VF Corp Pops After CEO, Insiders Scoop Up Stock — Retail Sits On The Fence

VF Corp (VFC) shares rallied 12% on Tuesday after regulatory filings showed that three company insiders, including the chief executive, had bought the stock.

The surge was also supported by a wider buying activity in the market following U.S. President Donald Trump's remarks, which struck an upbeat tone on the recent U.S.-European Union trade escalation, and a strong U.S. consumer confidence reading.

According to the filing, VF Corp CEO Bracken Darrell bought 85,840 shares for $1 million, while COO Abhishek Dalmia acquired 50,000 shares for $589,000, according to The Fly.

Richard Carucci, a board member, also purchased 50,000 shares for $602,500.

The bump comes as a much-needed respite after the retailer's stock cratered following quarterly results last week.

The firm behind Vans and JanSport brands reported lower-than-expected sales for the fourth quarter, leading to a 16% drop in shares on May 21.

The company has struggled as challenger lifestyle brands gain ground and is implementing a turnaround plan, which includes streamlining its products and businesses.

VF Corp recently sold its streetwear brand Supreme to EssilorLuxottica for $1.5 billion and is reviewing options for its Global Packs business, which includes brands like Kipling, Eastpak, and JanSport.

On Stocktwits, retail sentiment dropped to ‘neutral’ from ‘bullish.’

One user suggested that perhaps management was expecting bids for the company.

On Tuesday, nearly all retail companies edged higher. Consumer Staples Select Sector SPDR Fund (XLP) ended up 0.9%, and the Consumer Discretionary Select Sector SPDR Fund (XLY) gained 3%.

VF Corp shares are down 37% this year.

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