V.F. Annual Report 2009 | Quarterlytics

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FY2009 Annual Report · V.F.

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V F Cor poration annual report 2009

Anywear and Everywear

7,643

7,219

7,220

7,643

7,219

7,220

2.33

2.37

2.33

2.37

2.23

5.41

5.42*

5.16**

5.41

5.42*

4.13

5.16**

4.13

Revenues
(Dollars in Millions)

Earnings Per Share
(Dollars)

Dividends Per Share
(Dollars)

973

834

679

26.4

25.2

26.4

25.2

23.7

43.5

43.9

44.3

43.5

43.9

44.3

Cash Flow from
08
07
Operations
(Dollars in Millions)

Debt to Total
08
07
Capital Ratio
(Percent)

Gross Margins
08
07
(Percent)

an ywear a nd eV ery wear

From an outlet store in St. Louis to a High
Street store in Shanghai, from a mountaintop
in Switzerland to a beach in Southern California,
you’ll find the brands of VF anywhere and
everywhere around the world. Our diversity is
our biggest strength, but it’s more than
simply geography.

Our diversity is diversified. We have diversified
brands, products, distribution, manufacturing,
sourcing and, above all, people.

Anywear and everywear is a philosophy that drives
us to continuously build and grow our portfolio of
brands, so that we can support the diverse lifestyles
of consumers around the world.

* Includes $.30 per share in expenses to reduce costs
** Excludes impairment charge of $1.03

A Brand for All Seasons
The North Face® brand connects with
outdoor athletes and enthusiasts around the
world through its ever-expanding retail,
online and social media presence. This year,
the brand launched PlanetExplore, an active
online community that helps people who
are passionate about the outdoors find events
and volunteer opportunities in their area.

The North Face® brand is now
sold in 61 countries, including places
with no mountains or snow.

in 2009, we continued to roll out
“Wrangler® Brand Zones” in
mass-market retailers. there are
now more than 3,600 of these
easy-to-shop branded experiences
in the united States.

Authentically Anywhere
From the country to the suburbs to the city,
the Wrangler® brand has distinct heritages,
each with its own products, price points and
styles. Wrangler westernwear is the unofficial
uniform of the American West, worn by every-
one from farmhands to rodeo stars. Wrangler®
also captures the heartbeat of Main Street
America, epitomized by sports legends Brett
Favre and Dale Earnhardt, Jr.

Brett Favre in Wrangler®
Five Star Relaxed Fit Jeans

From Buenos Aires to Prague, internationally
the Wrangler® brand pulses to the beat of
the world’s most fashion-savvy markets.
Overseas, the brand combines its heritage
as an original American denim brand
with sophisticated styling and authentic
marketing (such as the award-winning
We Are Animals® campaign).

in europe, the brand continues
its bold styling with Wrangler ®
Blue Bell®, a new line that takes
the best of denim history and
remixes it for today.

Global Footprint
Vans invented the skate shoe in 1966.
Today, the brand is a global icon of originality
for young skaters, surfers, bikers, bladers,
artists, musicians and nearly everyone
in between. Vans now has the highest retail
square footage of all brands in the VF port-
folio, opening 100 shop-in-shops in China
alone in 2009.

one of Vans’ iPhone® apps, the game
SK8 pool Service has been down-
loaded more than 500,000 times.

in 2009, styles from the Lee® brand’s
“ no Gap” collection were featured on
The Oprah Winfrey Show as a “Favorite
new Jeans and the rest of the Best.”

The Global Brand
With Local Fits
For 120 years, Lee has brought classic
American denim to the world while never
forgetting where it comes from. The Lee®
brand celebrated its 120th anniversary
with accomplishments all around the world
from the redesign of its flagship store in
London to record revenues in China. Back
home, Lee brought innovative stretch fabrics
to millions with price points that were as
attractive as the jeans’ fit.

In 2009, the Nautica® brand
launched in Saudi Arabia
and Kuwait.

Ripple Effect
The Nautica® brand now touches more
parts of consumers’ lives, with new
licenses for fragrances, home products,
bedding and furniture.

International Blockbuster
The megawatt 7 For All Mankind® denim
brand launched its first Chinese and
European boutiques with star-studded
parties on two continents. Approximately
fifteen more stores are planned to open
in Europe in 2010.

the 7 For All Mankind® brand was the
only apparel brand on Ad Age maga-
zine’s “new products of the decade”
list, alongside the apple® ipod® and
the Mini Cooper®.

™

napa piJr i
Napapijri, Finnish for “Arctic
Circle,” is actively involved in
environmental awareness cam-
paigns and efforts to protect
and preserve the world’s Arctic
and Antarctic regions.

KiplinG
New products like KIPLING2GO,
a unique collection of durable,
lightweight accessories are
helping to develop penetration in
European department stores and
growth in China.

eaStpaK
Eastpak continued its success-
ful collaborations with fashion
designers, including
Rick Owens, Christopher Shannon
and Raf Simons.

reeF
Reef partnered with the charity
31 Bits to support the microbusi-
nesses of displaced Ugandan
women. The brand’s Ugandal
sandal features recycled beads
made by these women.

lu C y
In 2009, the lucy® brand cele-
brated its 10th anniversary.
The brand also launched monthly
Fitness Friday events to bring
new and traditional fitness activi-
ties into consumers’ lives.

J anS port
JanSport had great success in
2009 with its Heritage Series,
a modern reissue of the
original backpack that made
the brand famous.

Joh n VarVato S
The brand introduced two
new fragrances, JOHN
VARVATOS ARTISAN™ and
Rock Volume One™.

ea Gl e CreeK
The Eagle Creek® brand’s
HC2 Hovercraft® Collection of
superlight travel gear helped
increase market share in the lug-
gage specialty channel in 2009.

Sp le ndid
Splendid opened its first flagship store in
Los Angeles in 2009, displaying its broad
offering of T-shirts, tanks, thermals, dresses
and more.

ella MoSS
In 2009, Ella Moss, a hip, quirky and
fashionable brand that combines flowy
femininity with the comfort of your favorite
T-shirt, launched an e-commerce site at
ellamoss.com.

red Kap
The Red Kap® brand has been a workwear
and uniform leader since 1923, outfitting
millions of workers around the world every year.

Bu lwar K
Bulwark is the largest provider of personal-
protective and secondary flame-resistant
industrial clothing in the world. In 2009,
Bulwark introduced Cool Touch® 2, a new
fabric that provides flame-resistant protection
while remaining lightweight and breathable.

r ider S By le e
Lee introduced the Lady Lee Riders™ brand
in 1949, marking the very first time in
the history of denim that jeans were truly
designed to fit a woman’s figure. In 2009,
Riders® by Lee® became the top-selling jean
for women in the mass retail channel.

M aJeSt iC
Majestic printed and distributed over 1 million
World Series® products within 24 hours of the
winning pitch.

V F B randS at-a- GlanCe

outdoor &
aCtio n Sport S

Founded: 1997
number of Countries: 63

target Consumer:
Active, fashionable women.
did you know?
Belgium-based Kipling has sold
more bags in that country than
there are people.

luCy
lucy.com
lucy inspires performance™

Founded: 1999
number of Countries: 1
target Consumer:
Active women
did you know?
There is no Lucy. The brand
started as an online-only retailer
and lucy.com was available.

napapi Jri
napapijri.com
A premium lifestyle brand with
travel and outdoor heritage.

Founded: 1990
number of Countries: 23
target Consumer:
Outdoor-oriented travelers
ages 25-45
did you know?
Napapijri got its start in
Italy, but its name is Finnish
for “Arctic Circle.”

™

reeF
reef.com
Ridiculously comfortable™

Founded: 1989
number of Countries: 57
target Consumer:
Beach enthusiasts ages 16-24
did you know?
Reef was founded by two
brothers from Argentina with
just $4,000 in capital to start.

the north Fa Ce
thenorthface.com
Never Stop Exploring®

Founded: 1968
number of Countries: 61
target Consumer:
Outdoor athletes and enthusiasts
did you know?
The North Face executes
10-12 outdoor expeditions
every year.

