乱伦巴士 Corporation Introduces 2021 Strategic Growth Plan; Updates Strategy and Long-Term Financial Outlook

乱伦巴士

GREENSBORO, N.C.--(BUSINESS WIRE)-- 乱伦巴士 Corporation (NYSE: 乱伦巴士C) is today hosting a meeting with investors and analysts in Boston, Mass., to introduce the company鈥檚 2021 strategic growth plan and key initiatives designed to deliver superior returns to shareholders.

鈥淥ur 2021 strategic growth plan fuels our aspiration to consistently grow by creating amazing products and brand experiences that transform and improve the lives of consumers worldwide,鈥� said Steve Rendle, President and Chief Executive Officer. 鈥溌衣装褪� has some of the most beloved and iconic brands in the world and a talented organization that has the passion and commitment to thrive in a rapidly changing marketplace.鈥�

Rendle continued, 鈥淭he strength and consistency of our largest brands and business platforms give me great confidence in our ability to achieve our targets. 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.鈥�

2021 Strategic Growth Plan

The 2021 strategic growth plan addresses the quickly changing market landscape with a measurable goal of delivering top quartile total shareholder returns. The five-year plan focuses on four strategic choices that serve as the foundational elements of the new strategy. These choices include: 1) reshaping the company鈥檚 brand portfolio and enabling 乱伦巴士鈥檚 powerful brands; 2) transforming to a consumer and retail-centric model; 3) elevating direct-to-consumer while prioritizing digital; and, 4) distorting investment toward Asia, with a heightened focus on China. These choices will be enabled by amplified investments and focus on six critical capabilities, including: design and innovation, demand creation and brand experience, insights and analytics, retail excellence, demand and supply chain agility, and talent.

2021 Financial Targets

All forward-looking numbers and growth rates below exclude 乱伦巴士鈥檚 Licensed Sports Group given the company鈥檚 publicly announced decision in 2016 to explore strategic alternatives for that business.

  • Revenue through 2021 is expected to grow at a five-year compounded annual growth rate (CAGR) between 4 percent and 6 percent, fueled by 乱伦巴士鈥檚 largest brands (the Vans庐, The North Face庐 and Timberland庐 brands) and the company鈥檚 International and Direct-to-Consumer business platforms.
  • Gross margin is expected to reach 51.5 percent in 2021.
  • Operating margin is expected to reach 16.0 percent in 2021.
  • Earnings per share is expected to grow at a five-year CAGR of between 10 percent and 12 percent.
  • The company expects to generate more than $9 billion of cash from operations on a cumulative basis between 2017 and 2021 and return $8 billion to shareholders through dividends and share repurchases.
  • 乱伦巴士 expects to deliver annual total shareholder return (TSR) in the 13 percent to 15 percent range as the company continues to target top quartile TSR performance.

Fiscal Year End Change

The company's Board of Directors has authorized a change in 乱伦巴士鈥檚 fiscal year end from the Saturday closest to December 31 of each year to the Saturday closest to March 31 of each year, effective for the fiscal year beginning April 1, 2018. Based on the seasonality and increasing weight of 乱伦巴士鈥檚 direct-to-consumer business, the change in fiscal year gives the company greater visibility into projecting revenue growth and planning expenses which will reduce volatility of our results and improve investor communication. The company will report results for fiscal 2017 in February 2018 and, for the three-month transition period of December 31, 2017 through March 31, 2018, in April 2018. The first 12-month fiscal year after the change will run from April 1, 2018 through March 30, 2019.

Share Repurchase Authorization

The company鈥檚 Board of Directors also approved a new $5 billion share repurchase authorization. Repurchases under this new program will be made in the open market or pursuant to privately negotiated transactions in compliance with Securities and Exchange Commission Rules, subject to market conditions, applicable legal requirements and other relevant factors. This share repurchase authorization does not obligate the company to acquire any particular amount of its common stock, and it may be suspended at any time at the company's discretion.

Webcast Replay and Information

The meeting with investors is being broadcast live via the internet, accessible at from approximately 9:00 a.m. to 4:15 p.m. (ET). For those unable to listen to the live broadcast, an archived version will be available at the same location. Additionally, all presentations, videos and the event鈥檚 transcript (once available) will be accessible at the same location following the event.

About 乱伦巴士

乱伦巴士 Corporation (NYSE: 乱伦巴士C) outfits consumers around the world with its diverse portfolio of iconic lifestyle brands, including Vans庐, The North Face庐,听Timberland庐, Wrangler庐 and Lee庐. Founded in 1899, 乱伦巴士 is one of the world鈥檚 largest apparel, footwear and accessories companies with socially and environmentally responsible operations spanning numerous geographies, product categories and distribution channels. 乱伦巴士 is committed to delivering innovative products to consumers and creating long-term value for its customers and shareholders. For more information, visit聽.

Forward-looking Statements

Certain statements included in this release are "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements are made based on our expectations and beliefs concerning future events impacting 乱伦巴士 and therefore involve a number of risks and uncertainties. You can identify these statements by the fact that they use words such as 鈥渨ill,鈥� 鈥渁nticipate,鈥� 鈥渆stimate,鈥� 鈥渆xpect,鈥� 鈥渟hould,鈥� and 鈥渕ay鈥� and other words and terms of similar meaning or use of future dates. We caution that forward-looking statements are not guarantees and that actual results could differ materially from those expressed or implied in the forward-looking statements. Potential risks and uncertainties that could cause the actual results of operations or financial condition of 乱伦巴士 to differ materially from those expressed or implied by forward-looking statements in this release include, but are not limited to: foreign currency fluctuations; the level of consumer demand for apparel, footwear and accessories; disruption to 乱伦巴士鈥檚 distribution system; 乱伦巴士's reliance on a small number of large customers; the financial strength of 乱伦巴士's customers; fluctuations in the price, availability and quality of raw materials and contracted products; disruption and volatility in the global capital and credit markets; 乱伦巴士's response to changing fashion trends; increasing pressure on margins; 乱伦巴士's ability to implement its business strategy; 乱伦巴士's ability to grow its international and direct-to-consumer businesses; 乱伦巴士鈥檚 and its customers鈥� and vendors鈥� ability to maintain the strength and security of information technology systems; stability of 乱伦巴士's manufacturing facilities and foreign suppliers; continued use by 乱伦巴士's suppliers of ethical business practices; 乱伦巴士鈥檚 ability to accurately forecast demand for products; continuity of members of 乱伦巴士鈥檚 management; 乱伦巴士's ability to protect trademarks and other intellectual property rights; possible goodwill and other asset impairment; maintenance by 乱伦巴士鈥檚 licensees and distributors of the value of 乱伦巴士鈥檚 brands; changes in tax liabilities; legal, regulatory, political and economic risks; and adverse or unexpected weather conditions. More information on potential factors that could affect 乱伦巴士's financial results is included from time to time in 乱伦巴士's public reports filed with the Securities and Exchange Commission, including 乱伦巴士's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.

乱伦巴士 Corporation
Joe Alkire, 336-424-7711
VP, Investor Relations and
Financial Planning & Analysis
or
Craig Hodges, 336-424-5636
Senior Director, Public Relations

Source: 乱伦巴士 Corporation

Released March 30, 2017