VF Corporation Announces New 5-Year Growth Targets and Strategic Growth Drivers
Autor: JEANSWEAR BRAZIL | Publicado: 2011-06-26T18:17:00-03:00

                             The Next $5 Billion:&nbsp;VF Corporation Announces New 5-Year Growth  Targets and Strategic Growth Drivers                                                               Leadership team outlines strategy to add $5 billion in revenue growth and $5 in earnings per share by 2015 
Information regarding VF's webcast of "The Next Five Years" can be found at the end of this release.The webcast begins today at 9:30 a.m. ET. GREENSBORO, N.C., Mar 11, 2011 (BUSINESS WIRE) -- VF Corporation (NYSE: VFC), a global leader in  branded lifestyle apparel, today is announcing new 5-year financial  targets at its investor meeting in New York City. Eric Wiseman, Chairman  and Chief Executive Officer, and other members of VF's management team  will be discussing the company's plans to reach its 2015 goals of adding  $5 billion in revenues and $5 in earnings per share growth from 2010  levels. Presentations and videos from the meeting will be available at www.vfnext.com beginning at 1:00 p.m. EST. "VF's momentum continues to build," said Wiseman. "We're approaching  the next five years with confidence, and with the belief that the full  potential of our brands is just beginning to unfold. We have a strategic  plan in place to drive revenues at a 10 percent annual rate and  earnings at a 12 percent annual rate, with operating margins rising to  15 percent over the next five years. Our goal is to reach $12.7 billion  in revenues by 2015. Growth will come domestically and internationally,  across all coalitions, and in both our wholesale and direct-to-consumer  businesses." Key components of the $5 billion in expected revenue growth include: $3 billion from Outdoor  &amp; Action Sports, where revenues have grown on average by 17 percent  over the past five years. Building on well-established and highly  profitable domestic, international and direct-to-consumer platforms, The North Face(R) and Vans(R)  brands, which account for 75 percent of total coalition revenues, are  targeting annual growth of 16 percent and 13 percent, respectively. By  2015, Outdoor &amp; Action Sports should account for at least half of  VF's total revenues. 
$1 billion from growth in Jeanswear through the Wrangler(R) and Lee(R) brands, led by expansion in international markets such as Asia, Europe and Latin America. 
$1 billion from higher revenues across Sportswear, Imagewear and Contemporary Brands, combined, over the next five years. 
 The meeting is also focusing on international and direct-to-consumer growth plans and targets, including: 15 percent annual growth in international revenues.  Asia will be VF's fastest growing market, with revenues by 2015 of $1.3  billion, representing an annual growth rate of 28 percent. VF's largest  international market, Europe, and the Americas region are both targeted  to grow 11% annually. 
15 percent annual growth in direct-to-consumer revenues.  More than 700 new stores across a variety of VF brands will be opened  during the next five years, bringing the total number of stores to about  1,500 by 2015. E-commerce revenues are expected to triple during this  period, reaching nearly $400 million. 
 Expanding Margins and Strong Cash Generation The profitability of VF's Outdoor &amp; Action Sports, international  and direct-to-consumer businesses are substantially above the corporate  average. Higher growth in these highly profitable businesses will fuel  expansion in both gross margins and operating margins over the next five  years. By 2015 operating margins are expected to rise to 15 percent  from 13.3 percent in 2010. Cash flow from operations reached $1 billion in 2010; continued  strong cash flow generation is anticipated over the next five years,  reaching a cumulative total of $6 billion over the period. "We are confident we have the brands and infrastructure in place to  support these growth plans," continued Wiseman. "We have  well-established platforms not only in the United States, but also in  Europe, Asia and Latin America that will be leveraged to grow our  existing portfolio of powerful brands. We also have the financial  strength and cash flow to build significant shareholder value. Our  priority for cash flow continues to be acquisitions, primarily in the  outdoor and action sports category." Also to be presented at the meeting will be an update to VF's Growth Drivers, which include a new focus on innovation. "Innovation is our newest Growth Driver, and will play a significant  part in our plans to drive organic growth and higher gross margins,"  said Wiseman. "We will foster a global culture of innovation across  brands and functions, supported by new processes, new skills and talent,  and new collaborative networks to accelerate the pace of breakthrough  product introductions." VF's other Growth Drivers include: Build Lifestyle Brands: Emphasizing activity-based lifestyle brands that speak authentically to consumers' needs and aspirations. Go Global: Growing in both established and emerging  markets, with efforts concentrated in Europe, China, India, Brazil and  Mexico, with a goal of 40% of total VF revenues from international  markets by 2015. Serve Consumers Directly: Growing direct-to-consumer  revenues to 22% of total revenues by adding branded retail stores and  building stronger consumer relationships through brand websites and  social media. Enable VF's Future. Investing in people through  tools, training and development opportunities, and in supply chain  capabilities that reduce cost and provide speed, flexibility and value. Win with Winning Customers. Leveraging consumer  knowledge and global brand expertise to grow market shares and bring  exclusive brands to key retail customers. Statement on Forward Looking Statements 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. 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 the overall level of consumer spending on  apparel; the level of consumer confidence; 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  reliance on a small number of large customers; the financial strength  of VF's customers; changing fashion trends and consumer demand;  increasing pressure on margins; VF's ability to implement its growth  strategy; VF's ability to grow its international and direct-to-consumer  businesses; VF's ability to successfully integrate and grow  acquisitions; VF's ability to maintain the strength and security of its  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; maintenance  by VF's licensees and distributors of the value of VF's brands; foreign  currency fluctuations; and legal, regulatory, political and economic  risks in international markets. 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. About VF VF Corporation is a global leader in branded lifestyle apparel with more than 30 brands, including Wrangler(R), The North Face(R), Lee(R), Vans(R), Nautica(R), 7 For All Mankind(R), Eagle Creek(R), Eastpak(R), Ella Moss(R), JanSport(R), John Varvatos(R), Kipling(R), lucy(R), Majestic(R), Napapijri(R), Red Kap(R), Reef(R), Riders(R) and Splendid(R).


SOURCE: VF Corporation
VF Services
Cindy Knoebel, CFA
VP, Corporate Relations
212-841-7141/336-424-6189
cindy_knoebel@vfc.com