Timberland Targets $3.1 Bln In Revenues By End Of 2019 - Quick Facts

(RTTNews) - Timberland, a wholly owned subsidiary of VF Corp. (VFC), plans to grow revenues by $1.4 billion during the next five years. At an investor meeting at its headquarters in Stratham, N.H., Timberland's management discussed their expectations for total revenues to reach $3.1 billion by the end of 2019, representing growth of 13 percent per year.

Over the next five years, Timberland expects substantial growth in each major geographic region: Americas, EMEA and Asia Pacific.

Growth in the Americas region will account for nearly half of the anticipated $1.4 billion in total revenue growth, representing an annual growth rate of 14 percent for the region. This U.S. led growth is expected to be balanced across both wholesale and direct-to-consumer channels.

In EMEA or Europe/Middle East/Africa, Timberland expects to add $380 million to reach $1 billion in revenues by 2019. With an expected annual revenue growth rate of 10 percent, this region will capitalize on its big businesses in Italy and the United Kingdom to expand further into Germany, Austria and Switzerland.

The Asia Pacific or APAC region is expected to double its business, growing revenues by 15 percent annually to reach $620 million by 2019. Most of the $310 million of projected revenue growth is expected to come from China and South Korea, which are largely untapped markets for the brand.

Timberland's growth over the next five years is expected to be balanced across both wholesale and direct-to-consumer channels. Wholesale revenues are expected to grow by $825 million over the period to reach $2 billion, driven by a 13 percent annual growth rate in the Americas region, 8 percent growth in EMEA and 14 percent growth in the APAC region.

Direct-to-consumer revenues for Timberland are expected to reach $1.1 billion, representing an additional $570 million in sales, and an annual growth rate of 15 percent over the five-year period.

E-commerce is expected to be Timberland's highest percentage growth channel, increasing by 31 percent annually and adding $180 million in revenues over the next five years.

Timberland plans to expand its global retail store presence by adding 130 stores to its current base of approximately 230 stores.