V.F. Corporation: Luggage Company Profile, SWOT & Financial Report by ICDResearch

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									V.F. Corporation

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V.F. Corporation                                                            Financial Snapshot

                                                                            Operating Performance
Fast Facts
                                       105 Corporate Center Boulevard,      The company reported revenue of US$9,459 million
Headquarters Address                   Greensboro, 27408,United States of   during the fiscal year 2011 (2011). The company's
                                       America                              revenue grew at a CAGR of 6.99% during 2007–
Telephone                              + 1 336 4246000                      2011, with an annual growth of 22.81% over 2010. In
                                                                            2011, the company recorded an operating margin of
Fax                                    + 1 336 5477634
                                                                            13.16%, as against 10.66% in 2010.

Website                                www.vfc.com                          Revenue and Margins

Ticker Symbol, Stock Exchange          VFC, New York Stock Exchange

Number of Employees                    58,000

Fiscal Year End                        December

Revenue (in US$ million)               9,459




SWOT Analysis
                                                                            Return on Equity
Strengths                              Weaknesses
                                                                            The company recorded a return on equity (ROE) of
Comprehensive product and brand
                                       Concentration of revenue             19.62% for the fiscal year 2011, as compared to its
portfolio
                                                                            peers, True Religion Apparel, Inc. (Ticker: TRLG),
Diversified Brand Offerings            Declining liquidity position         Delta Apparel Inc. (Ticker: DLA) and Delta Apparel,
                                                                            Inc. (Ticker: DLA), which recorded ROEs of 15.00%,
                                                                            12.21% and 12.21% respectively. Furthermore, the
Efficient Use of Resources             Overdependence on a few customers    company reported an operating margin of 13.16% in
                                                                            2011.
Strengthening operational performance Overdependence on a Few Customers
                                                                            Return on Equity
Strong distribution capabilities       Seasonality of the Business

Strong Distribution Capabilities

Strong Liquidity Position

Strong Operating Margin

Opportunities                          Threats

Emerging Economies                     Competition in the Retail Industry

Growth of web-based stores             Currency and Interest Rate Risk
                                                                            Liquidity Position
Improving economies                    Exchange rate fluctuations
                                                                            The company reported a current ratio of 1.91 in 2011,
Product Innovation                     Growing Counterfeit Goods Market     as compared to its peers, True Religion Apparel, Inc.,
                                                                            Delta Apparel Inc. and Delta Apparel, Inc., which
Rising Popularity of Online Shopping   Rising Counterfeit Goods Market      recorded current ratios of 7.35, 2.93 and 2.93
                                                                            respectively. As of December 2011, the company
                                                                            recorded cash and short-term investments of worth
                                       Rising labor costs in the US         US$341 million, against US$3 million current debt.
                                                                            The company reported a debt to equity ratio of 0.47 in
                                                                            2011 as compared to its peers, True Religion Apparel,
                                                                            Inc., Delta Apparel Inc. and Delta Apparel, Inc., which
                                                                            recorded debt to equity ratios of 0.00, 0.61 and 0.61
                                                                            respectively.




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V.F. Corporation - SWOT Profile                                                                                     Page 1
V.F. Corporation

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TABLE OF CONTENTS

1     Business Analysis ................................................................................................................................... 5
    1.1       Company Overview ................................................................................................................................................5
    1.2       Business Description ..............................................................................................................................................5
    1.3       Major Products and Services .................................................................................................................................7
2     Analysis of Key Performance Indicators ............................................................................................... 9
    2.1       Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................9
    2.2       Key Financial Performance Indicators .................................................................................................................12
      2.2.1       Revenue and Operating Profit .........................................................................................................................12
      2.2.2       Asset and Liabilities .........................................................................................................................................13
      2.2.3       Net Debt vs. Gearing Ratio ..............................................................................................................................14
      2.2.4       Operational Efficiency ......................................................................................................................................15
      2.2.5       Solvency ..........................................................................................................................................................16
      2.2.6       Valuation ..........................................................................................................................................................17
    2.3       Competitive Benchmarking ..................................................................................................................................18
      2.3.1       Market Capitalization .......................................................................................................................................18
      2.3.2       Efficiency ..........................................................................................................................................................19
      2.3.3       Valuation ..........................................................................................................................................................20
      2.3.4       Turnover – Inventory and Asset.......................................................................................................................21
3     SWOT Analysis ...................................................................................................................................... 22
    3.1       SWOT Analysis - Overview ..................................................................................................................................22
    3.2       Strengths ..............................................................................................................................................................22
    3.3       Weaknesses .........................................................................................................................................................23
    3.4       Opportunities ........................................................................................................................................................24
    3.5       Threats .................................................................................................................................................................25
4     History .................................................................................................................................................... 27
5     Key Employees ...................................................................................................................................... 29
6     Key Employee Biographies................................................................................................................... 31
7     Locations and Subsidiaries .................................................................................................................. 32
    7.1       Head Office ..........................................................................................................................................................32
    7.2       Other Locations and Subsidiaries ........................................................................................................................32
8     Appendix ................................................................................................................................................ 34
    8.1       Methodology .........................................................................................................................................................34
    8.2       Ratio Definitions ...................................................................................................................................................34
    8.3       Disclaimer.............................................................................................................................................................38




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V.F. Corporation - SWOT Profile                                                                                                                                             Page 2
V.F. Corporation

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List of Tables

Table 1: Major Products and Services....................................................................................................................................7
Table 2: Key Ratios - Annual .......................................................
								
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