Having goals to work toward is a good thing. Earlier this
week, clothing and footwear makerVF Corp. (
) outlined its plan for growth.
On Tuesday, the company set a sales target of $17.3 billion by
2017, which would be up 59% from the $10.9 billion reached in
2012. Earnings are expected at $18 a share by 2017. This would
represent a near doubling from the $9.63 a share it earned last
"By leading in innovation, connecting with consumers,
expanding geographically and growing our direct-to-consumer
business, we look forward to delivering the next chapter in a
long and very successful growth story," the company said in a
VF sees its outdoor and action sports brands such as Eastpak,
JanSport, Timberland and Vans to be the main growth drivers.
Sales for this segment are expected to hit $11.1 billion in 2017
and make up 64% of its total projected revenue. Last year, sales
from the division were about $5.9 billion, or 54% of total sales.
Its 2011 buyout of Timberland has boosted growth.
VF's plan also includes beefing up its direct-to-consumer
business, where it plans to open 645 new stores. It had more than
1,100 stores at the end of 2012.
The company will continue to target a cash payout of 40% of
net income. From its projected earnings of $18 a share, its
dividend would be $7.20 a share. It currently pays 87 cents a
quarter, which was last bumped up in October.
On an annual basis, the firm pays $3.48 a share for a yield of
about 1.8%. VF has the fourth highest yield in the
Apparel-Clothing Manufacturing group.
Shares of VF are near an all-time high and on pace for their
19th weekly gain in 21 weeks. The stock cleared a cup-with-handle
base in early March.