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VF Corp. targets $400 million in web sales
E-commerce revenue was $120 million in 2010.
VF Corp., an apparel manufacturer and retailer that owns and operates brands such as Lee Jeans and The North Face, has an ambitious plan to grow annual e-commerce sales to about $400 million in five years.
For the year ended Dec. 31, VF Corp., No. 267 in the Internet Top 500 Guide reported:
- In 2010, e-commerce revenue was $120 million and accounted for 8.6% of VF’s total direct-to-consumer sales of about $1.4 billion. The company did not break out web or total direct sales for 2009.
- Total sales increased 6.7% year over year to $7.62 billion from $7.14 billion.
- Net income increased 25.1% to $573.5 million from $458.5 million in 2009.
Internet Retailer calculates the web accounted for 1.6% of total sales in 2010.
By 2015, VF expects annual web sales to be over $400 million as the company invests further in its e-commerce channel, opens more web stores and expands its overall direct-to-consumer program, CEO Eric Wiseman told Wall Street analysts March 11 at the company’s annual investors meeting in New York.
“More than 700 new stores across a variety of VF brands will be opened during the next five years, bringing the total number of stores to about 1,500 by 2015,” Wiseman told analysts. “E-commerce revenue is expected to reach nearly $400 million.”
Though VF didn’t provide many details, vice president of direct/customer teams Mike Gannaway told analysts the increase in web sales will come from opening more e-commerce sites in North America and Europe and exploring new opportunities in Asia in 2011. “By 2015, e-commerce will account for 13% of total direct-to-consumer sales,” Gannaway said during his investor meeting presentation.
Overall VF expects to add $5 billion in new revenue over five years. “Our goal is to reach $12.7 billion in revenues by 2015,” Wiseman told analysts. “Growth will come domestically and internationally, across all coalitions, and in both our wholesale and direct-to-consumer businesses."