VF Corp. plans to more than double The North Face’s volume to $3 billion in the next five years.
The strategy, which would add $1.6 billion to its current sales of $1.4 billion by 2015, is built on reaching new customers by broadening category offerings, driving growth in foreign markets, expanding the direct business and investing in technology.
At an investor conference in New York Wednesday, Steve Rendle, president of North Face and VF’s Outdoor Americas unit, said, “North Face is one of a handful of brands that has the permission to extend beyond what it began as.”
The business is expected to reach $1.4 billion in sales by the end of 2010, or 18.4 percent of VF’s anticipated $7.6 billion in revenue for the year.
In order to reach its sales goals, the San Leandro, Calif.-based North Face said it would restructure, moving from a “classification-driven” brand to an “activity-driven” model, by increasing the offering of performance and active sports merchandise.
Currently North Face’s action and performance divisions represent about 9 percent and 3 percent of sales, respectively, while outdoor equals 80 percent.
These two divisions, which comprise gear for alpine sports, hiking, climbing, running and yoga, is expected to grow to roughly $620 million in five years, with performance sales increasing more than fivefold to $220 million, and action sales tripling to $400 million.
North Face said that the youth business, which represents about 7 percent of sales, would double in size over that period. E-commerce, which the company said has shown “unprecedented growth,” is anticipated to expand to nearly 25 percent of revenues by 2015.
The five-year plan also calls for North Face’s Americas business to double to $1.5 billion. The company’s global direct-to-consumer platform will increase by more than $400 million. Its Europe, Middle East and Africa wholesale business will achieve sales of more than $570 million, while Asia-Pacific wholesale sales, led by China, will total just under $300 million. The company expects expansive growth in China, making the country “one of the biggest markets for The North Face globally in a relatively short period of time.”
“In 2010, VF’s outdoor and action-sports coalition will comprise more than 40 percent of VF’s total revenues, and we expect these will continue to be our fastest-growing businesses over the coming years,” said VF chairman and chief executive officer Eric Wiseman. “The power and potential of The North Face brand will be a key driver of our growth.”
Last year, the coalition was responsible for $2.75 billion in sales, 38.1 percent of corporate revenues.
Greensboro, N.C.-based VF operates more than 30 brands, including Wrangler, Lee, Nautica, Eastpak and Seven For All Mankind.
Taking the final spot on the mens’ portion of New York Fashion Week calendar next month will be none other than @tomford. Though he’s shown his men’s wear in New York in the past, this will mark the first time the designer has shown his men’s collection alone during New York Fashion Week: Men’s. His runway show will debut on February 6 at the Park Avenue Armory. #wwdfashion
London-based couture house @ralphandrusso has certainly been in the spotlight, having its dresses worn by @beyonce, Angelina Jolie, Meghan Markle in her engagement photos and more. For couture, Tamara Ralph focused on ornamentation — think: feathers with chain mail, jet embroidery and clusters of pearls and crystals. See the rest of the collection on WWD.com #wwdfashion #couture (📷: @giovanni_giannoni_photo)
Minnie Mouse celebrated her 90th birthday by getting her own star on the Hollywood Walk of Fame. For her celebratory luncheon, @coach’s creative director @stuartvevers dressed her in a custom made prairie dress, complete with Vever’s take on the polka dot – black sequined versions – under a cropped motorcycle jacket. The designer also put his own mark on Minnie’s classic red shoes, infusing the color with sparkles and adding some Coach crystals. “We chose colors that were very Minnie and also represented quintessential Coach elements,” said Vevers. #wwdfashion #nationalpolkadotday (📷: George Chinsee)
@nickjonas is unveiling his first-ever apparel collection through a partnership with John Varvatos. The limited-edition capsule, which makes its debut in spring, also marks the first time the designer has collaborated with anyone on a line. “The process in working with Nick is amazing. It’s inspiring to be around someone who is not only connected with the trade that they do, but also with what’s happening in the environment around him, and how that connects to what we do with style,” said Varvatos. (RG: @johnvarvatos) #wwdfashion
@margotrobbie steps out onto the red carpet wearing @miumiu. The actress is nominated for “Outstanding Performance by a Female Actor in a Leading Role” in “I, Tonya” at the #SagAwards. (📷: Stewart Cook) #wwdfashion
For @massimogiorgetti of @msgm, the Nineties are his favorite decade. “They had a huge impact on my personal growth. What I like of the Nineties is that they are not so precise in terms of style as other decades…there was actually a bit of everything,” he said. As seen on MSGM’s Spring 2018 show: tie-dye and a bit of grunge, two styles that are synonymous with the decade #wwdfashion #wwddecades (📷: @kukukuba)