VanS
vans.com
Off the Wall® Since '66

Founded: 1966
number of Countries: 62
target Consumer:
Youth art, music, street fashion,
and action sports enthusiasts
did you know?
The iconic Vans® checkerboard
shoe design was inspired by
kids who drew the pattern on
their shoes.

JeanSwear

le e

Founded: 1889
number of Countries: 76

Lee europe
eu.lee.com
Make History

target Consumer:
Contemporary metropolitan
consumers
did you know?
Lee’s hip, young brand posi-
tioning in Europe is radically
different from the U.S.

eaGle Cree K
eaglecreek.com
Inspired by Travel®

Founded: 1975
number of Countries: 30
target Consumer:
World travelers
did you know?
Eagle Creek invented the Adven-
ture Travel Gear concept and the
convertible backpack on wheels.

eaStpaK
eastpak.com
Built to resist®

Founded: 1976
number of Countries: 50
target Consumer:
Smart, young urban activists
did you know?
Eastpak sold over 25,000 tickets
for its 2009 Eastpak® Antidote
Tour in Europe.

Ja nSport
jansport.com
Discover Freedom™

Founded: 1967
number of Countries: 52
target Consumer:
14-28 year-old consumers
did you know?
JanSport is named after one of the
three founders who could sew.

Ki plinG
kipling.com
Attitude included.

L e e No r t h A m e r i c A
lee.com
The brand that fits your lifestyle.

target Consumer:
Women and men ages 25-50
did you know?
Lee launched its first premium
outlet store in 2009 in Tanners-
ville, Pennsylvania.

L e e S o u t h A m e r i c A
lee.com
Night and Day

target Consumer:
Self-assured 25-35 year-olds
did you know?
Lee invented the first zippered jean.

r id er S By lee
ridersjeans.com
Instantly slims you®

Founded: 1949
number of Countries: 5
target Consumer:
Female traditionalists ages 25-55
did you know?
Riders® by Lee® became the top
selling jean for women in the
mass-retail channel in 2009.

ru St ler
rustler.wrangler.com
Hard Working Jeans…
Guaranteed.®

Founded: 1965
number of Countries: 3
target Consumer:
Men age 25-54
did you know?
Rustler’s technical RipStop
fabric combines comfort with
long-wearing durability.

wra nG ler

i M aG e w e a r

Founded: 1947
number of Countries: 76

Wr ANgLer he ro
wrangler.com
Real. Comfortable. Jeans.®

target Consumer:
Male traditionalists ages 25-54
did you know?
One out of every five men in the
U.S. wears Wrangler® jeans.

Wr ANgLer J eANS co.
wranglerjeansco.com
Comfort. Quality. Value.
You Can Count on Wrangler.
target Consumer:
Men ages 25-54
did you know?
Wrangler Jeans Co.® is the
official jean of NASCAR® driver
Dale Earnhardt, Jr.

Wr ANgLer W eS terN
wranglerwestern.com
Long Live Cowboys™

target Consumer:
Authentic cowboys ages 40-60
did you know?
Wrangler conducted extensive
research with the women
of the American Quarter Horse
Association to develop the
Ultimate Riding Jean® collection.

Wr ANgLer i Nter NAti oNAL
eu.wrangler.com
We Are Animals®

target Consumer:
Sociable style-seekers ages 21-35
did you know?
Internationally, the Wrangler®
brand’s positioning celebrates its
heritage as the original American
denim brand.

Bulwa rK
bulwark.com
Life Goes On.

Founded: 1990
number of Countries: 56
target Consumer:
Industrial workers
did you know?
Bulwark is the largest provider
of personal protective and
secondary flame-resistant
clothing in the world.

Ma JeStiC
majesticathletic.com
If it happens in Baseball,
it happens in Majestic.™

Founded: 1976
number of Countries: 27
target Consumer:
Baseball enthusiasts
did you know?
Majestic custom-measures
all 750 MLB players during
spring training.

red Ka p
redkap.com
Done Right.™

Founded: 1923
number of Countries: 56
target Consumer:
True working laborers
did you know?
Red Kap’s “Red Kaption” mar-
keting campaign celebrates
consumers’ personal mottos of
work “done right.”

the ForCe
theforceonline.com
Made for Heroes®

Founded: 1937
number of Countries: 56
target Consumer:
Public safety officers
did you know?
The Force won Apparel® maga-
zine’s 2009 Top Innovator Award
for its new Enforcer jacket.

SportSw e a r

did you know?
The 7 For All Mankind® brand fits
every style to a live model as many
as 16 times to ensure a perfect fit.

ella MoSS
ellamoss.com
Hip, Quirky, Fashionable.

Founded: 2001
number of Countries: 18
target Consumer:
Women ages 18-39
did you know?
The name Ella Moss is a
combination of the founder
and lead designer’s nicknames.

nautiCa
nautica.com
Inspired and energized by life
by the water.

Founded: 1983
number of Countries: 41
target Consumer:
Men and women ages 25-44
did you know?
As the title sponsor of the
Nautica® New York City Triathlon,
the brand provides free organic
cotton shirts to every participant.

John VarVatoS
johnvarvatos.com
For those about to rock.

Founded: 2000
number of Countries: 15
target Consumer:
Creative, professional men
ages 18-55
did you know?
Founder and Detroit native
John Varvatos hosts a monthly
show on Sirius® radio called
“Born in Detroit.”

C on t e M por a ry
Br a n dS

7 For all ManKind
7forallmankind.com
The world’s premier provider of
luxury denim lifestyle products.

Founded: 2000
number of Countries: 64
target Consumer:
Premium-conscious consumers

Splendid
splendid.com
Colorful, soft, and luxurious
fabrics with a splendid fit.

Founded: 2002
number of Countries: 18
target Consumer:
Men and women
ages 20-50
did you know?
Splendid® apparel has
been embraced by powerful,
active women, including
Hollywood celebrities.

to o ur Shar ehold er S:

2009 was the kind of year that tests business
models and management teams. The recessionary
conditions around the world presented extraordinary
challenges. And the strength of VF’s diverse
business model and management team was evident
in our results. Our long history of disciplined
execution continued to serve us well, allowing us to
strengthen our financial position and advance our
long-term strategies for growth.

Looking back, I believe we struck the appropriate
balance between cautiousness and assertiveness.
We carefully managed costs and inventories,
achieving significant reductions in both. At the
same time, we continued to invest in our strongest
brands and businesses to drive growth and gains
in market share.

eriC C. wi SeMan
Chairman, President & Chief Executive Officer
VF Corporation

Revenues in 2009 were down 6%, with foreign currency translation accounting for two
percentage points of the decline. Despite lower revenues, gross margins rose to record
levels, underscoring the strength of our brands. Earnings per share were $5.16 excluding a
$1.03 per share noncash impairment charge for goodwill and intangible assets. Our earn-
ings in both 2009 and 2008 included unusual items. In 2009, earnings were impacted by
higher pension expenses, foreign currency translation effects, and the impairment charge.
2008 earnings included expenses to reduce costs. Excluding these items in both years,
earnings per share would have risen by 2% in 2009.

We’re proud of our long dividend history, but I’m particularly proud that despite the challeng-
ing environment, 2009 marked the 37th year of higher dividend payments to shareholders.

20 09 : t he St renGth to ChanGe in ChanGinG tiMeS

We took decisive action in 2009 to ensure that our company remained strong and well
positioned for future growth. We reduced costs by more than $100 million and cut inventories
by 17%, all while maintaining the highest levels of customer service. We further strength-
ened our balance sheet, nearly doubling our cash position by year-end. We reported record
cash flow from operations of nearly $1 billion.

