VF Corporation (NYSE: VFC) today announced that it has acquired The North Face® branded business in China from its licensee, Korea-based Youngone Corporation. VF now assumes responsibility for continuing the brand’s rapid growth in China, with the potential for $40 million in revenues within five years. In addition to its wholesale business, The North Face® brand also has one freestanding retail store in Beijing.
Frank Cancelloni, General Manager – The North Face Asia/Pacific, will oversee the brand’s continued expansion in China. The brand will operate from sales offices in Shanghai, Beijing and Guangzhou.
Commented Karl Heinz Salzburger, VF’s President of Europe, Middle East, Africa (EMEA) and Asia, “The North Face® brand continues to be one of VF’s premier growth vehicles. This move will allow us to directly control the brand’s destiny in this dynamic and fast-growing market.”
Cautionary Statement on Forward-looking Statements
Certain statements included in this release are "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements are made based on our expectations and beliefs concerning future events impacting VF and therefore involve a number of risks and uncertainties. We caution that forward-looking statements are not guarantees and that actual results could differ materially from those expressed or implied in the forward-looking statements.
Potential risks and uncertainties that could cause the actual results of operations or financial condition of VF to differ materially from those expressed or implied by forward-looking statements in this release include the successful completion of the sale of the intimate apparel business and use of the proceeds to repurchase shares during 2007; VF’s reliance on a small number of large customers; the financial strength of VF’s customers; changing fashion trends and consumer demand; increasing pressure on margins; VF’s ability to implement its growth strategy; VF’s ability to maintain information technology systems; stability of VF’s manufacturing facilities and foreign suppliers; continued use by VF’s suppliers of ethical business practices; VF’s ability to accurately forecast demand for products; continuity of members of VF’s management; VF’s ability to protect trademarks and other intellectual property rights; maintenance by VF’s licensees and distributors of the value of VF’s brands; the overall level of consumer spending; general economic conditions and other factors affecting consumer confidence; fluctuations in the price, availability and quality of raw materials; foreign currency fluctuations; and legal, regulatory, political and economic risks in international markets. More information on potential factors that could affect VF’s financial results is included from time to time in VF’s public reports filed with the Securities and Exchange Commission, including VF’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.
About the Company
VF Corporation is a leader in branded lifestyle apparel including jeanswear, outdoor products, image apparel and sportswear. Its principal brands include Wrangler®, Lee®, Riders®, Rustler®, The North Face®, Vans®, Reef®, Napapijri®, Kipling®, Nautica®, John Varvatos®, JanSport®, Eastpak®, Eagle Creek®, Lee Sport® , Majestic®and Red Kap®.
VF Corporation's press releases, annual report and other information can be accessed through the Company's home page, www.vfc.com.
