About The Lee Apparel Company Inc
VF Corp. has stitched together a lineup of apparel brands that range from denim to Northface. The company is a leading manufacturer and retailer in the outdoor and action sports apparel industry, owning brands in specialist product categories: Timberland and The North Face (outdoor-oriented brands), and Vans (skateboard-inspired footwear. VF also makes the jeans scene, owning the Lee, Wrangler, and Rock & Republic brands. The company sells directly to consumers online and through more than 1,375 VF-operated retail stores worldwide. It also sells wholesale to department and specialty stores, and mass merchants. As such, both the Jeans business subject to the spin-off completed May 22, 2019 and the Occupational Workwear business that met the held-for-sale and discontinued operations criteria during the three months ended March 28, 2020 have been excluded.
VF operates three main business segments: Active is the largest at more than 45% of total sales followed by Outdoor (about 45%), and Work (about 10%).
Outdoor segment is a group of authentic outdoor-based lifestyle brands. Product offerings include performance-based and outdoor apparel, footwear and equipment. The segment includes brand names such as North Face, Timberland, Icebreaker, Smartwool, and Altra.
Active segment is a group of activity-based lifestyle brands. Product offerings include active apparel, footwear and accessories. Brands included were Vans, Kipling, Napapijri, Eastpak, Jansport, and Eagle Creek.
Work Segment consists of work and work-inspired lifestyle brands with product offerings that include apparel, footwear and accessories. Brands under the segment Dickies, Timberland, and Timberland PRO.
VF Corp. rings up about 55% of its sales in the US, while the remainder mostly comes from Europe. The company's products were obtained from approximately 300 independent contractor manufacturing facilities in approximately 40 countries and from four VF-operated manufacturing facilities. The company's largest distribution centers are located in Visalia, California and Prague, Czech Republic. Additionally, they operate about 25 distribution centers primarily in the U.S., but also in Argentina, Belgium, Canada, Chile, China, Mexico, the Netherlands and the United Kingdom. VF operates four manufacturing facilities in Mexico, Honduras and the Dominican Republic.
The company's global headquarters are located at Denver, Colorado.
Sales and Marketing
VF makes sales through specialty stores, department stores, national chains, mass merchants and its direct-to-consumer (DTC) operations. The company makes direct-to-customer sales, about 40% of revenue, through owned-operated stores, concession retail stores, and online. It generates a significant chunk of its sales through third-party retail chains. V.F.'s 10 largest customers account for more than 15% of sales.
The apparel maker advertises in trade publications and on radio and television. Its digital initiatives include social media, mobile platforms, and the internet.
The company's revenue fell two times in the years 2017 and 2018, and recovered in the following years reaching $10.5 billion mark in the year 2020.
Year ended March 2020 revenues increased 2% to $10.5 billion compared to the year ended March 2019, primarily due to the $462.4 million contribution from organic growth, including a 2% unfavorable impact from foreign currency. Active segment revenues increased 4% to $4.9 billion compared to the year ended March 2019, including a 2% unfavorable impact from foreign currency. Outdoor segment revenues remained flat at $4.6 billion over the year ended March 2019, including a 1% unfavorable impact from foreign currency.
The company's net income fell by about $580.3 million to $679.4 million from $1.3 billion from the prior year. The decrease was due to $484.0 million increase on their operating costs and expense.
The company's cash by the end of 2019 increased by $854.7 million to $1.4 billion from $556.6 million from the prior year. Cash generated by operations and financing activities were $874.5 million and $309.7 million, respectively. Cash used by investing activities was $302 million.
The company's long-term growth strategy is focused on four strategic choices: Driving and optimizing its portfolio. Investing in its brands to realize its full potential, while ensuring the composition of its portfolio positions to win in evolving market conditions; Distorting investments to Asia. Investing in and scaling the company's business across the Asia-Pacific region, especially China, to unlock growth opportunities for brands in this fast-growing region; Elevating direct channels. Investing in their direct-to-consumer business to make it the pinnacle expression of V.F.'s brands, and prioritizing serving consumers through e-commerce and digitally enabled transactions; and, accelerate their consumer-minded, retail-centric, hyper-digital business model transformation. Becoming consumer- and retail-centric to meet and exceed consumers' needs across all channels, and operate their business differently - from the design studio to the factory floor to the point of sale - by thinking and acting more like a vertical retailer.
The gear-and-apparel maker has invested heavily in acquisitions to further build its outdoor and action sports business, which has grown to account for more than 50% of sales. V.F. in September 2011 acquired global footwear maker
In 2010, on the wholesaling side V.F. took control of its Vans-branded products marketing venture in Mexico. The roughly $30 million purchase also put V.F. in charge of Vans retail stores.
V.F., founded in 1899, is controlled in part by trusts established by its late founder John Barbey.
1 Lee Dr
Shawnee Mission, KS 66202-3620
Phone: 1 (913) 789-0330
Employer Type: Privately Owned
Employees (This Location): 450
Employees (All Locations): 10,300
Shawnee Mission, KS
Shawnee Mission, KS