VF Corp aims to reach US$17bn in revenue by 2017, representing a five-year compounded annual growth rate (CAGR) of 10%.

It said at an investor meeting today (11 June), 8% of the growth will be organic, while 2% will come from acquisitions.

"VF's model - consisting of powerful brands supported by powerful platforms - continues to deliver outstanding value to shareholders, as evidenced by 20% average annual growth in total shareholder return over the past five years," said chairman and CEO Eric Wiseman.

"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 company has also raised its projections for gross and operating margin. On the back of growth in the outdoor and action sports, direct-to-consumer and international businesses, the company is now targeting a gross margin of 49.5% in 2017 from 46.5% in 2012. Operating margin is expected to reach 16% from 13.5% in 2012.

VF said its outdoor and action sports division is expected to continue to be the key driver in the company's growth in coming years, with revenues to reach $11.1bn by 2012, a five-year CAGR or 14%, comprised of 11% organic growth and 3% growth from acquisitions.

The division is expected to account for 64% of revenue by 2017, from 54% in 2012. It expects growth to be driven by Asia-Pacific, with 24% growth, 12% in the Americas and 13% in the EMEA region.

The Jeanswear division is expected to deliver 4% CAGR over the five year period to reach $3.3bn by 2017. The Asia-Pacific region will contribute the most growth, with revenues in the region expected to rise at a CAGR of 12% over the period.
Sportswear revenues are expected to grow at a CAGR of 8% over the next five years, reaching $835m in 2017, driven by growth in the Nautica and Kipling brands. 

The contemporary brands division is expected to record an 8% CAGR to reach $645m by 2017.

Meanwhile, its direct-to-consumer business is expected to grow. It is expected to account for 25% of revenue in 2017, from 21% in 2014. Revenue is expected to record 14% CAGR to reach $4.4bn in revenue in 2017.

International expansion is another key growth driver, and is expected to account for 43% of total revenue in 2017 compared with 37% in 2012. Revenue is expected to hit $7.4bn in 2017 with a CAGR of 17% over the period.