<span style="color: #7d7d7d;">At VF Corp.’s Investor Day, Nicole Otto, global brand president, The North Face, highlighted major growth plans for trail/hike, footwear and owned stores while unveiling the brand’s new mission statement expected to guide growth over the next five years.

During the meeting, VF set TNF’s growth target in the high-single to low-double-digits in constant dollars over the next five years on a CAGR basis. That follows CAGR growth of 7 percent in the five years from FY18 through the fiscal year ending March 31, 2022.

Otto, who joined TNF in July 2022 and was formerly vice-president, Nike Direct North America, said the company went through a hyper-growth period after being acquired by VF Corp. in 2000, underwent a brand reset from 2014 to 2017, and has since regained momentum. 

Otto said, “We refocused ourselves back on our purpose, our value, our connection to consumers, and our product innovation.” She said that since joining TNF, the brand’s team has reevaluated its purpose and whether the brand “was inviting and energizing our consumer in the way that we want to.” 

It led to an updated mission statement: “To share the wonder and joy of the outdoors through exploration.”

TNF’s vision statement was likewise narrowed to read: “Be the world’s leading outdoor brand anchored in pinnacle performance, iconic style, and authenticity—adopted by explorers everywhere.”

Otto said TNF’s team recommitted to company mantras “Athlete-Tested” and “Expedition-Proven.” She said, “This is something we live every day and take seriously in our product innovation and in our consumer connection. Unchanged is our commitment to remain curious and connected and never stop exploring.”

Otto discussed TNF’s growth pillars in the future by exploring the consumer, products, marketplace, and regional focus.

Progressive Explorer
For consumers, The North Face is focused on “welcoming consumers to the outdoors,” but the brand targets “the Progressive Explorer.”

Otto elaborates, “The Progressive Explorers have the curiosity to wonder what’s beyond the horizon and the courage to find out. Some explorers climb the tallest summits while others explore by immersing in cultural experiences.”

Globally, TNF plans to triple memberships within its XPLR Pass loyalty program by FY27 by targeting the Progressive Explorer and leveraging XPLR Pass connections. 

Citing a finding that 48 percent of consumers intend to hike and walk more post-pandemic, Otto said the brand’s priority is to “engage and invite them outdoors” with activations planned across activities. “As our definition of outdoor expands with consumers, we have opportunities to serve new moments and activities,” said Otto.

She further noted that TNF plans to answer consumer calls for versatility and style year-round. “You will see us extend our offering to 365 and be more engaged in all activities that our consumers are pursuing outdoors,” said Otto.

TNF is also focused on scaling its Renewed program circularity and conservation efforts through its Explore Fund Council. Otto said, “Our consumer also expects us to make an impact both on society and the planet. Ninety percent of Gen-Z said they would be willing to spend an extra 10 percent on sustainable products.”

Triple Growth In Hike/Trail And Footwear
On product, Otto noted that successful product innovation helped revive TNF’s growth beginning in fiscal 2019 after the brand reset from 2014 to 2017. 

Among categories, TNF will continue to take a share in its core snow category but leverage technologies better. 

“We will elevate our Summit Series and explore more pinnacle expressions of our brand. We have great examples of where we’ve taken our insights from our pinnacle expressions, like our Advanced Mountain Kit, and took those insights and then cascaded them to the rest of the product line,” said Otto.

In hike/trail, TNF plans to extend its business to target a new segment, “Outdoor Active.” Said Otto, “We expect to triple our revenue in [the hike/trail] category and use the opening of the outdoor lens to offer more to consumers year-round.”

In footwear, triple-digit growth is planned over the next five years as the brand builds on its trail running success with Vectiv technology. Said Otto, “We know we have a great opportunity to serve the consumer head-to-toe.”

Finally, VF will continue to amplify its franchise icons. Said Otto, “TNF is known for its icons—Nuptse, Denali fleece and other great products. We’re focused on how these franchises can expand and how we can continue to drive energy and excitement in the marketplace.”

Digitally-Led Marketplace
TNF is also aiming for double-digit growth across digital environments over the next five years. Said Otto, “Key drivers will be our connection to the consumer through an extended journey and growing lifetime value.”

Online platform upgrades in the Americas will extend to Europe and APAC. 

Otto added, “We continue to invest in mobile experiences and are doubling down on our marketing technologies and ability to connect personally one-on-one. We will also take that advantage of digital and break down the walls between our digital and physical experiences.”

Related to that, TNF plans to open 300 mono-brand stores worldwide over the next five years. Otto said, “This will allow us to expand both our connection to the consumer and our offering and take advantage of the omni-channel capabilities.”

At the wholesale level, TNF closed over 1,100 doors in the U.S. as part of an “overall effort to ‘refine’ its distribution” and is “collaborating more closely with key accounts to elevate our experiences around the world.” 

TNF expects to drive annual growth in double-digits with key worldwide accounts over the next five years.

Different Strategies By Region
Otto noted that since TNF is at different maturity levels across regions, go-to-market approaches will vary with an overall goal of staying “globally consistent, yet locally relevant.”

In the Americas, the brand’s largest and most mature market, the focus is on taking share.

“We’re focused on driving marketplace through digital and then deploying those capabilities to other regions,” said Otto. “We will deliver in-person and omni-channel experiences, and we will continue to distort through key players.”

In the EMEA, the company will continue to cultivate specific offerings for the region to address the “growing popularity” in Europe of SkiMo and backcountry uphill and will eventually extend those offerings to other regions. Otto said, “We will distort our growth in Germany and continue our leadership in the UK. And, like other regions in the world, we’ll grow DTC and drive those personal consumer experiences in EMEA.”

In APAC, Otto noted that the outdoor market is “nascent, but we believe we have a great opportunity to invite consumers into the space. We will grow and invite and create new consumer demand through outdoor and the connection to sport leading with our Americas and EMEA story offense.”

TNF’s goal is that by FY27, DTC and wholesale will each contribute half of the sales, and the Americas and international will account for about half of sales.

Otto closed her session by remarking on the recent passing of Hilaree Nelson, the ski mountaineer and captain of The North Face international team, who died on Manaslu in Nepal in an avalanche.

She offered a quote from Nelson: “I like to set goals beyond my skill set, and I’m not afraid to fall. If I’d make a plan for an adventure, I want bang for my buck, an aesthetic line, a beautiful location, and great people to work with.”

Otto added, “I’m reminded of this as we think about the path forward for The North Face. I believe that we have set an aesthetic line. We’re in all the best locations, and we have a wonderful team to work with.”

Photos courtesy TNF/Hilaree Nelson