103379--3/3/2010--V_F

related topics

{customer, product, revenue}

{product, market, service}

{property, intellectual, protect}

{operation, international, foreign}

{cost, regulation, environmental}

{personnel, key, retain}

{capital, credit, financial}

{tax, income, asset}

{acquisition, growth, future}

The apparel industry is highly competitive, and VF s success depends on its ability to respond to constantly changing fashion trends and consumer demand. Reduced sales or prices resulting from competition could have a material adverse effect on VF. VF s results of operations could be materially harmed if VF is unable to accurately forecast demand for its products. A substantial portion of VF s revenues and gross profit is derived from a small number of large customers. The loss of any of these customers could substantially reduce VF s profits. VF s profitability may decline as a result of increasing pressure on margins. Fluctuations in the price, availability and quality of raw materials and finished goods could increase costs and cause service delays. VF may not succeed in implementing its growth strategy. VF s operations in international markets, and earnings in those markets, may be affected by legal, regulatory, political and economic risks. VF uses foreign suppliers and manufacturing facilities for a substantial portion of its raw materials and finished products, which poses risks to VF s business operations. Our business is subject to national, state and local laws and regulations for environmental, employment, safety and other matters. The costs of compliance with, or the violation of, such laws and regulations by VF or by independent suppliers who manufacture products for VF could have an adverse effect on our operations and cash flows. If VF s suppliers fail to use acceptable ethical business practices, VF s business could suffer. VF s business is exposed to the risks of foreign currency exchange rate fluctuations. VF s hedging strategies may not be effective in mitigating those risks. VF borrows funds on a short-term basis, primarily to support seasonal working capital requirements. Long-term debt is part of VF s total capital structure. VF may have difficulty accessing capital markets for short or long-term financing. VF has committed domestic and international bank credit facilities. One or more of the participating banks may not be able to honor their commitments, which could have an adverse effect on VF s business. The loss of members of VF s executive management and other key employees could have a material adverse effect on its business. VF may be unable to protect its trademarks and other intellectual property rights. VF is subject to the risk that its licensees may not maintain the value of VF s brands. VF has entered into license agreements to use the trademarks of others. Loss of a license could have an adverse effect on VF s operating results. VF relies significantly on information technology. Any inadequacy, interruption, integration failure or security failure of that technology could harm VF s ability to effectively operate its business. If VF encounters problems with its distribution system, VF s ability to deliver its products to the market could be adversely affected. VF s balance sheet includes a significant amount of intangible assets and goodwill. A decline in the estimated fair value of an intangible asset or of a business unit could result in an asset impairment charge, which would be recorded as an operating expense in VF s Consolidated Statement of Income and could be material.

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103379--3/3/2010--V_F_CORP