Our approach is two-fold: We're committed to investing in and growing heritage brands like Wrangler® and Lee® while we continue to add new brands that have global appeal and a solid path for future growth. Since 2000, we have expanded our portfolio with the addition of a wide range of dynamic brands including The North Face®, Vans®, Nautica®, Reef®, Kipling®, Eastpak®, Majestic®, Napapijri®, Eagle Creek®, John Varvatos®, 7 For All Mankind® and lucy®.

Our approach is two-fold: We're committed to investing in and growing heritage brands like Wrangler® and Lee® while we continue to add new brands that have global appeal and a solid path for future growth. Since 2000, we have expanded our portfolio with the addition of a wide range of dynamic brands including The North Face®, Vans®, Nautica®, Reef®, Kipling®, Eastpak®, Majestic®, Napapijri®, Eagle Creek®, JanSport®, John Varvatos®, 7 For All Mankind® and lucy®.

The North Face: When it was acquired in 2000, The North Face was unprofitable and declining. We moved quickly to correct operational problems and implement disciplined financial and inventory management practices. We also took great care to nurture the culture of the brand, honoring its rich history of providing premium technical outdoor products. Post-acquisition, The North Face has quadrupled its revenues and today enjoys a healthy level of profitability.

Wrangler: The Wrangler® jeans brand turned 60 years old in 2007. And the brand has never looked better —or enjoyed such a broad and devoted following. Since acquiring the Wrangler brand more than two decades ago, VF has carefully expanded the appeal of the iconic brand across markets, demographics, distribution channels and geographies. Today, Wrangler jeans sell from $15 to $200 in retail outlets in most countries around the world. And every pair, regardless of style or price, is an American original. That's the power of global branding — VF style.

Vans: The Vans brand got its start as a small Southern California retailer in the mid-1960s, making custom shoes for skateboarders and surfers. Four decades later, the brand has grown to become a global action sports brand. Acquired by VF in 2004, Vans has successfully expanded into apparel, while maintaining a deep connection with its target consumers through the sponsorship of action sports, such as skateboarding, surfing and wakeboarding, and through major events such as the Vans Triple Crown Series and the Vans Warped Tour. Over the past four years, the brand's sales have doubled —a true indication of Vans' global appeal as the authentic skate lifestyle brand.

Majestic: Acquired in 2007 by VF's Imagewear coalition, Majestic is the leading global provider of authentic sports licensed apparel and branded team uniforms for Major League Baseball. The brand's authentic heritage and craftsmanship make it a perfect fit for VF. Leveraging our expertise in fanwear product development and retail floor space management will provide solid opportunities for growth.

At VF, we are committed to creating truly successful partnerships. Our customers know that our global scale, unparalleled consumer knowledge and extensive brand expertise make us a tremendous resource. And our focus on cross-coalition planning, coordination and execution ensures that everything we do supports our customers' vision. Gaining insight into our customers' needs and strategies is how we will consistently drive growth with the retail winners of today and tomorrow.

VF is truly a global company, and thanks to long-established operations around the globe, we are able to drive the expansion of recently acquired brands in Europe, Mexico, Canada and Latin America. We are also focusing resources to support rapid growth in such dynamic markets as China, India and Russia - and our efforts are paying off. In 2001, international revenues accounted for 19% of total revenues. Today, we are well on our way toward reaching our goal of 33%.

VF is truly a global company, and thanks to long-established operations around the globe, we are able to drive the expansion of recently acquired brands in Europe, Mexico, Canada and Latin America. We are also focusing resources to support rapid growth in such dynamic markets as China, India and Russia - and our efforts are paying off. In 2001, international revenues accounted for 19% of total revenues. Today, we are well on our way toward reaching our goal of 33%.

Europe: Europe remains our largest international market, with both the Lee and Wrangler brands well established as iconic American denim brands across the EU. Our presence here has been strengthened by the acquisition of European-based brands, including Eastpak, Kipling and Napapijri, as well as strong expansion in The North Face and Vans.

China: With a base of approximately 400 Lee and Wrangler brand stores and shops-within-stores, we are rapidly growing our business in China. In early 2007, we acquired rights from a licensee to sell The North Face products in China. To underscore our commitment to long-term growth in the Asia-Pacific region, we've built a highly experienced and dedicated management team to focus on our jeans and The North Face businesses and oversee all licensing and distributor relationships for the Kipling, Napapijri, Eastpak, JanSport and Vans brands.

India: With a middle-class population approaching 300 million, India is a vibrant and growing market for our brands. In 2006, we established a majority-owned joint venture to market our Lee, Wrangler, Nautica, JanSport and Kipling brands and we continue to see opportunities for expansion.

With over 700 retail stores, we understand the importance of creating a unique environment that allows us to directly communicate the excitement of our brands to consumers. Growing our base of branded retail stores will be an important part of our strategy. We are also expanding our e-commerce capabilities via our brand websites to provide consumers greater access to our products.

