VF CORPORATION 2014 ANNUAL REPORT
P O W E R F U L B R A N D S.
P O W E R F U L P L A T F O R M S.
1
O N E V F.
ORGANIZED IN 1899, VF CORPORATION IS A GLOBAL LEADER IN
BRANDED LIFESTYLE APPAREL, FOOTWEAR AND ACCESSORIES,
WITH MORE THAN 30 BRANDS AND 59,000 ASSOCIATES. VF’S
BUSINESSES AND BRANDS ARE ORGANIZED INTO FIVE CATEGORIES
CALLED COALITIONS, CONSISTING OF: OUTDOOR & ACTION SPORTS,
JEANSWEAR, IMAGEWEAR, SPORTSWEAR AND CONTEMPORARY
BRANDS. WHILE VF IS HIGHLY DIVERSIFIED ACROSS BRANDS,
PRODUCTS, DISTRIBUTION CHANNELS AND GEOGRAPHIES, OUR
ONE VF CULTURE AND APPROACH TO DOING BUSINESS PROVIDE
A UNIQUE AND POWERFUL COMPETITIVE ADVANTAGE.
TA B L E O F CON T E N T S
A MESSAGE FROM
CEO ERIC WISEMAN
POWERFUL BRANDS
POWERFUL PLATFORMS
A MESSAGE FROM
CFO BOB SHEARER
FINANCIAL SUMMARY
BOARD OF DIRECTORS AND
OPERATING COMMITTEE
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5
14
26
28
32
ONE VF.
AT VF, BUSINESS SUCCESS STARTS WITH
OUR FAMILY OF POWERFUL BRANDS WHOSE
VERY NAMES REFLECT THE PRIDE AND
FOUNDATION OF OUR COMPANY. VF'S BRANDS
REPRESENT THE ASPIRATIONAL INTERESTS
AND LIFESTYLES OF PEOPLE OF ALL AGES
ON EVERY CONTINENT. THESE ARE BRANDS
THAT ENRICH CONSUMERS’ LIVES, HELP
THEM EXPRESS THEIR INDIVIDUALITY
AND PUSH THEM TO THE BOUNDARIES
OF WHAT’S POSSIBLE.
We support these brands with powerful business platforms that help us
maintain our competitive edge. Every day, around the world, VF leverages
these platforms across the company to share best practices, enable our
success and strengthen our brands.
This close relationship between powerful brands and powerful platforms
plays out within a company culture that combines collaboration, creativity,
operational excellence and financial discipline to ensure that everything
we do contributes to superior total shareholder returns and passionate
consumer loyalty.
It’s a culture that defines who we are and how we work. It’s a culture of
learning from the past and living in the future. It’s a culture we call One VF.
To further explore our brands, our platforms and the business of One VF,
visit our online annual report at: reporting.vfc.com/2014
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E R I C C . W I S E M A N
Chairman, President & Chief Executive Officer
T O O U R S H A R E H O L D E R S :
2014 WAS OUR 115TH YEAR
OF DOING BUSINESS. AND I’M
PLEASED TO REPORT THAT IT
WAS A VERY GOOD YEAR FOR
VF CORPORATION.
Our dividend remains a high priority. In 2014, we
increased VF’s quarterly dividend rate by 22 percent.
It was our 42nd consecutive year of higher dividend
payments to shareholders. Our dividend, combined with
share buybacks, returned more than $1.2 billion in cash
to shareholders.
We’re proud of VF’s track record of total shareholder
return (TSR) as benchmarked against the S&P 500 Index.
Our financial performance was strong: Revenue grew
Our TSR in 2014 was 22 percent compared with 14 percent
8 percent to reach a record $12.3 billion, led by 13 percent
for the S&P 500. Annualized TSR during the past three-
growth in our Outdoor & Action Sports coalition. VF’s
and five-year periods was 36 percent compared with
international business grew 9 percent; our direct-to-
20 percent and 15 percent, respectively, for the S&P 500.
consumer business was up 19 percent; and, our full-year
gross margin improved by 70 basis points – reaching
48.8 percent.
Operating income, on an adjusted basis, reached
$1.8 billion*, up 11 percent or $1.4 billion on a GAAP basis.
Adjusted net income totaled $1.4 billion* or $1.0 billion
on a GAAP basis. Adjusted earnings per share of $3.08*
represent a 14 percent year-over-year increase. On a
GAAP basis, full-year earnings per share were $2.38.
*Adjusted numbers are reconciled to GAAP in Footnote 1, Page 28.
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B E Y O N D T H E N U M B E R S
As usual, what our company achieved in 2014 went
beyond traditional financial metrics. Here’s a sampling:
› We opened a new distribution center in Kunshan, China,
demonstrating our commitment to growth in China and
our persistent focus on operational excellence throughout
our global supply chain.
› Our Asia Pacific operations surpassed $1 billion in
innovation, supply chain and sustainability. When we put
annual revenue for the first time in 2014. Revenue in
it all together, our success equation is efficient and effective:
the region has grown by more than 600 percent since
VF Brands + VF Platforms = Value-Creating Differentiation.
2007, and we expect it to continue to be our fastest-
You’ll read more about our brands and platforms in the
growing region.
following pages.
› The Vans® brand became the second $2 billion brand
in our portfolio – The North Face® brand was
L O O K I N G A H E A D
our first.
› We released our first comprehensive global
Sustainability & Responsibility report, highlighting
VF’s achievements and those of our brands, many of
which are already known as sustainability leaders,
including The North Face® and Timberland® brands. The
report reviews our goals and our progress across three
sustainability pillars: planet, products and people.
› VF was named one of the 2014 Aon Hewitt Top
Companies for Leaders® in North America. I often say
that we try to learn from the past and live in the future.
This recognition acknowledges our efforts to do just
that, as we identify and develop future generations
of VF leaders.
We’re not shy about sharing our annual expectations. They
serve as our North Star and provide you with a sense of
anticipated performance.
In 2015, we’re prepared to deliver another record year of
financial results for shareholders. On a currency-neutral
basis, we expect:
› Revenues to be up 8 percent, in line with our 2017
organic growth rate target;
› Gross margin to improve by at least 70 basis points
to reach 49.5 percent;
› Operating margin to reach 15.3 percent;
› Earnings per share to grow 12 percent over 2014’s
› We refreshed our innovation strategy to seek new and
adjusted earnings per share of $3.08*; and importantly,
better ways to deliver what consumers want. In doing
so, we're going to rely more than ever on VF's greatest
strength: the depth and diversity of our people across
brands and regions. We'll be placing a much heavier
emphasis on sharing new ideas – within and between
organizations – to make them even bigger and better.
B E AT I N G T H E D R U M
› To return more than $1.2 billion to you, our shareholders,
through share repurchases and dividends.
Now, that sounds like a lot to deliver. And it is. But we’re
confident we’ll reach those targets. How will we grow?
Through four essential VF growth drivers:
› We will lead in innovation by increasing our pipeline
You may have noted that the theme for this report to
of compelling new products and technologies;
shareholders remains consistent with the recent past:
Powerful Brands. Powerful Platforms. One VF. That’s not for
lack of creativity; it’s because of our intense commitment
to leveraging the core strengths of our organization around
the world – strengths that differentiate us and give us a
clear competitive advantage.
