VF Corp, the parent company of well-known brands like Vans, Supreme, The North Face, Timberland, and Dickies, has recently introduced a comprehensive five-year growth strategy. Their aim is to accelerate revenue growth and achieve a compound annual growth rate of mid- to high-single digits by 2027. To accomplish this, VF Corp intends to expand into new markets and categories.

This strategic growth plan encompasses all of VF Corp’s brands, regions, and channels. It is built on four fundamental pillars. Firstly, the company plans to expand into “adjacent” areas that complement its existing brands. This expansion will be achieved through mergers, acquisitions, and business development efforts. Secondly, VF Corp aims to connect directly with consumers, forging stronger relationships and understanding their needs. Thirdly, the company will focus on managing its brands at different stages of growth to maximize their potential. Lastly, VF Corp plans to utilize consumer data and analytics to operate more efficiently.

To effectively implement this new strategy, VF Corp will allocate capital and resources wisely. It aims to leverage its strengths and unique business model to provide superior returns to shareholders in the long run. Despite various challenges faced in the global economic environment, VF Corp has shown resilience and adaptability.

Looking specifically at the forecasted growth for each brand, VF Corp expects The North Face and Supreme brands to achieve high single to low double-digit revenue growth by 2027. Vans and Timberland brand revenues are expected to increase by mid-single digits, while Dickies brand revenue is forecasted to grow by high single digits. Furthermore, VF Corp’s outdoor emerging brands are predicted to grow by mid- to high-teens over the next five years.

However, alongside the announcement of this five-year growth plan, VF Corp also revised its full-year 2023 guidance, citing a disappointing second quarter. Vans experienced weaker-than-expected back-to-school performance, and increasing inventories led to a more promotional environment in North America during the fall season. As a result, VF Corp now expects total revenue to grow by approximately 5% to 6%, compared to its previous projection of at least 7% growth.

Despite these challenges, VF Corp remains confident in its ability to consistently generate sustainable growth across its brand portfolio in the long term. The company is committed to addressing obstacles and adapting to the current economic uncertainties while pursuing its vision of becoming the world’s leading portfolio of iconic, beloved, and active-lifestyle brands.

Useful links:
VF Corp Official Website
Vans Official Website