VF Corp unveils five-year growth plan
Within its growth plan, VF Corp said it will innovate within its existing brand portfolio and expand into "adjacencies" that complement its current brands and tap into consumer growth spaces.
The company will work to gain market share by building and managing brands at different stages of growth across its portfolio, as well as through mergers and acquisitions to benefit both individual brands and the enterprise.
VF Corp plans to leverage its strategic platforms to enable its brands to connect more directly with consumers and operate more efficiently, including consumer data and analytics, direct-to-consumer centric supply chain, digitally enabled seamless consumer experience and international platforms.
In addition, the company will continue to manage its business with organisational agility and dynamically allocate capital and deploy people to drive its highest-priority strategic and growth-focused initiatives.
Looking ahead to FY27, VF Corp expects revenue growth of mid to high single digits, with all brands, regions and channels contributing to the growth.
Operating margin is expected to reach approximately 15% by FY27, representing low double-digit operating profit growth, driven by gross margin expansion and leveraging selling, general and administrative expenses.
Coinciding with its five-year growth plan, VF Corp has also announced it has cut its full-year 2023 guidance, due to lower than expected Q2 results. Total revenue for FY23 is now expected to be up 5% to 6%, compared to previous outlook of at least 7% growth.
Steve Rendle, Chairman, President and CEO of VF Corp, said: "Our new five-year growth plan demonstrates how we will leverage VF’s proven strengths and distinct model to deliver superior returns to shareholders over the long term.
"While economic uncertainties persist, we are actively addressing challenges within our business, and we remain confident in our ability to generate consistent, sustainable growth across our brand portfolio over the long term.
"We will continue to deepen our engagement with consumers, expand into new categories and markets, leverage our powerful business platforms, and lean on the seasoned leaders and talented teams who are driving our strategies. VF and our brands remain well-positioned to continue our journey of broad-based growth and success.”