF sold its intimate apparel unit and hopes to get into the profitable premium-jeans niche. Most
of the company's sales come from jeans. VF makes NASCAR, MLB, NFL, and NBA apparel under license.
Trusts established by founder John Barbey control about 20% of its shares. It bought surfwear Reef
Holdings in 2005.
The company is also the #1 jeans maker in the US, with nearly a quarter of the market and a steady 40% or
so of its revenue generated from sales of jeans. While the manufacturer maintains this momentum, VF has
been disposing of unprofitable businesses, such as its intimates apparel operation, to refocus on other areas
for growth. Its outdoor business -- comprising about a third of VF's sales -- as well as its Imagewear and
Sportswear units, have seen growth in recent years. And the company is streamlining its operations, by
centralizing supply chain functions and reorganizing its global operations, to prepare for growth in Japan
and its outdoor business.
VF sells its branded apparel through one or two (but usually not all) of several retail channels: department
and specialty stores, mass merchants, and discounters. (Wal-Mart accounts for some 13% of sales.) For
example, among its jeans brands, Lee is sold through department and specialty stores; Wrangler and Rustler
are sold through discounters. The company also sells apparel through outlet stores and in South America,
Europe, and Asia.
As its sheds noncore apparel operations, VF in 2007 sold its lingerie business to rival Fruit of the Loom.
The deal involved US brands (including Vanity Fair and Vassarette) as well as those in Europe (Gemma
and Belcor).
In recent years VF has concentrated on expanding its portfolio of sports lifestyle brands. In 2004 it acquired
Green Sport Monte Bianco S.p.A (Green Sport), maker of outdoor apparel under the Napapijri name, as
well as hipster footwear maker Vans, Inc. (at a price of nearly $400 million). Its purchase of surf footwear
and apparel maker Reef Holdings Corporation has enabled VF to lay a strong foundation to this business
unit. Having generated sales of $75 million (excluding royalties) in 2004, Reef complements the brands in
VF's outdoor unit, which surpassed the $1 billion mark that year. VF continues to stuff its portfolio full of
outdoor brands with its purchase of Eagle Creek in 2007. The deal brought with it Eagle Creek's travel
gear, such as accessories, luggage, and daypacks, as well as the firm's Pack-It system.
As a result of VF's outdoor expansion, it restructured its operations into Outdoor International (North Face,
JanSport), Action Sports International (Vans, Reef, Eastpak), and Sportswear International (Napapijri,
Kipling, Nautica Europe). And its products are divided among four groups called coalitions: Jeanswear,
Outdoor, Imagewear, and Sportswear.
VF has added a fifth coalition, called VF Contemporary Brands, through its purchase of premium denim
firm Seven For All Mankind LLC and Lucy Activewear, both in August 2007. Seven For All Mankind's
CEO Mike Egeck will head the new coalition as its president.
The company announced that Mackey McDonald would step down as CEO in January 2008, but will
continue as chairman. He will be replaced by VF's current president and COO Eric Wiseman.
All information gathered from Hoovers.
Headquarters:
2006Employees:
2006 Sales:
2006 NI:
Greensboro, NC
45,000
$6.215 Billion
$533.5 Million
Operating Segments:
Jeans
 H.I.S.
 Lee
 Maverick
 Old Axe
 Riders
 Rustler
 Timber Creek by Wrangler
 Wrangler
 Wrangler Hero
Imagewear
 Bulwark
 Harley-Davidson (licensed)
 Lee Sport
 MLB (licensed)
 NFL (licensed)
 Red Kap
Sportswear
 John Varvatos
 Nautica
Outdoor
 Eagle Creek
 Eastpak
 JanSport
 Kipling
 Napapijri
 Reef
 The North Face
 Vans
Selected Licenses
 Harley-Davidson Motor Company
 Major League Baseball
 NASCAR
 National Basketball Association
 National Football League
 National Hockey League
Current News:
VF Raises Five-Year Growth Plan Targets and Announces 2008 Guidance
1-9-08
VF is raising its long-term revenue, operating margin and EPS growth guidance for 2008. The company is
planning a massive amount of growth over the next five years and expects to hit $11 billion in revenue by
2012. The company will do so by working within each of its operating segments to target specific
customers. Additional goals as part of the five-year plan include a 15% operating margin and 10-11% EPS
growth.
All information gathered from Hoovers.
NAUTICA ADOPTS NEW BRAND MANAGEMENT STRATEGY (supporting the Regatta event at the
Mumbai International Boat Show in Feb 2008)
12-19-07
Nautica is planning to revamp its brand strategy in order to increase turnover. The company plans to
support the Mumbai International Boat Show in addition to other outlets in an effort to do this.
Financials and Facts:
2006 Sales (mil.)
$6,215.8
1-Year Sales Growth
(4.4%)
2006 Net Income (mil.)
$533.5
1-Year Net Income Growth
5.3%
Key People:
Chairman
Mackey J. McDonald
President, CEO, and Director
Eric C. Wiseman
SVP and CFO
Robert K. (Bob) Shearer
VP and CIO
Martin Schneider
SVP, Operations, Sportswear Coalition
James E. (Jim) Calo
Largest Competitors:
The Gap
Levi Strauss
Sears Holdings
(2007 Annual Sales: $15.943 Billion)
(2007 Annual Sales: $4.106 Billion)
(2006 Annual Sales: $53.012 Billion)
All information gathered from Hoovers.