Branded lifestyle apparel maker VF Corp. (VFC) on Tuesday established its revenue and earnings per share targets to be reached over the next five year by 2017 as part of its strategy and key initiatives to support continued superior returns to its shareholders. This was revealed by the company's Chairman and CEO Eric Wiseman during an investor meeting in New York City earlier in the day.
"VF's model - consisting of powerful brands supported by powerful platforms - continues to deliver outstanding value to shareholders, as evidenced by 20 percent average annual growth in total shareholder return over the past five years," Wiseman said in a statement.
Wiseman added that, "By leading in innovation, connecting with consumers, expanding geographically and growing our direct-to-consumer business, we look forward to delivering the next chapter in a long and very successful growth story."
The Greensboro, North Carolina-based maker of Wrangler and Lee jeans established a revenue target of $17.3 billion and earnings per share target of $18.00 to be reached by 2017. The company's projection is driven by the exceptional growth in its highly profitable Outdoor & Action Sports, direct-to-consumer and international businesses.
The targeted revenue growth represents a five-year compounded annual growth rate (CAGR) of 10 percent, with 8 percent organic growth and 2 percent growth anticipated from acquisitions. Meanwhile, the earnings per share growth represents a five-year CAGR of 13 percent.
For fiscal 2012, the company reported revenues of $10.77 billion and earnings per share of $9.70. The company's current guidance for fiscal 2013 calls for revenues of $11.5 billion and adjusted earnings per share of $10.75.
The company also targets reaching gross margin of 49.5 percent and operating margin of 16 percent by 2017, up from the gross margin of 46.5 percent and operating margin of 13.5 percent reported in fiscal 2012.
On a segmental basis, outdoor & action sports will drive the growth, with revenues expected to reach $11.1 billion by 2017 propelled by strong growth anticipated across all key regions of the Americas, EMEA and Asia-Pacific. The segment will account for 64 percent of VF's total revenues by 2017, up from the 54 percent in 2012.
Jeanswear revenues are projected to reach $3.3 billion and imagewear revenues are expected to reach $1.3 billion by 2017.
Sportswear revenues is anticipated to reach $835 million by 2017, with the bulk of the revenues of $700 million projected to come from the Nautica brand. Revenues for the contemporary brands coalition are expected to reach $645 million by 2017.
VF's direct-to-consumer (DTC) business - consisting of its owned retail stores and eCommerce businesses - is expected to report revenues of $4.4 billion by 2017, helped by new store openings with a strong international component, accelerated eCommerce growth and continuous comp store increases.
VF noted that international growth is another key pillar of its growth, and is expected account for 43 percent of total revenues by 2017, up from the 37 percent in 2012. Revenues are targeted to hit $7.4 billion in 2017.
The company also affirmed the key priorities of acquisitions, dividends and share repurchases for a strong cash flow. The company continues to target a dividend payout rate of 40 percent, more than 15 percent annual total shareholder return and is targeting 20 percent for the company's return on invested capital.
"The combination of the industry's most diverse brand portfolio, a proven strategy, a team that consistently delivers and unsurpassed competitive advantages uniquely position VF to deliver consistent, sustainable value for both our consumers and shareholders - now and in the future." CFO Bob Shearer noted.
In Tuesday's regular trading session, VFC is currently trading at $188.85, up $1.81 or 0.97% on a volume of 0.12 million shares.
For comments and feedback contact: editorial@rttnews.com
Business News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.