You might recall that at VF we define a powerful brand
as having strong equity with consumers, a self-funding
business model and a consistent record of generating solid
returns for our shareholders. Our powerful business platforms
include: international, direct-to-consumer, strategy and
› We will connect with consumers by consistently
engaging with them in new and compelling ways;
› We will serve consumers directly, reaching them
across multiple channels – wherever and whenever
they shop; and
› We will expand geographically, taking full advantage
of our scale within every region and channel in which
we operate.
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These efforts and more will keep us on track to deliver on
Scott Roe, our Vice President, Controller & Chief
the five-year plan that we first presented in 2013. As you
Accounting Officer, will succeed Bob. I’ve worked
know, our 17x17 Plan aims at reaching $17 billion in
with Scott for nearly two decades at VF. He knows our
global revenue by 2017 and reaching other milestones
company; he’s battle-tested and an extraordinary leader.
that will further position VF as a top performer.
He will make significant contributions as our next CFO.
O N E V F
On Page 26 of this report you will find an interview with
our Senior Vice President & Chief Financial Officer Bob
Shearer. I ask you to read it. Bob is retiring at the end of
March, and it has truly been an honor to work with him.
He’s been my thought partner and, most important, my
friend. During his nearly 30-year tenure at VF, he’s been
instrumental to the success and complete transformation
of this company. He’s an author of VF’s business playbook.
He’s a man of integrity and financial discipline. He’s just
a good person … and we’ll miss him. Bob, thank you
for everything.
Finally, to our shareholders, our 59,000 associates around
the world and the customers and consumers that inspire us,
I say thank you. Collectively, you are the power behind our
One VF approach to business – an approach consistently
focused on doing the right things, doing them together and
doing them well.
Eric C. Wiseman
Chairman, President & Chief Executive Officer
March 5, 2015
R E V E N U E S
(Billions)
A N N U A L E A R N I N G S P E R S H A R E *
(Diluted)
10
11
12
13
14
A N N U A L D I V I D E N D S P E R S H A R E
10
11
12
13
14
$7.7
$9.5
$10.9
$11.4
$12.3
$0.61
$0.65
$0.76
$0.92
$1.11
10
11
12
13
14
C A S H F L O W F R O M O P E R AT I O N S
(Billions)
10
11
12
13
14
$1.62
$2.00
$2.43
$2.71
$3.08
$1.0
$1.1
$1.3
$1.5
$1.7
*Earnings per share in 2014 and 2010 are adjusted to exclude impairment charges for goodwill and intangible assets. GAAP earnings per share were $2.38 and $1.29 in 2014 and 2010,
respectively. See Footnote 1, Page 28.
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AT VF, WE HAVE A DIVERSE PORTFOLIO OF
POWERFUL BRANDS AROUND THE WORLD.
Keeping them powerful requires consistent investment in inspirational storytelling and
innovative products that build strong equity with consumers. And it means delivering all of
this whenever and wherever consumers shop. The talented, achievement-focused people
at VF leverage our proven business model to develop and advance our brands. By doing so,
we enable reinvestment, promote growth and deliver superior returns to our shareholders.
Powerful brands ... they set VF apart.
OUTDOOR &
ACTION SPORTS
Founded: 1994
Lee North America
Founded: 1889
Founded: 1976
Founded: 1966
Founded: 1952
Lee Asia Pacific
Lee Europe
Lee South America
Founded: 1937
Founded: 1966
Founded: 1999
Founded: 2013
Founded: 1949
SPORTSWEAR
Founded: 1973
Founded: 1975
Founded: 1965
Founded: 1987
Founded: 2002
JEANSWEAR
Founded: 1987
Founded: 1947
IMAGEWEAR
Founded: 1967
Wrangler Western
Founded: 1923
Founded: 1983
CONTEMPORARY
BRANDS
Founded: 2000
Founded: 2002
Founded: 1984
Wrangler Europe
Wrangler South America
Founded: 1971
Founded: 2001
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S E T T I N G O U R S I G H T S
$2.3B
in revenues in 2014
Never Stop Exploring™. The North Face® brand takes this message to heart in our
products, how we connect with our consumers and how we manage this iconic
business. In 2014, when the lines between outdoor, active and lifestyle brands and
products continued to blur, The North Face® brand once again demonstrated its
strength and positioning as the world’s largest outdoor performance brand.
$3.3B
in revenues expected
by 2017
The North Face® brand represents products that define and redefine categories
while continuing to deliver high returns. 2014 was no exception. In its second year,
our Thermoball™ platform surpassed $100 million in sales and established itself
as the transitional outerwear of choice among consumers.
Seeing the strategic opportunity for greater visibility across all four seasons, we
successfully launched our Mountain Athletics™ collection. This premium line, built
for athletes’ training needs, features superior durability, range of motion and moisture
management, and even offers goal-based, sport-specific online conditioning programs.
Finally, our Ultra Series™ footwear line made meaningful contributions, delivering the
perfect balance of performance and protection for a full range of activities, from hiking
to trail running to training.
The consumer is at the center of everything VF does. Through deep consumer insights
work, we tapped into the passionate connections people have with The North Face®
brand and promoted the concept of exploration. This process led to the creation of the
“Your Land” advertising campaign, which unites the adventurer within all of us – from
the elite outdoor athletes to recreationists. Every day, The North Face® brand inspires
explorers everywhere to get outdoors and enjoy the places that connect us to the world
we share.
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C O N N E C T I N G W I T H C O N S U M E R S … O N E - O N - O N E
Off the Wall®. Synonymous with the Vans® brand for nearly half a century, this
skateboarding phrase pays homage to what was once one of the hardest moves in the
sport – rising up above the rim of empty backyard pools in 1960s Southern California.
Redefining and inspiring new styles, innovating products, and empowering creative
self-expression are hallmarks of the Vans® brand's rise to become the world’s largest
youth culture brand. In 2014, for the first time, the Vans® brand achieved $2 billion in
revenues. Both Footwear News and Footwear Plus recognized Vans® as “Brand of
the Year.”
We work hard to continually evolve our Vans® brand product and marketing strategies,
while staying true to our roots, ensuring that our brand resonates with each new
generation of consumers. At the intersection of action sports, art, music and street
culture, the Vans® brand connects with consumers across the globe by transcending
definitions, genres and media. Every day, around the world, we connect with
consumers … one-on-one.
In 2014, we proudly opened our second permanent House of Vans® location, this time
in London. Occupying the Old Vic Tunnels beneath the London Waterloo railway station,
the House of Vans® is open to all and includes a music venue, art gallery, cinema, café,
bar and London’s only indoor skate park.
At no other point in the Vans® brand’s history have our products and connections with
consumers been stronger and more exciting – whether through various media platforms
and events or in our owned and partner stores. In the year ahead, we’ll stay sharply
focused on developing aspirational and functional products that respond to the needs
of the consumer as we expand geographically, while empowering Vans® brand loyalists to
creatively express themselves.
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21
consecutive quarters
of double-digit
revenue growth
17%
increase in revenues
in 2014
15%
increase in global
revenues in 2014
(currency-neutral)
B U I L D I N G O N A C L A S S I C
The original yellow Timberland® boot has become an iconic symbol of authenticity,
quality and innovation. But the Timberland® brand of today strives for, and is
achieving, so much more.
