VF Corp
stock was the top performer in the
S&P 500
on Tuesday after an investment firm outlined plans to “accelerate value creation” at the parent company of The North Face and Vans.
VFCorp
(ticker: VFC) shares were up 14%, to $18.46, putting them on pace for their largest percent increase since Oct. 28, 2008, when they jumped 15%, according to Dow Jones Market Data. This year, the shares have tumbled 33%.
In an investment presentation released Tuesday, Engaged Capital said it sees a “clear path” to more than $300 million “in immediate cost reductions” and suggests reinvesting some of the dollars saved to boost innovation and growth. The firm also suggests a review of non-core assets and says it sees a path for VF’s share price to triple in three years.
“We are aware of Engaged Capital’s investment in VF Corporation and their comments regarding our company,” a VF spokesperson told Barron’s in an email on Tuesday. “We value the views of our shareholders and seek to maintain an open dialogue with the investment community.”
Earlier in the day, The Wall Street Journal reported that Engaged “has built a big stake” in the company and, citing people familiar with the matter, said the activist investor is thought to now be among the top 10 shareholders.
Write to Emily Dattilo at [email protected]
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