威富公司 (VFC) 2003 Q4 法說會逐字稿

Good afternoon, ladies and gentlemen, and welcome to the VF Corporation fourth-quarter and full year 2003 conference. At this time all participants are in the listen only mode. Following today's presentation instructions will be given for the question-and-answer session. [Operator Instructions]

下午好，女士們、先生們，歡迎參加 VF 公司 2003 年第四季和全年會議。此時所有參與者都處於只聽模式。今天的演示之後，將給出問答環節的說明。 【操作說明】

As a reminder, this conference is being recorded today Wednesday, February 11th, 2004. I would now like to turn the conference over to Peter Salzberg (ph) with the Financial Relations Board. Please go ahead, Sir.

提醒一下，今天的會議記錄是 2004 年 2 月 11 日星期三。請繼續，先生。

Thank you very much and good afternoon, everyone. Thank you for participating in today's conference call. You should have all received a copy of the press release issued earlier today. If you did not please contact the Financial Relations Board at 212-445-8474. We will send out one to you immediately and confirm your name on the factor e-mail distribution list. Starting our call today is Mr. Mackey McDonald -- Chairman and Chief Executive Officer of VF Corporation.

非常感謝大家，大家午安。感謝您參加今天的電話會議。你們應該都收到了今天早些時候發布的新聞稿的副本。如果您不這樣做，請致電 212-445-8474 聯繫財務關係委員會。我們將立即向您發送一封，並在因素電子郵件分發清單中確認您的姓名。今天我們的電話會議由 VF Corporation 董事長兼執行長 Mackey McDonald 先生主持。

Before we begin, I'd just like to remind everyone that certain statements included in today's remarks and in the question-and-answer session may constitute forward-looking statements within the meaning of the federal securities laws. Forward-looking statements are not guarantees and actually results and actual results may differ materially from those expressed or implied in the forward-looking statements. Important factors that could cause the actual results of operations or financial condition of the Company to differ are discussed in the documents filed by the Company with the Securities and Exchange Commission. With that and without further delay I'd like to now turn the call over to Mackey. Please go ahead.

在開始之前，我想提醒大家，今天的發言和問答環節中的某些陳述可能構成聯邦證券法含義內的前瞻性陳述。前瞻性聲明並非保證，實際結果可能與前瞻性聲明中明示或暗示的結果有重大差異。本公司向美國證券交易委員會提交的文件中討論了可能導致公司實際經營業績或財務狀況出現差異的重要因素。就這樣，我現在想把電話轉給麥基，不再拖延。請繼續。

Thank you, Peter, and good afternoon. Welcome to our fourth-quarter and our own three-year end in conference call. With me today are Chief Financial Officer Bob Shearer; our coalition chairman John Schamberger; Eric Weissman; Terry Lay, and George [indiscernible] and also our VP of Financial Communication, Cindy Canova.

謝謝你，彼得，下午好。歡迎來到我們的第四季和我們自己的三年期末電話會議。今天和我在一起的有財務長鮑伯‧希勒 (Bob Shearer)；我們的聯盟主席約翰·尚伯格（John Schamberger）；埃里克·韋斯曼； Terry Lay、George [音訊不清楚]，還有我們的財務傳播副總裁 Cindy Canova。

We left 2003 on a very strong note marked by a 52 percent increase in fourth-quarter earnings bringing us to record earnings per share in a year that was certainly characterized as very challenging.

我們以非常強勁的勢頭結束了 2003 年，第四季度收益增長了 52%，使我們在這一年的每股收益創下歷史新高，這無疑是非常具有挑戰性的一年。

In addition to strong earnings, there were a number of other highlights in the year. I'd like to go through with you.

除了強勁的盈利之外，這一年還有許多其他亮點。我想和你一起經歷一下。

First, the acquisition of Nautica® -- we are making great progress with Nautica which you'll hear about more from Eric Weissman in a few moments. Nautica contributed 16 cents to our earnings in '03, a terrific contribution -- much better than we had anticipated.

首先，收購 Nautica®——我們在 Nautica 方面取得了巨大進展，您稍後會從 Eric Weissman 那裡聽到更多。 Nautica 為我們 03 年的收入貢獻了 16 美分，這是一個了不起的貢獻——比我們預期的要好得多。

We expect a similar contribution in '04. It's important to keep in mind the seasonal nature of Nautica® means its earnings are heavily loaded in the back end of the year. In addition, the accretion this year reflects the interest impact on a full year of long-term borrowings.

我們預計 04 年也會有類似的貢獻。重要的是要記住 Nautica® 的季節性特徵意味著其收益在年底會承受很大壓力。此外，今年的增加反映了對全年長期借款的利息影響。

Nautica® will be slightly diluted within the first-quarter with very modest accretion in the second-quarter and (indiscernible) benefit in the third and fourth quarters.

Nautica® 將在第一季略有稀釋，第二季的成長非常有限，第三季和第四季將受益（難以察覺）。

A second highlight in the performance of our outdoor coalition, specifically, The North Face®. As stated in the release sales of the brand were up over 25 percent in '03 -- particularly strong performance internationally. [indiscernible] preseason bookings are running up 25 percent with fall training above 30 percent.

我們戶外聯盟的第二個亮點是 The North Face®。如新聞稿所述，2003 年該品牌的銷售額成長了 25% 以上，在國際上的表現尤其強勁。 [音訊不清楚]季前賽預訂量增加了 25%，秋季訓練的預訂量增加了 30% 以上。

We've identified the outdoor category as a key growth in VF and will continue to aggressively pursue growth in this category both in internally and through acquisitions.

我們已將戶外類別視為 VF 的關鍵成長點，並將繼續透過內部和收購積極追求該類別的成長。

Third is the performance of our mass (ph) jeans business. Clearly there was a concern about impact from the entry of a key competitor into the mass channel this year -- in fact, I am very pleased to report that our jeans with Wal-Mart -- our largest customer -- were flat to up slightly from last year. Our turns actually increased last year on less floor space. This is a strong testament to the strength of our brands, the quality of the products and the values that they bring to consumers.

第三是我們大眾牛仔褲業務的表現。顯然，人們擔心今年主要競爭對手進入大眾管道的影響 - 事實上，我很高興地報告，我們的牛仔褲與沃爾瑪 - 我們最大的客戶 - 持平到略有上升從去年開始。去年我們的營業額實際上有所增加，但佔地面積卻減少了。這有力地證明了我們品牌的實力、產品的品質以及它們為消費者帶來的價值。

Our overall sales were down as anticipated and the sales decline was driven by a bigger than expected impact from the number of store closings by Kmart -- one of our large customers.

我們的整體銷售額如預期下降，而銷售額下降的原因是凱馬特（我們的大客戶之一）關閉商店數量的影響大於預期。

Fourth is the continued strong turnaround of our Imagewear business. Sales were down, reflecting weakness in the manufacturing sector that impacted our occupational apparel business. The sales in our licensed sports apparel unit rose 17 percent. Operating margins improved by 200 basis points and are running at very healthy levels.

第四是我們的 Imagewear 業務持續強勁扭虧為盈。銷售額下降，反映出製造業疲軟影響了我們的職業服裝業務。我們的授權運動服裝部門的銷售額成長了 17%。營業利潤率提高了 200 個基點，處於非常健康的水平。

Last but not least, I am especially proud of how we managed our balance sheet and liquidity. As stated in the release we ended the year more than $.5 billion in cash. Our inventories are in great shape. In fact all of the increase in inventories in '03 resulted from Nautica® and currency effects.

最後但並非最不重要的一點是，我對我們管理資產負債表和流動性的方式感到特別自豪。正如新聞稿中所述，我們在年底擁有超過 5 億美元的現金。我們的庫存狀況良好。事實上，2003 年庫存的所有增加都是由 Nautica® 和貨幣效應造成的。

Our debt to capital ratio is below our target rate of 40 percent despite the Nautica® acquisition. Taking our large cash balance into consideration, our debt to total cat net of cash is 19.6 percent. Cash flow from operations also exceeded our expectations this year topping 540 million with Nautica® contributing 60 million.

儘管收購了 Nautica®，但我們的債務資本比率仍低於 40% 的目標比率。考慮到我們大量的現金餘額，我們的債務佔淨現金總額的 19.6%。今年營運現金流也超出了我們的預期，達到 5.4 億，其中 Nautica® 貢獻了 6,000 萬。

Turning to our outlook for '04 we currently anticipate a 5 percent increase in both sales and earnings. We expect a healthy improvement in operating margins due to higher gross margins. We do think the retail environment will continue to be very mixed this year and are not planning any significant turnaround. Our brands across our Company and around the world remain strong and are well positioned to continue to gain share and generate healthy cash flow.

談到我們對 04 年的展望，我們目前預期銷售額和收益將成長 5%。由於毛利率提高，我們預計營業利潤率將健康改善。我們確實認為今年的零售環境將繼續非常複雜，並且不計劃任何重大轉變。我們在公司和世界各地的品牌仍然強勁，並處於有利位置，可以繼續獲得份額並產生健康的現金流。

In addition, we are excited about the new plans we're developing to accelerate our growth in the years ahead. We have launched a very focused intense initiative to surface and execute a number of specific growth platforms. I look forward to updating you on the details behind these ideas later this year.

此外，我們對正在製定的旨在加速未來幾年成長的新計劃感到興奮。我們發起了一項非常集中的強烈計劃，以展示和執行一些特定的成長平台。我期待在今年稍後向您通報這些想法背後的詳細資訊。

Now let's see about each of our major businesses starting with John Schamberger, our coalition chairman. John.

現在讓我們從我們的聯盟主席 John Schamberger 開始了解我們的每項主要業務。約翰。

Thanks, Mackey. VFP (ph) brands remained strong, holding their own in a very competitive marketplace. Our mass retail partners tell us that the jeans market is about flat to down slightly and our mid year (ph) retailers indicate that the market is flat to up slightly.

