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The North Face President Todd Spaletto on the company’s efforts to double its revenue to $3 billion by 2015.
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The North Face is the top performing brand in VF corporation's portfolio -- they've got a ton of names out there -- -- Wrangler.
Not a cub fans.
And the North Face is the best performer.
Anyway this is a non traditional summer stocks that we -- we bring it CEO it is face and a monster of a challenge double their revenues.
To three billion dollars in just.
Two years.
32 and half a -- three billion dollars -- they gonna do how to think plan to do it talks a letter with the president of the North Face and he's joining us in a Fox Business exclusive.
How this challenge come to you that the CEO come to you of the of corporate -- I need you to step up to the place.
It's a great question our chairman Eric -- asked us about two and a half three years ago.
We are experiencing great growth this -- -- how big in the north they speak and it really launched just a really agreed deep dive into.
Our brand's potential -- a global basis.
So how are you going to pull the soft in what is obviously -- a very tough consumer atmosphere.
Where everybody's worried about Europe and even if they have a couple dollars in their pocket they're concerned.
Now we see a few different opportunities for the north this brand the first one is global expansion.
Our international sales -- roughly 35%.
Of our business which is relatively low vs other brands and our space so are -- between fifteen minutes to get that north of 40%.
Another opportunity that we she is specifically did their brand's relevance from an activity perspective some of our fastest current -- right now are running.
Mountain biking skiing snowboarding.
-- -- some of those more summer recreational activities and outdoor such as -- impact how does the Asian market for example everybody's holding out hope because there's at least some type of growth there are 78% of -- slowing down just yeah our fourth quarter revenues which fourth -- is really good for us that last year in China.
We're up over 40% so we're seeing a lot of success in China and throughout Asia and I think a lot of that is there's and booming it.
Interest in exploration of these people in highly condensed major metropolitan markets that are really interested in exploring -- country.
And they have the ability to do so now which.
Is a -- -- for them.
Well I want to point out too because we're always looking for the trade here Fox Business VF corporation stock is up 45%.
Over the past year.
Obviously North Face a success is very much a part of that.
-- you have all kinds of headwinds that that normal people might not think about when they look at your product but the use of down feathers.
Is massive on a scale where you make a lot of -- goes.
The price of down back in 2009 was twelve dollars today it's 28 dollars a pound -- -- networks we were laughing about it that was a bushel with -- -- in Chicago.
Yeah well down has gone up quite a bit why.
A lot of that's due to -- minute and thinking and town is just a category -- seeing a lot of success from retailers like you're close to brands like the North Face and we focus first and foremost on performance.
What are the jackets that are gonna keep our athletes are highly active consumers at the height of their.
Skill -- prices obviously soaring on -- commodity level.
What's the strategy -- -- have to raise your prices and do you think the consumer today -- Yeah we look at -- on a case by case basis in terms of where we have to raise price we also look at it from what are the different price points that we can offering some classification businesses like outerwear.
So where we didn't see the need to raise price will certainly do so.
But what we have the benefit of being part of VF corporation which I think having a nine plus billion dollar company -- your parent gives us a lot of leverage our manufacturing.
Yeah I mean obviously they're gonna give you latitude if you show some real success.
I have to -- because as well let's back up about eight to ten years ago the North Face was for people climbing Everest and Kilimanjaro.
And now -- at.
In -- summer it walked on the streets of Manhattan and kids are wearing North Face jackets.
You've managed to capture that it coolness factor.
Yet there are other companies that are starting to come out -- You know -- Montclair and does that is that -- -- perhaps in some competitors out there that suddenly if he's a couple rappers or or celebrities wearing them all I need that now.
How do you keep your brand at the top of consumers.
Brains and thoughts about -- You know we've we've been oil for 45 years -- I really think -- the most successful things we've done is we've stayed true to.
Our -- we have never strayed from being dedicated to highly active people whether it's running skiing backpacking mountaineering and I think.
That authentic relevance the next standard at a high level performance has been what disinterested youth and other -- -- store brands for -- straight from.
I was telling -- I'll read every book on climbing Everest I will not be climbing.
No definitely not but alright we'll see if if you stand up today airport -- -- -- always welcome back thanks so much list that you're taught school let out a bit North Face president okay.
