On March 11, 2011, VF Corp, owners of popular youth culture brands such as Vans, The North Face, Lee, John Varvatos, and 7 for All Mankind announced their next 5-year plan to achieve their next $5 billion by 2015. Major emphasis came in the categories of Outdoor and Action Sports, which tends to lead their business, followed by their denim, and greater emphasis on global expansion.

Here’s an edited breakdown of their latest financial release:

“VF’s momentum continues to build,” said Eric Wiseman, Chairman and Chief Executive Officer. “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. 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 & 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 & 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 focused 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.

VF outlined their Growth Drivers to 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.