Shares of VF Corp. (VFC), the owner of popular clothing brands such as The North Face, Vans, and Timberlands, saw a significant surge on Monday. The stock jumped by 13% to $17.30, making it the best-performing stock in the S&P 500.
There are two key factors contributing to this rise in shares. Firstly, Chief Executive Officer Darrell Bracken recently acquired 65,360 additional shares, increasing his total holdings to approximately 144,281 shares, according to a securities filing.
Secondly, activist investor Engaged Capital, which holds a 1.3% stake in VF Corp., has gained support from relatives of John Barbey, the company’s founder in 1899, as reported by Reuters. The Barbey family wishes for two members of the VF board to be replaced. Engaged Capital has been advocating for board representation for several months and has made significant impact since October.
Although VF Corp. stock has experienced a 36% decline over the past year, including today’s gains, CEO Bracken remains hopeful. In the company’s fiscal third-quarter financial report, he called the results “disappointing” but expressed optimism for the future. VF Corp. has initiated an in-depth strategic review of its brand assets to ensure long-term value creation.
Sources familiar with the matter have confirmed the Reuters report and added that VF Corp. must quickly decide how to engage with the activist investor, as the deadline for nominating directors is fast approaching.
In conclusion, VF Corp. stock is enjoying a considerable boost fueled by the CEO’s share purchase and the support garnered by Engaged Capital from the family of the company’s founder. Despite recent setbacks, VF Corp. remains committed to reviewing and enhancing its brand portfolio for sustained long-term success.
