VF Sets Sights on $11B in Sales by 2012

Eric Wiseman set the tone for his tenure as the new chief executive officer of VF Corp. during the company's annual meeting with analysts on Wednesday, unveiling an aggressive five-year growth strategy that targets increasing revenues to $11 billion...

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"It's clear to us that we still have more work to do," said Wiseman of Nautica.

The John Varvatos business, on the other hand, has more than doubled since VF acquired it and grew by 40 percent in 2007. "This business has been a real win for us," he said.

Because VF's jeanswear coalition represents its largest and most mature business, management isn't expecting the same sort of growth that it does from its other lifestyle brands. Jeanswear accounted for 41 percent of revenues last year and is expected to account for 33 percent in 2012.

"Over the next five years, this business will grow more modestly," said Wiseman. "By far, here in the U.S., our top priority is to keep the continued growth of our big business in the mass and midtier channels," he said. The Wrangler brand in particular has seen success, driven by marketing campaigns featuring Dale Earnhardt Jr. and Brett Favre.

Internationally, management is counting on growth in India and China. Jeanswear revenues are expected to grow $450 million by 2012, 60 percent of which is expected to occur in international markets.

VF won't be abandoning its hunt for new brands, either. In its bid to reach $11 billion in revenues, management expects at least $900 million to come from acquisitions.

"By and large, our acquisitions have outperformed their original returns and provided tremendous returns for our shareholders," said Wiseman.
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