謝謝，麥基。 VFP (ph) 品牌依然強勁，在競爭激烈的市場中保持自己的地位。我們的大眾零售合作夥伴告訴我們，牛仔褲市場大致持平到小幅下降，而我們的年中 (ph) 零售商表示市場持平到小幅上漲。

We're very pleased by the performance of the Wrangler® and Rider brands this year. Our Wrangler® five-star premium denim program and our Wrangler fashion jeans collection contributed to the success of Wrangler® men's business. Riders Lee product initiative continued to drive growth in our female segment.

我們對 Wrangler® 和 Rider 品牌今年的表現感到非常滿意。我們的 Wrangler® 五星級優質牛仔布計劃和 Wrangler 時尚牛仔褲系列為 Wrangler® 男士業務的成功做出了貢獻。 Riders Lee 產品計劃繼續推動我們女性市場的成長。

2003 was successful in all Rider product categories with misses stretch jeans and casual showing significant increase. As Mackey mentioned our total jeans [indiscernible] sales at Wal-Mart were about flat to up slightly (indiscernible) 2002 and it's a real credit to our people working in the finance marketing company.

2003年在所有Rider產品類別中都取得了成功，彈性牛仔褲和休閒牛仔褲呈現顯著成長。正如 Mackey 所提到的，2002 年我們在沃爾瑪的牛仔褲總銷量[音頻不清晰] 基本持平甚至略有上升（音頻不清晰），這對我們在金融營銷公司工作的員工來說是真正的榮譽。

Our business with Target is excellent and we experienced strong growth with Target in 2003. We are cautiously planning our Kmart business going forward due to the combination of tight inventory controls that they have and less promotional activity of national brands at Kmart. We're particularly excited about the new Wrangler jeans company line introduced for the fall '04 period, targeted to 18- to 32-year-old men.

我們與 Target 的業務非常出色，並且在 2003 年經歷了強勁的成長。我們對 04 年秋季推出的新 Wrangler 牛仔褲系列感到特別興奮，該系列針對 18 至 32 歲的男性。

The line includes jeans, pants, shirts, daypacks, shoes and accessories, and features top NASCAR driver Dale Earnhardt Jr. as a spokesman. It's a real lifestyle brand of clothing. And we have a great spokesman in Dale Jr.

該系列包括牛仔褲、褲子、襯衫、背包、鞋子和配件，並以 NASCAR 頂級車手 Dale Earnhardt Jr. 為代言人。這是一個真正的生活方式服裝品牌。我們有一位出色的代言人小戴爾。

We continue to see increased momentum in Riders during 2004, with expansion into our Women's Plus size market. We're also excited about our new Riders Copper Collection for the younger more fashion orientated (ph) consumer, more stretch, lower rides, better finishes.

2004 年，隨著我們向女士大尺碼市場的擴張，我們繼續看到騎士市場的成長勢頭。我們也對我們的新 Riders Copper 系列感到興奮，該系列專為更年輕、更注重時尚的 (ph) 消費者而設計，具有更大的彈性、更低的騎行距離、更好的飾面。

In terms of our Western business in 2003, the PBR (ph) jean was launched with the endorsement of the Professional Bull Riders Association -- (indiscernible) growing popularity. Wrangler Western wear further builds on its long partnership with the Professional Rodeo Cowboy Association as title sponsors of the Wrangler® National Finals Rodeo and the Wrangler® Pro Tour. Wranglers continues to be the premier lifestyle brand and first choice of Western consumers.

就我們的西部業務而言，2003 年，PBR (ph) 牛仔褲在職業鬥牛協會的認可下推出——（音頻不清晰）越來越受歡迎。 Wrangler Western 服裝進一步鞏固了與職業牛仔競技協會的長期合作關係，作為 Wrangler® National Finals Rodeo 和 Wrangler® Pro Tour 的冠名贊助商。 Wranglers 仍然是首屈一指的生活方式品牌和西方消費者的首選。

The [indiscernible] workwear line by Wrangler® was successfully launched 2003 and is hitting the mark with hard-working men -- although most exclusively at Western and work with specialty stores, initial feedback sales grew very positive. The Lee brands' big story in 2003 was the launch of One True Fit -- the line for young contemporary women shopping in national chains and department stores. The line combines a specially designed contour fit with a range of fashionable styles at a great great value.

Wrangler® 的[音訊不清楚] 工作服系列於 2003 年成功推出，深受勤奮男士的歡迎——儘管大多數都是在西方並與專賣店合作，但最初的反饋銷售增長非常積極。 Lee 品牌在 2003 年的重大事件是推出了 One True Fit——該系列專為當代年輕女性在全國連鎖店和百貨公司購物而設計。該系列將特別設計的輪廓與一系列時尚風格相結合，物超所值。

For men, our Lee dungaree line had a very good year in 2003, double-digit increases in unit. And continued to outperform the competition at retail. New fabrics and finishes including [indiscernible] giving male consumers ages 17 to 24 a new reason to buy Lee dungarees. Following extensive research we developed a new line -- the Buddy Lee Register that we will be offering to younger male consumers and it will be a range of denim and [indiscernible] products differentiated in terms of fit and fabric and details in packaging.

對於男裝，我們的 Lee 工裝褲系列在 2003 年表現出色，銷量實現了兩位數的成長。並持續超越零售競爭對手。新的布料和飾面，包括[音訊不清楚]，為 17 至 24 歲的男性消費者提供了購買 Lee 工裝褲的新理由。經過廣泛的研究，我們開發了一個新系列——Buddy Lee Register，我們將向年輕男性消費者提供該系列，它將是一系列牛仔布和[音頻不清晰]產品，在合身性、面料和包裝細節方面有所不同。

Each product will be customized with the unique nine digits registration number at the back pocket patch -- we are really excited about that because of the good reception with a number of our retail detailers.

每件產品都將在後袋貼片上定制獨特的九位數字註冊號碼——我們對此感到非常興奮，因為我們的許多零售細節商都給予了良好的反響。

(indiscernible) a line offering sophisticated vintage fit and finishes at high-end specialty by Urban Outfitters was launched in 2003 and is slated for further growth in 2004. In the past, we have given market share data provided by [indiscernible]. I think we mentioned the last time that they had changed their research methodology.

（音訊不清晰）Urban Outfitters 於2003 年推出了提供精緻復古款式和高端專業飾面的產品線，並預計在2004 年進一步增長。 。我想我們上次提到他們改變了研究方法。

Apparently VF believes FED (ph) jeans and intimate apparel market estimate do not properly represent market sizes and brand share particularly in the mass channel and to some extent in midtier and family [indiscernible]. We believe that this is primarily due to a lack of pointed sales input from certain key retailers and the under-representation of lower income consumers.

顯然，VF 認為 FED (ph) 牛仔褲和內衣市場估計並不能正確代表市場規模和品牌份額，特別是在大眾管道，在某種程度上在中端和家庭領域 [音頻不清晰]。我們認為，這主要是由於某些主要零售商缺乏有針對性的銷售投入以及低收入消費者的代表性不足。

NPD (ph) has acknowledged that their revised data are not indicative of gains or declines in the performance of VF brand, relative to previous reports.

NPD (ph) 承認，與先前的報告相比，他們的修訂數據並未顯示 VF 品牌表現的成長或下降。

We're working diligently with NPD to solve this issue and get more reliable information. Internally, we have used both NPD and information from another data source SDS -- SDS Market Research of Cambridge MA conducts a monthly survey of 10,000 consumers and provides analysis to leading companies in apparel and retail industries. These data sources [indiscernible] [indiscernible] differ widely in year to year but offer a similar snapshot of VF current performance in the adults 18 plus market.

我們正在與 NPD 努力合作解決此問題並獲取更可靠的資訊。在內部，我們使用了 NPD 和另一個資料來源 SDS 的資訊——劍橋馬薩諸塞州的 SDS 市場研究每月對 10,000 名消費者進行調查，並為服裝和零售行業的領先公司提供分析。這些資料來源[音訊不清楚][音訊不清楚]每年都有很大差異，但提供了 18 歲以上成人市場中 VF 當前表現的相似快照。

For example nearly 1 of five jeans purchased in the United States is a VF branded jean product. VF Brands account for roughly 60 percent of men's jeans purchased in the men's channel. Wrangler® remains the No. 1 men's jean brands at mass. VF brands represent 25 percent of women's jeans sold in the mass channel. Riders is the No. 1 women's brands at mass and one of the fastest-growing female brands in apparel. (indiscernible) the family apparel Lee remained No. 1 brand for female [indiscernible].

例如，在美國購買的 5 條牛仔褲中，近 1 條是 VF 品牌的牛仔褲產品。 VF Brands 約佔男士通路購買的男士牛仔褲的 60%。 Wrangler® 仍然是大眾第一大男士牛仔褲品牌。 VF 品牌佔大眾通路銷售的女式牛仔褲的 25%。 Riders 是大眾第一大女裝品牌，也是成長最快的女裝品牌之一。 （音頻不清晰）Lee 家族服飾仍然是女性第一品牌[音頻不清晰]。

Lee is the No. 2 men's brands jean in the moderate and upper tier. And Wranglers Western wear continues to dominate the Western specialty store jeans and shirt business.

Lee是中高檔男士牛仔褲品牌中排名第二的品牌。 Wranglers 西部服裝繼續主導西部專賣店的牛仔褲和襯衫業務。

As stated in the release we expect some decline in sales this year due to the competitive conditions we spoke about in the past. All in all, we believe our brands are very well positioned with a range of new products designed to keep our share strong. Eric.

