Key Takeaways
- VF Corp. shares soared Friday, a day after it appointed former Lululemon Chief Product Officer Michelle “Sun” Choe as Vans’ global brand president.
- Wedbush Securities analysts praised the hiring of Choe as a “much-needed step in the right direction” for VF.
- Choe’s hiring comes three months after VF shook up its board following pressure from activist investor Engaged Capital.
VF Corp. (VFC) shares jumped Friday, a day after the struggling clothing retailer appointed former Lululemon Athletica (LULU) Chief Product Officer Michelle “Sun” Choe as global brand president of its Vans unit.
Choe had served as Lululemon’s chief product officer for the past seven years before it announced last week that she had resigned “to pursue another opportunity.” VF Corp., the owner of Vans, The North Face, Timberland, and other brands, said that Choe is to begin her new job in late July.
‘Much-Needed Step’ for VF
Chief Executive Officer (CEO) Bracken Darrell called Choe “a strong leader who is focused on consumer insight and has a proven track record of driving brand heat, and translating it into financial results.”
Wedbush Securities analysts wrote in a note to clients Friday that the hiring was “a much-needed step in the right direction” for VF, and raised their price target for the company to $11 from $10.
Darrell added, “With Sun’s appointment, we are further transforming the VF leadership team to ignite growth across our brands and enhance value for our shareholders and other stakeholders.”
Appointment Follows VF Board Shake-Up
The announcement came three months after VF shook up its board following pressure from activist investor Engaged Capital. At that time, it appointed former fashion industry executive Caroline Brown to the board after “constructive engagement with VF’s shareholders, including Engaged Capital.” VF also said it intended to choose “another independent director in the near term mutually agreed with Engaged Capital, and will give priority to considering the candidates who have been identified by Engaged Capital.”
Shares of VF fell to their lowest level in 15 years last week after the company unexpectedly reported a widened fourth-quarter loss and 13% year-over-year drop in revenue. Despite rising 10% to $13.55 as of 1 p.m. ET Friday, they remain more than 27% lower so far in 2024.