When VF first acquired The Timberland Company in 2011, it was clear that the
opportunity extended well beyond the yellow boot. Early insights showed extremely
high awareness and affinity for the Timberland® brand worldwide. But consumers
didn’t see it in their daily lives. The brand needed more energy, more relevance and
more style. So, we focused on growth as an outdoor lifestyle brand.
To sharpen our strategy, we launched an aggressive two-year insights campaign, talking
with 18,000 consumers in eight countries. Key learnings? They care about style – a lot.
They’re more city-based than we thought. And in their world, it’s all about digital.
$3.1B
in global revenue
targeted by 2019
Armed with these insights, the Timberland® brand revamped everything from
product design to marketing. In product, we renewed our focus on style across footwear,
apparel and accessories – delivering versatile looks that also provide the comfort and
performance consumers need for everyday adventures in or outside the city. Style comes
first; function and versatility – hallmarks of the Timberland® brand – set us apart. In
marketing, we began engaging with consumers in a deeper, more meaningful way.
While these insights began to inform the brand’s strategy in fall 2013, they took full
hold in 2014. And the numbers suggest the strategy is working. In 2014, the Timberland®
brand achieved a 13 percent increase in sales globally, on a GAAP basis, and we see even
greater potential ahead as we target $3.1 billion in global revenue by 2019. After all,
we’ve barely scratched the surface in categories like men’s apparel and markets
like China.
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T H E P E R F E C T F I T F O R C O N S U M E R S ’ L I V E S
A varied and vibrant range of brands rounds out our Outdoor & Action Sports coalition.
Handbags to backpacks … activewear to surfwear … socks to travel gear. And they’re
as diverse in the geographic markets we serve as they are in the variety of needs they
meet. But there’s one thing they all have in common: They fit our consumers’ lives.
That’s because everything from the styling to the manufacturing to the retail experience
is rooted in our vital connections with consumers.
Key highlights include:
› The Kipling® brand was VF’s fastest-growing brand.
› The lucy® brand revamped its lucyPro outreach program for fitness pros, offering
exclusive benefits to yoga, Pilates, fitness trainers and fitness instructors.
› The JanSport® brand hosted its annual Mount Rainier Climb, bringing retailers
together for fellowship and testing of the brand's mountaineering products.
› The Reef® brand commemorated its 30th anniversary with a spring throwback
collection featuring retro prints and washes.
› The Eagle Creek® brand won the Men’s Journal Gear of the Year Award for its new
EC Lync™ System, a suitcase that converts to a superlight backpack, but packs
down into a small pouch.
› The Eastpak® brand conducted its fourth edition of The Eastpak® Artist Studio project,
which challenges fashion icons to reimagine the brand’s most recognized pack.
› The Napapijri® brand launched product availability in Asia, leveraging the Timberland®
brand's platform that was already in place in Korea, Taiwan and Singapore.
› The Smartwool® brand created the Fan Field Tester program to test product and tap
new ideas from elite athletes and highly engaged consumers.
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20%
Kipling® brand
revenue growth
in 2014
29%
in fourth quarter 2014
revenue growth for
the Napapijri® brand
NO.1
the Wrangler®
brand's market share
in the U.S. mass
merchandise channel
1947
when a “W” was first
stitched into Wrangler®
brand jeans to signify
"western" wear
I C O N I C B R A N D S , I N N O V A T I V E S T Y L E S
Denim is an American classic, and a wardrobe staple. So it’s no surprise that the
Jeanswear coalition may be VF’s most iconic business historically. Its big brands
have strong roots – the Wrangler® brand was founded in 1947, while the Lee® brand
celebrated its 125th birthday in 2014. At a time when consumers hunger for authenticity,
these are brands that people know and trust.
But times change. Consumer preferences evolve. With the increasing popularity
of “athleisure,” VF’s Jeanswear coalition is providing comfort and versatility in its
newer products. We are leading the way in innovation and delivering new products
that are propelling the brands forward, while maintaining their relevance in a
fast-changing market.
It all starts with the consumer. Through our research we’ve discovered that across
all of our consumer targets, comfort is the No. 1 factor driving them to buy. So we took
that to heart and found ways to delight consumers by enhancing comfort across all
of our brands, business segments and product lines.
At the Wrangler® brand that meant creating a four-way flex technology that’s
20 percent stronger than regular denim and much more comfortable. The result?
Wrangler® Advanced Comfort, which allows men more movement and lasts twice as
long. We took this new fabric construction and leveraged it across all of the Wrangler®
brand’s business units and then rolled it out simultaneously across all stores.
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To drive home the message that this denim offers versatility as well as comfort, we
developed an advertising campaign featuring football star Drew Brees wearing his
Advanced Comfort jeans for everything from a day in the outdoors to a night on
the town.
Meanwhile, the Lee® brand looks to new fabrics and technology to develop jeans for
women that move with their active lifestyles. Lee® Easy Fit jeans feature a stretch
waistband and flexible fabric. And with Heavenly Touch™ from Riders® by Lee®, our
consumer gets the best of both worlds – the softness of her favorite sweats or yoga
pants and the slimming fit qualities of denim. The Lee® brand’s Modern Series with
active comfort denim is providing men the ultimate in comfort and good looks.
The story doesn’t stop there. In 2015, we’ll see the opening of our Global Jeanswear
Innovation Center, where we will assemble teams of chemists, scientists, engineers
and designers who’ll combine their expertise in technology and new materials with
VF’s proprietary insights and deep understanding of consumers' wants and needs.
We’re bringing it all together to ensure that we continue to develop breakthrough
products that drive brand equity and long-term growth.
17%
the Lee® brand's
revenue growth in
China in 2014
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4%
increase in Imagewear
revenue in 2014
14.9%
operating margin
I N N O V A T I O N F O R W O R K A N D P L A Y
VF’s Imagewear coalition, which includes our Image and Licensed Sports Group divisions,
produces business and occupational apparel, uniforms and licensed sports apparel.
On the Image side of the business, our industry-leading brands, Red Kap®, Bulwark®,
Horace Small® and Wrangler Workwear™, outfit millions of workers across industrial,
service and governmental organizations. Our focus on the end-user drives us to provide
exceptional service and innovative products. Our Red Kap® brand team spends hundreds
of hours in garages and repair shops with our consumers to understand every detail of
how they work, so we can design an automotive product line with smart and intuitive
features that help them work better. And at the Bulwark® brand, we matched VF’s
culture of innovation with the R&D capabilities of Milliken & Company to develop
the iQ Series™, an entirely new form of flame-resistant apparel.
Our Licensed Sports Group, featuring the Majestic® brand, is “Always Game” to let
consumers show their passion. As the on-field uniform provider of Major League Baseball®,
the Majestic® brand works closely with professional baseball players to develop
innovative apparel like the new Practice Pullover. The Licensed Sports Group stays
up-to-date with fashion, sports and art trends to create the most current fanwear for
baseball, the National Football League®, National Basketball Association®, National
Hockey League® and major colleges. Under the new Biker Built™ brand, we’re even the
largest licensee of Harley-Davidson® apparel.
