VF Corp aims to reach $17bn in revenues by 2017

VF’s direct-to-consumer (DTC) business – consisting of its owned retail stores and eCommerce businesses – will continue to be a significant contributor to VF’s growth over the next five years. Comprising 21 percent of total revenues in 2012, direct-to-consumer is anticipated to grow to 25 percent of total revenues by 2017.

Mike Gannaway, Vice President, VF Direct/Customer Teams identified key elements of the plan, including new store openings with a strong international component, accelerated eCommerce growth and continuous comp store increases to fuel a 14 percent CAGR in DTC, to $4.4 billion in revenues by 2017.

The Company expects to own and operate approximately 1,775 stores, an increase of approximately 645 stores over the 1,129 stores at year-end 2012. As one of VF’s fastest growing and most profitable businesses, eCommerce revenues are expected to grow at an average rate of 25 percent annually over the next five years. DTC growth is anticipated across all key regions with CAGRs of 12 percent in the Americas, 21 percent in EMEA and 15 percent in Asia-Pacific, respectively.

International Expansion: Fueling Growth Across Key Geographies

International growth is another key pillar of VF’s growth, and is expected to comprise 43 percent of total revenues by 2017 compared with 37 percent in 2012. Revenues are targeted to hit $7.4 billion in 2017, with a CAGR of 13 percent over the five-year period.

During a panel discussion, Karl Heinz Salzburger, Vice President, VF Corporation and President, VF International together with other executives from VF’s international team provided an overview of brand strategies that are expected to fuel revenue growth in each key geographic region, including compounded annual growth rates of 17 percent growth in Asia-Pacific, 15 percent in the Americas (non U.S.) and 11 percent in EMEA.

VF Corporation