Shares of VF saw a significant boost on Monday following the news that activist investor Engaged Capital has gained the support of the founding family for its push for board seats and changes at the company. The stock experienced a 12% increase, reaching $17.11, although it has seen a decline of approximately 9.8% this year.
According to Reuters, the family of VF founder John Barbey is advocating for the replacement of two directors on the company’s board and has thrown their support behind Engaged Capital. With Barbey’s descendants holding around 15% of the company and Engaged Capital controlling a 1.3% stake, this alliance carries considerable weight.
The actions taken by Engaged Capital have primarily focused on securing board seats and implementing specific changes within VF, the parent company of popular brands such as Vans and Timberland. Back in October 2023, Engaged Capital publicly disclosed its stake in the company and called for a strategic review of noncore assets and cost-cutting measures.
In a filing made early on Monday, VF Chief Executive Bracken Darrell revealed that he personally purchased 65,360 shares of the company on Friday at an average price of $15.38, amounting to a valuation of approximately $1.01 million.
Overall, these recent developments have provided a substantial boost to VF and indicate a potentially positive direction for the company moving forward.