正如新聞稿中所述，由於我們過去談到的競爭狀況，我們預計今年的銷售額會有所下降。總而言之，我們相信我們的品牌處於非常有利的位置，推出了一系列旨在保持強勁市場份額的新產品。埃里克.

Thank you, John. [indiscernible] declined one percent 2003 in what was a very challenging market. The U.S. and the Dept. of Chain Store Business declined 1 percent -- mass channel grew by 1 percent. Private Brands business is all settled down driven largely by decline in our Victoria's Secret program. While we are disappointed in these results we did make significant progress on a number of fronts -- for example building a strong second brand [indiscernible] complement our VF brand has been a priority for several years. We now have that [indiscernible] Lily of France brand which grew 13 percent in 2003.

謝謝你，約翰。 [音訊不清楚] 2003 年，在一個非常具有挑戰性的市場中，下降了百分之一。美國和連鎖店業務部下降了 1%，而大眾通路則成長了 1%。自有品牌業務全部穩定下來，很大程度上是由於我們「維多利亞的秘密」項目的下滑。雖然我們對這些結果感到失望，但我們確實在許多方面取得了重大進展 - 例如，建立一個強大的第二品牌[音頻不清晰]，補充我們的 VF 品牌多年來一直是我們的首要任務。我們現在擁有[音訊不清楚]的法國百合品牌，該品牌在 2003 年成長了 13%。

[indiscernible] channel we've been focused on turning around the [indiscernible] direct business while launching the new [indiscernible] brand and making great progress on those. [indiscernible] brand executes several new product launches by new packaging, new [indiscernible] of sale, and new advertising for back to school. And we saw an immediate pickup in sales with a 12 percent increase in shipment in the fourth quarter.

[音訊不清晰]管道我們一直專注於扭轉[音訊不清晰]直接業務，同時推出新的[音訊不清晰]品牌並在這些方面取得巨大進展。 [音訊不清楚] 品牌透過新包裝、新的[音訊不清楚] 銷售和返校新廣告推出了幾款新產品。我們看到銷售額立即回升，第四季出貨量成長了 12%。

In fact our over the counter sales grew by more than 12 percent in both third and fourth quarter as our biggest customer. (indiscernible) brand also had a successful first-year and exceeded all of our expectations. I am encouraged about the outlook for 2004 (indiscernible) low single digit increases in both our departments and chains and mass channel businesses.

事實上，作為我們最大的客戶，我們的非處方藥銷售額在第三季和第四季都成長了 12% 以上。 （音頻不清晰）品牌第一年也取得了成功，超出了我們所有的預期。我對 2004 年我們部門、連鎖店和大眾通路業務（難以辨別）低個位數成長的前景感到鼓舞。

We are also looking forward to a rebound in our private brand business. Double-digit growth driven by the launch of several new products with [indiscernible]. Product innovation is the key and our Vanity Fair® brand will be expanding our line of [indiscernible] bras and Lily of France® [indiscernible] sexy bra with great fit and comfort features. [indiscernible] brand is extending into sports bra and strapless bras also expanding distribution [indiscernible] adding Kmart and ShopCo.

我們也期待自有品牌事業的反彈。兩位數的成長是由多種新產品的推出所推動的[音訊不清晰]。產品創新是關鍵，我們的 Vanity Fair® 品牌將擴展我們的 [音頻不清晰] 胸罩和 Lily of France® [音頻不清晰] 性感胸罩系列，具有完美貼合和舒適的特點。 [音訊不清晰] 品牌正在擴展到運動胸罩和無肩帶文胸，同時也在擴大分銷範圍 [音訊不清晰] 增加了 Kmart 和 ShopCo。

(indiscernible) terrific opportunity for (indiscernible) brand in the future to extend beyond bras and panties and recently added license agreement (indiscernible) hosiery and socks. We've also agreed to an extension of our contract with Queen Latifah who is the spokeswoman for [indiscernible]. Vassarette also has a strong lineup of new products for 2004. (indiscernible) new program of brand new styles and a new junior concept for fall as we proclaim to (indiscernible) once again the kind of growth we had the second half of last year.

（音頻不清晰）品牌未來的絕佳機會不僅限於胸罩和內褲，而且最近還添加了（音頻不清晰）襪類和短襪的許可協議。我們也同意延長與 [音訊不清楚] 發言人 Queen Latifah 的合約。 Vassarette 還擁有強大的 2004 年新產品陣容。

We're backing all of this up with an 8 percent increase in marketing [indiscernible] brands to make sure consumers understand our brands and the great products behind them (ph).

我們透過增加 8% 的行銷 [音訊不清晰] 品牌來支持這一切，以確保消費者了解我們的品牌及其背後的優質產品 (ph)。

Turning back to the Sportswear Coalition -- we're delighted with (indiscernible) 2003 financial contributions and the outlook for the future. [indiscernible] Nautica® has energized and focused on the priorities we established at the time of the acquisition. Those priorities remain [indiscernible] stabilizing the men's sportswear business, then growing Nautica®'s core businesses, [indiscernible] retail model building new business, exiting businesses that do not strategically (indiscernible) sportswear coalition.

回到運動服裝聯盟——我們對（難以辨認的）2003 年的財務貢獻和未來的前景感到高興。 [音訊不清晰] Nautica® 充滿活力並專注於我們在收購時確定的優先事項。這些優先事項仍然是[音頻不清晰]穩定男士運動服裝業務，然後發展Nautica® 的核心業務，[音頻不清晰]建立新業務的零售模式，退出沒有戰略性（音頻不清晰）運動服裝聯盟的業務。

Briefly discuss each of them. Our first priority is stabilize the men's sportswear business. Much has been written about the overall men's sportswear segment in department stores. It's declining and the Nautica® brand is a part of that.

簡要討論其中每一個。我們的首要任務是穩定男士運動服裝業務。關於百貨公司中男士運動服的整體市場已經有許多文章。它正在衰落，Nautica® 品牌就是其中的一部分。

We are focused on fixing what we can control and that begins with product. Nautica brand has taken several missteps in product direction in the last few years and I am pleased to report that our spring summer line more closely to the heritage of the brand and our Fall 2004 line represents a leap forward for the Nautica® Brand.

我們專注於解決我們可以控制的問題，這從產品開始。過去幾年，Nautica 品牌在產品方向上犯了幾次錯誤，我很高興地向大家報告，我們的春夏系列更加貼近該品牌的傳統，而我們的2004 年秋季系列代表了Nautica® 品牌的一次飛躍。

(indiscernible) fall line has recaptured the essence of the brand and every product is a step up from where we've been recently (ph). Innovation and design and new product features, significant investment in approved quality throughout and the line reflects a casual style in [indiscernible] consumers expect from this brand. We won't see how [indiscernible] respond until Fall but our outlook for men's sportswear in 2004 is slightly ahead of the assumptions we made at the time of the acquisition.

（音訊不清晰）秋季系列重新抓住了品牌的精髓，每件產品都比我們最近的產品邁出了一步（ph）。創新和設計以及新的產品功能，對認可品質的重大投資貫穿始終，該系列反映了[音頻不清晰]消費者對該品牌期望的休閒風格。直到秋季我們才會看到[音頻不清晰] 的反應，但我們對 2004 年男士運動服的展望略高於我們收購時所做的假設。

We know [indiscernible] 23 percent of total floor space in retail at the beginning of 2003. Over 80 percent of the space reduction coming from [indiscernible] Nautica® struggled to achieve adequate sales and productivity [indiscernible]. We think focusing the brand on the biggest and most productive [indiscernible] not only helps stabilize sales and will improve the profitability of our Company by reducing markdown.

我們知道，2003 年初，[音訊不清晰] 零售業總建築面積的 23%。 超過 80% 的空間減少來自於 [音訊不清晰] Nautica® 努力實現足夠的銷售和生產力 [音訊不清晰]。我們認為，將品牌重點放在最大和最有生產力的[音訊不清晰]上不僅有助於穩定銷售，還將透過減少降價來提高我們公司的獲利能力。

Nautica brand is a lifestyle brand and is about much more than sportswear. Core businesses are doing very well and we ambitious plans for the brand -- we're expecting low single digit increases for our business in jeans and furnishings, (indiscernible) remains strong and we're entering several new categories in 2004.

Nautica 品牌是一個生活風格品牌，不僅僅是運動服。核心業務表現非常好，我們為該品牌制定了雄心勃勃的計劃——我們預計牛仔褲和家具業務將實現低個位數增長，（音頻不清晰）仍然強勁，並且我們將在2004 年進入幾個新類別。

[indiscernible] retail stores continues to perform well -- we finished 2003 with 7 percent general growth and 1 1/2 percent same-store growth. [indiscernible] in 2004 and Target opening 10 new stores. We're also testing a Nautica kids concept in four freestanding stores. The [indiscernible] retail group is an important contributor to our business in making appropriate investments for the future. Helps stabilize men's sportswear business and fuel growth across the brand U.S. businesses we plan to increase our media (ph) spending over 50 percent 2004.

[音訊不清楚] 零售店持續表現良好－2003 年，我們的整體成長率為 7%，同店成長率為 1.5%。 [音訊不清楚] 2004 年，Target 開設了 10 家新店。我們也在四家獨立商店測試 Nautica 兒童概念。 [音訊不清楚]零售集團是我們業務的重要貢獻者，為未來做出了適當的投資。有助於穩定男士運動服裝業務並推動品牌美國業務的成長。

This is in addition to increases in public relations and consumer research. We believe these are exactly the right investments for the brand in 2004. [indiscernible] line has been very positive we are committed to getting the brand and the fall line in front of our consumers.

除此之外，公共關係和消費者研究也有所增加。我們相信這些對於 2004 年的品牌來說是正確的投資。

Exiting underperforming and off strategy businesses is one of the objectives we set last fall, we transferred the [indiscernible] Company to our image wear coalition where they're a much better fit. We announced in January that we're closing our women's jeans business and that we're in discussions with John Varvatos about selling his business [indiscernible].

