VF Corp. Sets 5-year Goals, Unveils $5 Billion Share Buyback

VF Corp. , the distributor of brands including North Face, Timberland and Wrangler, on Thursday outlined plans for the five-year period through 2021, and said it expects to return $8 billion to shareholders in the period. In a statement released ahead of an investor meeting, the company said it will overhaul its portfolio, shift to a consumer and retail-centric model, boost direct-to-consumer and digital operations and shift investment to Asia, especially China. The company expects revenue to grow at a five-year compounded annual growth rate (CAGR) of 4% to 6% in the period, EPS to grow at a five-year CAGR of 10% to 12% and margins to reach 51.5% by 2021. The company expects to generate more than $9 billion of cash. The company's board has approved a new $5 billion share buyback. VF Corp. is planning to change its fiscal year end to March 31 from the Saturday closest to Dec. 31 of each year, which it expects will give it better visibility into revenue growth and expense planning. Shares have gained more than 5% in the year so far, in line with the S&P 500's gains.