Sports Veteran Vans Has Set Five Years Performance Target 2023 Sales Volume Means 5 Billion Dollars.

A few days ago, VF Corp, the apparel retailer of the US, said its leisure sports brand Vans reached the target of 2021 sales ahead of schedule in the 2018 fiscal year ending March 31, 2018. For this reason, the company has reworked its five year performance target and expects sales in the 2023 fiscal year to reach 5 billion dollars.

The five year planning goals formulated by VF group for Vans include:

In the next five years, sales will grow by an average of 10% to 12% a year (a cumulative increase of US $2 billion). By 2023,

The average annual compound growth rate of shoe sales reached 10% to 12%, of which Retro

The compound growth rate was 8% to 10%, the composite growth rate of other shoes was 14% to 16%, the annual compound growth rate of clothing and accessories was 13% to 15%, sales exceeded 1 billion dollars, and the average annual compound growth rate of direct selling business was 13% to 16%, with sales exceeding 3 billion dollars.

The Group expects that in five years, sales of direct selling will account for 60% of the total sales of Vans, and the average annual compound growth rate of online retail business will be 30% to 35%, and sales will exceed 1 billion dollars. The composite sales growth rate of American sales will reach 10% to 12%, with sales exceeding 3 billion dollars.

Kevin Bailey, President of VF Group Asia Pacific region, said that the annual compound growth rate of Vans is 17%, which is the most profitable brand of the group.

When VF Group acquired Vans in 2004, Vans's annual sales volume was only $360 million, operating profit of $4 million and gross margin of 48%.

In the 2018 fiscal year, Vans sales exceeded $3 billion, operating profit of more than $700 million, and gross margins more than 60%.

Doug Palladini, President of global brand, said that since Vans has achieved the goal of 2021 in March this year in fiscal year 2018, the company has reformulated its financial objectives for the next five years.

After the acquisition of Vans by VF group, a series of reforms were carried out on the brand.

By integrating brand design with extreme sports, art, music and street culture, Vans helped pform itself.

In July, Vans launched a joint capsule series Vans x Van Gogh Museum with the Van Gogh Gogh Museum of Amsterdam, Holland, to protect and publicize the legendary experience and fine art of the painting master Vincent VanGhon.

Vans has a long history in the eyes of consumers.

The brand is pformed into a personalized brand of footwear, clothing and accessories.

Because it can better show its uniqueness, Vans has gained many loyal consumers, and its influence in the world is also growing.

Vans executives say they have a close relationship with consumers, not only to understand the way consumers express their personality, but also to understand their shopping patterns.

The customized service of online e-commerce platform also helps companies establish contacts with consumers on online channels.

In order to increase the brand exposure rate, in addition to the traditional discount stores and physical stores in shopping malls, Vans also added three new store modes: boutique, elevated street stores and display space.

VF Group Chairman and CEO Steve Rendle said he was

The sales target of US $5 billion in 2023 is very confident.

The success of Vans will become a key factor for VF group to repay shareholders in the next five years.

VF group said it will be split in the near future.

The denim business.

At the investor conference, Steve Rendle said that even if we split the denim business, Vans brand is still an important business component of VF group. Its headquarters in Orange County, California, will not change.

In July, VF released the first quarter data for the 2019 fiscal year ending June 30, 2018: sales grew by 23% year-on-year, 21% higher than the fixed exchange rate, exceeding Wall Street analysts' expectations, mainly due to the strong performance of casual wear and professional wear department as well as overseas sales, of which Vans sales rose 35%.