Focused investments drove solid results in many areas of our business. For example,
we continued the global momentum in our Outdoor & Action Sports businesses, with
revenue growth in our two largest brands — The North Face® was up 6%, and Vans® grew
by 5%. We gained share in our core Wrangler® and Lee® brands in the United States with
successful new product innovations and compelling in-store presentations. Conditions
in upper-tier department and specialty stores have been very difficult, but international
revenues of our premium 7 For All Mankind® brand increased in 2009. Our growth in Asia

3- y ear Coalition reVenueS

and pr oFitS

(Dollars in Millions)

2
4
7
,
2

2
5
7
,
2

7
9
8
,
2

5
6
7
,
2

2
2
5
,
2

7
8
3
,
2

RE VE N UE
PR OF IT

4
5
4

8
0
5

9
7
4

3
9
3

9
7
3

0
7
3

8
8
9

1
9
9

5
6
8

1
3
6

1
7
5

8
9
4

2
4
1

2
3
1

7
8

7
6

2
4

2
5

1
5
4

2
7
4

5
9
1

4
2

2
5

7
3

07*

Outdoor &
Action Sports

Jeanswear

Imagewear

Sportswear

Contemporary
Brands

* Brands acquired in mid-2007

continued, with 2009 revenues increasing by 28%. Finally, we grew our direct-to-consumer
business, with a 6% increase in revenues and the opening of 90 new stores. Acquisitions
are always an important component of our long-term growth plans. In 2009 we completed
the acquisition of the Splendid® and Ella Moss® brands, further expanding our Contemporary
Brands coalition. We continue to seek acquisitions of high growth, high-margin lifestyle
brands, particularly activity-based brands that could complement our Outdoor & Action
Sports portfolio.

We’re proud of our accomplishments in 2009, but we also had our share of challenges. Our
European jeans business had a much more difficult year than we had envisioned, particularly
in Eastern Europe, where we had experienced significant growth in recent years. Our
Image (or uniform) business was hurt disproportionately during the economic downturn by
higher than anticipated levels of unemployment in key sectors. And while we are encouraged
by improving profitability in our Sportswear coalition, where operating margins returned to
double-digit levels, the Sportswear revenue trend is still not where we want it to be.

t otal r e Ven ue S By C oalitio n

38% Outdoor & Action Sports
35% Jeanswear
12% Imagewear
7% Contemporary Brands
7% Sportswear
1% Other

t otal r e Ven ue S By C hann el

oF di St r iBu t ion

27% International
18% Specialty Stores
17% Retail*
15% Mass
10% Royalties/Other
7% Chains
3% Upscale Department Stores
3% Mainline Department Stores

7% 1%

38%

12%

10%

15%

35%

3% 3%

27%

18%

* Includes international retail

17%

VF has a decades-long history of growth through acquisitions. Due in part to the pressures
imposed by the global recession, we recorded an impairment charge in 2009 to write down
a portion of the goodwill and intangible asset values for three of our acquired brands:
Nautica®, lucy® and Reef®. Performance of these brands since acquisition has not met our
expectations, but we are encouraged about the opportunities for improved results in each.

a pi V otal 2010: i nVeStinG in our Future

While our overall outlook is tempered by ongoing concerns over weak global market
conditions, we look forward to resuming both top- and bottom-line growth in 2010. Our
confidence in the global growth potential of our brands has led to a planned increase of
approximately $50 million in investment spending. Our approach is disciplined and concen-
trated on our fastest growing and most profitable opportunities. In addition to continuing
to fuel the growth of our Outdoor & Action Sports businesses, which have delivered con-
sistently superior performance, we will invest in our Contemporary Brands business and
in high-growth, high-profit international markets such as Asia. The bulk of the investment
will be concentrated in brand marketing, but we also plan to strengthen our innovation and
sustainability platforms. We believe that these are the right investments to make, and this
is the right time to make them. And we expect to fund these investments while delivering
higher margins and solid earnings per share growth.

Longer term, we have a clearly identified set of priorities for growth and investment.
Maintaining the momentum of our Outdoor & Action Sports brands is at the top of the list.
We will focus on supercharging our growth in China and growing and gaining market
share in Europe. Our direct-to-consumer business will continue to expand, with the
addition of new stores and a growing e-commerce business. To support these initiatives,
we will build on our best-in-class talent management and development programs and
intensify our innovation, consumer insight and brand-building capabilities. And we are
enthusiastic about developing and implementing a global approach to sustainability
across our brands and businesses.

2010 will be a pivotal year for VF Corporation as we resume growth, expand margins and
invest in our future. Our strong cash flow will enable us to repurchase at least 3 million
shares in 2010, continue our industry-leading dividend payout and repay $200 million in
long-term debt — all without compromising our ability to add more financially and strategi-
cally attractive brands to our portfolio. We are fortunate to have a world-class leadership
team in place that is passionate about success. Their outstanding efforts in 2009 have made
VF stronger than ever, and I am confident in their ability to achieve even more in 2010.

eriC C. wi SeMan
c h A irmAN, pre SideNt & chief executive officer

on e C ulture, Man y Cultu reS

With so many diverse brands operating in so
many different places around the world, VF is one
culture made up of many cultures. We embrace
the differences that make our brands unique, but
there are five common threads that tie everything
we do together.

First, we put the consumer at the center of business
with research that turns consumer insight into action.
Next, we adapt our global brands to meet the needs
of local markets while preserving their core appeal.
Third, we understand our responsibility to pursue
sustainable practices. Fourth, we invest in leadership
development that will guide our brands now and in
the future. Finally, we innovate to create value in new
ways for both consumers and retailers.

These shared values help define the performance-
driven culture at VF. It’s a business advantage
that allows us to deliver consistent results in diverse
markets and diverse economic conditions.

one Culture, Many CultureS:

A Culture of Listening

“ Apparel makers used to lead the trends.
Now that’s changed. Consumers have
shown a much more individualistic
approach to what they buy. It’s no longer
the case that we can make it and they
will come.”

B oB Shearer
Senior Vice President & Chief Financial Officer

VF’s consumer-first philosophy is best cap-

tured in a single phrase: “When we listen, we
win.” Behind this seemingly simple statement
is an unwavering commitment to uncover and
understand the deep emotional connections
that consumers have with our brands and to
use these insights to better meet their needs.
Listening comes in many forms, such as in-
novative new codesign programs that bring
consumers out of the fitting rooms and into our
cutting rooms, retail stores that give us direct
access to consumers, and rigorous, behind-
the-scenes research that takes our product
development teams into our consumers’ homes
and closets. This focus on consumer insight is
a common thread that runs through each of our
brands. It helps them remain true to their core
values while discovering new ways to expand
their reach intelligently and more success-
fully. It’s how we achieve our vision to grow
by building leading lifestyle brands that excite
consumers around the world.

More than 400,000 people
have downloaded The
North Face’s iPhone® Snow
Report app, giving them
instant access to condi-
tions at the world’s top ski
resorts for free.

The process of connecting emotion to fashion
takes time. 7 For All Mankind® brand leaders
spent three months listening to consumers on two
continents in interviews, stores and online. But
the results were well worth it. Consumers said that
the 7 For All Mankind® brand is bigger than just
great-looking and great-fitting denim. They want
us to inspire, motivate, and be a part of their lives.
They’ve given us permission to be more. These
insights are not only informing our design and
marketing processes today, but they’re also guid-
ing us as we expand into new product categories
such as sportswear to become a true lifestyle
brand.

VF iMaGewear

licensed sports apparel is a game of inches —
where fortunes can rise or fall on the next crack
of the bat. that’s why we listen closely to both
fans and retailers to succeed, no matter which
team wins or loses. the two biggest trends in
licensed sports apparel are contradictory. Fans
want more product choices so they can make their
own unique statement. at the same time, retail-
ers want to do more business with less inventory.

In 2009, we found ways to do both. The VF Tek
Patch program offers on-demand fabrication
by combining premade garments and graphic
appliques. Now fans can shop online for a garment
made just for them, and retailers can offer more
products without having to take on more inventory.
Additionally, consumers can create their own
personalized jerseys on-site at new Majestic® Fan
Zones inside 17 Major League Baseball stadiums.

