Just four years after acquiring Supreme, VF Corporation announced the sale of Supreme to EssilorLuxottica for $1.5 billion in cash. This deal marks a significant transition for Supreme, a brand that has defined and dominated the streetwear landscape for decades.
VF Corporation acquired Supreme in 2020 for a hefty $2.1 billion and has decided to part ways with the iconic brand. Despite the considerable price drop, Supreme remains financially robust, continuing its expansion and maintaining a solid market presence. Under VF Corp's ownership, Supreme ventured into new markets, particularly China and South Korea, but did have trouble meeting expectations set by VF Corp.
Bracken Darrell, President and CEO of VF Corp, explained the rationale behind the sale: “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.” He further emphasized that the transaction would support VF’s long-term growth strategy and financial stability, allowing for more balanced debt levels and increased flexibility.
EssilorLuxottica, a global titan in the optical industry, sees Supreme as a perfect addition to its diverse brand portfolio. Francesco Milleri, Chairman and CEO, and Paul du Saillant, Deputy CEO, expressed their enthusiasm: “We see an incredible opportunity in bringing an iconic brand like Supreme into our Company. It perfectly aligns with our innovation and development journey, offering us a direct connection to new audiences, languages, and creativity.”
EssilorLuxottica’s acquisition strategy is preserving Supreme’s unique brand identity and operational model. Supreme will continue to function autonomously within EssilorLuxottica’s portfolio, benefiting from the group’s extensive expertise and capabilities. This approach ensures Supreme retains its distinctive edge and continues to appeal to its dedicated fanbase.
James Jebbia, the founder of Supreme, sees this acquisition as a positive step towards the brand’s future. “In EssilorLuxottica, we have a unique partner that understands that we are at our best when we stay true to the brand and continue to operate and grow as we have for the past 30 years,” Jebbia commented. This partnership promises to keep Supreme’s core values and operational integrity intact while setting the stage for future growth and innovation.
As Supreme embarks on this new journey, fans and industry watchers alike will be keen to see how this iconic brand evolves and continues to influence global fashion trends. Subject to customary closing conditions and regulatory approvals, the transaction is expected to close by the end of 2024. Download the Sole Retriever mobile app for more updates on the latest happenings in the sneaker and streetwear world.
Sneakerhead from South Florida who turned his passion into a career. Concerts, music, trying new restaurants, and catching the latest movies are some of the things I enjoy when not writing for Sole Retriever. Email: nick@soleretriever.com