Consumer insights play a critical role in how we connect with fans and deliver
appealing styles and artwork. We spend a lot of time with them, learning how they
watch sports on TV, understanding how they use social media during a game – even
joining Harley Davidson® motorcycle owners at the Sturgis® Motorcycle Rally™ to observe
the emotional connection to their bikes.
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R E A D Y T O M A K E W A V E S
During the past 30 years, Nautica® has positioned itself as a powerful sportswear
brand. Today, we are focused on maintaining this growth and pushing forward
into new areas that will take the Nautica® brand to the next level. That’s why we
are engaging the experts – interviewing consumers to better understand what they
expect from the brand. We are focused on reimagining a more sophisticated nautical
style and how it fits the lives of our city-dwelling consumers. We are also investing
in our retail stores and e-commerce platform to serve consumers directly, whenever
and wherever they shop.
2015 looks bright for the Nautica® brand. We’re ready to make waves!
S T A Y I N G O N E S T E P A H E A D
The 7 For All Mankind® brand continues to lead product innovation for fit, fabric
and finish in premium denim. The Splendid® brand is a market leader and owns the
ultimate soft tee. The Ella Moss® brand makes a statement and defines boho chic. All
three brands are so in tune with their consumer, they have continued to outperform
in a challenging market.
So how do we do it? Invest in the best talent, create a culture that inspires
and thrive on new ideas. We immerse ourselves in the lives of our consumers
and consistently deliver the best quality, style and experiences possible.
15K
consumers interviewed
by the Nautica® brand
to gain insights
85
7 for All Mankind®
brand-owned retail
locations worldwide
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P L A T F O R M
IN T E R N AT ION A L
ACCELERATING OUR GROWTH
VF is truly a global company. In fact, 38 percent of our sales in 2014 were outside
of the U.S., composed of 10 brands that are global in scale, the largest of which are
The North Face®, Vans® and Timberland® brands. Our international platform enables
VF’s brands to tap into the knowledge of teams across the continents as they scale
their operations in both mature and emerging markets.
VF’s international expansion was marked by an especially significant milestone
in 2014 – the Asia Pacific region surpassed $1 billion in revenue. We’ve come a long
way in this region, and it’s because of the hard work of our passionate and dedicated
associates. Many companies have expanded into APAC over the years, only to fall
short of their expectations. At VF, we’ve had outstanding success, and we see more
growth opportunities in our future.
Despite the often difficult economic and political climate in Europe, we’ve done very
well there, with 8 percent growth in revenue, year-over-year, on a currency-neutral
basis. One of the most important factors has been our rigorous consumer research, which
has enabled us to make sound investment decisions grounded in deep insights. This
makes us smarter every step of the way, from which markets we should enter next
to which brands we should introduce on our owned retail platforms. And it enables us
to make well-informed choices about how we adapt our products, communications and
retail stores to meet the needs of a specific market’s consumer, while at the same time
maintaining the brand’s global DNA.
2014 REVENUE GROWTH (CURRENCY-NEUTRAL)*
13%
Americas (non-U.S.)
8% 18%Asia Pacific
Europe
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“One of the most important factors
has been our rigorous consumer
research, which has enabled us to
make sound investment decisions
grounded in deep insights.”
Another key component of our success is our ability to
collaborate across brands and share best practices. In
2013, we established our international headquarters in
Stabio, Switzerland, where we have more than 750
associates representing 38 nationalities. We like to
think of ourselves as the “United Nations of VF.” Here,
we’re bringing everyone together to share experiences
and learn from one another. This helps us all perform
better and makes our company stronger.
— Karl Heinz Salzburger, Vice President &
Group President, International
*On a GAAP basis, 2014 revenue growth was 5 percent, 8 percent and 17 percent
for Americas (non-U.S.), Europe and Asia, respectively.
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P L A T F O R M
DIRECT-TO-
CONSUME R
COLLABORATING ACROSS BRANDS
Our expanding efforts to serve consumers directly are more
than a key VF growth driver; they’re an avenue for engaging
with them on a deeper level. Through 1,401 owned locations and
our global e-commerce platforms, we’re reaching consumers in
multiple channels to create a seamless shopping experience.
For us, delivering a quality experience in stores and online
comes down to making smart use of insights to create a
shopping environment that engages consumers and offers what
they want, when and where they want it. Our direct-to-consumer
businesses across VF are rich with information to strengthen
our performance.
Over time, we’ve found that the real value of understanding
direct-to-consumer dynamics emerges when we harness all
our data and insights across the brands and combine them
into our One VF approach. For example, as it relates to the
in-store experience, there are a number of VF direct-to-consumer
councils that meet regularly to share insights across brands
and geographies. Bringing these brands together through these
councils accelerates their ability to review lessons learned.
“We’ve set ambitious growth
targets for the direct-to-consumer
platform, as we aim to reach
$4.4 billion in revenue by 2017.”
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1,401
VF owned stores
U.S.&CHINA
world's leading e-commerce markets
Meanwhile, online shopping continues to grow at a rapid rate. In 2015, experts
expect global e-commerce to be up more than 20 percent. VF is actively harvesting
data across the company’s e-commerce sites and transforming that information into a
“digital playbook” that guides us on what to do next. There’s no tool that can predict the
future of digital, but with this playbook we’re able to leverage the learnings from
across brands by positioning ourselves to observe changes in consumer preferences
and then acting quickly on what we discover.
This playbook approach helps us build capabilities that connect us more closely
to consumers, improve their online or in-store experience and overall satisfaction
with our brands and, when possible, make their lives easier.
We’ve set ambitious growth targets for the direct-to-consumer platform, as we aim
to reach $4.4 billion in revenue by 2017. We’ll get there because of our smart and
innovative people and the close collaboration we enjoy with product teams across
the company. We’ll continue to invest time, talent and resources to build on that
collaboration and expand our digital expertise. In our world, it only works when
we work together.
— Brendan Sullivan, Vice President, Direct-to-Consumer
17
P L A T F O R M
STR ATEGY
A N D INNOVAT ION
A CULTURE OF SHARING
For VF to remain a leader in the apparel and footwear industry, we have to keep
delivering new products and experiences that consistently delight consumers. And
we need to support that with new design, production and distribution approaches
that our competitors can't duplicate.
Four years ago, VF developed a plan and a process for accelerating innovation
throughout the company, from new product development to better manufacturing
processes to enhancements to the digital and in-store consumer experiences. Thanks
to this effort, we've built a robust $1.5 billion pipeline of new ideas. And $500 million
of those ideas are already in market.
Two drivers of new ideas are the VF Innovation Fund and a mantra of "going outside"
for new ideas. Think of the fund as a source of internal venture capital that we use to
finance the best cutting-edge ideas generated by our associates. Through the fund, we've
already invested $15 million to support more than 100 projects since 2010. "Going
outside" has led to a global network of experts and advisors from many disciplines
that fills our pipeline. And people all around the company continue to respond with more
ideas that are bigger and better.
Now, we’re setting our sights even higher. In 2014, we launched a refreshed innovation
strategy that continues to seek new and better ways to deliver what consumers want.
