Why Apparel Company VF Corp Shares Are Surging Today
Portfolio Pulse from Lekha Gupta
V.F. Corporation (NYSE:VFC) shares surged after announcing the sale of its Supreme brand to EssilorLuxottica (OTC:ESLOF) for $1.5 billion in cash. The transaction is expected to close by the end of 2024 and will dilute VFC's earnings per share in FY25. The sale provides VFC with increased balance sheet flexibility and supports long-term growth.

July 17, 2024 | 3:39 pm
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POSITIVE IMPACT
EssilorLuxottica announced the acquisition of the Supreme brand from V.F. Corporation for $1.5 billion in cash. The acquisition aligns with EssilorLuxottica's innovation and development strategy, offering a direct connection to new audiences and creativity. The transaction is expected to close by the end of 2024.
The acquisition of the Supreme brand for $1.5 billion aligns with EssilorLuxottica's strategy to innovate and reach new audiences. This strategic move is likely to be viewed positively by investors, as it enhances the company's brand portfolio and market reach.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 80
POSITIVE IMPACT
V.F. Corporation shares surged 7.59% after announcing the sale of its Supreme brand to EssilorLuxottica for $1.5 billion in cash. The sale is expected to close by the end of 2024 and will dilute VFC's earnings per share in FY25. The transaction provides VFC with increased balance sheet flexibility and supports long-term growth.
The sale of the Supreme brand for $1.5 billion in cash provides VFC with significant financial flexibility and supports its long-term growth strategy. Although the sale will dilute earnings per share in FY25, the market reacted positively, with shares surging 7.59%. This indicates investor confidence in the strategic move.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100