Sponsors
Billabong ▲ +0.005 | PPR ▼ -1.10 | American Apparel ▼ -0.023 | The Buckle ▼ 0.00 | Columbia ▲ +0.73 | Deckers Outdoor ▼ -0.56 | Dicks ▼ -0.25 | Foot Locker ▲ +0.14 | Genesco ▲ +0.36 | Iconix Brand Group ▼ 0.00 | Jarden Corp ▼ -0.97 | Nordstrom ▼ -0.33 | Luxottica ▲ +0.48 | Nike ▼ -0.16 | Pacific Sunwear ▼ -0.04 | Skullcandy ▼ -0.03 | Sport Chalet - 0 | Urban Outfitters ▼ -0.49 | VF Corp ▼ -0.21 | Quiksilver ▼ -0.04 | Zumiez ▲ +0.28 | Macys ▼ -0.43 | Tillys ▲ +0.46 |
Ticker Sponsor
Readers Say
Great insight into the issues
Great insight into the issues

I am a big fan of Tiffany and her team as well as an avid reader of Shop-Eat-Surf. I shop, I eat, I surf -- I should pay.

- By Kevin Bailey, President, Vans
Useful on a daily basis
Useful on a daily basis

It's well balanced information that is useful on a daily basis. I'm very satisfied with the Executive Edition. I start each day with SES and a big cup of coffee!

- By Tom Ruiz, EVP Sales, Volcom
Industry Insight

SHACC: Trailblazers in Women's surfing exhibit opens April 25.
ROTH CAPITAL PARTNERS: Zumiez comps exceed estimates.

Details on Industry Insight.


Tiffany Montgomery
Print This Article

ICRX Report: VF CEO tells how consumers have changed

By Diana McCabe
January 14, 2009 12:20 PM

Eric Wiseman, CEO of VF Corp., which owns Vans and Reef, said the retail industry should expect more store closings, bankruptcies and consolidations in 2009.

However, he was mum about his own company, which also owns other brands such as North Face and Wrangler. "Don't ask me about our clients," he told an audience at ICR XChange this morning.

He offered some insights into what VF is seeing with its consumers, who he says have changed dramatically in the past year:

  • Shifting to buying what is needed
  • Emphasis on thrift
  • Conspicous consumption and flash are out of style
  • Greater consideration for value
  • Shift from credit to cash

On its business mix and the current environment:

  • Diversity is its key to managing risk
  • Our Outdoor (includes Vans, Reef) now matches its Heritage group as a percentage of projected revenue of VF at 36%.
  • Manage pace of its store openings ("Not as ambitious of a plan as last year.")
  • Invest prudently ("We will pick our spots")

 

Two notes related to the economy:

  • VF will incur a pension expense in its next fiscal year. (In 2008, its plan had $1 billion in assets but that has changed due to market conditions)
  • Currency: "In 2008, it was a tailwind, but in 2009 it will become a headwind."
  • He expects that both issues will amount to a total drag of 70 cents per share.

 

 

 

Airfare.com - Flights, hotels and more!

 


Articles You Might Have Missed