VF Corp., owner of North Face, Wrangler, Timberland, and others laid out a five-year growth plan projecting an increase in revenue by 60% to $17.3 billion. This ambitious plan is backed by the results of their five-year period from 2008, when revenue jumped 42% from $7.64 billion to $10.9 billion.
This likely means more acquisitions for the firm, which has traditionally used the purchase of labels to push growth. VF is aiming for a five-year compound annual sales target of 10%, with 8% coming “organically” and 2% due to acquisitions.
The company is also aiming for a 13% compounded annual growth grate in profits per share. Currently, profits per share are at $10.86, and the company is aiming for $18 per share by 2017.
The firm bought North Face for $130 million in 2000 when the firm went bankrupt. It kept brand management intact and expanded product categories to develop it into a lifestyle brand. North Face is now the company’s biggest label, with 12% annual growth predicted for five years and sales expected to swell to $3.3 billion from $1.9 billion in 2012.
In the mean time, the company continues opening its own retail locations for brands such as North Face and 7 for All Mankind. Direct sales to consumers are forecast to rise to 25% of the company’s sales, from the current 21%, by 2017. International sales are also expected to jump six percentage points to 43% from 37%, VF predicts.