VF Corp.
stock was on track for its best day in decades Monday on the heels of two pieces of news.
Shares of VFC, which owns clothing brands The North Face, Vans, and Timberlands, were jumping 15% to $17.58, putting them on pace for their largest increase since Dec. 7, 1973, when they gained 18%, according to Dow Jones Market Data. The stock was the best performer in the
S&P 500.
Two factors could be driving shares higher.
Chief Executive Officer Darrell Bracken purchased 65,360 shares in a transaction Feb. 9, bringing his total amount of
VFCorp.
shares owned to about 144,281, according to a securities filing.
Meanwhile, Reuters reported that activist investor Engaged Capital, which holds a 1.3% stake in the company, has garnered support from a relative of John Barbey—who founded the company in 1899.
Kelly Barbey would like two members of the VF board replaced, according to Reuters. Engaged Capital has been advocating for board representation for months and has been making waves at the company since October.
Over the last 12 months, VF stock, including the gains Monday, has tumbled 35%. When the company filed its fiscal third-quarter financial report, CEO Bracken called results “disappointing” but remained optimistic, pointing to future plans.
“VF has initiated an in-depth strategic review of the brand assets within the portfolio, in alignment with the Board of Directors, to ensure the company owns the brands that it believes create the greatest long-term value,” the company said last week in a press release.
Sources familiar with the matter confirmed the Reuters report to Barron’s.
The deadline for VF to nominate directors falls on Tuesday, which means the company must decide quickly how to interact with the activist investor.
Write to Emily Dattilo at emily.dattilo@dowjones.com
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