“ Whether it’s Conrad

th e no rth FaCe ®

Anker, one of our top
climbers and bloggers,
or Renan Ozturk, who
posts a lot of video,
social media lets our
athletes come straight
off the mountain and
have a conversation
with consumers in
real time.”

AAR ON C AR pENT ER
Vice President,
Marketing,
The North Face

“ Consumers tell us that
our jeans make them
stand a little bit taller.
They feel more confi-
dent — like they can
take on the world. It
goes beyond just jeans.
Our customers have
a strong emotional tie
to the brand.”

LE ILANI Au Gu ST IN E
Vice President,
Marketing & Licensing,
Seven For All Mankind

“ Consumers have

always worn licensed
apparel to make a
statement about their
team and their town.
Now they want per-
sonalization to make
a statement about
themselves.”

MI C hAEL J OhNSON
Vice President,
Marketing, VF Licensed
Sports Group

The North Face® brand builds powerful bonds
with athletes and outdoor enthusiasts around
the world using a universal message: Never
Stop Exploring®. the brand brings this philoso-
phy to life by combining the power of social
media with a growing retail presence to inspire
outdoor participation and deepen consumers’
relationship with the brand.

In 2009, The North Face® brand partnered with
groups such as the American Hiking Society,
The Sierra Club and the International Mountain
Biking Association to create PlanetExplore, an
online community and portal that helps individu-
als and families find outdoor events in their area.
The goal is to inspire people — especially young
people — to go outside and explore. As part of this
effort, retail locations will serve as hubs for activi-
ties in 12 key U.S. markets, promoting events
such as hiking, mountain biking and yoga that
will encourage a new generation of consumers to
get up and go outside.

This strategy of encouraging outdoor participation
is especially important internationally, as The North
Face® brand expands into markets with a less de-
fined and developed outdoor culture. For example,
this year, the highly successful Global Endurance
Challenge, a series of long-distance trail-running
races on four continents, expanded into China. The
inaugural Endurance Challenge in Beijing — whose
grueling 100-kilometer course took athletes and
fans alongside the Great Wall — shattered all
expectations, with more than 3,000 athletes and
thousands of spectators living and breathing The
North Face® brand’s values.

7 For a ll Ma nK ind ®

For its role in inventing the american premi-
um denim category, 7 For All Mankind® jeans
were named one of Ad Age magazine’s “new
products of the decade.” But that doesn’t mean
we’re resting on our laurels. in fact, the
7 For All Mankind® brand is embarking on an
ambitious expansion plan fueled by powerful
consumer insights.

With design and styling eternally in touch with the
trends, the 7 For All Mankind® brand is the absolute
pinnacle of fashion and style for loyal consum-
ers from Hollywood to Bollywood and everywhere
in between. Consumers love the way the brand’s
handmade fits, luxurious fabrics and stylish finishes
make them look, but there’s another reason for our
success that goes even deeper. People love the way
they feel when they wear 7 For All Mankind® jeans.
And that’s what keeps them coming back.

one Culture, Many CultureS:

A Culture of Local
Knowledge

“ Chinese consumers have evolved so

much in the past decade. Their
demands for better service and better
products create great opportunities,
but also great challenges. That’s
why consumer research remains
so essential.”

XIA FENG
Manager, Strategy

VF succeeds internationally because of careful

brand management that strikes a balance
between the core attributes of our global brands
and the needs of local markets. It’s both an
art and a science. The science includes sophis-
ticated research methodologies that provide us
with consumer insights for specific regions,
countries, and, in some cases, cities. The art
is the ability to analyze these insights and
apply them in ways that create excitement and
value for consumers. We believe this approach
is especially important in rapidly developing
markets such as China, where VF is building a
foundation for the sustainable, long-term growth
of our brands.

not just for winter summit seekers, but for spring,
summer and fall adventurers as well. The brand’s
new Activity-Based Model focuses on three key
consumer activities: outdoor, action sports and
performance. This enables our product teams to
create a comprehensive product solution with the
end user in mind, rather than broad categories
such as jackets or hats. We’re also applying this
model to create a broader youth product offering
to encourage and inspire outdoor activity.

“ Chinese consumers
like to understand a
brand’s history and
origins. They want
to know that we are
producing something
that’s genuine — not
fake.”

C AR MEN C hENG
Vice President/
Managing Director,
Jeanswear Asia

“ We never lose sight

of what the 7 For
All Mankind® brand
stands for. We only
incorporate trends
or design concepts
that are credible
and aspirational for
this brand.”

MARTI NO SC ABB IA

Gu E R R INI
President, Sportswear
& Contemporary Brands
EMEA (Europe,
Middle East and Africa)

“ Everybody has their

own Mount Everest to
climb. We provide a
little bit of that magic
and aura whenever
somebody buys one of
our products.”

pAT R I K FR I SK
President, Outdoor &
Action Sports EMEA
(Europe, Middle East
and Africa)

l e e ®

Chinese consumers’ growing desire for the gen-
uine article is a perfect fit for the Lee® brand,
which celebrated its 120th birthday in 2009.
the challenge is making sure that the brand
stays 120 years young, using all its experience
to create contemporary styles that appeal to
today’s savvy young Chinese consumer.

The Lee® brand has become especially successful
by mastering a difficult balancing act: selling an
American heritage brand with European styling to
Chinese consumers. Over the past five years, Lee®
brand revenues have grown at a compound annual
rate of more than 40% and the brand is now estab-
lished as one of the top global denim brands in the
country. Today, the Lee® brand is a case study for
other VF brands expanding in China, sharing the
lessons learned from its 15 years there.

7 F o r a l l M a n K i n d ®

even the biggest hollywood blockbusters
sometimes need a little editing to really make
a splash overseas. the 7 For All Mankind ® brand
is no different. the brand seamlessly adapts
Southern California culture and style to appeal
to upscale european tastes, all the while mak-
ing sure that nothing is lost in the translation.

Seven For All Mankind works to ensure that the
contemporary, luxurious “look and feel” of its
stores is presented properly overseas, where stores
are often located in the heart of Europe’s oldest
cities. Europe-based designers blend American
silhouettes with global trends and finishings. The
product offering is expanded by creating acces-
sories tailored specifically for European tastes.
Making sure our products remain trend-right for
European consumers not only positively impacts
sales, it also helps the brand continue to build its
reputation as a style leader in Europe.

t h e n o rt h FaC e ®

every new market The North Face® brand enters
is a new mountain to climb, but the brand
always starts at the top. our premier position-
ing — based on four decades of making gear
that helps elite athletes perform in the world’s
toughest outdoor conditions — is always con-
sistent no matter what the language. that
translates into premier distribution and pre-
mier product in every new market we enter,
from russia to poland to Slovenia.

In addition to expanding geographically, we have
also expanded the breadth and depth of our
product offerings. Today, The North Face® brand is
truly a brand for all seasons, with apparel and gear

In 2009, the Lee® brand
leveraged its 120-year
anniversary in a unique
marketing campaign. The
brand awarded 120 limited-
edition gold-button pairs of
Lee® jeans to 120 Chinese
consumers who were able
to match 120 online ques-
tions about the Lee® brand
and its history with 120
answers within 120 hours.

one Culture, Many CultureS:

A Culture of Values

“

Sustainability is part of The North Face® brand’s DNA. We are
an outdoor company. Our consumers are passionate about
outdoor activities. And when you are outdoors and you are
active in the outdoors it’s natural to want to protect it.”

on e C ult u r e, Man y C u lt ur e S:

A Culture of Leadership

“

performance management isn’t just about individual results.
We want to evaluate our leaders on how well they develop a
team and align their personal goals with our business goals.”

“ We are, as a corporation, just starting

this journey. We’re going to learn as we
go and get better along the way. And
we’re also going to set the bar high for
ourselves as in everything else we do.”

