VF Corp. officials have revealed a five-year growth plan that includes growing the company’s outdoor and action sports brands, including The North Face and Vans, to account for half of VF’s total revenue by 2015.
VF’s outdoor and action sports segments ended 2010 accounting for 42 percent of the company’s total revenue at about $3.2 billion, and its goal is to add another $3 billion in revenue, during the next five years, VF Group President of Outdoor & Action Sports Americas Steve Rendle told investors in New York City on March 11.
Broken down by its major brands, the five-year revenue growth goals for the group include an additional $1.5 billion at The North Face, $900 million at Vans, $300 million at Kipling and Napapijri, and $300 million spread among the group’s other brands, including Jansport, Eastpak, Lucy, Eagle Creek and Reef.
Focusing on The North Face, by region, the company is planning during the next five years for 30 percent compounded annual growth rate in Asia, 16 percent in Europe, and 14 percent in the Americas. VF plans to more than double The North Face-owned, direct-to-consumer stores from 63 in 2010 to 179 in 2015, and increase partnered stores from 133 in 2010 to 185 in 2015.
Saying that the “digital ecosystem” and e-commerce will play a large role, VF revealed some its current digital traffic and user numbers at The North Face including 1 million visitors a month to TheNorthFace.com, more than 600,000 email subscribers, 500,000 users of its Snow Report App, more than 430,000 users of its Trailhead App, more than 618,000 users of its Facebook page, and more than 22,000 users of its Twitter page.
Company-wide, VF’s annual e-commerce revenue is expected to triple to $400 million by 2015.
In its other groups, VF expects to increase revenue by $1 billion in jeanswear and another $1 billion combined across sportswear, imagewear and contemporary Brands.
“We're approaching the next five years with confidence, and with the belief that the full potential of our brands is just beginning to unfold,” VF CEO and Chairman Eric Wiseman said in a statement. We have a strategic plan in place to drive revenues at a 10 percent annual rate and earnings at a 12 percent annual rate, with operating margins rising to 15 percent over the next five years. Our goal is to reach $12.7 billion in revenues by 2015.”