5 years to get to 5 billion: VF Corp’s projects for Vans and its sneakers

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Average growth between 10% and 12% in the next 5 years, to reach a turnover of 5 billion USD. The growth plan presented by the group that has owned the brand since 2004, VF Corp, is ambitious. The American group stated that, in the next five years, Vans’ streetstyle will have a diversified and balanced growth in all product categories, distribution channels and geographical areas, “guided by a disciplined execution of the investments”. The growth of the footwear segment of the brand should be between 10% and 12%, while the clothing and accessories’ segments should increase their business by 13% to 15%. Moreover, the growth outlook on the digital side are even more explosive: between 30% and 35%. “Vans is moving towards its legitimate aspiration to be the third largest sport-lifestyle brand in the world”, said the brand’s president Doug Palladini. The brand closed its 2003 fiscal year with 330 million USD in revenue: its last balance sheet, just less than 15 years later, reads more than 3 billion USD. This notion lets everyone understand how much VF Corp is betting on Vans, and it justifies their recent choice to detach the denim business, by starting a new segment where the brands Lee and Wrangler, as well the management of the outlets, will be joined together. The operations should be concluded by mid-2019.

 

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