VF Stock Soars as Company Sells Supreme Brand to Ray-Ban Owner EssilorLuxottica

VF Corporation (VFC) shares soared Wednesday aft nan struggling clothing retailer announced that Paris-based retailer EssilorLuxottica purchased its Supreme streetwear marque for $1.5 cardinal successful cash.

VF's main executive officer, Bracken Darrell, said that because of Supreme’s “distinct business exemplary and VF’s integrated model, our strategical portfolio reappraisal concluded location are constricted synergies” betwixt nan two. He called nan determination to waste nan portion “logical.”

Bracken has been starring turnaround efforts for nan institution down Vans and North Face, cutting inventory and “rebuilding nan activity team” arsenic request sank. VF posted a astonishing quarterly nonaccomplishment successful May, pinch income tumbling 13%. 

For Ray-Ban and Oakley genitor EssilorLuxottica, nan move expands its portfolio beyond eyewear. CEO Francesco Milleri, and Deputy CEO Paul du Saillant said that adding Supreme “perfectly aligns pinch our invention and improvement journey, offering america a nonstop relationship to caller audiences, languages and creativity.”

The transaction is expected to beryllium completed by nan extremity of nan year. 

VF shares roseate 14% to adjacent Wednesday's convention astatine $16.15. Despite today’s advance, shares of VF shares are down astir 13% year-to-date.