We’ve always put a heavy emphasis on consumer insights, but now we're focusing on
better ways to marry those consumer insights to innovations in advanced materials
and world-class design of products and experiences. Consistent with our approach,
we have already opened innovation centers for footwear and technical apparel,
and the new innovation center for jeanswear will open during the first half of 2015.
These centers are major enablers of global sharing and collaboration across all
of our businesses.
3
new global centers
opened to advance
innovation
2
centers to achieve
experiential innovation
$500M
of new ideas in the market
18
“One of the key things that makes
all this work is our One VF culture
of collaboration.”
For us, innovation always involves a sharp focus on
the consumer. We conduct qualitative and quantitative
research to help make sure we’re delivering meaningful
product innovation, retail experiences and marketing that
connect with consumers – who they are and how they live
their lives.
One of the key things that makes all this work is our
One VF culture of collaboration. It unites us and gives
us great potential to succeed in reaching the goals found
in our 17x17 Plan, as well as fueling our growth beyond.
— Stephen Dull, Vice President, Strategy and Innovation
19
RETURN ON INSIGHT:
A TIMBERLAND® BRAND CASE STUDY
A critical factor in VF’s success is our
deep insight into consumers – what they
wear … what they think … what they value …
who they are. These insights are the product
of a rigorous and intensely collaborative
process between our brands and our
Consumer Insights team. This illustration
portrays the interactive approach that
connected the Timberland® brand
with consumers in an authentic
and successful way.
Discovery
It begins as a journey of discovery …
from market surveys to hours spent
one-on-one with consumers. We uncover
their preferences and deeply understand
their needs. We talk to people who live
the category lifestyle; in this instance,
men and women who live in or near the
city, care deeply about style, and need
footwear and apparel that can keep up
with their spontaneous outdoor lifestyle.
Future Growth
This cycle of investing time and money
is an effort that plays out over and over
again – keeping our strategies on track
to build our brands and connect with
consumers over the long term. It helps
define One VF as a collaborative
organization that delivers a great
brand experience and first-rate total
shareholder return.
DEEPLY UNDERSTAND
CONSUMER NEEDS
IDENTIFY THE TARGET,
SIZE THE OPPORTUNITY
EXPLORE
THE MARKET
BUILD THE BRAND
LONG-TERM
OPTIMIZE STRATEGIC
CHOICES
20
REFINE THE
BRAND DNA
BRING DNA TO LIFE
WITH BRAND PLAYBOOK
Strategy
We use what we learn to refine or even
rebuild the brand’s DNA and to inform
a strategy that defines the brand’s real
sweet spot – not only to satisfy, but to
inspire the consumer.
Execution
Our insights guide product development
and marketing, and create a retail
experience that will consistently win
with consumers. We stay close to the
consumer; we adjust and fine-tune as
our learning evolves.
GUIDE PRODUCT DEVELOPMENT
AND MARKETING
CREATE A WINNING
RETAIL EXPERIENCE
21
P L A T F O R M
SUPPLY CHAIN
RESPONSIVE SUPPLY,
RESPONSIBLE SOURCING
”Complex“ is a word consistent with the real-world definition
of supply chain. In 2014, we produced more than 500 million
units of apparel, footwear and accessories – representing
hundreds of thousands of combinations of style and color.
At VF, our approach to and management of the complexities
of a global supply chain provide us with a competitive
advantage that enables us to consistently deliver our brands
to the global marketplace and do that in a fast-changing
business environment. Whether at our wholesale partners’
locations, in our own stores or online, consumers want
product when and where they are – at any given moment.
As VF’s direct-to-consumer business grows, brands open more
retail stores and e-commerce websites to move more products
around the world quickly and efficiently to satisfy demand.
Achieving supply chain excellence enables us to deliver the
right products at the right time to consumers on literally every
continent. It’s supported by a product flow and fulfillment
strategy that’s been refined and strengthened over decades
30K+
VF associates supporting
VF associates supporting
supply chain activities
supply chain activities
of business success.
24%
of VF products are produced
by VF, with the remainder
sourced from third parties
22
“Responsible sourcing is an imperative at VF,
and we’re committed to appropriately sourcing
all of our apparel, footwear and accessories in
a way that's good for people and the planet.”
Our view of the supply chain includes understanding and meeting expectations that
we source our products in a way that’s consistently acceptable. Responsible sourcing
is an imperative at VF, and we’re committed to appropriately sourcing all of our apparel,
footwear and accessories in a way that’s good for people and the planet. We also understand
that our actions are more important than our words.
More than 30,000 VF associates around the world support our company’s supply chain
activities. From the women and men who produce Vans® brand shoes at our factory
in the Dominican Republic to those who hand-sew Major League Baseball® jerseys at our
owned facility in Easton, Pa., we couldn’t be more proud of the work they do.
— Tom Glaser, Vice President & President, Supply Chain
23
P L A T F O R M
SUSTA I NABILIT Y
REDUCING OUR IMPACT,
ADVANCING OUR GROWTH
When it comes to sustainability, no time in VF’s 115-year history was more pivotal
than 2014.
Last year we launched our first global, comprehensive Sustainability & Responsibility
report, which provides an in-depth look at our sustainability aspirations, goals and
measurable achievements. The report – a starting point for greater transparency into
our plans and actions – serves to inspire our global associates and business partners
to operate in a way that favorably influences everything we do.
The report also details the actions we are taking to help lead the industry into a
more sustainable future. For example, our innovative chemicals management program,
CHEM-IQSM, breaks the paradigm that exists in the apparel industry today. Instead of
analyzing products for the presence of harmful chemicals after production, CHEM-IQSM
aims to prevent such chemicals from entering the supply chain in the first place. This
program has already shown great promise, and we will expand it across our global
supply chain in 2015.
Sustainable business practices influence everything we do, from how we develop new
products, to how we manufacture and distribute items. Four of our distribution centers
are now zero-waste facilities. Three of them have also been LEED® and/or BREEAM®
certified. Two of VF's largest corporate office buildings are LEED® certified. We believe
that operating in a responsible manner is everyone’s job at VF, no matter where they
work or what they do.
“Sustainable business practices influence
everything we do, from how we develop
new products, to how we manufacture
and distribute items.”
24
$20M energy efficiency
savings since 2009
40%
targeted reduction in
VF waste to landfills
by 2020
At VF, we say that environmental waste is financial waste.
We know that our actions to reduce environmental impacts
are not only good for the planet, but also for our company’s
financial health. Since 2009, our global energy efficiency
efforts have saved VF $20 million. That’s money we invest
back into our business.
As one of VF’s five global business platforms, sustainability
contributes to the company’s growth through the development
of sustainable products, by connecting more deeply with
globally conscious consumers, and by generating cost savings
across our operations – all resulting in enhanced valuation
and reputation. For us, sustainability is serious business.
As we continue our journey, we will maintain open dialogue
with diverse stakeholder groups and partner with them to
get things done. We’re a better organization when we engage
with third parties – not only because we have a lot to offer,
but because we are dedicated to improving and learning.
