US apparel giant VF Corp says it is targeting US$5bn in revenue for its Vans business by fiscal year 2023, representing growth between 10%-12% over the five-year period.

The company hosted an investor meeting on 11 September at the brand’s headquarters to provide details of its plan to grow revenue by $2bn.

“Since VF’s acquisition in 2004, the Vans brand has grown at a 17% compounded annual rate and transformed into a $3bn global lifestyle brand,” said VF CEO Steve Rendle. “I am confident in the Vans team’s ability to deliver on a bold $5bn revenue target which will be a key driver of VF’s plan to deliver superior total return to shareholders over the next five years.”

The news follows an announcement last month that VF is to spin off its denim and outlet businesses into an independent, publicly traded company, in a move it says will sharpen its focus as a global clothing and footwear powerhouse focused on brands including Vans.

“Vans is moving into its rightful place as the number three global sport lifestyle brand by being clear about who we are and who we are not,” adds global brand president Doug Palladini. “By forsaking ubiquity and instead focusing on Vans’ brand pillars of art, music, action sports and street culture, we continue to generate deep and meaningful consumer connectivity that is growing the Vans Family worldwide.”

Fiscal 2023 financial targets

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Over the next five years, the Vans brand expects diversified and balanced growth across all product categories, channels of distribution and geographies, driven by disciplined execution and investment to continue to fuel growth.

Its fiscal 2023 financial targets include the following:

  • Footwear revenue is expected to grow at a five-year compounded annual growth rate (CAGR) between 10%-12%. Heritage footwear is expected to grow at a CAGR between 8%-10%, while Progression footwear is forecast at a CAGR between 14%-16%.
  • Apparel and accessories revenue is expected to grow to more than $1bn, which represents a five-year CAGR between 13%-15%.
  • Direct-to-consumer revenue is expected to grow to about $3bn, representing about 60% of global brand revenue and a five-year CAGR between 13%-16%. Direct to consumer digital revenue, meanwhile is forecast to grow to more than $1bn, which represents a five-year CAGR between 30%-35%.
  • Revenue in the Americas region is expected to reach about $3bn, which represents a five-year CAGR between 10%-12%.