VF Corporation forecasts swift growth for Vans and targets 5 billion dollars in 2023
If the company reaches its goal, the skate-inspired footwear brand sales will grow between 10% and 12% during the next five years. Currently, Vans revenues exceed 3 billion dollars (2.59 billion euros).
Vans, VF’s growth engine in the future. The skate-inspired footwear brand, owned by the group since 2004, has unveiled today the key facts of its strategy for the next five years. Supported by ecommerce, direct-to-consumer, footwear and fashion, the Californian label aims to reach 5 billion dollars (4.31 billion euros) in sales by 2023.
If this goal is accomplished, Vans will have grown between 10% and 12% at the end of the period. At present, company revenues exceed 3 billion dollars (2.59 billion euros) per year.
“Vans is moving into its rightful place as the number three global sport lifestyle brand,” 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.”
Vans expects apparel and accessories’ sales to reach one billion dollars (862.3 million euros) in 2023
During a meeting held today at the brand headquarters with investors, Vans announced some of the growth pillars for future momentum. The footwear category, its core business, it’s expected to grow between 10% and 12% year-on-year until 2023.
Another key element of the brand’s strategy is direct-to-consumer. Revenues across this channel are expected to reach 3 billion dollars (2.58 billion euros) in five years, representing around 60% of total turnover. Through own ecommerce platforms, sales will amount to one billion dollars (862.3 million euros).
That same amount is what Vans aims to achieve through its apparel and footwear business, for which it also foresees a double-digit increase in the next five years. Eventually, sales in the Americas are likely to rise to 3 billion dollars (2.59 billion euros).
VF Corporation ended fiscal 2017 with sales of 11.74 billion dollars (9.4 billion euros), 7% more. In contrast, the company’s net profit experienced a 43% decline year-on-year to 614.9 million dollars (493 million euros).
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