V.F. Corp. Soars as Engaged Capital Reveals Stake in North Face Owner
V.F. Corp. shares experience an impressive 11% surge
V.F. Corp. (NYSE:) shares skyrocketed by 11% on Tuesday after activist investor firm Engaged Capital announced its acquisition of a significant stake in the renowned apparel brand company.
Engaged Capital’s Director of Research confirms position
During the 13D Monitor Active Passive Investment Summit, Chris Hetrick, Engaged Capital’s Director of Research, confirmed their position in V.F. Corp. Reuters reported Hetrick’s belief that the company is currently mismanaged and that addressing its issues could potentially triple its share price. Hetrick also expressed confidence in the global health of the North Face brand and stated that the Vans brand, although experiencing a decline, can be revitalized.
Aggressive execution is the key
Hetrick emphasized the need for V.F. Corp. to embark on aggressive execution strategies to turn the company around. According to Hetrick, the company should consider increasing its non-core asset divestment program and explore offers for all its brands except Vans and The North Face. Additionally, Hetrick suggested that V.F. Corp. should contemplate cutting its dividend.
It is evident that V.F. Corp. has caught the attention of Engaged Capital, and their optimism regarding the company’s potential for growth is contagious. With Engaged Capital’s involvement, we can expect V.F. Corp. to undergo significant transformations and emerge as a stronger player in the apparel industry. This partnership has undoubtedly fueled excitement among investors, as demonstrated by the remarkable surge in the company’s shares.
