Timberland aims for $3.1 billion in revenue in 2019
With Vans having announced in 2012 a revenue target of 2.2 billion dollars (€ 1.7 billion) by the end of 2016, VF Corp today made clear its ambitions for Timberland.
Acquired in mid-2011, the brand has successfully been integrated into the group and now appears ready to step things up.
The American giant announced that it will aim to increase sales by 1.4 billion dollars over the next five years in order to reach 3.1 billion in 2019 (2.4 billion euros), translating into an annual growth rate of 13%.
Timberland endeavors to grow both its wholesale network as well as its direct to the consumer sales.
It aims for its wholesale to surpass 2 billion dollars, or an increase of 825 million.
To achieve this, the brand counts on an increase of about 13% in the Americas; 8% in the Europe, the Middle East and Africa; and of 14% in Asia-Pacific.
In terms of direct sales, it has its sights on 570 million dollars over the next five years, with annual increases of 15%, relying in particular on e-commerce sales at +31%.
According to the brand, the growth will be found in the innovation and the diversification of its products, the strengthening of its distribution and substantial investments in marketing.
Timberland will put a good deal of effort into the Americas, where the company is based, and which should provide half of the additional revenue. The objective is to on an annual growth of 14% in this region.
Projected growth is even stronger in Asia-Pacific, with a target of 15% per year. The brand will strive for an extra 620 million dollars in this region, particularly through development in South Korea and China.
Its ambitions in Europe, although more modest, are still firm. Timberland will target one billion dollars in 2019 in the EMEA region, with an annual increase of 10% and a focus on German-speaking countries, while also building on its strong English and Italian bases.
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