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Apparel And Shoe Giant VF Outlines Plan For Growth
By: Investor's Business Daily
Having goals to work toward is a good thing. Earlier this week, clothing and footwear makerVF Corp. ( VFC ) 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 year.
"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 news release.
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.