退出表現不佳和偏離戰略的業務是我們去年秋天設定的目標之一，我們將[音頻不清晰]公司轉移到我們的形象服裝聯盟，在那裡他們更適合。我們在一月份宣布，我們將關閉女式牛仔褲業務，並且我們正在與 John Varvatos 討論出售他的業務的事宜 [音頻不清晰]。

Taking these actions help us focus on the core Nautica® and early jeans businesses where we see the most potential. Our biggest growth opportunities are expanding the global reach of the brand and then building the Nautica® women's business. Early stages of claiming both and I will provide an update as those plans develop. All of this of course is only possible with the commitment of the capable team at Nautica®. We have a great team of leaders and associates at Nautica and they're all engaged in capturing the potential [indiscernible].

採取這些行動有助於我們專注於我們認為最具潛力的核心 Nautica® 和早期牛仔褲業務。我們最大的成長機會是擴大品牌的全球影響力，然後建立 Nautica® 女裝業務。在索賠的早期階段，我將隨著這些計劃的製定提供最新資訊。當然，這一切只有在 Nautica® 優秀團隊的努力下才可能實現。我們在 Nautica 擁有一支由領導者和同事組成的優秀團隊，他們都致力於捕捉潛力 [音訊不清晰]。

With that, I will turn the call over to Terry.

這樣，我會將電話轉給特里。

Thanks, Eric. Unstable market conditions in most European markets made for a challenging year in 2003. However our brand positions remained strong and we're taking aggressive action to shape the future of our businesses and create a more powerful platform for long-term growth.

謝謝，埃里克。大多數歐洲市場不穩定的市場狀況使得 2003 年充滿挑戰。

In 2003, a big focus for us was in our retail service capabilities. New stop and shops featuring our Lee, Wrangler®, and H. I. S. brands debuted with one of our largest customers in Germany, generating double digit sales gains within these locations. We will expand this program significantly in 2004 with roll outs slated for a number of additional customers.

2003年，我們的重點是零售服務能力。以我們的 Lee、Wrangler® 和 H.I.S. 品牌為特色的新站點和商店與我們在德國最大的客戶之一一起首次亮相，在這些地點實現了兩位數的銷售增長。我們將在 2004 年大幅擴展該計劃，並計劃向更多客戶推出。

Looking at our brands, our Lee brand in Europe continues to lead the way in fabric fit and finish through its successful Lee 101 premium line. In support of the Lee brands work wear heritage Lee union [indiscernible] line was successfully launched in fall of 2003 and will be expanded this year to include women's products.

看看我們的品牌，我們在歐洲的 Lee 品牌透過其成功的 Lee 101 優質系列繼續在面料合身和整理方面處於領先地位。為了支持 Lee 品牌的工作服傳統，Lee union [音訊不清晰] 系列於 2003 年秋季成功推出，並將於今年擴大到包括女裝產品。

2003 also marked the opening of our first Lee store in London. Based upon the store's strong performance to date we are evaluating other similar retail opportunities in key European cities. Our Wrangler® brand is continuing to build upon its strength in men's jeans and in 2003 achieved market share leadership in this category in Germany -- Europe's largest market.

2003 年，我們在倫敦開設了第一家 Lee 商店。根據該商店迄今為止的強勁表現，我們正在評估歐洲主要城市的其他類似零售機會。我們的 Wrangler® 品牌繼續增強其在男士牛仔褲領域的實力，並於 2003 年在歐洲最大的市場德國取得了該類別市場份額的領先地位。

Spring 2004 marks the launch of our premium Bluebell line, capitalizing on the brand's rich history, the line will include key product features dating back to the 1940s and '50s. Our Hero by Wrangler® and Maverick brands which are distributed in the mass market stores are poised for additional growth in 2004. For example, the market for stretch denim continues to grow and we have sought to capitalize on this trend with the successful launch of our Easy Fit line which provides a great fit and superior product. Hero by Wrangler® is also the first brand in the mass channel to bring a line of stain resistant casual pants through its easy clean line, featuring a liquid repellent, wrinkle resistant and breathable fabric. We continue to extend our brands into new markets.

2004 年春季標誌著我們推出優質 Bluebell 系列，利用該品牌豐富的歷史，該系列將包括可追溯到 20 世紀 40 年代和 50 年代的主要產品功能。我們在大眾市場商店銷售的 Hero by Wrangler® 和 Maverick 品牌預計將在 2004 年實現進一步成長。合和卓越的產品。 Hero by Wrangler® 也是大眾通路中第一個透過其易清潔系列推出防污休閒褲系列的品牌，該系列採用防液、抗皺和透氣的面料。我們繼續將我們的品牌擴展到新市場。

The Wrangler® brand was launched in China in 2003 and our Lee, Wrangler®, and H. I. S. brands are establishing a foothold in Russia.

Wrangler® 品牌於 2003 年在中國推出，我們的 Lee、Wrangler® 和 H.I.S. 品牌正在俄羅斯站穩腳跟。

Now turning to outdoor -- boasting sales growth in excess of 25 percent across both North America and Europe in 2003 The North Face brand continues to grow market share at competitors' expense. Continuous technical innovation is the key to driving growth across all product categories. Our most technical summit series continues to excel, driven by our loyal customer base trading up to our highest performance products.

現在轉向戶外產品——2003 年北美和歐洲的銷售額增長超過 25%。持續的技術創新是推動所有產品類別成長的關鍵。在我們忠實的客戶群購買我們最高性能產品的推動下，我們最具技術性的峰會系列繼續表現出色。

Our accelerated marketing initiatives have driven strong gains in brand awareness and intense purchase and on the retail front we opened a new flagship store in New York City in 2003 bringing the total Company owned stores to 7. We will add Boston in the near future. In partnership with key retailers we also opened stores in both London and Heavenly Valley, California.

我們加速的行銷舉措推動了品牌知名度和購買量的強勁增長，在零售方面，我們於2003 年在紐約開設了一家新的旗艦店，使公司擁有的商店總數達到7 家。增加波士頓。我們也與主要零售商合作，在倫敦和加州天堂谷開設了商店。

We will add five more in Europe this year. We also continue our market penetration across Europe with plans to add an additional 1,000 doors in 2004.

今年我們將在歐洲再增加五個。我們也持續滲透歐洲市場，並計劃在 2004 年再增加 1,000 扇門。

As far as our current order book, in North America, we're up 25 percent for spring with (indiscernible) exceeding a 30 percent increase. And in Europe spring orders are up 25 percent in local currency with fall not yet complete but trending above 20 percent.

就我們目前在北美的訂單而言，我們春季的訂單量增加了 25%，（難以辨別）成長超過 30%。在歐洲，以當地貨幣計算，春季訂單增加了 25%，下降尚未完成，但趨勢已超過 20%。

JanSport maintains the No. 1 market share position and 90 percent plus brand awareness with U.S. teenage consumers. 2004 will mark the introduction of our premium excess pack -- the third generation of our popular Airlift series. The year will also marked the introduction of a new line of JanSport hydration packs that will allow consumers to carry water easily and efficiently. We've partnered with (indiscernible) a pioneer in portable hydration to incorporate unique features that will form the core of our new water tower and hydrodynamic packs.

JanSport 在美國青少年消費者中保持第一的市場份額和 90% 以上的品牌知名度。 2004 年我們將推出優質超重包款－我們廣受歡迎的 Airlift 系列的第三代產品。今年也將推出新的 JanSport 水袋包系列，讓消費者輕鬆有效率地攜帶水。我們與（聽不清楚）便攜式水袋領域的先驅合作，整合了獨特的功能，這些功能將構成我們新型水塔和水動力包的核心。

Come Fall 2004 we're looking forward to the launch of the new line of JanSport outerwear and fleece products that leverages the product development, design, and sourcing capabilities of The North Face® brand. Also be entering the mass market with the introduction of trends by JanSport. A new line of high value, high style packs. And, finally, our college bookstore business was up 15 percent in 2003 and continues that trend in 2004.

2004 年秋季到來，我們期待推出新的 JanSport 外套和羊毛產品系列，該系列充分利用了 The North Face® 品牌的產品開發、設計和採購能力。 JanSport 也推出流行趨勢，進入大眾市場。全新高價值、高風格包裝系列。最後，我們的大學書店業務在 2003 年成長了 15%，並在 2004 年繼續保持這一趨勢。

The Eastpak® brand continues to be undisputed market leader in Europe. The innovation continues in '04 with our Anarchy and Graffiti series. We will also be entering apparel as our casual tees T-shirt and accessory line. We continue our dominant market share in central Europe while continuing to expand our reach across additional markets.

Eastpak® 品牌繼續成為歐洲無可爭議的市場領導者。 04 年，我們的 Anarchy 和 Graffiti 系列繼續創新。我們也將進入休閒 T 卹、T 恤和配件系列等服裝領域。我們繼續在中歐佔據主導市場份額，同時繼續擴大我們在其他市場的影響力。

Using the more edgy and contemporary look of its European counterpart we're repositioning the brand in the US to capitalize on the rapidly growing action sport segment. With that I will turn it over to George.

利用歐洲同行更前衛和現代的外觀，我們正在美國重新定位該品牌，以利用快速增長的極限運動領域。這樣我就把它交給喬治了。

Thanks, Terry. Our [indiscernible] team delivered a solid performance in 2003 with record profitability. Our Imagewear Coalition strategy is to provide a one stop shop for its customers, using an unmatched portfolio brands, products, service, and technologies to deliver customized apparel solutions.