With over 700 retail stores, we understand the importance of creating a unique environment that allows us to directly communicate the excitement of our brands to consumers. Growing our base of branded retail stores will be an important part of our strategy. We are also expanding our e-commerce capabilities via our brand websites to provide consumers greater access to our products.

lucy: In 2007, the lucy brand marked our first acquisition of a pure-play direct-to-consumer brand. lucy products are sold through a base of 60-plus retail stores and via www.lucy.com. We see the potential for 300 stores over the coming years, bringing lucy's unique feminine style and everyday performance to consumers throughout the U.S.

John Varvatos: The John Varvatos brand takes a different approach
to retailing. Instead of duplicating the same look and feel in each space, John Varvatos creates site-specific stores that reflect the unique ambience, atmosphere and attitude of each individual location. For example, a new boutique in ultra-luxe East Hampton, New York, curates products from the John Varvatos collections alongside antique lighting, furniture, books and music. In contrast, one of the brand's boutiques, which opened in the former CBGB music club in New York City, features a merchandise mix geared to the rock ‘n' roll customer and a performance stage for up-and-coming musical artists.

7 For All Mankind: Acquired in 2007, our 7 For All Mankind brand is the leading premium denim lifestyle brand.  Seven for All Mankind launched the premium denim craze in the United States in 2000 and quickly earned critical acclaim and an immediate following for its innovative use of fits, fabrics and finishes in denim. The 7 For All Mankind brand is sold at luxury retail stores and high-end specialty boutiques in over 80 countries around the world.  The brand had 15 of its own showcase stores in 2008 and plans to open up to 15 additional stores in 2009. Successful product extensions into sportswear, handbags and footwear are expanding the "luxury denim-lifestyle" appeal of the brand.

Kipling: In recent months Kipling has provided consumers the opportunity to purchase women's casual bags through e-commerce sites in Europe and the United States. The multiple country, language, and currency e-commerce platforms make it easy for consumers to purchase the Kipling® collection online. The brand's growth continues to be very strong through consistent worldwide brand positioning, new, more fashionable product, geographic growth and the opening of its own retail stores. Today, Kipling has more than 40 retail locations across Europe and North America, complementing its distribution through leading department and specialty stores throughout the world and directly to consumers in their homes.

Making the most of every dollar ensures that we have the capital we need to fuel our growth strategies. Our flexible, global sourcing operation is designed to procure the highest quality products at the most competitive prices from around the world. At VF, we're experts at finding new ways to leverage best practices, and our owned manufacturing facilities incorporate proprietary processes and technologies that enable us to maintain our high quality standards while providing us with tremendous cost savings - savings which are used to fuel the continued growth of our brands.

Making the most of every dollar ensures that we have the capital we need to fuel our growth strategies. Our flexible, global sourcing operation is designed to procure the highest quality products at the most competitive prices from around the world. At VF, we're experts at finding new ways to leverage best practices, and our owned manufacturing facilities incorporate proprietary processes and technologies that enable us to maintain our high quality standards while providing us with tremendous cost savings - savings which are used to fuel the continued growth of our brands.

VF Jeanswear's Inventory Management Systems: Our state-of-the-art Vendor Managed Inventory (VMI) and Retail Floor Space Management (RFSM) systems allow us to collect and analyze retail point-of-sale information on a daily basis. Our proprietary systems then automatically replenish the retailer's selling space with the right product at the right location at the right time. The results? Maximized retail sales and gross profits, enhanced in-stock levels of products, higher inventory turns, fewer markdowns and stronger retail partnerships.

VF Asia: Headquartered in Hong Kong, our Asia sourcing program gives us an enormous advantage in containing costs and procuring the highest quality products. With a team of more than 1,000 sourcing experts, VF Asia manages over 60% of our units worldwide, delivering a distinct competitive advantage in product development and speed-to-market.

Taking our company to new heights requires new capabilities and skills, and we've invested in areas that are specifically designed to support our growth. Since the launch of our Growth Plan in 2004, we've added new talent in M&A, strategy and brand building, human resources and technology. Throughout VF, we know that providing our leaders and associates with new tools and training that stretches their capabilities is crucial to our continued success.

Taking our company to new heights requires new capabilities and skills, and we've invested in areas that are specifically designed to support our growth. Since the launch of our Growth Plan in 2004, we've added new talent in M&A, strategy and brand building, human resources and technology. Throughout VF, we know that providing our leaders and associates with new tools and training that stretches their capabilities is crucial to our continued success.

Leadership Development: At VF, leadership isn't just something we look for in new hires - it's a life skill that we actively cultivate. We target high-potential leaders through the VF Leadership Institute (VFLI), offering off-premises events, interaction with academics and non-industry leaders, competitive challenges and case study presentations in front of senior management. In addition to VFLI, we recently expanded our executive mentoring program and, in the near future, will be rolling out an array of initiatives designed specifically for middle managers.

VF Strategy Office: Superior insight leads to decisions that drive growth and increase profits, and the goal of our strategy office is to continually bring science ever closer to the art of apparel. Deep and thorough analysis of market trends, consumer data and the competitive landscape allows us to identify and discover new methods to strengthen our brands. Our Jeanswear coalition, for example, has implemented new state-of-the-art segmentation studies that drive stronger brand positioning and product development. In addition, the strategy office launched a sophisticated suite of tools that measure the return on investment of marketing dollars, enabling us to make smarter investment decisions that ultimately benefit the top line.