V.F. Corp. (VFC) announced on Wednesday its agreement to sell its skating brand, Supreme, to EssilorLuxottica, a French ophthalmic lens manufacturer and distributor, for $1.5 billion in cash. Following this announcement, V.F. Corp's stock climbed by 9% in pre-market trading.
Bracken Darrell, President and CEO of V.F. Corp., noted that the sale provides the company with greater financial flexibility, supporting V.F. Corp's long-term growth strategy and debt management efforts. Despite this strategic advantage, the sale of Supreme is expected to negatively impact V.F. Corp's earnings per share in fiscal 2025.
Supreme primarily operates through digital channels and maintains 17 stores across the United States, Asia, and Europe.
The transaction is scheduled to be finalized by the end of 2024, subject to customary closing conditions and regulatory approvals.
In pre-market trading on the NYSE, V.F. Corp's shares are trading at $15.51, up 9.07%.