謝謝，特里。我們的[音訊不清楚]團隊在 2003 年表現出色，獲利能力創歷史新高。我們的 Imagewear Coalition 策略是為客戶提供一站式服務，利用無與倫比的品牌、產品、服務和技術組合來提供客製化服裝解決方案。

We remain leaders in licensed sports and image apparel. With sales up 17 percent over last year, our licensed sports apparel unit which provides a range of casual apparel for sports fans shopping in mass and mid tier department stores has become a key growth vehicle in our Imagewear Coalition. We built partnerships with all the major sports leagues including the National Football League, Major League baseball, the NCAA, National Basketball Association, National Hockey League and NASCAR. Growth is being fueled by new licenses that offer greater exclusivity such as those with the NFL and MLB as well as from our latest licensed brand -- Harley Davidson Motor Company.

我們仍然是授權運動和形象服裝領域的領導者。我們的授權運動服裝部門為在大眾和中型百貨商店購物的體育迷提供一系列休閒服裝，其銷售額比去年增長了 17%，已成為我們 Imagewear Coalition 的主要成長工具。我們與所有主要運動聯盟建立了合作夥伴關係，包括國家美式足球聯盟、美國職棒大聯盟、NCAA、國家籃球協會、國家冰上曲棍球聯盟和納斯卡。提供更大排他性的新許可推動了成長，例如 NFL 和 MLB 以及我們最新的授權品牌——哈雷戴維森汽車公司的許可。

We will continue to leverage our best in class business model in 2004 with a focus on providing more fashion right women's products and young men's and children's, while continuing to search for new licensed opportunities that complement our extensive capabilities. Unemployment levels remain high impacting our workwear business, however, overall macroeconomic trends for uniforms -- particularly in the service sector -- remain positive. (indiscernible) protective an apparel premier protective apparel brand had a strong year due to great products that meet new regulations expanded brand awareness and much improved service levels. Tapping into The North Face brand's expertise and performance outerwear a new line, The Force, was introduced under our [indiscernible] small brand, the leader in public safety uniforms.

2004 年我們將繼續利用我們一流的商業模式，重點提供更多時尚的女裝產品以及青年男裝和兒童產品，同時繼續尋找新的許可機會來補充我們廣泛的能力。失業率仍然很高，影響著我們的工作服業務，但是，制服的整體宏觀經濟趨勢（特別是在服務業）仍然樂觀。 （音訊不清晰）防護 一個服裝頂級防護服裝品牌今年表現強勁，因為符合新法規的優質產品擴大了品牌知名度並大大提高了服務水平。利用 The North Face 品牌的專業知識和高性能外套，我們在公共安全制服領域的領導者 [音頻不清晰] 小品牌下推出了新系列 The Force。

Having access to VF's great portfolio brands is a big competitive advantage and we're now offering customized image apparel, using our Lee, Wrangler®, JanSport, Eastpak® and Gitano brands to all our customers. New additions to Imagewear's portfolio are the (indiscernible) and Byron Nelson's line of fine golf apparel which are part of our Nautica® acquisition.

擁有 VF 的優秀品牌組合是一項巨大的競爭優勢，我們現在使用 Lee、Wrangler®、JanSport、Eastpak® 和 Gitano 品牌向所有客戶提供客製化形象服裝。 Imagewear 產品組合的新成員是（音訊不清）和 Byron Nelson 的精美高爾夫服裝系列，它們是我們收購的 Nautica® 的一部分。

Over the years we built a stable of blue-chip accounts with customers that include FedEx, BellSouth, Compass and the Fire Department of New York. In addition we are the largest nondefense uniform supplier to the Federal Government supplying not only the transportation securities administration but also U.S. Customs and the Bureau of U.S. Citizenship and Immigration Services.

多年來，我們與 FedEx、BellSouth、Compass 和紐約消防局等客戶建立了穩定的藍籌帳戶。此外，我們是聯邦政府最大的非國防制服供應商，不僅為運輸安全管理局提供服務，也為美國海關和美國公民及移民服務局提供服務。

Improved technology capabilities -- including the launch of over 30 new customer websites that will transact over $40 million of business and the implementation of a new order management system -- are jacking up our service levels and speed. The expansion of our sourcing capabilities -- both owned and contracted -- has increased productivity to new highs.

改進的技術能力——包括推出 30 多個新客戶網站（將處理超過 4000 萬美元的業務）以及實施新的訂單管理系統——正在提升我們的服務水平和速度。我們的採購能力（無論是自有還是承包）的擴展已將生產力提高到新高。

With a more flexible and global sourcing strategy, we have lowered our cost structure and increased our speed to market.

憑藉更靈活的全球採購策略，我們降低了成本結構並加快了上市速度。

Looking ahead we're geared up for an even better 2004, led by a wonderful mix of people and capabilities to make it happen.

展望未來，我們已做好準備，迎接更美好的 2004 年，在優秀人才和能力的帶領下，我們將實現這一目標。

Thanks, George. This is Bob -- I'll provide a few more specifics behind the financials. This quarter we provided a table containing sales by product category in the release which will also appear in our upcoming annual report. Categories are jeanswear and related apparel and that includes our global jeanswear operations, intimate apparel -- again on a global basis -- sportswear -- that is Nautica® -- outdoor products. namely The North Face, JanSport and Eastpak® on a global basis, occupational apparel -- which is part of our Imagewear Coalition -- and other apparel. The other category includes our licensed sports apparel and playwear businesses. And you'll note in the release [indiscernible] sales the primary categories.

謝謝，喬治。我是鮑伯——我將提供一些財務數據背後的更多細節。本季度，我們在發布中提供了一個包含按產品類別劃分的銷售額的表格，該表格也將出現在我們即將發布的年度報告中。類別包括牛仔裝和相關服裝，其中包括我們的全球牛仔裝業務、貼身服裝（同樣是在全球範圍內）、運動裝（即 Nautica®）、戶外產品。即全球範圍內的 The North Face、JanSport 和 Eastpak®、職業服裝（屬於我們的 Imagewear Coalition 的一部分）以及其他服裝。另一類包括我們的授權運動服裝和運動服業務。您會在發布的[音訊不清楚]銷售中註意到主要類別。

Sales were up 2 percent for the year. As indicated in the release foreign currency helped sales by $128 million for the year. Gross margins were up 140 basis points in 2003. Improvements were driven nearly equally by higher gross margins in our Imagewear and outdoor businesses and by a stronger mix of higher margin businesses, including Nautica®.

今年銷售額成長了 2%。正如新聞稿中所示，外匯幫助該年度銷售額增加了 1.28 億美元。 2003 年，毛利率上升了 140 個基點。

[indiscernible] was very low in the fourth quarter reflecting the impact of favorable tax settlements received in the fourth-quarter. This also resulted in a lower than expected rate for the full year of 33 1/2 percent. We indicated in our release that our tax rate in 2004 should return to a more normalized rate of about 34 1/2 percent.

[音訊不清晰]第四季的成長率非常低，反映出第四季度收到的優惠稅結算的影響。這也導致全年成長率低於預期的 33.5%。我們在新聞稿中表示，2004 年的稅率應恢復到更正常的稅率，即 34 1/2% 左右。

For the year, interest income was up, reflecting the impact of the favorable tax settlement previously mentioned. Interest expense was down, reflecting a lower rate of new financings vs. the higher rates of the debt retired in 2002. Average outstanding debt balances year-over-year were comparable.

今年利息收入有所增長，反映了前面提到的優惠稅收解決方案的影響。利息支出下降，反映出新融資率較低，而 2002 年償還債務率較高。

I can touch on a number of major points related to our balance sheet and liquidity so I won't repeat them here. I would add that related to inventories, our total inventories increased by $102 million to 933 million. That increase includes $80 million of Nautica® inventories and a currency impact of $30 million.

我可以談到與我們的資產負債表和流動性有關的一些要點，因此我不會在這裡重複。我想補充一點，與庫存相關，我們的總庫存增加了 1.02 億美元，達到 9.33 億美元。這一增長包括 8000 萬美元的 Nautica® 庫存和 3000 萬美元的貨幣影響。

Looking for another year of higher sales and earnings in 2004 the disposition of our playwear business which had $144 million in sales in 2003 will impact total sales this year. Our core businesses should be flat to up slightly. Important to note that the addition of Nautica® and the strong growth we expect in outdoor will change our quarterly comparisons somewhat.

為了在 2004 年實現更高的銷售額和收益，我們對 2003 年銷售額為 1.44 億美元的運動服業務的處置將影響今年的總銷售額。我們的核心業務應該持平或略有上升。值得注意的是，Nautica® 的加入以及我們預計戶外領域的強勁成長將在一定程度上改變我們的季度比較。

Specifically due to the seasonal nature of these businesses earnings will tend to be stronger in the second half of the year vs. the first. Should see higher gross margins with an improvement of about 150 basis points, driven by a higher mix of lower cost manufacturing, lower costs related to capacity balancing, lower sales of excess inventories and improvements in the mix of higher margin business.

具體來說，由於這些企業的季節性，下半年的獲利往往會比上半年更強。在低成本製造、與產能平衡相關的成本降低、過剩庫存銷售減少以及高利潤業務組合改善的推動下，毛利率應該會提高約 150 個基點。

Operating expenses as a percent of sales may increase by 50 to 80 basis points, driven by a higher mix of businesses that have a higher SG&A relationship to sales. The operating expense, as a percentage of sales, business by business, will remain relatively flat.

由於 SG&A 與銷售關係較高的業務組合增多，營運費用佔銷售額的百分比可能會增加 50 至 80 個基點。各業務的營運費用佔銷售額的百分比將保持相對穩定。

Interest expense for 2004 will range between 70 and 75 million, considering the full year impact of debt outstanding related to the borrowings for the Nautica® acquisition. Capital expenditures should approximate $90 million and depreciation and amortization about $110 million. Should point out that our guidance for 2004 and these specifics as well assume no further acquisitions. Obviously, these numbers will change if acquisitions occur.

