Rumors about VF Corp selling Supreme have been floating around for months. Those rumors have now been confirmed as the NYC-based streetwear brand is being sold to EssilorLuxotica for $1.5 billion in cash in a deal announced by both parties this morning.
EssilorLuxotica is a giant in the eyewear space with over 150 brands in its portfolio, including names like Ray-Ban, Oakley, and Persol. The company aims to integrate Supreme into its business, leveraging the streetwear brand’s unique identity and direct-to-consumer model to reach new audiences.
“We see an incredible opportunity in bringing an iconic brand like Supreme into our Company,” says Francesco Milleri, Chairman and CEO and Paul du Saillant, Deputy CEO at EssilorLuxottica. “It perfectly aligns with our innovation and development journey, offering us a direct connection to new audiences, languages and creativity. With its unique brand identity, fully-direct commercial approach and customer experience – a model we will work to preserve – Supreme will have its own space within our house brand portfolio and complement our licensed portfolio as well. They will be well-positioned to leverage our Group’s expertise, capabilities, and operating platform.”
VF Corp, the parent company of Vans, Timberland, and more, previously acquired Supreme in November 2020 for $2.1 billion. In a statement, VF’s President and CEO Bracken Darrell cites “limited synergy” as a reason for the sale.
“Under VF, Supreme expanded its presence in the key markets of China and South Korea and has returned to delivering strong growth,” says Darrell. “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. Alongside the other notable brands in EssilorLuxottica’s portfolio, Supreme and its talented team will be well-positioned for continued success.”
Supreme’s VF Corp era has been rocky at times. Weakening sales, profit fluctuations, and Tremaine Emory’s not-so-amicable departure as Creative Director have been causes of concern over the last couple of years. Other brand’s in VF Corp’s portfolio — Vans, The North Face, Timberland, and Dickies — have also been under-performing, all with negative revenue growth according to VF Corp’s most recent earnings report.
The sale of Supreme will help VF Corp pay off debts, allowing for further growth in the future. “While we will always look to adjust the VF portfolio from time to time, this transaction gives us increased balance sheet flexibility” says Darrell. “It also supports our overall program to better position the company for long term growth and more normalized debt levels.”
Supreme founder James Jebbia seems optimistic about the brand’s new ownership. “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,” says Jebbia. “This move lets us focus on the brand, our products, and our customers, while setting us up for long-term success.”
The sale of Supreme to EssilorLuxottica is expected to close by the end of 2024. Stay tuned to Modern Notoriety for more streetwear news updates.
VF Corp is selling Supreme to eyewear giant EssilorLuxottica for $1.5 billion in cash
EssilorLuxottica has over 150 brands in its portfolio, including Ray-Ban, Persol, and Oakley pic.twitter.com/VVw2FNn2K6
— Modern Notoriety (@ModernNotoriety) July 17, 2024