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,” 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.
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.
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.
Certain statements included in this release are "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements are made based on our expectations and beliefs concerning future events impacting VF and therefore involve a number of risks and uncertainties. You can identify these statements by the fact that they use words such as “will,” “anticipate,” “estimate,” “expect,” “should,” and “may” and other words and terms of similar meaning or use of future dates. We caution that forward-looking statements are not guarantees and that actual results could differ materially from those expressed or implied in the forward-looking statements. Potential risks and uncertainties that could cause the actual results of operations or financial condition of VF to differ materially from those expressed or implied by forward-looking statements in this release include, but are not limited to: foreign currency fluctuations; the level of consumer demand for apparel, footwear and accessories; disruption to VF’s distribution system; VF's reliance on a small number of large customers; the financial strength of VF's customers; fluctuations in the price, availability and quality of raw materials and contracted products; disruption and volatility in the global capital and credit markets; VF's response to changing fashion trends; increasing pressure on margins; VF's ability to implement its business strategy; VF's ability to grow its international and direct-to-consumer businesses; VF’s and its customers’ and vendors’ ability to maintain the strength and security of information technology systems; stability of VF's manufacturing facilities and foreign suppliers; continued use by VF's suppliers of ethical business practices; VF’s ability to accurately forecast demand for products; continuity of members of VF’s management; VF's ability to protect trademarks and other intellectual property rights; possible goodwill and other asset impairment; maintenance by VF’s licensees and distributors of the value of VF’s brands; changes in tax liabilities; legal, regulatory, political and economic risks; and adverse or unexpected weather conditions. More information on potential factors that could affect VF's financial results is included from time to time in VF's public reports filed with the Securities and Exchange Commission, including VF's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.
Joe Alkire, 336-424-7711
Vice President, Corporate Development, Investor Relations and Financial Planning & Analysis
Craig Hodges, 336-424-5636
Senior Director, Public Relations