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 From day one in his career, Mackey McDonald, MBA ’74, has had a
passion – for building brands. In fact, when he found himself working in
an area that didn’t allow him to pursue that passion, he gave up that job
to take a pay cut and a lower-level position at VF Corporation.
That proved to be a good move not only for McDonald but also for the apparel company.
Today VF Corp is the world’s largest apparel company, with more than 40 brands, 44,500
employees around the globe, and $6 billion in annual revenues. And McDonald has
served as its CEO for more than 10 years.
For the past five years, VF has posted double-digit earnings
for its investors. During the bear market from August 2000 to
March 2003, its rate of return was a whopping 61 percent. Its
stock continues to be popular among investors, with analyst
Jim Cramer placing it among “stocks that institutions can’t
resist.” In 2006 the company posted record revenue and
earnings, grew internationally, opened more retail stores, and
acquired more brands. The first half of 2007 saw net income
from continuing operations at $240 million, revenue increasing
by 14 percent to $3.2 billion, and earnings per share from
continuing operations rising 14 percent.
Under McDonald’s leadership, the company has undergone a
major transformation. VF Corp started as a traditional basic
apparel company with an emphasis on manufacturing and a
sound reputation in jeanswear, women’s underwear, children’s
clothes, and work clothing. In 1986, a milestone year, VF
acquired Blue Bell, Inc., bringing several popular brands into its
fold – Wrangler, JanSport, and Jantzen among them. In evaluating
those incoming brands, McDonald’s team arrived at a tough
decision. It chose to simplify the business and sell some of the
less competitive units, including the popular swimwear line. It
was the right decision and sent profits soaring.
In the past decade the company has focused specifically on
building lifestyle brands. It now has a diversified portfolio of
50 well-known brands, including Wrangler, Lee, The North
Face, Nautica, Vans, Eastpak, Napapijri, and Eagle Creek.
Through its Majestic Athletic apparel line, VF has licensing
agreements to provide uniforms to Major League Baseball
and other athletic franchises.
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