Monday, February 13, 2006

VF Corp has a record Q4 on the surge from The North Face

It seems that more people are interested in schleping their school books around in a Jansport and wearing stuff from The North Face than they are in sporting the newest from Tommy or Wrangler. Yep, VF Corp reported a record revenues which increased 4% to a record $1.65 billion from $1.58 billion.

The growth is being fueled by an increase in their Outdoor and Sportswear division, which include brands like The North Face, Vans, and Nautica.

Said Mackey J. McDonald, chairman and chief executive officer:
Our Outdoor coalition had another excellent quarter and continues to be the primary driver of our Company's top line growth. Total revenues increased 23% to $343.9 million in the quarter from $279.9 million in last year's period, driven by growth across nearly all our Outdoor brands. The North Face® brand continued to grow revenues in excess of 20% both in the U.S. and internationally. Revenues of our Vans® brand also rose...
20%?!? It seems most surprising to outdoor junkies that the floundering and misdirected North Face of the mid 90's has once again risen to the occasion under direction and financial backing of VF to rule the outdoor world as it did in the 80's as THE premier brand. Different this time is the popularity among the "recreational" crowd and the urban crowd - certainly in thanks to the reputation developed early in the brand's lifetime. Despite the image it may portray to a "core" outdoor brand, having key market segments like the urban or casual recreationalist are essential to long term stability and growth for TNF and ultimately VP Corp.

It's the adventure and forays of thier premier athletes that help bring the image of core to the brand. Along with this I still think they make some solid offerings for us "hardcore" outdoor freaks (read - weekend warriors) that will continue to control pocket books of consumers across the boards.



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