US-based VF Corporation, the parent company of brands such as Lee, Wrangler, Seven for all Mankind, The North Face and Vans, has vowed to increase revenues by $5bn (£3.1bn) over the next five years and focus on expansion in international markets.
The five year targets were set out at the company’s investor meeting in New York on Monday by chair and chief executive Eric Wiseman.
Around $3bn (£1.9bn) of the anticipated growth is forecast to come from the company’s outdoor and action sports division which includes The North Face and Vans brands. This division has grown on average by 17% over the last five years and by 2015 is anticipated to account for at least half of the VF Corporation’s total revenues.
The remaining $2bn (£1.2bn) is expected to be made up of $1bn (£0.6bn) growth in the jeanswear division, particularly in international markets such as Asia and Europe and $1bn (£0.6bn) from combined higher revenues across sportswear, imagewear and contemporary brands.
Commenting on the growth plans, Wiseman said: “We have a strategic plan in place to drive revenues at a 10% annual rate and earnings at a 12% annual rate, with operating margins rising to 15% over the next five years.
“Our goal is to reach $12.7bn (£7.9bn) in revenues by 2015. Growth will come domestically and internationally, across all coalitions, and in both our wholesale and direct-to-consumer businesses.”
The meeting also focused on international growth plans for the business including 15% annual growth in international revenues with Asia expected to be the company’s fastest growing international market, representing an annual growth rate of 28%.