All in all, VF's Outdoor segment is expected to grow at an average annual level of 7 to 8 percent, representing 41 percent of VF's sales by 2024, compared with 46 percent for the “Active” segment, led by Vans, and 13 percent for the Work segment, led by Dickies.
Summing up the mission statement of The North Face, VF's management said: “We dare to lead the world forward through exploration,” adding that “we love wild places, we spark curiosity, we dare to disrupt, we create community, we lead with integrity.”
Talking about some of its smaller brands, VF's management indicated its wish for Smartwool to achieve CAGR of 10 to 11 percent through 2014. In the past financial year, its global sales rose by 8 percent to around $155 million, of which 85 percent was in the U.S. and 8 percent in the EMEA region. In terms of product categories, socks represented 60 percent of sales and apparel 35 percent.
VF wants performance-driven Smartwool to collaborate with lifestyle-driven Icebreaker “to bring comfort, confidence and community to a life lived outside.” Icebreaker, which was acquired by VF last year, booked a 12 percent sales increase to about $175 million in the past financial year on a pro-forma basis, and VF wants it to generate CAGR of 12 to 13 percent through 2024.
EMEA is the biggest region for Icebreaker with a share of 45 percent in its global sales, followed by Asia-Pacific with a share of 21 percent and the U.S. with 17 percent. Apparel and socks represent 86 percent and 8 percent of its turnover, respectively.
Icebreaker's brand president, Greg Smith, said it is the time now “to disrupt the apparel category” by moving toward the use of natural fibers in performance fabrics. He noted that the consumption of organic food and organic skin care products is growing 7.4 times and 2.2 percent times faster than the corresponding ordinary products, respectively. They represent 7.2 percent and 10.2 percent of total consumption.
