American clothing and footwear label, Vans aims to touch US $ 5 billion in revenues by FY 2023 at 10-12 CAGR (Compound Annual Growth Rate). Notably, its FY 2017 revenue was around US $ 3 billion.
The fashion brand now expects its direct-to-consumer (DTC) business to reach US $ 3 billion. Also, the DTC revenues from the online division are estimated to hit US $ 1 billion in the years to come.
Further, Vans expects earnings from its clothing and accessories retail business to reach US $ 1 billion in the next five years, growing at a CAGR of 13-15 percent.
The brand has high expectations from the Americas region with 10-12 percent CAGR to settle at US $ 3 billion in revenue by the year 2023.
Notably, Vans was acquired by VF Corporation, which operates 30 brands under five product categories: Outdoor & Action Sports, Jeanswear, Imagewear, Sportswear and Contemporary Brands, in 2004.
The brand has grown at a 17 percent CAGR since then (its acquisition). Steve Rendle, CEO, VF Corporation said, “I am confident in the Vans team’s ability to deliver on a bold US $ 5 billion revenue target which will be a key driver of VF’s plan to deliver superior total return to shareholders over the next five years.”