C i ndy Knoe Bel
Vice President, Financial & Corporate Communications

As the world’s largest apparel company, we

recognize that we have a responsibility to be an
active participant in understanding and reduc-
ing our impact on the environment. Many of
our businesses have embraced sustainability
because it speaks to their brand values; others,
because they find that adopting more sustain-
able practices can lower costs and improve
efficiencies. In 2009 we made the commitment
to create a sustainable approach to sustainabil-
ity across our businesses — by implementing
a methodical, enterprise-wide plan to reduce
energy use and eliminate waste throughout
our operations. To be successful, we believe
sustainability must be treated like any other
business discipline — incorporating solid plan-
ning, measurement and accountability. 2010
will mark the launch of our Global Sustainability
Plan, a roadmap that will help us understand
where we are today and what we can do to
improve our use of resources. We have also
created a Sustainability Advisory Team with
responsibility for implementing the plan across
four broad areas: carbon footprint and energy,
waste, internal education and measurement
tools. Teams in each focus area have already
developed an initial set of interim and long-term
goals, and a list of action items to achieve them.

letitia weBSt er
Director, CSR & Corporate Communications, The North Face

t h e n o rt h FaC e ®

The North Face® brand’s “triple bottom line” approach looks at the
brand’s actions through three lenses: good for business, good for society
and good for the environment. And by focusing on SROI (sustain-
ability return on investment), we’re making sure that our actions will
yield efficiencies and savings in our business. In fact, sustainability is
so important that we’ve written it into the performance evaluation of
every associate. In July 2009, The North Face® brand issued its first
Sustainability Report (thenorthface.com/sustainability). The report de-
tails the brand’s many accomplishments toward eliminating waste from
its internal operations and measuring its carbon footprint. Now we’re
turning an eye toward our supply chain. Since 2008, The North Face®
brand has partnered with bluesign®, a company that closely measures
the environmental impact of products and how they’re made. bluesign®
audits not only help preserve natural resources, they also reduce costs by
finding and eliminating waste. The program has been so successful that
The North Face® brand is planning a fourfold increase in the number of
styles containing bluesign® certified materials from Spring 2010 to Fall 2010.

“

Despite all the evidence, there’s a misconception that it’s
expensive to integrate sustainability into business. using
fewer resources means lower costs for us and for our part-
ners. So it’s completely consistent with our business’s focus
on reducing costs.”

alli Son Kohll
Manager, VF Sportswear Social Compliance

nau t i C a ®

As a global lifestyle brand that takes its inspiration from the water,
Nautica believes that sustainability is a business imperative. In 2009,
we began a partnership with the non-profit Oceana®, an organization
dedicated to protecting the world’s oceans. In addition to helping protect
a resource so vital to our brand and our consumers, this partnership
is helping us motivate and educate every Nautica® associate to make
sustainability part of their everyday responsibilities. The Nautica®
brand’s commitment also extends beyond water to all areas within its
operations. In 2009, the brand and the VF Sportswear coalition joined
the EPA Climate Leaders program and completed our first green-
house-gas inventory of our owned, operated and leased facilities. As a
first step towards reducing our carbon emissions, we are retrofitting/
installing reduced wattage bulbs and sensors in three outlet stores
with the expectation of achieving significant energy and cost savings.
We’re also making strides in waste reduction, such as requiring
thinner polybag shipping materials.

ruth Kenn edy
Director, Organization Development

p e r F o r M a n C e M a naG e M e n t

For many people, a performance review is a form you fill out once
a year and then file away. At VF, we’re changing that perception
with Maximizing Performance, our new best practice performance
management program. Maximizing Performance transforms the act
of giving and soliciting feedback into an everyday business tool that
makes our associates and our business stronger. Like an elite athlete
with a personal coach, the goal is to make feedback more productive,
more positive and more frequent. It’s an enormous commitment to
affect the lives of more than 26,000 associates, and makes it easier to
identify and groom the next generation of VF leaders. And it’s already
starting to have an impact. The most common response we’ve heard
from managers who have started Maximizing Performance training
is a request for more feedback on how to give feedback.

“

Our China team works hard to understand each brand’s
challenges and opportunities. We are proud that their
proactive approach and continual drive to exceed expecta-
tions have been recognized.”

JaCq ui a lG ar
Vice President, Human Resources, Asia

Fa S t- G row i n G M a r K e t S

VF is growing rapidly in Asia. And our Human Resources team is
working just as fast, keeping pace in a critical region and laying the
foundation for continued growth.

VF Asia’s Human Resources and Administration Team was hon-
ored with a 2009 BEST Award by the American Society of Training
and Development for using learning and development programs as a
strategic tool to get business results. The team played an instrumental
role in the launch of our Vans® and Kipling® brands in China, helping to
support these fast-growing businesses. In 2009 alone, the China team
managed the recruitment and training of 162 office associates and 739
retail associates in our fast-expanding shop-in-shop program.

“ Our leadership ranks are going to
be stronger if they have diverse
perspectives, experiences and demo-
graphics. The reality is our customers
are incredibly diverse around the
world. Our associate base is equally
diverse. We want our leadership to
reflect both our employees and the
customers we serve.”

r on l aw re n Ce
Vice President, Organization Development

The strength of VF’s leadership is best shown

by our performance in tough times. To maintain
this competitive advantage, we are establishing
best-in-class leadership development programs
to make sure we continue to excel in the years
to come. The skill set of the next generation of
VF leaders will encompass consumer insight
and market research, as well as disciplined
innovation processes that build brand strength.
They will be able to apply a global lens to capi-
talize on local opportunities and leverage a wide
diversity of perspectives to solve global prob-
lems. Our leadership training program is built
on two principles: leaders teach leadership,
and leaders learn best by doing. We’re invest-
ing in programs that bring our leaders together
to share ideas, whether it’s our Chairman,
Eric Wiseman, teaching in the VF Leadership
Institute or our Supply Chain University that
brings together leaders from Asia, Europe and
North America. In 2009, leadership initiatives
such as these helped VF gain important indus-
try recognition. VF was named one of Fortune®
magazine’s “Top Companies for Leaders in
North America,” and was also included in the
magazine’s “World’s Most Admired Companies”
list for the fourth consecutive year.

one Culture, Many CultureS:

A Culture of Innovation

“ As an organization, we are learning

to want more and to reach higher than
we did even last year. Not necessarily
by taking more financial risk, but by
thinking about who we are, who we can
be, what we can do. The thinking that
got us to where we are today is not going
to get us to where we need to be in
five or 10 years.”

Ste phen du ll
Vice President, Strategy

At VF, innovation is not an abstract concept.

It is a practical, disciplined approach to problem
solving that applies consumer insights to global
opportunities to create value for consumers.
Innovation starts at the top, with leaders who
think and act differently, who collaborate to find
new ideas both inside and outside of VF and
who share what they’ve learned across our en-
tire organization. This commitment to shaping
the VF of tomorrow is already getting results.
We’re using the principles of codesign to cre-
ate products that consumers love and retailers
can’t wait to stock. We’re using technological
tools that help us predict consumer preferences
before we’ve purchased a single piece of fabric.
We’re using marketing strategies that push the
limits of the new digital-media landscape. And
we’ve only just begun. Our goal is to embed
new processes and programs into every brand
and every region, so that innovation becomes
part of every VF associate’s job description.
We’re creating innovation platforms to pursue
opportunities that no single coalition or brand
would have the resources to tackle alone. And
we’ve embarked upon partnerships with other
innovation leaders to share best practices
across industries.

“ Now, when you walk
into a store, Wrangler
is not just a jean on
the rack, it’s a com-
plete outfit. It’s a
lifestyle brand. That
is a very big step for
jeanswear.”

J OE Bu GNI
Vice President/
General Manager,
Mass Sportswear

“ It’s getting better

every year. Retailers
now look at us as
the leader in fit
innovation. For the
past five years, we’ve
launched a new fit
solution every year.”

BI LL Ly NC h
Vice President/General
Manager, Lee (Female)

“ If we don’t speak with

an authentic voice
that’s true to our con-
sumer, we don’t have
a prayer.”

