NEW YORK — VF Corp. has reorganized the ranks of its international management team with an eye toward boosting revenues in Europe and developing markets.
The Greensboro, N.C.-based apparel giant has appointed Karl Heinz Salzburger, 49, to the newly created post of president of Europe, Middle East, Africa and Asia. Salzburger will maintain his responsibility for the company’s outdoor segment and will take on oversight of the jeanswear business. Salzburger also will be charged with increasing the international segment’s contribution to overall revenues. The presidents of VF’s international jeanswear, outdoor, action sports and sportswear segments will report to Salzburger, who is based in Lugano, Switzerland.
Salzburger has been president of the company’s international outdoor division since 2001, responsible for overseeing brands such as The North Face, Vans, JanSport, Reef and Nautica. He joined VF in 1997 from Benetton Sportsystem SpA.
Eric Wiseman, president and chief operating officer of VF, characterized the reorganization as a strategy designed to build on the momentum of the company’s international business, which has grown to account for 25 percent of total revenue, or $1.6 billion in 2005, up from 19 percent of total revenue five years ago. That growth, said Wiseman, has stemmed from growth in core businesses such as Lee and Wrangler, as well as from the many brands VF has acquired over the last two years.
“Kipling and Napapijri were European businesses. On top of that, we acquired companies like Vans, which at the time of the acquisition was doing one-third of its business internationally,” said Wiseman. “Now they’re integrated and we have our arms around them. It’s time to put a structure in place that lets you accelerate growth.”
Management is now looking for international business to account for 30 percent of overall revenues within three to five years. India, China and Russia figure prominently in Salzburger’s plans.
“These markets have growing middle classes with an accelerating demand for lifestyle brands,” said Salzburger in a statement.
Wiseman said establishing “brand foundations” rather than achieving exponential growth is the short-term goal for developing markets.
“Right now we have to do the good work of laying down the right infrastructure so that in five to 10 years, we’re well positioned to have larger growth,” he said.