Vans released ambitious five-year growth targets today ahead of a meeting at the brand’s Costa Mesa headquarters with stock analysts.
Vans, which currently has $3 billion in revenue, is expected to grow to $5 billion in revenue by 2023. That means growing 10% to 12% over the five-year period.
VF pointed out that Vans has recorded a robust 17% compounded annual growth rate (CAGR) since VF acquired the brand in 2004.
Growth Pillars
Vans broke down how they plan to achieve that growth, and one of the most stunning numbers comes from DTC.
Over the five-year period, DTC is expected to grow to 60% of total revenue – or $3 billion. That’s a CAGR of 13% to 16%.
Digital DTC should grow to more than $1 billion, a CAGR of 30% to 35%.
Footwear revenue should grow at a CAGR of 10% to 12%. Heritage footwear styles are expected to grow at a CAGR of 8% to 10% and progression styles, like the UltraRange, should grow at a CAGR of 14% to 16%.
Apparel and accessories are expected to grow to more $1 billion in sales. Over the five-year period the CAGR should be 13% to 15%.
The Americas region should grow at a CAGR of 10% to 12% to reach $3 billion in revenue.
Palladini Quote
Vans President Doug Palladini said in a press release that Vans plans to keep growing while staying true to the Vans brand.
“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,” he said. “By forsaking ubiquity and instead focusing on Vans’ 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.”
More to Come
Several Vans executives are making presentations to analysts today and we will have more details about how Vans plans to get to $5 billion in revenue later this afternoon.