DOu G pALLADI NI
Vice President,
Marketing, Vans

w r a n G l e r ®

Va n S ®

Facebook. MySpace. twitter. Some may dis-
miss them as fads of youth culture. But when
a brand has helped define that youth culture,
they naturally become part of its dna. the
Vans® brand has successfully harnessed the
power of digital and social media to commu-
nicate its iconic and authentic brand message
to a youth audience that refuses to play by the
rules of conventional marketing.

Founded in 1966, Vans created the original skate
shoe. Today, Vans® is a multifaceted brand that
taps into many subcultures from skating and
action sports to multiple genres of music and
art. The Vans® brand speaks with an authentic
voice in each of these communities by letting
their passionate brand champions — the athletes,
musicians and artists — communicate the brand’s
values directly to consumers. This strategy has
transformed the Vans® brand into a social media
powerhouse. In 2009, 18 million unique visitors
went to vans.com and its seven blogs, making it
far and away the most viewed action sports brand
on the Web. Vans® brand videos on YouTube® have
been viewed 1.3 million times. The brand’s main
Twitter® feed communicates with 18,000 consum-
ers following in real time. And the brand was
named one of the “Facebook® 50” by Slate maga-
zine’s The Big Money Web site. Every one of those
numbers represents a real, one-to-one connection
between the consumer and the brand in a way that
traditional marketing strategies just can’t match.

the Wrangler® brand is world-famous for its
authentic, rugged jeans. in the united States,
the brand is using cutting-edge technology to
more intelligently broaden its product offering
and extend its reach to consumers.

The Wrangler® brand’s optimized assortment tool
incorporates real-time consumer input into the
design process. It facilitates an online dialogue with
consumers that has enabled them to codesign the
brand’s entire shirt line. By capturing the prefer-
ences of a wide variety of consumers early in the
process, we can focus on a few key styles that will
appeal to the broadest assortment of consumers. Or,
put simply, Wrangler produces fewer styles but sells
more of them than ever before. We’re also analyzing
how the styles work together to present the brand’s
entire offering. We’ve learned that changing just one
shirt — an orange shirt, to be precise — changed the
way consumers viewed the entire rack and moti-
vated them to purchase more.

It doesn’t take a sophisticated analysis to under-
stand the benefits. Unit sales of Wrangler® shirts
are up nearly 30% since 2008, breaking the 10 mil-
lion-unit barrier. And retailers are now dedicating
more floor space than ever to Wrangler® products.

l e e ®

in the united States, the Lee® brand has raised
the bar in product innovation to revolutionize
its relationships with retailers and consum-
ers. it all starts with a secret. the Lee® brand’s
Slender Secret ® jeans contain a wonder fabric
that stretches for a comfortable yet form-fitting
fit, but never stretches out. the fabric recov-
ers after years of wearing and washing so that
the jeans fit as well as they did in the dressing
room. the Lee® brand was the first to introduce
this fabric with its mid-tier department store
customers.

But the real secret is the brand’s commitment to
fit innovation based on intense consumer re-
search. We realized that there was an opportunity
to design something specifically for women who
wanted fit-flattering styles without sacrificing fash-
ion — jeans that were built to make them look great
and feel more confident.

This insight has fueled a winning streak for the
Lee® brand in the U.S. In the past several years,
we’ve introduced product innovations that have
redefined the women’s jeans category with mid-tier
customers, while significantly expanding the Lee®
brand’s market share. Our customers are increasing-
ly comfortable with testing less and buying more,
and the Lee® brand is using that trust to transform
its biggest customers into better customers.

Wrangler’s optimized
assortment tool is an
example of innovation that
has a real impact. By using
technology to incorporate
instant consumer feedback
into the design process,
Wrangler has seen double-
digit increases in shirt sales
for the last three years,
breaking the 10 million-unit
barrier in 2009.

o pe r atinG CoMMi ttee

e riC C. wiSeMan
Chairman, President &
Chief Executive Officer

MiChael t. Gannaway
Vice President —
VF Direct / Customer Teams

FranKlin l . terKel Sen
Vice President —
Mergers & Acquisitions

SuSan l arSon willia MS
Vice President —
Human Resources

r o Be rt K. Shearer
Senior Vice President &
Chief Financial Officer

B radley w. Batten
Vice President —
Controller &
Chief Accounting Officer

C a n daCe S. C uMMinGS
Vice President — Administration,
General Counsel & Secretary

Ste phen F. dull
Vice President — Strategy

FranK C. piCKard iii
Vice President — Treasurer

Boyd a. roGerS
Vice President & President —
Supply Chain

Karl hein Z SalZBurGer
Vice President & President —
VF International

Martin S . SChneider
Vice President &
Chief Information Officer

Bo a rd o F direC tor S

e riC C. wiSeMan 2,3*
Chairman, President &
Chief Executive Officer
Director since 2006, age 54

C h a rleS V. B erGh 3,5
Group President
Global Grooming
Procter & Gamble Company
Boston, Massachusetts
(Consumer products)
Director since 2008, age 52

r iChar d t. C aruCCi 1,3
Chief Financial Officer
Yum! Brands, Inc.
Louisville, Kentucky
(Casual dining restaurants)
Director since 2009, age 52

Jul i an a l. Chu GG 1,4
Senior Vice President
General Mills, Inc.
Minneapolis, Minnesota
(Consumer food products)
Director since 2009, age 42

Juan e rne Sto de Bedout 1,3
Group President
Latin American Operations
Kimberly-Clark Corporation
Roswell, Georgia
(Consumer products)
Director since 2000, age 65

urSula o. FairBairn 2,4,5
President &
Chief Executive Officer
Fairbairn Group LLC
New York, New York
(Human resources consultant)
Director since 1994, age 67

ClarenCe otiS, Jr. 1,4
Chairman &
Chief Executive Officer
Darden Restaurants, Inc.
Orlando, Florida
(Casual dining restaurants)
Director since 2004, age 53

M. ruSt Sharp 2,5
Of Counsel
Heckscher, Teillon, Terrill & Sager
West Conshohocken,
Pennsylvania
(Attorneys)
Director since 1984, age 69

rayMond G. Viault 3,5
Former Vice Chairman
General Mills, Inc.
Minneapolis, Minnesota
(Consumer food products)
Director since 2002, age 65

Committees of the Board
1 Audit Committee
2 Executive Committee
3 Finance Committee
4 Nominating and Governance Committee
5 Compensation Committee
* Ex officio member

BarBara S . FeiGin 1,4
Consultant
New York, New York
(Strategic marketing
and branding)
Director since 1987, age 72

GeorGe FellowS 1,4
President &
Chief Executive Officer
Callaway Golf Company
Carlsbad, California
(Sporting goods)
Director since 1997, age 67

roBert J. hurSt 2,3,4
Managing Director
Crestview Partners LLC
New York, New York
(Private equity firm)
Director since 1994, age 64

w. alan M CCollou Gh 4,5
Former Chairman of the Board,
Circuit City Stores, Inc.
Richmond, Virginia
(National retailer)
Director since 2000, age 60

Top, left to right: Eric C. Wiseman, Robert K. Shearer, Bradley W. Batten, Candace S. Cummings,
Stephen F. Dull, Michael T. Gannaway. Bottom, left to right: Frank C. Pickard III, Boyd A. Rogers,
Karl Heinz Salzburger, Martin S. Schneider, Franklin L. Terkelsen, Susan Larson Williams

From left to right: Raymond G. Viault, Ursula O. Fairbairn, M. Rust Sharp, Juliana L. Chugg, Robert J.
Hurst, Eric C. Wiseman , Juan Ernesto de Bedout, Charles V. Bergh, George Fellows, Clarence Otis, Jr.,
Barbara S. Feigin, W. Alan McCollough, Richard T. Carucci

