See all those Vans Old Skools on nearly everyone on the street under 60? Well, get ready to see a lot more as VF Corp rolls out plans to nearly double Vans’ annual revenue by 2023 to $5 billion.
“Since VF’s acquisition in 2004, the Vans brand has grown at a 17 percent compounded annual rate and transformed into a $3 billion global lifestyle brand,” said Steve Rendle, VF Corporation Chairman, President and Chief Executive Officer. “I am confident in the Vans team’s ability to deliver on a bold $5 billion revenue target which will be a key driver of VF’s plan to deliver superior total return to shareholders over the next five years.”
For exactly how Vans plans on doing this, please follow the jump. (Hint, it has something to do with that Internet thingy.)
Vans Brand Targets $5 Billion in Revenue by Fiscal Year 2023
September 12, 2018 06:55 AM Eastern Daylight Time
COSTA MESA, Calif.–Vans®, a VF Corporation (NYSE: VFC) brand and the global icon of creative expression for youth culture, is hosting an investor meeting today at the brand’s headquarters and will provide details of its plan to grow revenue by $2 billion to reach $5 billion by fiscal year 2023, representing growth between 10 and 12 percent over the five-year period.
“Since VF’s acquisition in 2004, the Vans brand has grown at a 17 percent compounded annual rate and transformed into a $3 billion global lifestyle brand”
“Since VF’s acquisition in 2004, the Vans brand has grown at a 17 percent compounded annual rate and transformed into a $3 billion global lifestyle brand,” said Steve Rendle, VF Corporation Chairman, President and Chief Executive Officer. “I am confident in the Vans team’s ability to deliver on a bold $5 billion revenue target which will be a key driver of VF’s plan to deliver superior total return to shareholders over the next five years.”
“Vans is moving into its rightful place as the number three global sport lifestyle brand by being clear about who we are and who we are not,” said Doug Palladini, Global Brand President. “By forsaking ubiquity and instead focusing on Vans’ brand pillars of art, music, action sports and street culture, we continue to generate deep and meaningful consumer connectivity that is growing the Vans Family worldwide.”
Fiscal 2023 Financial Targets
Over the next five years, the Vans® brand expects diversified and balanced growth across all product categories, channels of distribution and geographies, driven by disciplined execution and investment to continue to fuel growth. The Vans® brand fiscal 2023 financial targets include the following:
Footwear revenue is expected to grow at a five-year compounded annual growth rate (CAGR) between 10 percent and 12 percent. Heritage footwear is expected to grow at a CAGR between 8 percent and 10 percent and Progression footwear is expected to grow at a CAGR between 14 percent and 16 percent.
Apparel and accessories revenue is expected to grow to more than $1 billion, which represents a five-year CAGR between 13 percent and 15 percent.
DTC revenue is expected to grow to approximately $3 billion, representing about 60 percent of global brand revenue and a five-year CAGR between 13 percent and 16 percent. DTC Digital revenue is expected to grow to more than $1 billion, which represents a five-year CAGR between 30 percent and 35 percent.
Revenue in the Americas region is expected to reach approximately $3 billion, which represents a five-year CAGR between 10 percent and 12 percent.
Presenters and Webcast Replay Information
Presenters include: Steve Rendle, Chairman, President and Chief Executive Officer; Scott Roe, Chief Financial Officer; Kevin Bailey, Group President, Asia Pacific; Scott Basham, Vice President, General Manager Asia Pacific – Vans; Katie Bongiovanni, Vice President, Omni Channel & eCommerce – Vans; David Gold, Vice President, Business Strategy – Vans; Doug Palladini, Global Brand President; Kim Racine, Vice President, Chief Financial Officer – Vans; Vicki Redding, Vice President, Apparel – Vans; Dave Solomon, Vice President, Footwear – Vans; Nick Street, Vice President, Global Integrated Marketing – Vans; David Theiss, Vice President, Direct to Consumer – Vans; Jan Van Leeuwen, Vice President, General Manager EMEA – Vans; and Mitch Whitaker, Vice President, General Manager Americas – Vans.
The meeting with investors is being broadcast live via the internet and accessible at ir.vfc.com from approximately 11:30 a.m. to 3:30 p.m. Eastern Time. For those unable to listen to the live broadcast, an archived version will be available at the same location. Additionally, all presentations and the event’s transcript (once available) will be accessible at the same location following the event.
About Vans®
Vans®, a VF Corporation (NYSE: VFC) brand, is the original action sports footwear, apparel and accessories brand. Vans® authentic collections are sold in 84 countries through a network of subsidiaries, distributors and international offices. Vans® has over 2,000 retail locations globally including owned, concession and partnership doors. The Vans® brand promotes creative self-expression in youth culture across action sports, art, music and street culture and delivers progressive platforms such as the Vans Park Series, Vans Triple Crown of Surfing®, Vans Pool Party, Vans Custom Culture, and Vans’ cultural hub and international music venue, House of Vans.
About VF
VF Corporation (NYSE: VFC) outfits consumers around the world with its diverse portfolio of iconic lifestyle brands, including Vans®, The North Face®, Timberland®, Wrangler® and Lee®. Founded in 1899, VF is one of the world’s largest apparel, footwear and accessories companies with socially and environmentally responsible operations spanning numerous geographies, product categories and distribution channels. VF is committed to delivering innovative products to consumers and creating long-term value for its customers and shareholders. For more information, visit www.vfc.com.
