VF outlines ambitious growth plan for its outdoor and action sports brands

VF Corporation, the owner of a wide range of fashion and sports brands including Wrangler, Lee, Timberland, The North Face, Vans, Nautilus, Eagle Creek, Jansport and Eastpak, has presented a strategic plan to boost its sales to $17.3 billion by 2017. The earnings per share should then reach $18 by this point. The group has already managed to increase shareholder return by 20 percent over the last five years. For 2017, its gross margin is expected to be as high as 49.5 percent compared with 46.5 percent last year. The strong growth of all key performance indicators is said to be due to enhanced international business, increasing direct-to-consumer sales and the continuing growth of the group’s successful Outdoor & Action Sports Sports division, whose turnover should reach $11.1 billion by 2017. Outdoor’s 14 percent increase from last year to 2017 is said to be due to organic growth of 11 percent with further acquisitions contributing a further 3 percent. The outdoor and action sports brands are set to grow by 12 percent in the Americas, by 13 percent in Europe and by 24 percent in Asia-Pacific over the same period. The North Face’s growth is expected to achieve an annual growth rate of 12 percent taking the brand to total sales of $3.3 billion by 2017 (2012: $1.9 billion). Vans’s sales are expected to double to nearly $2.9 billion in the same period. The plan for Timberland is to raise the turnover from $1.5 billion last year to $2.3 billion in 2017.

 

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