Fi n a nCi al S uM Mary

Co nSolidat ed Balan Ce SheetS

Dollars and shares in thousands, except per share amounts

200 9

2008

2007

2006

2005

In thousands

Su MMary o F operationS (1)
Total revenues
Operating income
Income from continuing operations attributable
to VF Corporation
Discontinued operations attributable to VF Corporation
Cumulative effect of a change in accounting policy
Net income attributable to VF Corporation

Earnings (loss) per common share attributable to
VF Corporation common stockholders – basic

Income from continuing operations

Discontinued operations
Cumulative effect of a change in accounting policy
Net income
Earnings (loss) per common share attributable to
VF Corporation common stockholders – diluted

Income from continuing operations

Discontinued operations
Cumulative effect of a change in accounting policy
Net income
Dividends per share
Dividend payout ratio (2) (7)

F in anCi al p oSition
Working capital
Current ratio
Total assets
Long-term debt
Redeemable preferred stock
Stockholders’ equity
Debt to total capital ratio (3)
Average number of common shares outstanding
Book value per common share

other Stati Sti CS (4)
Operating margin
Return on invested capital (5) (6) (7)
Return on average stockholders’ equity (6) (7)
Return on average total assets (6) (7)
Cash provided by operations
Cash dividends paid

$ 7,220,286
736,817

$ 7,642,600
938,995

$ 7,219,359
965,441

$ 6,215,794
826,144

$ 5,654,155
767,951

461,271
–
–
461,271

602,748

–
–

602,748

613,246
(21,625)
–
591,621

535,051
(1,535)
–

533,516

482,629
35,906
(11,833)
506,702

$4.18
–
–
4.18

$4.13
–
–
4.13
2.37
46.0%

$5.52

–
–

5.52

$5.42

–
–

5.42
2.33
43.0%

$5.55
(0.20)
–
5.36

$5.41
(0.19)
–
5.22
2.23
42.7%

$4.83
(0.01)
–

4.82

$4.73
(0.01)
–

4.72
1.94
41.1%

$4.33
0.32
(0.11)
4.54

$4.23
0.31
(0.10)
4.44
1.10
24.2%

$ 1,536,773
2.4
$ 6,470,657
938,494
–
3,813,285
23.7%
110,389
$34.58

$ 1,640,828
2.6
$ 6,433,868
1,141,546

–

3,557,245
25.2%
109,234
$32.37

$ 1,510,742
2.3
$ 6,446,685
1,144,810
–
3,578,555
26.4%
110,443
$32.58

$ 1,563,162
2.5
$ 5,465,693
635,359

–

3,271,849
19.5%
110,560
$29.11

$ 1,213,233
2.1
$ 5,171,071
647,728
23,326
2,813,066
22.6%
111,192
$25.50

11.9%
12.6%
15.6%
8.7%
$ 973,485
261,682

12.3%
13.5%
16.5%
9.1%
$ 679,472
255,235

13.4%
14.8%
18.4%
10.4%
$ 833,629
246,634

13.3%
14.7%
18.0%
10.0%
$ 454,128
216,529

13.6%
14.2%
18.0%
9.4%
$ 533,654
124,116

(1) Operating results for 2009 include a noncash charge for impairment of goodwill and intangible
assets – $122.0 million (pretax) in operating income and $114.4 million (aftertax) in income from
continuing operations and net income attributable to VF Corporation, $1.02 basic earnings per
share and $1.03 diluted earnings per share.

(4) Operating statistics are based on continuing operations (excluding the effect of the charge

for impairment of goodwill and intangible assets in 2009).

(5) Invested capital is defined as average stockholders’ equity plus average short-term and

long-term debt.

(2) Dividends per share divided by the total of income from continuing and discontinued

(6) Return is defined as income from continuing operations before net interest expense,

operations per diluted share (excluding the effect of the charge for impairment of goodwill and
intangible assets in 2009).

after income taxes.

(7) Information presented for 2009 excludes the $122.0 million noncash charge for impairment of

(3) Total capital is defined as stockholders’ equity plus short-term and long-term debt.

goodwill and intangible assets.

aS S etS
Current assets
Cash and equivalents
Accounts receivable, net
Inventories
Deferred income taxes
Other current assets

Total current assets

property, plant and equipment
Less accumulated depreciation

intangible assets
Goodwill
other assets

liaBilit ieS an d S toC Kh older S ’ e qu ity
Current liabilities
Short-term borrowings
Current portion of long-term debt
Accounts payable
Accrued liabilities

Total current liabilities

long-term debt
other liabilities

Commitments and Contingencies

Stockholders’ equity
Common Stock
Additional paid-in capital
Accumulated other comprehensive income (loss)
Retained earnings
Noncontrolling interests in subsidiaries

Total stockholders’ equity

DECEMBER

2009

2008

$ 731,549
776,140
958,639
64,959
98,069

2,629,356

1,601,608
987,430

614,178
1,535,121
1,367,680
324,322

$ 381,844
851,282
1,151,895
96,339
171,650

2,653,010

1,557,634
914,907

642,727
1,366,222
1,313,798
458,111

$ 6,470,657

$ 6,433,868

45,453
203,179
373,186
470,765

1,092,583

938,494
626,295

110,285
1,864,499
(209,742)
2,050,109
(1,866)

3,813,285

53,580
3,322
435,381
519,899

1,012,182

1,141,546
722,895

109,848
1,749,464
(276,294)
1,972,874
1,353

3,557,245

$ 6,470,657

$ 6,433,868

Co n Solidat ed StateMentS oF inCoMe

Co nSolidat ed StateMent S oF Ca Sh FlowS

In thousands, except per share amounts

200 9

2008

2007

In thousands

YE A R E ND ED DECEMBER

net Sales
royalty income

total revenues

Costs and operating expenses
Cost of goods sold
Marketing, administrative and general expenses
Impairment of goodwill and intangible assets

operating income

other income (expense)
Interest income
Interest expense
Miscellaneous, net

income from Continuing operations Before
income taxes

income taxes

income from Continuing operations

discontinued operations

net income

net (income) loss attributable to noncontrolling
interests in Subsidiaries

$ 7,143,074
77,212

7,220,286

$ 7,561,621
80,979

7,642,600

4,025,122
2,336,394
121,953

6,483,469

736,817

2,230
(85,902)
1,528

(82,144)

654,673

196,215

458,458

–

458,458

4,283,680
2,419,925
–

6,703,605

938,995

6,115
(94,050)
(2,969)

(90,904)

848,091

245,244

602,847

–

602,847

$ 7,140,811
78,548

7,219,359

4,080,022
2,173,896
–

6,253,918

965,441

9,310
(72,122)
4,074

(58,738)

906,703

292,832

613,871

(21,625)

592,246

2,813

(99)

(625)

net income attributable to VF Corporation

$ 461,271

$ 602,748

$ 591,621

earnings (loss) per Common Share attributable to
VF Corporation Common Stockholders – Basic
Income from continuing operations
Discontinued operations
Net income

earnings (loss) per Common Share attributable to
VF Corporation Common Stockholders – diluted
Income from continuing operations
Discontinued operations
Net income
Cash dividends per Common Share

4.18
–
4.18

4.13
–
4.13
2.37

5.52
–
5.52

5.42
–
5.42
2.33

5.55
(0.20)
5.36

5.41
(0.19)
5.22
2.23

operating activities
Net income
Adjustments to reconcile net income to cash provided
by operating activities of continuing operations:
Loss from discontinued operations

Impairment of goodwill and intangible assets

Depreciation
Amortization of intangible assets
Other amortization
Stock-based compensation
Provision for doubtful accounts
Pension funding under (over) expense
Deferred income taxes
Other, net
Changes in operating assets and liabilities, net of acquisitions:

Accounts receivable

Inventories

Other current assets
Accounts payable
Accrued compensation
Accrued income taxes
Accrued liabilities
Other assets and liabilities

Cash provided by operating activities of continuing operations

Loss from discontinued operations
Adjustments to reconcile loss from discontinued operations

to cash used by discontinued operations:
Loss on disposal of discontinued operations
Other, net

