New York–Action sports brand Vans is to expand into athletic footwear as part of a push that includes adding new markets and selling more products directly to consumers to more than double sales to $2.2 billion in five years.
The VF Corporation-owned skatewear specialist last week said it plans to add $1 billion in revenues by 2016 –an annual growth rate of 13%–with around half of this coming from the Americas, its largest market which already accounts for 70% of revenues.
“Our investments to grow Vans across a variety of platforms – product innovation, geographic expansion and direct-to-consumer – have provided us with a very strong foundation to support its next chapter of growth,” says Eric Wiseman, VF corporation chairman and chief executive officer.
A key focus on the firm’s growth in the Americas will be expansion outside Vans’ core West Coast market, with major metropolitan areas such as New York City and Mexico City the next hubs for driving brand awareness.
In Europe/Middle East/Africa, Vans expects to add $350 million in revenues, building on last year’s 55% rise in sales in constant dollars last year.And Asia Pacific, which accounted for just 8% of the brand’s revenues in 2011, is seen Vans’ fastest growth region, with revenues expected to nearly triple by the end of 2016, adding $170 million in growth.
Since its acquisition by VF Corp in 2004 for $396 million, Vans has more than tripled its revenues.
Vans’ growth over the next five years is expected to be balanced across both wholesale and direct-to-consumer channels.
Both footwear and apparel are seen lifting wholesale revenues by $565 million over the period, helped by rapid wholesale door expansion in the Asia Pacific region.
On the direct-to-consumer side, which includes owned retail stores and e-commerce, gains of $435 million are seen by 2016, led by e-commerce but helped by the addition of more than 200 stores to its existing base of 310 stores.
New products include the LXVI footwear line, aimed at the action sports enthusiast and featuring construction advances including including a lifted heel, free-floating liner, a new tread design, collar cushioning, and a new stitch-less construction that combine to give a lightweight and flexible shoe.
The LXVI designs are priced from $70, and will launch globally at the end of this month at select Foot Locker stores.