VF Corp. (VFC), which distributes brands like Vans, Timberland, Wrangler, Lee and The North Face, has unveiled a five-year strategic plan that includes a $5 billion share buyback program that runs through 2021. The Greensboro, N.C.-based company also said it will return $8 billion to shareholders through dividends and share repurchases..

“Our 2021 strategic growth plan fuels our aspiration to consistently grow,” CEO Steve Rendle said in a statement. “We remain sharply focused on our diversified value creation model, which is designed to deliver solid results across the many and varied business cycles and economies around the world.” (See also: VF Corp. Posts In-Line Q4 Earnings.)

VF Corp. said it expects revenue to grow at a five-year annual growth rate of 4 percent to 6 percent, driven by the company’s Vans, The North Face and Timberland brands, as well as its direct-to-consumer platforms. Earnings per share is forecast to grow between 10 percent to 12 percent in the next five years. (See also: Retail Poised for a Short-term Rally.)

The company expects to produce more than $9 billion in cash from operations through 2021, delivering annual shareholder returns of 13 percent to 15 percent. The repurchase program would be made on the open market and does not obligate VF Corp. to purchase a particular amount of its common stock.

VF Corp. has identified four “foundational elements” for its five-year plan: "reshaping the company’s brand portfolio; transforming to a consumer and retail-centric model; elevating direct-to-consumer while prioritizing digital; and distorting investment toward Asia, with a heightened focus on China.” 

VF Corp. shares are down 14.7 percent the past year, and up 1.7 percent year to date. Following the buyback announcement, shares traded down about 3.5 percent in Thursday’s session. 

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