Cash used by operating activities of discontinued operations

Cash provided by operating activities

investing activities
Capital expenditures
Business acquisitions, net of cash acquired
Software purchases
Sale of intimate apparel business
Sale of other businesses
Other, net

Cash used by investing activities of continuing operations

Discontinued operations, net

Cash used by investing activities

Financing activities
Increase (decrease) in short-term borrowings
Proceeds from long-term debt
Payments on long-term debt
Purchase of Common Stock
Cash dividends paid
Proceeds from issuance of Common Stock
Tax benefits of stock option exercises
Other, net

Cash used by financing activities

effect of Foreign Currency rate Changes on Cash

net Change in Cash and equivalents

Cash and equivalents – Beginning of year

Cash and equivalents – end of year

YEAR ENDED DECEMBER

2009

2008

2007

$ 458,458

$ 602,847

$ 592,246

–

121,953
113,207
40,500
16,745
36,038
24,836
(114,149)
54,674
(6,923)

75,449
209,439
77,173
(69,560)
(11,714)
14,763
(25,182)
(42,222)

973,485

–
–

105,059
39,427
21,685
31,592
22,062
(4,787)
23,654
(11,477)

52,679
(38,275)
(66,866)
(67,214)
471
24,118
(22,438)
(33,065)

679,472

–

–
–

–

–
(1,071)

(1,071)

973,485

678,401

(85,859)
(212,339)
(9,735)
–
580
(9,523)

(316,876)
–

(316,876)

(11,019)
–
(3,242)
(111,974)
(261,682)
62,590
6,464
(480)

(319,343)

12,439

349,705

381,844

(124,207)
(93,377)
(10,601)
–
537
11,862

(215,786)
–

(215,786)

(67,736)
–
(3,632)
(149,729)
(255,235)
64,972
22,504
(905)

(389,761)

(12,873)

59,981

321,863

21,625
–
94,540
27,106
19,581
62,413
13,859
7,094
(3,748)
(13,548)

(49,673)
(24,113)
15,644
77,212
(1,932)
(7,541)
31,986
(29,122)

833,629

(21,625)

24,554
(15,982)

(13,053)

820,576

(113,863)
(1,060,636)
(6,367)
348,714
12,368
13,965

(805,819)
(243)

(806,062)

36,785
592,758
(168,671)
(350,000)
(246,634)
69,539
15,571
–

(50,652)

14,777

(21,361)

343,224

$ 731,549

$ 381,844

$ 321,863

V F C orpo ration hiGh/low StoCK priCeS

Co rpor at e i nFor Matio n

C o MMon StoC K
Listed on the New York Stock Exchange —
trading symbol VFC.

Shar eholder S oF reCord
As of February 11, 2010, there were 4,523
shareholders of record.

diVi den d poliC y
Quarterly dividends on VF Corporation
Common Stock, when declared, are paid
on or about the 20th day of March, June,
September and December.

diVidend reinVeSt Ment plan
The Plan is offered to shareholders by
Computershare Trust Company, N.A. The
Plan provides for automatic dividend rein-
vestment and voluntary cash contributions
for the purchase of additional shares of VF
Corporation Common Stock. Questions
concerning general Plan information
should be directed to the Office of the Vice
President — Administration, General Counsel
and Secretary of VF Corporation.

diVidend dir eC t de poS it
Shareholders may have their dividends
deposited into their savings or checking
account at any bank that is a member
of the Automated Clearing House (ACH)
system. Questions concerning this service
should be directed to Computershare at
www.computershare.com/investor.

qu arterly Co MMon StoCK

p riC e inF orMation
The high and low sales prices on a calendar
quarter basis for the periods indicated were
as follows:

qu arterly Co MMon StoCK priCe

First Quarter
Second Quarter
Third Quarter
Fourth Quarter

2 0 0 9

2 0 0 8

2 0 0 7

h i G h

l o w

H I G H

L OW

H I G H

L OW

$ 59.98
69.72
73.81
79.79

$ 46.06
53.27
53.53
68.60

$ 83.29
79.87
84.60
77.69

$ 63.68
69.44
65.50
38.22

$ 83.29
95.10
96.20
87.36

$ 73.59
82.52
78.27
68.15

C or por at e oFF iC e
VF World Headquarters
105 Corporate Center Blvd.
Greensboro, NC 27408
Telephone: 336-424-6000
Facsimile: 336-424-7696
Mailing Address:
P.O. Box 21488
Greensboro, NC 27420

an nu al Me et inG
The Annual Meeting of Shareholders
will be held on Tuesday, April 27, 2010
at 10:30 a.m. at the O.Henry Hotel,
Caldwell Room, 624 Green Valley Road,
Greensboro, NC 27408

in VeS tor r elation S
Cindy Knoebel, CFA
Vice President, Financial
& Corporate Communications
VF Services, Inc.
105 Corporate Center Blvd.
Greensboro, NC 27408

t ran S Fer aGen t an d r eGi St r ar
Computershare Trust
Company, N.A.
P.O. Box 43070
Providence, RI 02940
Shareholder Relations
Department 800-446-2617

in depe nden t aC Cou ntan t S
PricewaterhouseCoopers LLP
101 CentrePort Drive
Greensboro, NC 27409

C ert iFiC at ion S
VF has filed the certifications required under
Section 302 of the Sarbanes-Oxley Act of
2002 regarding the quality of the Company’s
public disclosure as exhibits to the Company’s
annual report on Form 10-K for the fiscal year
ended January 2, 2010.

After VF’s 2010 Annual Meeting of Share-
holders, VF intends to file with the New York
Stock Exchange (NYSE) the certification
regarding VF’s compliance with the NYSE’s
corporate governance listing standards as
required by NYSE Rule 303A.12. Last year,
VF filed this certification with the NYSE on
May 7, 2009.

ot her inF orM at ion
VF’s filings with the SEC, including its an-
nual report on Form 10-K, quarterly reports
on Form 10-Q, press releases and reports on
Form 8-K and other information, are avail-
able and can be accessed free of charge
through the Company’s Web site at vfc.com.
VF’s Corporate Governance Principles, Code
of Business Conduct and charters for the
Audit Committee, Compensation Committee,
Nominating and Governance Committee
and Finance Committee are also available on
our Web site.

These documents will also be provided to
any shareholder free of charge upon request
to the Secretary of VF at P.O. Box 21488,
Greensboro, NC 27420

The following trademarks owned by VF Corporation affiliates
appear in this report:

reGiStered tradeMarKS:
The North Face, Wrangler, Blue Bell, Vans, Lee, Nautica, 7 For
All Mankind, Napapijri, Kipling, Eastpak, Reef, lucy, JanSport,
Splendid, Ella Moss, Riders by Lee, Red Kap, Bulwark, Majestic,
Eagle Creek, Wrangler Jeans Co., The Force, John Varvatos, Slender
Secret, HC2 Hovercraft, Cool Touch 2, Rustler, Inspired by Travel,
Never Stop Exploring, Built to Resist, Off the Wall, Instantly Slims
You, Hard Working Jeans… Guaranteed., Real. Comfortable.
Jeans., Ultimate Riding Jean, We Are Animals, Made for Heroes

tradeMarKS:
Discover Freedom, JOHN VARVATOS ARTISAN, Rock Volume
One, lucy inspires performance, Ridiculously Comfortable,
Lady Lee Riders, Long Live Cowboys, If it Happens in Baseball,
It Happens in Majestic., Done Right

The following trademarks owned by other companies also
appear in this report: iPhone, Apple, iPod, MINI Cooper,
World Series, YouTube, Twitter, Facebook, Fortune, NASCAR,
Oceana, Sirius, Apparel

Co nCept/deSi Gn
And Partners, NY
andpartnersny.com

illuStrati on
Laura Molloy

VF C orporation
105 Corporate Center Blvd.
Greensboro, NC 27408

336-424-6000
vfc.com

For additional content visit
r e portinG.VFC .CoM