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."