|
|
|
|
|
For Immediate Release
|
|
Contact:
|
|
Cindy Knoebel, CFA |
|
|
|
|
VP, Financial & Corporate |
|
|
|
|
Communications |
|
|
|
|
VF Services |
|
|
|
|
(336) 424-6189/(212) 841-7141 |
|
|
|
|
|
|
|
|
|
Paul Mason |
|
|
|
|
Director, Corporate Communications |
|
|
|
|
VF Corporation |
|
|
|
|
(336) 424-6192 |
VF RAISES FIVE-YEAR GROWTH PLAN TARGETS
AND ANNOUNCES 2008 GUIDANCE
Greensboro, NC January 9, 2008 VF Corporation (NYSE: VFC), a global leader in branded
lifestyle apparel, is raising its long-term revenue, operating margin and earnings per share growth
targets. The new targets reflect the Companys confidence in its vision and strategies, which have
been designed to drive superior returns to shareholders. The Company is also establishing its
guidance for 2008 revenues and earnings, confirming its outlook for another record year in both.
Details of the new Growth Plan targets are being presented to investors today at a meeting and
webcast that will commence at 8:30 a.m. ET. Information regarding the webcast can be found at the
end of this release.
We are committed to delivering growth and focused on driving total shareholder return, with
confidence that we have the brands, strategies and talent to achieve both on a sustainable,
long-term basis, said Eric C. Wiseman, President and Chief Executive Officer. This is a
tremendously exciting day for us, as we share our vision for a VF that is bigger, more
international, more diversified and more profitable.
Five-Year Growth Plan Targets
Today, we are delighted to announce that our outlook for growth and profitability is stronger than
ever, thanks to the foundation built by a leadership team with an unwavering commitment to
performance excellence and the ability to execute in the face of changing market and economic
conditions, said Wiseman.
Highlights of the Plan include:
|
|
|
$11 Billion in Revenues. We are raising our long-term revenue growth target from 6-8%
to 8-10% annually and establishing a goal of $11 billion in revenues by 2012. We expect
strong organic growth of 6-7%, with acquisitions contributing 2-3% to growth. Key growth
drivers will be international expansion and continued growth in our direct-to-consumer
business. Our international revenues are expected to expand approximately 13% annually and
account for a third of our total revenues by 2012. Our direct-to-consumer business should
grow at about 18% annually and represent 22% of revenues. |
|
|
|
|
Each of our coalitions is expected to achieve organic growth over the coming years. Our
Lifestyle businesses Outdoor, Contemporary Brands and Sportswear will continue to be
our growth engines. Revenues in our Outdoor and Contemporary Brands coalitions are expected
to grow at a high single-digit to low double-digit rate, with Sportswear growing at a mid
single-digit rate. Our Heritage businesses Jeanswear and Imagewear will continue to be
important contributors to our Growth Plan, providing growth and the profits and cash flow to
fuel our expansion. |
|
|
|
15% Operating Margin. We are also raising our operating margin target from 14% to 15%,
as we leverage our costs across an expanded revenue base, grow our international and retail
businesses and continue our relentless focus on cost reduction. |
|
|
|
|
10-11% EPS Growth. We are establishing a new target for earnings per share growth of
10-11%. EPS are expected to grow at a faster rate than revenues, reflecting continued
expansion in our operating margins. |
|
|
|
|
40% Dividend Payout. Returning cash to shareholders continues to be an important
component of our TSR (total shareholder return) strategy, and we expect to maintain a
dividend payout rate of approximately 40% over the next five years. |
2008 Guidance
2008 should be another very strong year of growth in both revenues and earnings, right in line with
our newly established targets. We are anticipating revenue growth of 9% and earnings per share
growth of 10%, excluding the impact of any new acquisitions. This will represent our sixth
consecutive year of record revenues and profits.
Were bullish about our prospects for 2008, despite the sharp downturn in investor sentiment
surrounding many consumer-focused sectors. Not only do we expect to wrap up 2007 with a great
fourth quarter, as previously announced on December 19, but we look forward to continuing our
momentum in 2008 with another year of record performance, concluded Wiseman.
Webcast Information
VF will hold a webcast today at 8:30 a.m. ET. You may access this webcast via the Internet at
www.vfc.com.
Cautionary Statement on Forward-looking Statements
Certain statements included in this release are forward-looking statements within the meaning of
the federal securities laws. Forward-looking statements are made based on our expectations and
beliefs concerning future events impacting VF and therefore involve a number of risks and
uncertainties. We caution that forward-looking statements are not guarantees and that actual
results could differ materially from those expressed or implied in the forward-looking statements.
Potential risks and uncertainties that could cause the actual results of operations or financial
condition of VF to differ materially from those expressed or implied by forward-looking statements
in this release include VFs reliance on a small number of large customers; the financial strength
of VFs customers; changing fashion trends and consumer demand; increasing pressure on margins;
VFs ability to implement its growth strategy; VFs ability to grow its international and
direct-to-consumer businesses; VFs ability to successfully integrate and grow
acquisitions; VFs ability to maintain the strength and security of its information technology
systems; stability of VFs manufacturing facilities and foreign suppliers; continued use by VFs
suppliers of ethical business practices; VFs ability to accurately forecast demand for products;
continuity of members of VFs management; VFs ability to protect trademarks and other intellectual
property rights; maintenance by VFs licensees and distributors of the value of VFs brands; the
overall level of consumer spending; general economic conditions and other factors affecting
consumer confidence; fluctuations in the price, availability and quality of raw materials and
contracted products; foreign currency fluctuations; and legal, regulatory, political and economic
risks in international markets. More information on potential factors that could affect VFs
financial results is included from time to time in VFs public reports filed with the Securities
and Exchange Commission, including VFs Annual Report on Form 10-K and Quarterly Reports on Form
10-Q.
About VF
VF Corporation is a global leader in lifestyle apparel with a diverse portfolio of jeanswear,
outdoor, imagewear, sportswear and contemporary apparel brands. Its principal brands include
Wranglerâ, Leeâ, Ridersâ, The North
Faceâ, Vansâ, Reefâ, Eagle
Creekâ, Eastpakâ, JanSportâ,
Napapijriâ, Nauticaâ, Kiplingâ, John
Varvatosâ, 7 For All Mankindâ, lucyâ, Majesticâ
and Red Kapâ.
VF Corporations press releases, annual report and other information can be accessed through the
Companys home page, www.vfc.com.
###