VF Announces the Dedication of Its New Central Distribution Center in Kunshan, China

GREENSBORO, N.C., Apr 10, 2014 -- VF Corporation VFC +1.01% today announced the dedication of its new Central Distribution Center at an event held at the facility in Kunshan, China. 

Local and regional government officials, dignitaries and special guests joined VF Chairman, President and Chief Executive Officer Eric Wiseman to celebrate this important addition to VF’s global supply chain platform.

“The Central Distribution Center in Kunshan demonstrates our commitment to continued growth in China and persistent focus on operational excellence in our global supply chain,” said Wiseman. 

“With the expectation that our business in China will nearly double during the next four years, this represents a significant milestone in our ability to manage long-term costs and inventories, while providing measurable increases in speed-to-market for both our customers and consumers.”

Representing an investment of more than $60 million (¥372 million RMB), the Kunshan distribution center is VF’s largest infrastructure investment in China. When operating at capacity, the 85,000-square-meter facility is expected to handle 30 million units of product each year and employ nearly 400 people. 

The facility was designed to be environmentally friendly and is LEED Bronze certified because of its low carbon footprint. Also, to support future growth, VF has acquired the option for additional land at the Kunshan location for expansion as needed.

In 2013, total revenues in China were more than $500 million. By 2017, VF expects China to contribute nearly $1 billion to total company revenues. VF brands sold in China include: The North Face®, Lee®, Vans®, Timberland®, Kipling®, 7 For All Mankind®, Wrangler® and Nautica®.

During the past year, VF has added four new distribution centers strategically located to competitively manage costs and source closer to end markets. In addition to the China facility, new VF distribution centers have been added in Sint-Niklaas, Belgium; Mexico City, Mexico; Los Angeles, Calif.; and the company reopened its Hackleburg, Ala. facility, which was destroyed as a result of a tornado in April 2011.

About VF

VF Corporation is a global leader in branded lifestyle apparel and footwear with more than 30 brands. The company’s five largest brands are The North Face®, Vans®, Wrangler®, Timberland®, and Lee®. Other brands include 7 For All Mankind®, Bulwark®, Eagle Creek®, Eastpak®, Ella Moss®, JanSport®, Kipling®, lucy®, Majestic®, Napapijri®, Nautica®, Red Kap®, Reef®, Riders®, Splendid® and SmartWool®. 

For more information, please visit www.vfc.com .

Forward Looking Statements

Certain statements included in this release and the attachments are “forward-looking statements” within the meaning of the federal securities laws. Forward-looking statements are made based on our expectations and beliefs concerning future events impacting VF and therefore involve a number of risks and uncertainties. You can identify these statements by the fact that they use words such as “will,” “anticipate,” “estimate,” “expect,” “should,” and “may” and other words and terms of similar meaning or use of future dates. We caution that forward-looking statements are not guarantees and that actual results could differ materially from those expressed or implied in the forward-looking statements. Potential risks and uncertainties that could cause the actual results of operations or financial condition of VF to differ materially from those expressed or implied by forward-looking statements in this release include, but are not limited to, the level of consumer confidence and overall level of consumer demand for apparel; fluctuations in the price, availability and quality of raw materials and contracted products; disruption to VF’s distribution system; disruption and volatility in the global capital and credit markets; VF’s reliance on a small number of large customers; the financial strength of VF’s customers; VF’s response to changing fashion trends; increasing pressure on margins; VF’s ability to implement its growth strategy; VF’s ability to grow its international and direct-to-consumer businesses; VF’s ability to successfully integrate and grow acquisitions, including the Timberland acquisition; VF’s ability to maintain the strength and security of its information technology systems; adverse unseasonable weather conditions; stability of VF’s manufacturing facilities and foreign suppliers; continued use by VF’s suppliers of ethical business practices; VF’s ability to accurately forecast demand for products; continuity of members of VF’s management; VF’s ability to protect trademarks and other intellectual property rights; maintenance by VF’s licensees and distributors of the value of VF’s brands; foreign currency fluctuations; changes in tax liabilities, and legal, regulatory, political and economic risks in international markets. More information on potential factors that could affect VF’s financial results is included from time to time in VF’s public reports filed with the Securities and Exchange Commission, including VF’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.

SOURCE: VF Corporation