Boston, MA 09/18/2014 (wallstreetpr) – VF Corp (NYSE:VFC)’s wholly owned subsidiary, Timberland® announced its plans to increase revenues by as much as $1.4 billion within a five year time span.
Increased Revenues
The world leading outdoor lifestyle apparel and footwear company made the announcement for growth at an investors’ conference. The meeting was held at Stratham, N.H., Timberland’s headquarters. As Business Wire article points out, the company’s management expects its total revenues to surge to approximately $3.1 billion by 2019. This calculates up to an annual growth of almost 13%, according to a Business Wire article.
The VF Corp (NYSE:VFC) expects to increase revenues in geographical regions including Asia Pacific ($620 million), Europe, Middle East and Africa ($1 billion), and the Americas ($0.7 billion) in five years. It expects wholesale revenues to surge to almost $2 billion and direct-to-consumer revenues to surge to approximately $1.1 billion. It expects to achieve 13% and 15% annual growth rate in each of the respective channels. The company anticipates a balanced growth. Timberland’s maximum percentage growth is expected to be in its e-commerce channel, which will add $180 million in revenues in the five-year period.
Executives’ Comments
In this context, VF Corp (NYSE:VFC)’s President, Chairman and Chief Executive Officer, Eric Wiseman, said that the present year will be the most successful year for Timberland. It demonstrates the effectiveness of VF’s business model, which establishes a strong connection between brands and customers. The company’s strategy brings growth and profits to its businesses, he underlined. He further emphasized that post the company’s acquisition of Timberland in 2011, its subsidiary has shown promising growth prospects.
Timberland President, Patrik Frisk also acknowledged the strength that the collaboration has proposed in the company’s growth. He said that VF Corp (NYSE:VFC)’s powerful resources have helped Timberland to invigorate the brand as a whole. He further appreciated VF’s business model saying that the customer-oriented strategy has made Timberland the biggest and most sustainable outdoor lifestyle brand of the world.