考慮到與收購 Nautica® 的借款相關的未償債務對全年的影響，2004 年的利息支出將在 7,000 至 7,500 萬美元之間。資本支出約 9,000 萬美元，折舊和攤提約 1.1 億美元。應該指出的是，我們對 2004 年的指導和這些細節也假設沒有進一步的收購。顯然，如果發生收購，這些數字將會改變。

We also indicated that we should see a sales increase of 8 to 10 percent in the first quarter, primarily driven by having Nautica® sales in the numbers for 2004. Earnings per share should be about flat with 2003 levels as Nautica® will be somewhat dilutive to the results. Nautica® is a more seasonal business than most of our existing VF businesses and is not expected to be accretive during the first half of 2004.

我們還指出，第一季的銷售額將成長 8% 至 10%，這主要是由於 2004 年 Nautica® 銷售額的推動。到結果。 Nautica® 是一項比我們現有的大多數 VF 業務更具季節性的業務，預計 2004 年上半年不會成長。

Thanks, Bob. I'm proud of what VF associates accomplished across our businesses in this extremely volatile year and we're looking forward to another very good year in 2004.

謝謝，鮑伯。我為 VF 員工在這個極其動蕩的一年中在我們的業務中所取得的成就感到自豪，我們期待著 2004 年又一個非常好的一年。

This coming year will be one of change for VF as we begin to put into place new engines that will fuel future growth. I think the VF of five years from now will be very different from the VF of today and I look forward to sharing our plans in these areas with you in greater detail in the months to come.

未來的一年將是 VF 的變革之一，因為我們開始部署新的引擎來推動未來的成長。我認為五年後的 VF 將與今天的 VF 有很大不同，我期待在未來幾個月與您更詳細地分享我們在這些領域的計劃。

Now I'd like to open it up to any questions that you may have about our business.

現在我想回答您對我們業務的任何問題。

+++ q-and-a.

+++ 問與答。

[Operator Instructions].

[操作員說明]。

Bob Drbul of Lehman Brothers.

雷曼兄弟的鮑勃·德布爾。

This is actually Adam Avramson calling in for Bob. I was wondering if you guys could talk about the denim and intimate inventory levels in the various channels? And then if you could discuss the sales breakdown in discount stores, department stores and specialty stores?

這實際上是 Adam Avramson 打電話給 Bob 。我想知道你們能否談談各個渠道的牛仔布和內衣庫存水準？那麼能否討論一下折扣店、百貨公司和專賣店的銷售明細呢？

We can tell you a little bit about the denim inventory levels at retail -- was that your question?

我們可以告訴您一些有關零售牛仔布庫存水平的信息——這是您的問題嗎？

Yes.

是的。

Right now I think they had their inventory had a lot of markdowns for holidays. I would say right now most of the shelf space out there in jeans is probably wouldn't say lean but about the right inventory levels right now. I don't think there's too much out there or too little out there. [indiscernible]

現在我認為他們的庫存在假期期間有很多降價。我想說，現在牛仔褲的大部分貨架空間可能不會說精益，而是目前庫存水準合適。我不認為那裡有太多或太少。 [音訊不清晰]

I would say pretty much the same for intimate in each channel in the mass channels and the chain stores, and the department stores -- inventory and management by the retailers has been a priority over the last two years and they've been successful in reducing their inventories over the last two years.

我想說的是，大眾通路、連鎖店和百貨公司的每個通路的親密產品幾乎都是一樣的——零售商的庫存和管理一直是過去兩年的首要任務，他們已經成功地減少了他們過去兩年的庫存。

This is Bob -- we don't generally, we don't provide that breakdown of our numbers by channels.

這是鮑伯——我們一般不提供按管道劃分的資料細目。

Ron Philips with Bank of America Securities.

美國銀行證券公司的羅恩‧菲利普斯。

My questions are more along on the jeans line side. And I wannabe careful about what I say, because I'm not sure I heard everything that you talked about on the call but let's just call the category flat I guess and your business was down. Would that infer that most of the jeanswear business declined was a result of competitive activity?

我的問題更集中在牛仔褲方面。我想小心我所說的話，因為我不確定我是否聽到了你在電話中談論的所有內容，但我想我們可以將該類別稱為持平，而你的業務卻下降了。這是否意味著大部分牛仔服裝業務的下滑是競爭活動的結果？

I don't think I said that at all because for example like Mackey said at Wal-Mart where we had a huge competitor come in, our unit sales were actually up 2003 vs. 2002. And retail sales group was up in 2003 vs. 2002. One of the big issues that we had with stores closings at Kmart for example and, obviously, they're watching their inventories very tightly, and promotional activity was kind of brought down a little bit so -- to me, our biggest loss of sales in '03 was really due to Kmart store closings.

我想我根本沒有這麼說，因為就像麥基在沃爾瑪所說的那樣，我們有一個巨大的競爭對手，我們的單位銷售額實際上比2002 年增長了2003 年。 2002 年成長了。我們最大的損失03 年銷售額的下降實際上是由於凱馬特商店關閉所致。

Now you know when we say it was flat, again, we don't have any actual numbers that say actually flat or down 3 percent or up 2 percent so we're trying to call it just even right now level.

現在你知道，當我們說持平時，我們沒有任何實際數字表明實際持平或下降 3% 或上升 2%，所以我們試圖將其稱為目前的水平。

Dennis Rosenberg with Credit Suisse First Boston.

瑞士信貸第一波士頓的丹尼斯羅森伯格。

This is actually Ed Kelly. I have a few questions -- that -- first question relates to the first quarter -- you beat guidance and consensus but your operating earnings were less than expected despite a strong contribution from Nautica®. So my question is what caused your core business to be a little bit weaker than expected?

這實際上是埃德·凱利。我有幾個問題 - 第一個問題與第一季有關 - 您超出了指導和共識，但儘管 Nautica® 做出了強勁貢獻，但您的營業收入仍低於預期。那麼我的問題是，是什麼原因導致你們的核心業務比預期弱一些？

Dennis, would you say the operating earnings were less than expected I am not sure I understand that -- sorry. Ed.

丹尼斯，你會說營業收入低於預期嗎？埃德。

I guess my question is you report 96 cents and Nautica® was better than expected which adds 6 cents, the tax rate was Lower which adds 6 cents so that alone puts you slightly below where your guidance was. And that doesn't include the fact that your interest expense is a little bit lower. So that would imply that your core business was a little bit weaker than you thought and my question is what caused that?

我想我的問題是您報告了96 美分，而Nautica® 比預期好，增加了6 美分，稅率較低，增加了6 美分，因此僅此一項就使您略低於您的指導水平。這還不包括您的利息支出稍微低一點的事實。那麼這意味著您的核心業務比您想像的要弱一些，我的問題是造成這種情況的原因是什麼？

Our business was a bit weaker than we thought. Again the profits though held on pretty well and (indiscernible) expectations -- I think the -- probably one of the bigger factors is what you just heard from John in the jeanswear business for example and the factors at Kmart that he just mentioned a little bit tougher than we might have expected (MULTIPLE SPEAKERS) [indiscernible].

我們的生意比我們想像的要弱一些。雖然利潤保持得很好，而且（難以辨別的）預期——我認為——可能更大的因素之一是你剛從約翰那裡聽到的牛仔服裝行業的因素，以及他剛剛提到的凱馬特的因素比我們預期的要難一些（多個發言者）[音頻不清晰]。

(indiscernible) decrease in Nautica® of 16 cents obviously well above the 8 to 10 cents that you had estimated. What is -- what caused that? What's happening that caused it to be so much better than expected?

（無法辨別）Nautica® 減少了 16 美分，明顯遠高於您估計的 8 到 10 美分。什麼是──是什麼造成的？到底發生了什麼，導致它比預期好得多？

The Nautica® business put the wholesale and retail business at a stronger fourth-quarter than we had expected. You have to accept that [indiscernible] acquired the business especially after September 1st and our forecast for last year were not (indiscernible) but we had a good wholesale business and a good retail business particularly in December. (indiscernible)

Nautica® 業務使批發和零售業務第四季度的表現比我們預期的要強。你必須接受[音訊不清楚]收購了該業務，特別是在9 月1 日之後，我們去年的預測不是（音訊不清晰），但我們擁有良好的批發業務和良好的零售業務，特別是在12月。 （聽不清楚）

And now how much of the expected synergies have you realized so far and if not all then why wouldn't you project more than 16 cents accretion for next year?

現在，到目前為止，您已經實現了多少預期的協同效應？

Just to make sure that we're square on that, we do and will see higher operating income from Nautica® next year. However, one of the factors is that we will have the outstanding borrowings and we net that and we compute the accretion. We consider the financings related to the acquisition. So we will have those borrowings outstanding for the full year next year. So we will see higher earnings but from an EPS standpoint, remember, the timing was so critical this year -- really was very good timing for us. We had that debt outstanding for a short period of time during a period when Nautica® generates most of their earnings.

為了確保我們能夠正確對待這一點，我們確實並且將會看到明年 Nautica® 的營業收入更高。然而，因素之一是我們將有未償還的借款，我們將其淨額計算出來併計算增值。我們考慮與收購相關的融資。因此，我們明年全年都會有未償還的借款。因此，我們將看到更高的收益，但從每股盈餘的角度來看，請記住，今年的時機非常關鍵——對我們來說確實是非常好的時機。在 Nautica® 產生大部分收入的時期，我們在短時間內未償還債務。

Okay, you mentioned -- last question here -- you mentioned you guys plan to step up the pace of acquisitions in '04, if I read your press release correctly. How soon would you consider another acquisition and what are your priorities now given that you've added Nautica®?

