VF Corporation (NYSE: VFC) today announced details on its goal to add $1.1 billion in revenues to its Asia Pacific business over the next five years. At an investor meeting held in Shanghai, China, the company discussed its strategic plans to reach $2.0 billion in revenues by 2017, primarily through growth from its five largest brands in the region –
The North Face
. This represents an annual growth rate of 17 percent from 2012 forecasted revenues of approximately $900 million.
The company also confirmed its previous 2012 expectation given on July 27 for revenues in Asia to increase about 20 percent, and for revenues in Europe to grow at a low double-digit rate.
“Our Asia Pacific revenues have grown nearly five-fold since 2007 and we continue to see tremendous opportunities for growth in all our brands,” said Eric Wiseman, VF Corporation Chairman and Chief Executive Officer. “That’s the power of VF’s diversified global portfolio.”
Aidan O’Meara, President, VF Asia Pacific, noted, “Our strategies for growth in Asia Pacific – winning big in China, expanding our footprint within other countries in the region, leveraging our scale and focusing on our largest brands – give us confidence in our ability to reach $2.0 billion in revenues by 2017 in this growing and dynamic market. VF has invested heavily and consistently in consumer research in China, which has helped us better understand Chinese consumers and position our brands in a way that speaks to their desires and aspirations.”
Karl Heinz Salzburger, Group President, VF International, provided a longer-term view on VF’s international mix of business. “In 2012, we expect international sales to comprise about 37 percent of VF’s total revenues. With the addition of Timberland and the continued strong growth expected in our Asia Pacific and European businesses, we now believe international revenues could account for 45 percent of total revenues by 2017.”