Profile: VF Corp (VFC.N)
7 Mar 2014
V.F. Corporation (VF), incorporated in December 4, 1899, is a global apparel company based in the United States. VF designs and manufactures or sources from independent contractors a variety of apparel and footwear for all ages, including jeanswear, outerwear, footwear, packs, luggage, sportswear, and occupational and performance apparel. Products are marketed primarily under VF-owned brand names. VF is a diversified apparel company across brands, product categories, channels of distribution and geographies. These products are marketed to consumers shopping in specialty stores, upscale and traditional department stores, national chains and mass merchants. Products are marketed primarily under VF-owned brand names. VF’s businesses are organized primarily into product categories, and by brands within those categories, for both management and internal financial reporting purposes. These groupings of businesses are called coalitions and consist of the following: Outdoor & Action Sports, Jeanswear, Imagewear, Sportswear and Contemporary Brands. These coalitions are its reportable segments for financial reporting purposes. On April 30, 2012, VF sold its 80% ownership in John Varvatos Enterprises, Inc.
Outdoor and Action Sports Coalition
The Company’s Outdoor and Action Sports Coalition is a group of authentic lifestyle brands, which are outdoor and activity based. Product offerings include outerwear, performance wear, snow sports gear, sportswear, footwear, equipment, backpacks, luggage and accessories. The North Face is its Outdoor and Action Sports Coalition brand. Its outdoor apparel, equipment and footwear are sold around the world. (In Japan and South Korea, The North Face brand names are owned by a third-party.) The North Face apparel lines consist of outerwear, snow sports gear and functional sportswear and footwear for men, women and children. Its equipment line consists of tents, sleeping bags, backpacks, daypacks and accessories. Many of The North Face products are designed for applications, such as high altitude mountaineering and ice and rock climbing. The North Face products are marketed through specialty outdoor and premium sporting goods stores in the United States, Canada, Europe and Asia, and select department stores in the United States. In addition, these products are sold through over 80 VF-operated full price retail and outlet stores in the United States, Asia and Europe and online at www.thenorthface.com. The brand is also sold through agents, distributors, and over 390 The North Face stores operated by independent third-parties outside the United States.
The Timberland Company designs, develops and markets footwear, apparel and accessories for men, women and children under the Timberland, Timberland PRO, Timberland Boot Company, and SmartWool brands. Timberland brand footwear offerings include sport boots, including hiking boots; handsewn oxfords, boat shoes and casual footwear, and performance footwear. Timberland products are sold to retail accounts through the wholesale channel, through 200 VF-operated stores, online at www.timberland.com and through independent distributors, licensees and partnership stores.
VF manufactures and markets Vans performance and casual footwear and apparel for skateboard, bicycle motocross (BMX), surf and snow sports participants and enthusiasts. Products are sold on a wholesale basis through national chain stores in the United States and through skate and surf shops and specialty stores in the United States, Canada, Europe and Asia. The brand’s products are also sold through over 310 owned Vans full-price retail and outlet stores primarily in the western United States and in key European markets. VF is the 70% owner of the Vans Warped Tour music festival, which presents over 40 punk rock bands in performances in over 40 cities across North America each summer as well as online at www.vans.com. JanSport backpacks, duffel bags, luggage and accessories are sold through department, office supply and national chain stores, as well as sports specialty stores and college bookstores in the United States. JanSport fleece and T-shirts imprinted with college logos are sold through college bookstores and sporting goods stores in the United States.
In Europe, Eastpak and JanSport backpacks, travel bags, luggage and a line of Eastpak clothing are sold primarily through department and specialty stores. Eastpak is a backpack brands in Europe. The JanSport and Eastpak brands are also marketed throughout Asia by licensees and distributors. Eagle Creek adventure travel gear products include luggage, backpacks and accessories sold through specialty luggage stores, outdoor stores and department stores throughout the United States, Asia and Europe. Kipling brand name includes handbags, luggage, backpacks, totes and accessories. The brand name comes from the author of The Jungle Book, Rudyard Kipling, and that provides the connection to the Kipling monkey mascot, which symbolizes fun and adventure. A colorful monkey key ring is attached to every bag, with a different monkey design for each product collection. Products are sold through specialty and department stores in Europe, Asia and South America, as well as through over 45 VF-operated and over 125 independently operated stores and at www.kipling.com. The Kipling business in North America is managed as part of the Sportswear Coalition.
Derived from the Finnish word for Arctic Circle, the Napapijri brand offers premium-priced performance skiwear and outdoor-inspired casual outerwear, sportswear and accessories for men, women and children. Products are sold on a wholesale basis primarily to European specialty shops, and through VF-operated and independently operated stores in several countries in Europe. The Napapijri brand is marketed through a majority owned joint venture in Japan. The Reef brand of surf-inspired products includes sandals, shoes, swimwear and other casual apparel and accessories for men, women and children. Products are marketed primarily to surf shops, sporting goods and specialty chains, and department stores in the United States, Canada, Europe and Asia. The lucy brand is an authentic women’s activewear brand designed for style, performance and fit that can be worn by today’s active woman from workout to weekend. lucy apparel is sold in 55 VF- operated lucy branded stores across the United States and via the Internet at www.lucy.com. The lucy stores emphasize the brand’s four core types of activity based apparel: yoga, gym, running and exploration.