好的，你提到 - 最後一個問題 - 你提到你們計劃在 04 年加快收購步伐，如果我正確地閱讀了你們的新聞稿的話。您多久會考慮另一次收購？

Yes, we are examining (indiscernible) opportunities currently as we have been for the last three or four years. We do feel very good about the acquisitions and platforms we've developed over the last couple of years in the outdoor business as well as the sportswear business. Those are two areas we continue to focus on for additional acquisitions. Also our core businesses -- jeanswear and intimate apparel -- we are looking at opportunities to fill consumer segments with geographic opportunities that we aren't currently filling. So we feel like we've got a great platform now -- our core businesses are generating very strong profitability. We have some great new growth platforms and we're going to take full advantage of those.

是的，我們目前正在研究（難以辨別的）機會，就像過去三、四年一樣。我們確實對過去幾年在戶外業務和運動服裝業務方面的收購和開發的平台感到非常滿意。這是我們持續關注額外收購的兩個領域。此外，我們的核心業務——牛仔褲和內衣——我們正在尋找機會，用我們目前尚未填補的地理機會來填補消費者細分市場。所以我們覺得我們現在擁有一個很棒的平台——我們的核心業務正在產生非常強勁的獲利能力。我們有一些很棒的新增長平台，我們將充分利用這些平台。

Noelle Grainger with J.P. Morgan.

諾埃爾‧格蘭傑 (Noelle Grainger) 與摩根大通 (J.P. Morgan)。

Noelle Grainger. Couple of questions here. Can you give us a sense I know you don't kind of break down channels or retailers, but given your comments about Kmart kind of being bigger than expected, can you talk about how you're planning that business for '04? (MULTIPLE SPEAKERS) [indiscernible] you did mention I think somewhere along the way a new launch there and I'm assuming you are planning conservatively but is it up or down?

諾埃爾·格蘭傑。這裡有幾個問題。你能給我們一種感覺嗎？ （多個發言者）[音頻不清晰]你確實提到我認為在某個地方有一個新的發布，我假設你正在保守計劃，但它是上升還是下降？

We'd be planning that down for '04.

我們計劃在 04 年進行。

And is there -- is it primarily jeanswear business?

主要是牛仔服裝業務嗎？

It's also intimates (indiscernible). We're also planning it down a little bit in '04. We're working real hard with Kmart to help them succeed to...

這也是親密的（難以辨認）。我們也計劃在 04 年稍微縮減一下。我們正在與凱馬特努力合作，幫助他們成功...

Okay. In terms of a gross margin outlook for next year, Bob, you mentioned kind of lower product costs. Could you talk a little bit more about what's driving that? Is it a greater shift towards sourcing as a percentage of your mix? Are you shifting where your sourcing? Can you just elaborate a little bit on that?

好的。關於明年的毛利率前景，鮑勃，您提到了產品成本的降低。您能多談談是什麼推動了這股趨勢嗎？在您的產品組合中，是否有更大的比例轉向採購？您要轉移採購地點嗎？能詳細說明一下嗎？

Asking about the gross margins?

問毛利率？

That's right.

這是正確的。

Gross margin improvement. Well, you have to remember, Noelle, that this year, we did have some -- we did have some capacity adjustments in our numbers that impacted the numbers in the year 2003 which we don't expect to recur. So that's a factor. We expect to see some continued improvement in our Imagewear businesses and outdoor businesses -- factors that we talked about in the comments as well. So there are a couple of factors like that. Across the board we expect to see improvements.

毛利率改善。嗯，你必須記住，諾艾爾，今年我們確實對我們的數據進行了一些容量調整，這些調整影響了 2003 年的數據，我們預計這種情況不會再發生。所以這是一個因素。我們預計我們的 Imagewear 業務和戶外業務將持續改善——我們在評論中也談到了這些因素。所以有幾個類似的因素。我們期望看到全面的改進。

And remind me, the capacity and adjustments in '03 were in -- like -- Q2?

請提醒我，03 年的產能和調整是在—例如—第二季？

(indiscernible) in second and third quarter.

（音頻不清晰）第二季和第三季。

Okay. Okay. In the jeanswear business, there's been some mention in the marketplace about Levi's potentially lowering their price on their signature business. I'm wondering if you could comment on that and/or if you feel that will have any positioning impact on your positioning in the mass channel?

好的。好的。在牛仔褲產業，市場上有人提到李維斯可能會降低其標誌性業務的價格。我想知道您是否可以對此發表評論和/或您是否認為這會對您在大眾管道中的定位產生任何影響？

They have already lowered their price for example at Wal-Mart and their introduction at Target. Obviously we believe we have a great product out there with (indiscernible) $3-$5 under Levi's. We believe we also have a cost advantage both in our manufacturing and our sourcing. So right now we're holding our own. In fact, improving in some of those areas so right now we're just kind of wait and see.

他們已經降低了價格，例如在沃爾瑪和塔吉特的介紹。顯然，我們相信 Levi's 旗下有一款很棒的產品（聽不清楚），價格為 3-5 美元。我們相信我們在製造和採購方面也具有成本優勢。所以現在我們正在堅持自己的立場。事實上，其中一些領域正在改進，所以現在我們只是在觀望。

So, how much did they lower the price by then?

那麼，當時他們降價了多少呢？

About $3.

大約3美元。

My last question would just be for George on the license apparel side. It sounds like you are expecting that business to continue to be strong in 2004. Are retailers -- are retailers buying that business aggressively still for 2004?

我的最後一個問題是關於授權服裝方面的喬治。聽起來您預計 2004 年該業務將繼續強勁。

We do (indiscernible) some continued strength in our business next year. The mass channel is doing very very well for us and of course we have our new Harley Davidson license. And we're also seeing strength in women's product. We have nice expectations for in the coming year as well.

明年我們的業務確實（難以辨別）持續保持強勁。大眾頻道對我們來說做得非常好，當然我們還擁有新的哈雷戴維森許可證。我們也看到了女性產品的實力。我們對來年也抱持美好的期望。

David Griffith with Tradition.

大衛·格里菲斯與傳統。

John, just following up on the pricing issue with jeanswear. When you talked about the jeanswear business in 2004 you said you were basically planning that flat. Is there some price erosion sort of assumed there or do you fee pretty comfortable (inaudible) ?

約翰，剛跟進牛仔褲的定價問題。當您在 2004 年談到牛仔服裝業務時，您說您基本上正在規劃那套公寓。是否存在某種假設的價格侵蝕，或者您感覺相當舒服（聽不清楚）？

Right now we feel pretty comparable -- obviously we (indiscernible) selective price decreases if we have to but right now we think we're pretty competitive in the marketplace.

現在我們感覺相當可比——顯然，如果有必要的話，我們（難以辨別）會選擇性地降低價格，但現在我們認為我們在市場上具有相當的競爭力。

Sure and then, Eric, on Nautica® -- could you comment on kind of markdown experience given the reduction of doors in the fourth quarter? Were you pleasantly surprised there? And then could you talk a little bit about how you plan to direct the media spending that you -- the increase you talked about and then, lastly, maybe more for Bob is the other income increase. Is that mainly Nautica® royalties?

當然，然後，埃里克，在 Nautica® 上 - 鑑於第四季度門的減少，您能否評論一下降價體驗？你在那裡感到驚喜嗎？然後你可以談談你計劃如何指導媒體支出嗎——你談到的增加，最後，也許對鮑勃來說更多的是其他收入的增加。主要是 Nautica® 特許權使用費嗎？

I think your first question was about [indiscernible] markdowns? Was that what your question is?

我認為您的第一個問題是關於[音訊不清晰]降價？這就是你的問題嗎？

Yes. In terms of this being the first season that you have the business -- did you do better or worse in terms of markdown requests from [indiscernible]

是的。就這是您開展業務的第一個季節而言，您在[音訊不清晰]的降價請求方面做得更好還是更差

(MULTIPLE SPEAKERS)

（多個發言者）

The markdowns in the fourth quarter came into just a little bit under what we planned. That contributed to some of the improved earnings in the fourth quarter that we had. We're expecting that to be significantly less in the coming year for a couple of reasons. One I talked about the C&D doors which is where a lot of the markdown money went. And, second, we're going to come out with a significantly smaller line -- we're working on SKUs reductions trying to (indiscernible) line on core part of the business and (indiscernible) all of that will lower our markdown expense in 2004.

第四季的降價幅度略低於我們的計劃。這在一定程度上促進了我們第四季度獲利的改善。由於幾個原因，我們預計來年這一數字將大大減少。其中我談到了 C&D 門，這是大量降價資金的去向。其次，我們將推出一條更小的產品線——我們正在努力減少 SKU，試圖（無法辨別）業務核心部分的產品線，（無法辨別）所有這些都將降低我們的降價費用2004年。

On the media front, we don't have all of our media plans locked in yet. But my guess is going to be that where we're headed is with [indiscernible] outdoor [indiscernible]

在媒體方面，我們還沒有鎖定所有的媒體計畫。但我的猜測是我們要去的地方是[音頻不清晰]戶外[音頻不清晰]

David, the answer to your question on other income is yes -- it is related to the Nautica® licensing operation.

David，您對其他收入的問題的答案是肯定的 - 它與 Nautica® 許可業務有關。

And just, overall, was that better than you expected as well?

總的來說，這是否也比您預期的要好？

Actually it's been doing quite well and, yes, a bit above expectation.

事實上，它的表現相當不錯，是的，有點超出預期。

Virginia Genereux with Merrill Lynch.

維吉尼亞·傑納勒 (Virginia Genereux) 與美林證券 (Merrill Lynch)。

Good afternoon. Two questions, please -- one for Bob. Bob, if your interest expense is a lot lower than we have modeled and I think you guys had discussed in the fourth quarter and looking out to '04, wondering if the 70-75 million could come in lower because that seems to me that you're guiding to the same sales and earnings growth and it seems to me that higher interest expense is sort of the reason you're not seeing earnings growth maybe a little faster than sales. You've got a lot of cash. Can you do anything with the debt, refinancing any of that or paying any of it down ? And what happened in the fourth quarter? That's one, please.

