VF Corporation, parent to the Vans, The North Face, Jansport and Reef brands and the lucy retail chain, is raising its long-term revenue, operating margin and earnings per share growth targets.  The company said in a release that its new targets reflect the company’s confidence in its vision and strategies, which have been designed to drive “superior returns” to shareholders.

VFC raised its long-term revenue growth target to a range of 8% to 10% annually from its previous guidance of growth in the 6% to 8% range.  The company established a goal of $11 billion in revenues by 2012.  Management said they expect strong organic growth of 6% to 7%, accompanied by 2% to 3% growth attributed to acquisitions.  


Key growth drivers will be “international expansion and continued growth in the direct-to-consumer business.”  International revenues are expected to expand approximately 13% annually and account for a third of total revenues by 2012.  The direct-to-consumer business is expected to grow about 18% annually and represent 22% of revenues.


Revenues in the 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.

VFC also indicated it was raising its operating margin target to 15% from the previous 14% target.  Those increased margins are expected to fuel incremental EPS growth, which are now expected to increase in the 10% to 11% range on an annual basis.

Management said they expect to maintain a dividend payout rate of approximately 40% over the next five years.

For 2008, VFC is anticipating revenue growth of 9% and earnings per share growth of 10%, excluding the impact of any new acquisitions.