Earlier this year, VF Corp (NYSE: VFC), the parent company of The North Face, faced a significant decline in shares due to consumer-led boycotts in response to a controversial ad campaign. The repercussions lingered for months, hindering the stock’s recovery.
The situation worsened significantly two weeks ago when VFC plummeted to a fresh 14-year low after a disappointing fiscal Q4 2024 earnings report, which saw the company withdraw its full-year forecasts.
However, today, November 14, brings a positive turn for The North Face and VF Corp investors, with the company witnessing a remarkable recovery as the stock surged nearly 12% at the market open to $15.84.
What caused The North Face stock’s jump today?
The substantial spike in VF Corp’s shares on November 14 came as a result of an all-around strong trading session for the US stocks.
Although there was no specific catalyst that fueled VFC’s upswing, it was the positive October inflation data that brought a fresh wave of optimism into the equity markets.
Notably, the latest consumer price index (CPI) report showed that the annual inflation rate cooled down to 3.2% in October, down from 3.7% in September and below the consensus projection of 3.3%.
Month-on-month, consumer prices in October remained unchanged amid easing gasoline prices, bolstering investors’ hopes that the Federal Reserve was probably done with its rate-hiking campaign.
As a result, US stocks rose higher across the board, with the S&P 500 index climbing 2% to 4,499 – the highest since mid-September. Likewise, the Dow Jones Industrial Average (DJIA) added 1.5% to 34,860, and the Nasdaq Composite rose 2.3% to 14,085.
VFC stock price analysis
At the time of writing, shares of VF Corp were sitting at $15.84, up nearly 12% on the day.
The stock climbed just 0.3% across the past five sessions and remains down 1.4% on the monthly chart.
Despite today’s surge, VF Corp’s year-to-date performance is still significantly negative at -42.5% due to boycotts and more importantly, declining sales at its hit brands such as The North Face, Vans, and Timberland.
Buy stocks now with Interactive Brokers – the most advanced investment platform
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
Source: https://finbold.com/north-face-stock-climbs-11-amid-weak-sales-and-boycotts/