VF To Sell Supreme Brand To EssilorLuxottica For $1.5 Bln In Cash; Stock Up In Pre-market

(RTTNews) - V.F. Corp. (VFC) announced on Wednesday that it has agreed to sell its skating brand, Supreme to EssilorLuxottica, a French manufacturer and distributor of ophthalmic lenses, for $1.5 billion in cash. Following this announcement, the stock increased by 9% in pre-market trading.

Bracken Darrell, President and CEO of VF, stated that this deal provides greater financial flexibility and supports their long-term growth strategy and debt management, even though the sale of Supreme is projected to negatively impact VF's earnings per share in fiscal 2025.

The Supreme brand operates primarily through digital channels and has 17 stores across the U.S., Asia, and Europe.

The transaction is anticipated to be completed by the end of 2024, pending customary closing procedures and regulatory approvals.

In pre-market activity on the NYSE, the shares are trading at $15.51, up 9.07%.