Vans, the original action sports footwear and apparel company, today provided details on its strategy to add $1 billion in revenues over the next five years. At an investor meeting held at the House of Vans in Brooklyn, N.Y. – a 24,000 square-foot skatepark and event space – Vans announced that it expects revenues to reach $2.2 billion by the end of 2016, representing an annual growth rate of 13 percent. Vans is a wholly-owned subsidiary of VF Corporation (NYSE: VFC).
“Having more than tripled its revenues since being acquired in 2004, Vans is an amazing example of the power of VF’s business model that enables brands to grow profitably and globally while protecting their unique cultures,” said Eric Wiseman, VF Corporation Chairman and Chief Executive Officer. “Our investments to grow Vans across a variety of platforms – product innovation, geographic expansion and direct-to-consumer – have provided us with a very strong foundation to support its next chapter of growth.”
Vans President Kevin Bailey underscored the importance of the brand’s rich heritage and authenticity in achieving its growth plans. “Since 1966, we have been focused on building products that enable creative self-expression. From our first skate shoe to today’s announcement of the LXVI line, Vans defines “Off the Wall” youth culture. Generating increasingly more powerful connections with our consumers while leveraging the substantial resources of VF will drive our growth in both established and emerging markets, adding $1 billion in new revenues by 2016.”
Geographic GrowthVans expects substantial growth in each major geographic region during the next five years. Growth in the Americas, representing about 70 percent of total revenues in 2011, will account for nearly half of the anticipated $1 billion in revenue growth. With balanced growth across both wholesale and direct-to-consumer channels, a key focus will be expansion outside Vans’ core West Coast market. Major metropolitan areas such as New York City and Mexico City, where Vans has demonstrated great success, will be utilized as epicenters to drive brand awareness.