V.F. Corporation ( VFC ) shares are trading higher Wednesday after the company announced it entered into an agreement to sell its Supreme brand to EssilorLuxottica for $1.5 billion in cash.

The Details:

VF said it expects the sale of Supreme to be dilutive to its earnings per share in VF's 2025 fiscal year. Supreme contributed $538 million of revenue and $166 million in operating income during VF's 2024 fiscal year.

"Under VF, Supreme expanded its presence in the key markets of China and South Korea and has returned to delivering strong growth. However, given the brand's distinct business model and VF's integrated model, our strategic portfolio review concluded there are limited synergies between Supreme and VF, making a sale a natural next step," Bracken Darrell, CEO at VF, said in a press release. 

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VF Corporation ( VFC ) shares are moving higher on above-average trading volume as investors digest the sale of the Supreme brand. The stock is climbing above its 50-day moving average of $13.17.

VF Corp ( VFC ) is set to report its first-quarter 2025 results on Aug. 6 after the closing bell. According to estimates from Benzinga Pro, analysts expect the company to report losses of 37 cents per share and quarterly revenue of $1.85 billion. 

Should I Sell My VFC Stock?

Whether to sell or hold a stock largely depends on an investor's strategy and risk tolerance. Swing traders may sell an outperforming stock to lock in a capital gain, while long-term investors might ride out the turbulence in anticipation of further share price growth.

Similarly, traders willing to minimize losses may sell a stock that falls a certain percentage, while long-term investors may see this as an opportunity to buy more shares at a discounted price.

VFC shares have lost 24.17% year to date. This compares to the average annual return of -40.25%, meaning the stock has outperformed its historical averages. Investors can compare a stock's movement to its historical performance to gauge whether this is a normal movement or a potential trading opportunity.

Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. VF stock currently has an RSI of 70.57, indicating overbought conditions.

For analysis tools, charting data and access to exclusive stock news, check out Benzinga PRO. Try it for free.

VFC Price Action: According to Benzinga Pro, VF Corporation ( VFC ) shares are up 13.6% at $16.16 at the time of publication Wednesday.

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