Timberland expects total revenues to hit $3.1bn by the end of 2019, growth of 13% a year, the VF-owned outdoor lifestyle brand said Wednesday. …
Timberland expects total revenues to hit $3.1bn by the end of 2019, growth of 13% a year, the VF-owned outdoor lifestyle brand said Wednesday. E-commerce is expected to grow 31% annually to $180m over the next five years while its global store count will also jump by 130 units to 400 over the same period. Timberland said it expects to see “substantial growth” in the Americas, EMEA and Asia Pacific regions.
Growth in the Americas will account for nearly half of the anticipated $1.4bn in total revenue increase, growing 14% annually in the region. This US-led growth is expected to be balanced across both wholesale and direct-to-consumer channels, it noted.
In the Europe/Middle East/Africa region, Timberland expects to add $380m in sales to reach $1bn by 2019. With an expected annual revenue growth rate of 10%, this region will “capitalise on its big businesses” in Italy and the UK while expanding further into Germany, Austria and Switzerland.
The Asia Pacific region is expected to double its business, growing revenues by 15% annually to reach $620m by 2019. Most of the $310m of projected revenue growth is expected to come from China and South Korea, “which are largely untapped markets for the brand”, it noted.
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 $825m over the period to reach $2bn, driven by a 13% annual growth in the Americas, by 8% in EMEA and by 14% in Asia-Pacific.
Direct-to-consumer revenues for Timberland are expected to reach $1.1bn, representing an additional $570m in sales and an annual growth rate of 15% over the five-year period.
“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,” said VF CEO Eric Wiseman.