午安.請提出兩個問題──一個問鮑伯。鮑勃，如果你的利息支出比我們建模的要低很多，我想你們在第四季度討論過，並展望 04 年，想知道 70-7500 萬是否會更低，因為在我看來，你正在引導相同的銷售和獲利成長，在我看來，較高的利息支出是你沒有看到獲利成長可能比銷售快一點的原因。你有很多現金。您可以對債務做任何事情，再融資或償還債務嗎？第四季發生了什麼事？就這一個，拜託。

The biggest issue in the fourth quarter is that the net interest number also includes interest received related to the favorable tax settlement. That's why -- that's why it looks lower than our guidance. That really was the factor there.

第四季最大的問題是淨利息數還包括與優惠稅結算相關的利息。這就是為什麼它看起來低於我們的指導。這確實是那裡的因素。

Okay and how about next year?

好的，明年怎麼樣？

(MULTIPLE SPEAKERS)

（多個發言者）

We do expect to see that $70-$75 million. Right now our debt -- we can't pay down the long-term -- and really wouldn't want to. We just did the 300 million financing at a great rate. It's 6 percent on a very long-term basis so that's a very good thing for us and again our intent is to put that cash to use as we indicated earlier.

我們確實預計該金額將達到 700-7500 萬美元。現在我們的債務——我們無法長期償還——而且真的不想償還。我們剛完成了3億的融資，速度非常快。從長期來看，這是 6%，所以這對我們來說是一件非常好的事情，我們的目的是像我們之前指出的那樣，將這些現金投入使用。

Great and would you reinstitute the share repurchase program and does your outlook contemplate that?

太好了，您會重新啟動股票回購計畫嗎？

We've always said if we -- the outlook really does not contemplate any significant buyback for the year 2004. But as we've always said if we don't see the acquisition opportunities, which are clearly our priority, we would certainly buy back a higher level of shares.

我們總是說，如果我們——展望確實不會考慮在2004 年進行任何重大回購。購買回購更高等級的股份。

Thank you and, really, last one. It looks to me if you could share with us that Nautica® was about a $570 or so million business in '03? Is that right and then your outlook for '04 was 550. And I can figure this out from your K but if you can share with us what Nautica® did in calendar '03 as it contributed to 40?

謝謝你，真的，最後一位。我認為您是否可以與我們分享 Nautica® 在 03 年的業務價值約為 570 億美元？是這樣嗎，那麼您對04 年的展望是550。做出了貢獻？

The '03 number is very difficult to get to. But since you mentioned looking at a 10-K I will go back to the last full fiscal year at Nautica® which was mostly calendar '02 [indiscernible] ended in March (indiscernible) '03. And the total business when you max that out is going to be down around $130 million. About 60 percent of that decrease is in businesses that have been exited since that time.

'03 號碼很難撥打。但既然您提到查看 10-K，我將回到 Nautica® 的上一個完整財年，該財年主要是 02 年日曆 [音頻不清晰]，結束於 03 年 3 月（音頻不清晰）。當您將其最大化時，總業務將減少約 1.3 億美元。其中約 60% 的減少來自於自那時以來已經退出的企業。

You recall I mentioned during the call and we said since the acquisition that there were several pieces of Nautica® businesses that were underperforming. Now they were also a drain on profit and cash. We've exited those. That includes European business [indiscernible], business [indiscernible] [inaudible] John Varvatos (ph) business and even the (indiscernible) business (indiscernible) transfer to Imagewear makes up about 60 percent of that decline in dollars. [indiscernible] decline in dollars is a decline in sportswear -- happened last year and now we're forecasting for this year offset by growth in most other pieces of the Nautica® Company.

您還記得我在電話會議中提到過，我們說過自收購以來，Nautica® 的幾項業務表現不佳。現在，它們也消耗了利潤和現金。我們已經退出了這些。其中包括歐洲業務[音訊不清晰]、John Varvatos（ph）業務[音訊不清晰][音訊不清晰]業務，甚至轉移到Imagewear 的（音訊不清晰）業務（音訊不清晰）約佔美元跌幅的60 %。 [音頻不清晰] 美元的下降是運動服裝的下降——去年發生過，現在我們預測今年的下降將被 Nautica® 公司大多數其他產品的增長所抵消。

Great, Eric, so if it was 670 in calendar '02 sort of been in 540 for this year and for calendar '03 and you're forecasting 550.

太好了，Eri​​c，如果 02 年日曆中的數字是 670，那麼今年和 03 年日曆中的數字是 540，而您預測是 550。

No I think the numbers -- I think the numbers were more like 690 and 560-ish (MULTIPLE SPEAKERS)

不，我認為這些數字 - 我認為這些數字更像是 690 和 560 左右（多個發言者）

Noelle Grainger.

諾埃爾·格蘭傑。

Bob, what is your FX assumption that you've built into the forecast for 2004?

鮑勃，您在 2004 年的預測中所考慮的外匯假設是什麼？

The '04 numbers. What we're assuming there, Noelle, is on a topline standpoint, it could benefit us by about a percentage point. And of course, bottom-line would follow through as well. So some improvement given the rates at the end of the year. Our average rate in '03 was 112 on the euro which was by far the most significant fee (ph). So we are assuming some improvement there. I get about a point -- 1 percentage point topline.

04年的數字。諾埃爾，我們的假設是從營收角度來看，它可以使我們受益大約一個百分點。當然，底線也將隨之而來。考慮到年底的利率，情況有所改善。我們 03 年的平均匯率是歐元 112，這是迄今為止最重要的費用 (ph)。所以我們假設那裡會有一些改進。我得到了大約一個點——1個百分點的頂線。

So you're pretty much using kind of like the year end (MULTIPLE SPEAKERS)

所以你幾乎使用了類似年末的方式（多個揚聲器）

(MULTIPLE SPEAKERS) little bit below that, we're a little more conservative and that.

（多個發言者）稍微低於這個，我們有點保守。

All right, and then what about your overall marketing spend? Is it going up again in 2004? And we -- can you tell us at this point where it came in for 2003? Or should we wait for the annual?

好吧，那麼您的整體行銷支出呢？ 2004年還會漲嗎？您能告訴我們 2003 年的情況嗎？還是應該等到年會？

In 2003 we were right at about 5 percent -- 5 percent of sales which was just a bit above '02. And for 2004, we once again expect to be at about 5 percent on higher sales and of course with Nautica®.

2003 年，我們的銷售額佔銷售額的 5% 左右，略高於 02 年。對於 2004 年，我們再次預期銷售額將成長 5% 左右，當然還有 Nautica®。

Okay and then just one other Nautica® related question. Any update, Eric, on the Rockefeller store in terms of how it's doing and what you plan to do with it?

好的，然後是另一個 Nautica® 相關問題。艾瑞克，關於洛克菲勒商店的經營情況以及您打算用它做什麼有什麼最新消息嗎？

No. Not really. Not really different (indiscernible) an update. We're working to find a solution for that store and the store is not a profitable operation.

不，不是真的。更新並沒有真正不同（難以辨別）。我們正在努力為該商店尋找解決方案，但該商店的營運並不盈利。

Did it improve at all over holiday or --?

假期期間情況有改善嗎？

Yes the fourth quarter was the strongest quarter -- December was the strongest month but that's typical of any store like that. We're -- as I said, we're working with the landlord to see if we can find a solution to that store. The rest of our retail operation is a great (indiscernible) [indiscernible] I mentioned we're going to also be exiting to underperforming stores in our portfolio [indiscernible] stores. And (indiscernible) ten new leases this year. We're trying to kind of remix our retail operation and get us to a place of peak performance.

是的，第四季度是最強勁的季度——十二月是最強勁的月份，但這對於任何類似的商店來說都是典型的。正如我所說，我們正在與房東合作，看看是否能找到該商店的解決方案。我們零售業務的其餘部分是一個偉大的（音頻不清晰）[音頻不清晰]我提到我們也將退出我們的投資組合[音頻不清晰]商店中表現不佳的商店。今年（聽不清楚）有十份新租約。我們正在嘗試重新組合我們的零售業務，讓我們達到最佳業績。

[Operator Instructions].

[操作員說明]。

At this time, it looks like we have no further questions. I'd like to turn the conference back to management for closing comments. Please go ahead.

此時，我們似乎沒有其他問題了。我想將會議轉回管理層以徵求結束意見。請繼續。

Thank you for joining us today and as we talked about, we have some great New York platforms in [indiscernible] [indiscernible] initiatives from our core businesses, we've got strong profitability from our core businesses which gives us (indiscernible) to our cash flow. As a result we will continue to be as consolidated to make plans in this very challenging environment. Thank you for being with us today.

感謝您今天加入我們，正如我們所討論的，我們在核心業務的[音頻不清晰][音頻不清晰]舉措中擁有一些出色的紐約平台，我們的核心業務具有強大的盈利能力，這使我們（音頻不清晰）能夠現金週轉。因此，我們將繼續團結一致，在這個充滿挑戰的環境中製定計劃。感謝您今天和我們在一起。

Ladies and gentlemen, that concludes the VF Corporation fourth quarter and full year 2003 conference call. If you would like to listen to a replay of today's conference you may dial 303-590-3000 or 1-800-405-2236 and enter passcode 566 256 #. Thank you, again, for your participation on today's conference and you may now disconnect.

女士們、先生們，VF 公司 2003 年第四季和全年電話會議到此結束。如果您想收聽今天會議的重播，您可以撥打 303-590-3000 或 1-800-405-2236 並輸入密碼 566 256 #。再次感謝您參加今天的會議，現在您可以斷開連接了。