Shares of VF Corporation, the owner of apparel brands including Vans and The North Face, are up more than 13% Tuesday on reports that activist investor firm Engaged Capital has built up a large stake in the company.
The exact share count is unknown, but the firm is thought to be among VF’s top 10 shareholders, according to reporting from the Wall Street Journal. Engaged is also expected to show its exact position Tuesday at the 13D Monitor Active-Passive Investor Summit in New York.
The firm intends to use its position to push for significant cost cuts at VF, including eliminating what it thinks are more than $300 million a year in redundant costs, per reports.
It also wants VF to consider a strategic review of its non-core assets and real estate. In addition to Vans and The North Face, VF owns Timberland, Dickies, Supreme and Smartwool.
VF shares are down about 41% so far this year, but Engaged believes it can triple the company’s share value over the next three years.
However, the firm is reportedly supportive of VF CEO Bracken Darrell.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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