International Review (In Constant Dollars)
Fourth quarter international revenues increased 7 percent driven by an 11 percent increase in Asia, a 10 percent increase in Americas (non-U.S) and 5 percent growth in Europe. For the full year 2012, international revenues grew 29 percent (11 percent excluding Timberland), with a 28 percent increase in Europe (10 percent excluding Timberland), 42 percent growth in Asia (19 percent excluding Timberland) and a 14 percent increase in the Americas non-U.S. region (10 percent excluding Timberland). International revenues accounted for 37 percent of total VF revenues in 2012 compared with 34 percent in 2011.
Direct-to-consumer revenues increased 8 percent in the fourth quarter. The North Face ® brand’s direct-to-consumer business continued to post strong growth, up 13 percent in the quarter. Direct-to-consumer revenues for the Vans ® brand also demonstrated exceptional results with revenues rising by 18 percent. Direct-to-consumer revenues for the Nautica ®, Timberland ® , Kipling ®, Splendid ® and Ella Moss ® brands each achieved healthy growth during the quarter. A total of 41 stores were opened across our brands in the quarter and 141 stores during the year, bringing the total number of owned retail stores to 1,129. For the full year 2012, direct-to-consumer revenues grew 25 percent and accounted for 21 percent of total VF revenues compared with 19 percent in 2011. Timberland accounted for 15 percentage points of the 25 percent total growth (28 percent excluding John Varvatos) in direct-to-consumer revenues in 2012.Balance Sheet Review Inventories remain well controlled, and were down $100 million, or 7 percent, from December 2011 levels. Cash flow from operations reached a record $1.3 billion in 2012, which funded the repayment of all outstanding commercial paper, the repurchase of two million shares, a pension plan contribution of $100 million and a healthy dividend increase.