Shares of VF Corp. (NYSE:VFC), the Denver-based manufacturer of Vans sneakers, saw a significant increase this week following the actions of two activist investors. Legion Partners Asset Management and Engaged Capital both acquired undisclosed stakes in the company, leading to a 3% climb in share prices Today and a previous 14% surge.
Legion Partners recommended VF Corp to divest from brands such as Timberland, an action that followed their stake acquisition. This move mirrors Engaged Capital's recent acquisition and subsequent calls for cost-cutting measures, which they believe could potentially save the company $300 million annually.
Engaged Capital has also been vocal about what they perceive as mismanagement within VF Corp. They argue that addressing these issues could triple the company's stock value. The firm is urging a strategic review of noncore assets that might result in the sale of brands like Supreme, Dickies, and Smartwool. They are also advocating for a refresh of the company's board.
In response to these developments, VF Corp has recently added former Nike (NYSE:NKE) executive Trevor Edwards to its board. This move comes amidst a challenging year for VF Corp, whose shares have declined approximately 35% in 2023 despite recent gains.
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