Timberland aims to achieve 3.1 bn dollars revenue target by 2019

REPORT_ Footwear and apparel player Timberland, part of VF Corporation has

announced its plan to grow revenues by 1.4 billion dollars during the next five years. At an investor meeting at its headquarters in Stratham, Timberland’s management discussed their target to achieve total revenues target of 3.1 billion dollars by the end of 2019, representing growth of 13 percent per year.

“2014 will mark the most successful year in Timberland’s history – another clear example of VF’s powerful business model that enables brands to connect deeply with consumers, and drive growth and profitability, while preserving a unique DNA and culture,” opined Eric Wiseman, President, Chairman and CEO of VF Corporation.

Over the next five years, Timberland expects substantial growth in each major geographic region including Americas, EMEA and Asia Pacific, driven by industry leading innovation and product diversification; consistent channel discipline; meaningful expansion of its direct-to-consumer business; and a significant amplification of how Timberland communicates and connects the brand with consumers.

Growth in the Americas region will account for nearly half of the anticipated 1.4 billion dollars in total revenue growth, representing an annual growth rate of 14 percent for the region. This US-led growth is expected to be balanced across both wholesale and direct-to-consumer channels. In EMEA (Europe/Middle East/Africa), Timberland expects to add 380 million dollars to reach 1 billion dollars 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 (APAC) region is expected to double its business, growing revenues by 15 percent annually to reach 620 million dollars by 2019. Most of the 310 million dollars of projected revenue growth is expected to come from China and South Korea.

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 dollars over the period to reach 2 billion dollars, driven by a 13 percent annual growth rate in the America, 8 percent growth in EMEA and 14 percent in the APAC region.

Direct-to-consumer revenues for Timberland are expected to reach 1.1 billion dollars, representing an additional 570 million dollars 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 dollars in revenues over the next five years. The plans are also in the pipeline to expand its global retail store presence by adding 130 stores to its current base of approximately 230 stores.