VANS BRAND TARGETS $5 BILLION IN REVENUE BY 2023
Vans, a VF Corporation brand and the global icon of creative expression for youth culture, hosted an investor meeting on Wednesday at the brand’s headquarters and provided 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.
Over the next five years, the Vans brand expects diversified and balanced growth across all product categories, distribution channels and geographies, driven by disciplined execution and investment to continue to fuel growth.
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.
Direct-to-consumer 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. Direct-to-consumer 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.
“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,” added 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.”