— Letitia Webster, Senior Director, Corporate Sustainability
25
ROB ER T K . S H E A R E R
Senior Vice President & Chief Financial Officer
P O W E R F U L P E R F O R M A N C E
Robert “Bob” Shearer will retire at the end of the first quarter of 2015, after nearly 30 years
with VF Corporation. Bob started as Assistant Controller, rose through the finance organization
and was promoted to Chief Financial Officer in 2005. During his tenure as CFO, VF’s revenues
have more than doubled, and VF’s share price has seen a fivefold increase. All along, VF has
maintained a strong balance sheet. Scott Roe, a nearly 20-year VF veteran who has served
in many vital financial leadership roles with the company, will succeed Bob as CFO. The
following recaps Bob’s view of 2014 and what he sees ahead.
Q: 2014 was another year of strong performance at VF. Why?
to meet our consumers' and customers' needs better
and better each year. And, of course, the associates of
VF are a meaningful competitive advantage for us. We
have extraordinary, passionate people who’ll move us
forward in the years to come. Together, we thrive in
VF’s culture – one of respect, authenticity, listening
more than talking, collaborating and sharing. We
focus on the right things – led by responsible business
practices and a focus on total shareholder return.
R S : You're right. Our growth strategy is engineered
to deliver consistent, sustainable results and this year,
once again, we demonstrated a number of competitive
advantages that distinguish VF as best in class. With
a portfolio that includes iconic brand names like
The North Face®, Vans®, Timberland®, Wrangler®
and Lee® – along with more than 20 other equally
noteworthy brands – we’re uniquely positioned.
Supporting these brands are world-class business
platforms that ensure industry-leading product
innovation, operational excellence and an ability
26
Q: There were macro-economic challenges in 2014 and
Inventory levels are in great shape, up just 6 percent
dramatic swings in currency – especially the weakening of
at year-end and well below the rate of revenue growth.
most foreign currencies against the U.S. dollar. That said,
Finally, our return on invested capital, on an adjusted
what were the headlines for the year?
basis, improved to 18.6 percent*, up 100 basis points, which
R S : Let’s start with revenue growth – up 8 percent
for the year. It’s growth that was primarily driven by
exceptional strength in our Outdoor & Action Sports
coalition, which was up 13 percent for the full year, or
14 percent currency-neutral; by our international business,
which was up 9 percent, or 11 percent currency-neutral;
we’re pleased to report is tracking ahead of our 2017 target.
Q: Before we wrap up, give us your 2015 outlook for
VF’s coalitions.
R S : Let’s start with Outdoor & Action Sports. We expect
this group to deliver another great year, led by continued
and by our direct-to-consumer business, which was up
strength in VF’s biggest brands: The North Face®, Vans®
19 percent, including high single-digit comps and more
and Timberland®. Actually, we expect strong growth
than 30 percent growth in e-commerce revenues.
from most brands within this coalition. We anticipate
And now to that always important topic of gross
margin. Here, too, we had another exceptional year. Gross
margin improved by 70 basis points, as our gross margin
expansion story continues, reflecting an ongoing shift in
our revenue mix toward higher margin businesses, as
well as our intense focus on this critical measure of our
low double-digit currency-neutral growth for the
coalition – up at a mid-single-digit rate reported. On a
currency-neutral basis, we expect low double-digit growth
from The North Face® brand, a mid-teen percentage
increase at the Vans® brand and a low-teen increase at
the Timberland® brand – all in line with our 2017 plan targets.
brands’ strength. Our highest-margin businesses are our
In Jeanswear, we expect a low single-digit revenue
fastest growing. For example, in 2014 Outdoor & Action
increase on a GAAP and currency-neutral basis – an
Sports represented nearly 60 percent of total revenue,
improvement compared with 2014. We’re looking for
international 38 percent and direct-to-consumer
mid-single-digit growth in our Imagewear and Sportswear
26 percent.
Selling, general and administrative (SG&A) as a percentage
of total revenue was up 30 basis points. That was almost
completely due to a change in concession accounting we
made early in 2014. In fact, if you look at our underlying
operations, we continued to increase investments in our
expanding direct-to-consumer business and marketing
initiatives, while leveraging and maintaining strong cost
controls across other areas of the organization. As we’ve
said in the past, expanding gross margins, investing in
growth in direct-to-consumer and marketing – and cost
leverage in other areas of SG&A – that’s our model today
and going forward.
We also ended the year with our capital structure once
again providing real flexibility. In 2014, we generated
$1.7 billion in cash flow from operations and returned more
coalitions, and we expect revenues for the Contemporary
Brands coalition to be nearly flat, assuming no significant
trend changes in that category. Now, it’s early in 2015,
but that’s what we anticipate.
Q: No doubt you have heard dozens and dozens of people
say that you will be missed at VF. Thoughts?
R S : Well, I'm really grateful to hear the kind words. It’s
been a unique and very special experience being at VF.
And, as with so many things that are truly meaningful, it
starts with people – in this case the associates of VF. I
am so proud to have been part of this team and part of
the incredible transformation that this company has so
successfully executed. I’ll remain a keenly interested
shareholder and look forward to continued growth and
value creation in the years ahead. I’m counting on it!
than $1.2 billion to shareholders through dividends and
March 5, 2015
share repurchases. That’s almost twice the cash return
we delivered in 2013, demonstrating our never-ending
commitment to enhancing shareholder returns.
*Return on invested capital was 14.6 percent on a GAAP basis. See Footnote 6, Page 28.
27
5-YEAR FINANC IA L SUMMARY
In thousands, except per share amounts
2014 (9)
2013(9)
2012 (9)
2011(9)
2010
YEAR ENDED DECEMBER
Summary of Operations1
Total revenues
Operating income
Net income attributable to VF Corporation
Earnings (loss) per common share attributable to
VF Corporation common stockholders — basic
Earnings (loss) per common share attributable to
VF Corporation common stockholders — diluted
Dividends per share
Dividend payout ratio2
Financial Position
Working capital
Current ratio
Total assets
Long-term debt
Stockholders’ equity
Debt to total capital ratio3
Weighted average common shares outstanding
$
12,282,161
$ 11,419,648
$ 10,879,855
$
9,459,232
$
7,702,589
1,437,724
1,047,505
1,647,147
1,210,119
1,465,267
1,085,999
1,244,791
888,089
$
2.42
$
2.76
$
2.47
$
2.03
$
2.38
1.1075
46.5%
2.71
0.9150
33.8%
2.43
0.7575
31.2%
2.00
0.6525
32.7%
820,860
571,362
1.31
1.29
0.6075
46.9%
$
$
2,565,613
$
2,314,981
2.6
2.5
9,980,140
$ 10,315,443
$
$
1,717,371
$
1,521,912
$
1,716,585
2.0
1.9
2.5
9,633,021
$
9,313,126
$
6,457,556
1,423,581
5,630,882
20.5%
432,611
1,426,829
6,077,038
19.3%
438,657
1,429,166
5,125,625
26.5%
439,292
1,831,781
4,525,175
31.9%
437,148
935,882
3,861,319
20.2%
435,056
Book value per common share
$
13.01
$
13.80
$
11.63
$
10.23
$
8.94
Other Statistics
Operating margin4
Return on invested capital5,6
Return on average stockholders’ equity5,7
Return on average total assets5,8
11.7%
14.6%
19.2%
10.7%
14.4%
17.6%
23.7%
12.8%
13.5%
16.2%
24.7%
11.9%
13.2%
15.8%
22.0%
11.9%
10.7%
12.8%
16.5%
9.6%
Cash provided by operations
$
1,697,629
$
1,506,041
$
1,275,000
$
1,081,371
$
1,001,282
Cash dividends paid
478,933
402,136
333,229
285,722
264,281
1 Operating results for 2014 include a noncash charge for impairment of goodwill and
intangible assets — $396.4 million (pretax) in operating income and $306.8 million
(after tax) in net income attributable to VF Corporation, $0.71 basic earnings per
share and $0.70 diluted earnings per share. Operating results for 2010 include a
noncash charge for impairment of goodwill and intangible assets — $201.7 million
(pretax) in operating income and $141.8 million (after tax) in net income attributable
to VF Corporation, $0.33 basic earnings per share and $0.32 diluted earnings
per share.
