2013 Guidance“The year ahead presents tremendous opportunities for us to expand our presence globally, lead our industry in product innovation and identify new platforms to support long-term growth,” said Wiseman. “We are confident that we are the best positioned company in our industry, and look forward to delivering another year of record results to our shareholders.”
- Strong, balanced revenue growth, with sales expected to increase by about 6 percent to $11.5 billion including growth in every coalition. Outdoor & Action Sports revenues should increase by about 10 percent with a near 20 percent increase for the Vans ® brand, a high single-digit increase for The North Face ® brand and mid single-digit growth for the Timberland ® brand. Jeanswear is expecting modest revenue growth driven by a 3-4 percent increase in the Americas region. Contemporary Brands (excluding John Varvatos) and Sportswear are each expected to grow revenues at a high single-digit rate, and mid single-digit growth is expected in Imagewear.
- 10 percent growth in international revenues, with continued strength in Asia, where revenues are expected to increase at a low teen rate; high single-digit revenue growth in Europe; and mid-teen growth in the Americas (non-U.S.) region. International revenues should approximate 38 percent of total revenues in 2013.
- Mid-teen growth in direct-to-consumer revenues, driven by approximately 160 store openings in 2013, comp store growth and an increase of over 30 percent in e-commerce revenues. Direct-to-consumer revenues are expected to grow to 23 percent of total revenues in 2013.
- Substantial margin expansion, including a 100 basis point improvement in gross margin and nearly a 100 basis point increase in operating margin.
- Adjusted earnings per share grows to $10.70, representing an 11 percent increase. On a GAAP basis, earnings per share are expected to increase 9 percent to about $10.60 from $9.70 in the prior year, which included the $0.32 per share gain from the John Varvatos sale. In addition, 2013 GAAP earnings per share guidance include a negative $0.10 per share in Timberland acquisition-related expenses, which were $0.25 per share in 2012.
- Record cash flow from operations, approaching $1.4 billion.
- Other full year assumptions include a 24 percent effective tax rate, a euro to U.S. dollar conversion rate of 1.30 and capital expenditures of approximately $325 million.