The Company’s Jeanswear Coalition markets jeanswear and related casual products in the United States and in many international markets. Lee and Wrangler products are sold through a combination of wholesale accounts, owned stores and online through its brands’ Websites. Products also include shorts, casual pants, knit and woven tops and outerwear. In domestic markets, Lee products are sold primarily through national chain stores and specialty stores. Wrangler westernwear is marketed through western specialty stores. The Wrangler, Rustler and Riders brands are marketed to mass merchant and regional discount stores. It also markets cotton casual pants under the Lee Casuals, Timber Creek by Wrangler and Wrangler Khakis brands. It also markets Lee and Wrangler products to mass market and specialty stores in Canada and Mexico, as well as to department stores and specialty stores in Asia and South America. In foreign markets where VF does not have owned operations, Lee and Wrangler products are marketed through distributors, agents or licensees. Lee and Wrangler products are sold in over 700 independently operated mono or multibrand stores primarily in Eastern Europe and Asia.
The Company’s Imagewear Coalition consists of the Image division (occupational apparel and uniforms) and the Licensed Sports division (owned and licensed high profile sports and lifestyle apparel). Each division represents approximately one-half of Coalition revenues. The Image division provides uniforms and career occupational apparel for workers in North America and internationally, primarily in Europe, under the Red Kap brand, the Bulwark brand, the Horace Small brand and the Chef Designs brand. Products include work pants, slacks, work shirts, overalls, jackets, aprons and smocks.
The Company’s Image business develops and manages uniform programs through custom-designed Websites for major business customers (FedEx Corporation, AT&T, Air Canada, Continental Airlines and American Airlines) and governmental organizations (United States Customs and Border Protection, Fire Department of New York City, Transportation Security Administration, National Park Service and New York City Transit Authority). In the Licensed Sports division, it designs and markets sports apparel and fanwear under licenses granted by the major sports leagues, individual athletes and related organizations, including Major League Baseball, the National Football League, the National Basketball Association, the National Hockey League, MLB Players Association, and many major colleges and universities. Majestic brand adult and youth-size authentic, replica jersey and fanwear are sold through sporting goods and athletic specialty stores, department stores and major league stadiums. Adult and youth sports apparel products marketed under other licensed labels are distributed through department, mass market, sporting goods and athletic specialty stores. In addition, the Licensed Sports division is a supplier of licensed Harley-Davidson apparel marketed to Harley-Davidson dealerships.
The Nautica brand is the primary lifestyle brand of the Sportswear Coalition. Nautica men’s sportswear is marketed through department stores, specialty stores and VF-operated outlet stores in premium and better outlet centers. The Nautica Jeans Company line features fashionable jeanswear and related tops for younger male consumers. Other Nautica product lines include men’s outerwear, underwear and swimwear and men’s and women’s sleepwear. Nautica women’s sportswear is marketed in the United States at most Nautica outlet stores and at www.nautica.com. The Sportswear Coalition operates over 80 Nautica outlet stores across the United States. These stores carry Nautica merchandise for men, women, boys, girls and infants. The product styles sold in the outlet stores are different from the Nautica styles sold to department and specialty store wholesale customers. These outlet stores also carry Nautica merchandise from licensees to complete their product assortment. The product assortment offered at www.nautica.com includes products from both the wholesale and retail lines, as well as licensed merchandise. In addition, independent licensees operate over 150 Nautica brand stores across the world. About 85% of these are full price stores and 15% are outlet stores with the majority of these stores in Asia, North and South America and the Middle East.
Contemporary Brands Coalition
VF’s Contemporary Brands Coalition is focused on premium upscale lifestyle brands. The coalition consists of the 7 For All Mankind, John Varvatos, Splendid and Ella Moss brands. 7 For All Mankind is a Los Angeles-based brand of premium denim jeans and related products for women and men. While the core business remains focused on denim, the collection also includes sportswear products, such as knit and woven tops, sweaters, jackets and accessories. 7 For All Mankind is a premium jeans brand in the United States. Retail price points for the brand’s core jeans range from $149-$215 for basics, with higher price points for more fashion-forward products. With two-thirds of its sales in the United States, the brand is marketed through premium department stores, such as Bloomingdale’s, Nordstrom, Neiman Marcus, Saks, Macy’s and through specialty stores. During the year ended December 31, 2012, the Company had 40 VF-operated stores in the United States. International sales are through department stores, such as Harrods in London, specialty stores, as well as VF-operated stores.
The John Varvatos brand is a luxury apparel and accessories collection for men, including tailored clothing, sportswear, footwear and accessories. The John Varvatos United States line of tailored clothing, sportswear, footwear and accessories is designed to appeal to a younger consumer. Products are sold primarily in the United States through upscale department and specialty stores, VF-operated John Varvatos retail locations and online at www.johnvarvatos.com. Splendid and Ella Moss brands are marketed to upscale department and specialty stores primarily in the United States. These brands are also sold through 17 VF-operated Splendid stores and one Ella Moss store and at www.splendid.com and www.ellamoss.com.
105 Corporate Center Blvd
GREENSBORO NC 27408