VF Corp lowers FY23 forecast, announces five-year growth plan

US fashion company VF Corporation has lowered its forecast for the current business year and presented its strategy for the next five.

For the 2023 financial year, VF Corp, which owns brands such as The North Face and Vans, now expects sales growth to between 5 percent to 6 percent.

Its previous guidance, given when it released its first-quarter results at the end of July, was of growth of at least 7 percent.

Earnings per share are also expected to be lower at 2.60 dollars to 2.70 dollars, compared to the last forecast of between 3.05 dollars and 3.15 dollars.

Five-year plan

From now until 2027, VF aims to achieve annual revenue growth in the mid to high single-digit percentage range. Operating margin is expected to increase to around 15 percent by the 2027 financial year.

“We are confident in our ability to deliver consistent, sustainable growth for our portfolio of brands over the long term,” chief executive Steve Rendle said in an investor day statement, where details of the five-year plan are still to be unveiled.

All of the group's brands are expected to contribute to growth over the next five years, the company said.

VF is pinning its hopes primarily on outdoor brand The North Face and streetwear label Supreme, whose revenues are expected to grow in the higher single-digit to low double-digit percentage range.

Sales of skater brand Vans and fashion label Timberland are expected to grow in the mid single-digit percentage range. Dickies revenues are expected to grow in the higher single-digit range.

This article was originally written for FashionUnited.DE before being translated to English