2 Dividend payment ratio is defined as dividends per share divided by earnings per
diluted share. Dividend payout ratios for 2014 and 2010, excluding the noncash charge
for impairment of goodwill and intangible assets, are 36.0% and 37.6%, respectively.
3 Total capital is defined as stockholders’ equity plus short-term and long-term debt.
4 Operating margin for 2014 and 2010, excluding the noncash charge for impairment
of goodwill and intangible assets, is 14.9% and 13.3%, respectively.
5 Return is defined as net income attributable to VF Corporation plus total interest
income/expense, net of taxes.
6 Invested capital is defined as average stockholders’ equity plus average short-term
and long-term debt. Return on invested capital for 2014 and 2010, excluding
the noncash charge for impairment of goodwill and intangible assets, is 18.6% and
15.6%, respectively.
7 Return on average stockholders’ equity for 2014 and 2010, excluding the
noncash charge for impairment of goodwill and intangible assets, is 24.5%
and 20.1%, respectively.
8 Return on average total assets for 2014 and 2010, excluding the noncash charge for
impairment of goodwill and intangible assets, is 13.6% and 11.8%, respectively.
9 The Timberland Company was purchased on September 13, 2011 and its results
have been included since the date of acquisition.
Basis of presentation: VF operates and reports using a 52/53-week fiscal year ending on the Saturday closest to December 31 of each year. For presentation purposes herein, all
references to “2014” relate to the 53-week fiscal period ended January 3, 2015, and all references to “2013,” “2012,” "2011" and "2010" relate to the 52-week fiscal periods ended
December 28, 2013, December 29, 2012, December 31, 2011, and January 1, 2011, respectively.
28
CONSO LIDATED BA LA NCE SH EET S
In thousands
Assets
Current Assets
Cash and equivalents
Accounts receivable, net
Inventories
Other current assets
Total current assets
Property, Plant and Equipment
Intangible Assets
Goodwill
Other Assets
Liabilities and Stockholders’ Equity
Current Liabilities
Short-term borrowings
Current portion of long-term debt
Accounts payable
Accrued liabilities
YEAR ENDED DECEMBER
2014
2013
$
971,895
$
776,403
1,276,224
1,482,804
454,931
4,185,854
942,181
2,433,552
1,824,956
593,597
1,360,443
1,399,062
347,074
3,882,982
932,792
2,960,201
2,021,750
517,718
$
9,980,140
$
10,315,443
$
21,822
$
3,975
690,842
903,602
18,810
5,167
638,732
905,292
Total current liabilities
1,620,241
1,568,001
Long-term Debt
Other Liabilities
Commitments and Contingencies
Stockholders’ Equity
Common stock
Additional paid-in capital
Accumulated other comprehensive income (loss)
Retained earnings
Total stockholders’ equity
1,423,581
1,305,436
1,426,829
1,243,575
108,215
2,993,186
(702,272)
3,231.753
5,630,882
110,078
2,746,590
(211,720)
3,432,090
6,077,038
$
9,980,140
$
10,315,443
29
CONS OLIDATED STATEMENTS OF IN COME
In thousands, except per share amounts
2014
2013
2012
YEAR ENDED DECEMBER
Net Sales
Royalty Income
Total Revenues
Costs and Operating Expenses
Cost of goods sold
Selling, general and administrative expenses
Impairment of goodwill and intangible assets
Operating Income
Interest income
Interest expense
Other income (expense), net
Income Before Income Taxes
Income Taxes
Net Income
Net Income Attributable to
Noncontrolling Interests
Net Income Attributable to VF Corporation
Common Stockholders
Earnings Per Common Share Attributable
to VF Corporation Common Stockholders
Basic
Diluted
Weighted Average Shares Outstanding
Basic
Diluted
$
12,154,784
$ 11,302,350
$ 10,766,020
127,377
117,298
113,835
12,282,161
11,419,648
10,879,855
6,288,190
4,159,885
396,362
10,844,437
1,437,724
6,911
(86,725)
(5,544)
1,352,366
304,861
1,047,505
–
5,931,469
3,841,032
–
9,772,501
1,647,147
4,141
(84,773)
(4,025)
1,562,490
352,371
1,210,119
–
5,817,880
3,596,708
–
9,414,588
1,465,267
3,353
(93,605)
46,860
1,421,875
335,737
1,086,138
(139)
$
1,047,505
$
1,210,119
$
1,085,999
$
$
2.42
2.38
$
2.76
2.71
2.47
2.43
432,611
440,153
438,657
446,809
439,292
447,616
Cash Dividends Per Common Share
$
1.1075
$
0.9150
$
0.7575
30
CONSO LIDATED STATEMENTS OF CASH FLOW S
In thousands
Operating Activities
Net income
Adjustments to reconcile net income to cash provided
by operating activities:
Impairment of goodwill and intangible assets
Depreciation and amortization
Stock-based compensation
Provision for doubtful accounts
Pension expense less than contributions
Deferred income taxes
Gain on sale of businesses
Other, net
Changes in operating assets and liabilities,
net of purchases and sales of business
YEAR ENDED DECEMBER
2014
2013
2012
$
1,047,505
$
1,210,119
$
1,086,138
396,362
274,883
104,313
(2,198)
(9,864)
(78,064)
–
4,112
(39,420)
–
253,273
87,118
15,756
(28,102)
(12,370)
–
14,306
(34,059)
–
237,956
92,814
19,264
(20,198)
(20,797)
(44,485)
(40,931)
(34,761)
Cash provided by operating activities
1,697,629
1,506,041
1,275,000
Investing Activities
Capital expenditures
Business acquisitions, net of cash acquired
Proceeds from sale of businesses
Software purchases
Other, net
(234,077)
(271,153)
(251,940)
–
–
(67,943)
(27,235)
–
–
(53,989)
(25,131)
(1,750)
72,519
(30,890)
(8,230)
Cash used by investing activities
(329,255)
(350,273)
(220,291)
Financing Activities
Net increase (decrease) in short-term borrowings
Payments on long-term debt
Purchase of treasury stock
Cash dividends paid
Proceeds from issuance of common stock, net
Tax benefits of stock-based compensation
Other, net
Cash used by financing activities
Effect of Foreign Currency Rate Changes
on Cash and Equivalents
Net Change in Cash and Equivalents
Cash and Equivalents — Beginning of Year
4,761
(4,760)
(727,795)
(478,933)
34,869
64,437
–
9,032
(404,872)
(282,024)
(402,136)
48,029
48,140
–
(1,107,421)
(983,831)
(65,461)
7,005
195,492
776,403
178,942
597,461
Cash and Equivalents — End of Period
$
971,895
$
776,403
$
(269,010)
(2,776)
(307,282)
(333,229)
62,770
47,213
(201)
(802,515)
4,039
256,233
341,228
597,461
31
BOARD OF DIRECTORS
STOCK INFORMATION
Robert J. Hurst 3,4
Managing Director
Crestview Partners LLC
New York, New York
Director since 1994, Age 69
Laura W. Lang 3,5
Managing Director
Narragansett Ventures, LLC
New York, New York
Director since 2011, Age 59
W. Alan McCollough 4,5
Former Chairman of the Board
Circuit City Stores, Inc.
