Timberland is targeting total revenues of $3.1bn by the end of 2019

Timberland is targeting total revenues of $3.1bn by the end of 2019

Outdoor lifestyle footwear and apparel brand Timberland is on track to grow revenues by $1.4bn over the next five years, parent company VF Corporation said today (17 September).

Speaking at an investor meeting at the firm's headquarters in Stratham, New Hampshire, the brand's management said they expect total revenues to reach $3.1bn by the end of 2019 - representing growth of 13% per year.

VF Corp acquired the business in 2011, and Eric Wiseman, VF Corporation president, chairman and CEO said 2014 is set to mark "the most successful year in Timberland's history."

The next chapter of growth will focus on both geographies and channels, driven by innovation and product diversification.

Growth in the Americas region will account for nearly half of the anticipated $1.4bn in total revenue growth, representing an annual growth rate of 14% for the region, and is likely to be balanced across wholesale and direct-to-consumer channels.

In EMEA (Europe/Middle East/Africa), Timberland expects to add $380m to reach $1bn in revenues by 2019, an annual revenue growth rate of 10%, with Italy and the UK leading the way for further expansion into Germany, Austria and Switzerland.

The Asia Pacific (APAC) region is expected to double its business, growing revenues by 15% annually to reach $620m by 2019. Most of the $310m of projected revenue growth is expected to come from China and South Korea, which are largely untapped markets for the brand.

In terms of channel growth, a balance is seen across both wholesale and direct-to-consumer channels. Wholesale revenues are expected to grow by $825m to reach $2bn in the next five years, driven by a 13% annual growth rate in the Americas region, 8% growth in EMEA and 14% growth in the APAC region.

Direct-to-consumer revenues for Timberland are expected to reach $1.1bn, representing an extra $570m in sales, and an annual growth rate of 15% over the five-year period. This will be led by e-commerce gains, increasing by 31% annually and adding $180m in revenues over the next five years.

Timberland plans to expand its global retail store presence by adding 130 stores to its current base of 230 stores.

"Being able to tap into VF's powerful platforms has allowed us to realise significant synergies, giving us the tools and resources to invigorate the Timberland brand," says Patrik Frisk, VF Coalition president, Outdoor Americas and Timberland president.