VF Corp unveils new identity, sets revenue and profit targets for 2024

Providing an update to the company’s strategic growth plan and key initiatives to deliver long-term sustainable growth and value creation, VF Corporation said in a statement that the company’s revenue through fiscal 2024 is expected to grow at a five-year compounded annual growth rate (CAGR) between 7 percent and 8 percent, fuelled by VF’s largest brands Vans, The North Face, Timberland and Dickies and the company’s international and direct-to-consumer business platforms. As part of the Investor Day event, VF is also introducing a new corporate logo and branding, the company’s first such update in 21 years.

“Today is an exciting day for VF Corporation as we step into the next phase of our journey as an evolved company,” said Steve Rendle, the company’s Chairman, President and Chief Executive Officer, adding, “The past two-and-a-half years represent one of the most transformative periods in VF’s 120-year history. With greater clarity to the opportunities ahead, we’re confidently updating our five-year strategic growth plan and financial outlook.”

VF expects 12 to 14 percent rise in EPS by 2024

Gross margin is expected to exceed 55.5 percent in fiscal 2024, while operating margin is expected to exceed 15 percent. The company added that earnings per share (EPS) are expected to grow at a five-year CAGR of between 12 percent and 14 percent as compared to fiscal 2019 adjusted EPS. The company expects to generate approximately 8 billion dollars of free cash flow on a cumulative basis between fiscal 2020 and fiscal 2024 and intends to return 10 billion dollars to shareholders through dividends and share repurchases. VF expects to deliver annual total shareholder return (TSR) in the 14 percent to 16 percent range.

The company further said that its fiscal 2024 strategic growth plan is an evolution of its 2021 strategic growth plan announced at the 2017 meeting with investors in Boston. The updated five-year growth plan focuses on transforming into a consumer-minded and retail-centric enterprise in a hyper-digital manner, followed by driving and optimizing the portfolio; distorting investments to Asia; and, elevating direct channels, while prioritizing digital.

Picture:Facebook/Timberland

 

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