VF Corp. unveiled an ambitious five-year growth plan for its Timberland brand today during a meeting for analysts at Timberland’s headquarters.
The goal is to add $1.4 billion in revenue by the end of 2019, which would bring Timberland’s total revenue to $3.1 billion.
VF, which owns Vans, The North Face, Reef, and many other brands, acquired Timberland for $2 billion in 2011.
The company has invested in its infrastructure and expanded its footwear and apparel lines, and is starting to see results. In the second quarter of this year, Timberland’s global revenues rose 19%, including a 25% jump in the Americas.
Regional growth plans
In the Americas, the five-year plan calls for Timberland to grow revenues 14% annually, adding $1.4 billion in revenue over that time frame. The growth should be balanced between wholesale and direct-to-consumer, VF said.
The EMEA expects to add $380 million in revenue, reaching $1 billion in brand revenue by the end of 2019. Currently Timberland has a strong business in Italy and the UK, and plans to push more into Germany, Austria and Switzerland.
In Asia Pacific, the goal is to double Timberland’s revenue, which equates to a 15% annual growth rate. That would add $310 million in additional revenue, which is largely expected to come from expansion into China and South Korea. If the plan works, Timberland will reach $620 million in revenue in the region at the end of five years.
Growth by channel
The plan calls for wholesale revenue to grow by $825 million to reach $2 billion.
That would equate to 13% annual wholesale growth in the Americas, 8% in EMEA and 14% annual wholesale growth in Asia Pacific.
Direct-to-consumer revenues should grow to $1.1 billion, which would add $570 million in sales with a predicted growth rate of 15% annually.
Within the DTC increase, e-commerce is expected to grow 31% annually.
Timberland also plans to add 130 Timberland stores to its current fleet of 230 stores.
Â
