VF Corp. raised its long-term revenue growth target, saying it expects revenues will reach billion by 2012, mainly due to international expansion and direct-to-consumer business.
The company said in a press release Wednesday it now expects long-term revenue growth of 8 percent to 10 percent annually, up from a prior forecast of 6 percent to 8 percent. On an organic basis, growth is pegged at 6 percent to 7 percent, with acquisitions contributing 2 percent to 3 percent.
“We are committed to delivering growth and focused on driving total shareholder returns, with confidence that we have the brands, strategies and talent to achieve both on a sustainable, long-term basis,” said Eric Wiseman, president and CEO. “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.”
VF expects international revenues to expand about 13 percent annually and account for a third of total revenues by 2012. The company also projects its direct-to-consumer business should grow at about 18 percent annually and represent 22 percent of revenues.
For 2008, VF anticipates revenue growth of 9 percent and per-share earnings growth of 10 percent, excluding the impact of any new acquisitions.
The company also expects to maintain a dividend payout rate of about 40 percent over the next five years.
Shares of Greensboro, N.C.-based VF closed at .66, up 8 percent Wednesday. |