Richmond, Virginia
Director since 2000, Age 65
Clarence Otis, Jr. 1,2,4
Former Chairman & Chief
Executive Officer
Darden Restaurants, Inc.
Orlando, Florida
Director since 2004, Age 58
Matthew J. Shattock 3,5
President & Chief
Executive Officer
Beam Suntory Inc.
Deerfield, Illinois
Director since 2013, Age 52
Raymond G. Viault 2,3,5
Former Vice Chairman
General Mills, Inc.
Minneapolis, Minnesota
Director since 2002, Age 70
Eric C. Wiseman 2,3*
Chairman, President &
Chief Executive Officer
Director since 2006, Age 59
Richard T. Carucci 1,2,3
Former President
Yum! Brands, Inc.
Louisville, Kentucky
Director since 2009, Age 57
Juliana L. Chugg 1,2,4
Partner
Noble Endeavors LLC
Mound, Minnesota
Director since 2009, Age 47
Juan Ernesto de Bedout 1,2,3
Former Group President
Latin American Operations
Kimberly-Clark Corporation
Roswell, Georgia
Director since 2000, Age 70
Ursula O. Fairbairn 4,5
President & Chief
Executive Officer
Fairbairn Group LLC
Sarasota, Florida
Director since 1994, Age 72
George Fellows 1,4
Chief Executive Officer
G.F. Enterprise L.L.C.
Jupiter, Florida
Director since 1997, Age 72
Mark S. Hoplamazian 1,4
President & Chief
Executive Officer
Hyatt Hotels Corporation
Chicago, Illinois
Director since 2015, Age 51
From left to right:
Standing:
W. Alan McCollough,
Robert J. Hurst,
Clarence Otis, Jr.,
Eric C. Wiseman,
Juliana L Chugg,
Richard T. Carucci,
Juan Ernesto de Bedout,
George Fellows
Seated:
Laura W. Lang,
Matthew J. Shattock,
Raymond G. Viault,
Ursula O. Fairbairn
Not Pictured:
Mark S. Hoplamazian
Common Stock
Listed on the New York Stock Exchange — trading symbol VFC.
Shareholders of Record
As of January 30, 2015, there were 3,680 shareholders of record.
Dividend Policy
Quarterly dividends of VF Corporation Common Stock, when
declared, are paid on or about the 20th day of March, June,
September and December.
Dividend Direct Deposit
Shareholders may have their dividends deposited into their savings
or checking account at any bank that is a member of the Automated
Clearing House system. Questions concerning this service should
be directed to Computershare Trust Company, N.A., at
computershare.com/investor.
Dividend Reinvestment Plan
The Plan is offered to shareholders by Computershare Trust Company,
N.A. The Plan provides for automatic dividend reinvestment 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,
General Counsel and Secretary of VF Corporation.
Quarterly Common Stock Price Information
The following table shows the high and low sales prices on a fiscal
quarter basis for the years 2012-2014.
Quarterly Common Stock Price
2014
2013
2012
High
Low
High
Low
High
Low
Q1
Q2
Q3
Q4
$ 63.45
$ 55.14
$ 42.21
$ 35.70
$
38.13
$ 32.23
64.08
67.82
75.99
57.57
59.82
61.75
48.77
51.24
62.48
41.13
46.41
47.33
39.04
41.09
42.46
33.11
32.38
36.53
Committees of the Board: 1 Audit Committee 2 Executive Committee
3 Finance Committee 4 Nominating and Governance Committee
5 Compensation Committee * Ex officio member
32
From left to right:
Standing:
Martin S. Schneider,
Brendan G. Sullivan,
Stephen F. Dull,
Thomas A. Glaser,
Robert K. Shearer,
Eric C. Wiseman,
Steven E. Rendle,
Scott A. Roe,
Michael T. Gannaway,
Franklin L. Terkelsen
Seated:
Karl Heinz Salzburger,
Anita Graham,
Laura C. Meagher,
Scott H. Baxter
OPERATING C OMMI TTEE
CORP OR AT E INFORMATION
Eric C. Wiseman
Chairman, President &
Chief Executive Officer
Robert K. Shearer
Senior Vice President &
Chief Financial Officer
Steven E. Rendle
Senior Vice President,
Americas
Scott H. Baxter
Vice President & Group
President, Jeanswear
Americas, Imagewear
& South America
Karl Heinz Salzburger
Vice President & Group
President, International
Stephen F. Dull
Vice President,
Strategy and Innovation
Michael T. Gannaway
Vice President,
VF Direct/Customer Teams
(retired)
Thomas A. Glaser
Vice President &
President, Supply Chain
Anita Graham
Vice President,
Human Resources
Laura C. Meagher
Vice President,
General Counsel & Secretary
Scott A. Roe
Vice President,
Controller & Chief
Accounting Officer
Martin S. Schneider
Vice President & Chief
Information Officer
Brendan G. Sullivan
Vice President,
Direct-to-Consumer
Franklin L. Terkelsen
Vice President,
Business Development
Forward-Looking Statements
The VF Corporation 2014 Annual Report contains forward-
looking statements as defined by federal securities laws.
Important factors that could cause future results to differ
materially from those projected in the forward-looking
statements are discussed in VF Corporation's 2014 Form 10-K.
Corporate Office
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 27420-1488
VF Contacts
Scott Deitz
Vice President,
Public Affairs
Lance Allega
Vice President,
Investor Relations
Letitia Webster
Senior Director,
Corporate Sustainability
Craig Hodges
Director,
Corporate Communications
Transfer Agent and Registrar
Communications concerning shareholder address changes,
stock transfers, changes of ownership, lost stock certificates,
payment of dividends, dividend check replacements, duplicate
mailings or other account services should be directed to
the following:
Mailing Addresses
Shareholder correspondence should be mailed to:
Computershare
P.O. Box 30170
College Station, TX 77842-3170
Overnight correspondence should be sent to:
Computershare
211 Quality Circle, Suite 210
College Station, TX 77845
Shareholder Website
www.computershare.com/investor
Shareholder Online Inquiries
https://www-us.computershare.com/investor/Contact
33
VF CORPORATION
105 CORPORATE CENTER BLVD.
GREENSBORO, NC 27408
336.424.6000
FOR ADDITIONAL INFORMATION
VISIT VFC.COM
Printed on paper that consists of at least 10% post-consumer fiber