Iconic Eyewear Giant EssilorLuxottica Acquires Supreme in $1.5 Billion Deal
$6 million less than what previous owner VF Corporation paid for Supreme paid in 2020.
Words by FP Team
SUPREME
VF Corporation has made the decision to part ways with the popular streetwear label Supreme. The American global apparel and footwear company, which currently owns several well-known brands such as the North Face, Timberland, and Vans, is selling Supreme to French-Italian eyewear maker EssilorLuxottica for $1.5 billion in cash, as announced in a joint statement on Wednesday.
VF initially acquired Supreme in 2020 for $2.1 billion, but has been exploring options to offload brands in response to a decrease in profits and an increase in debt. VF president and CEO Bracken Darrell mentioned that the sale provides increased balance sheet flexibility and supports the company's long-term growth and debt reduction efforts. While VF has helped Supreme strengthen its presence in key markets such as China and South Korea in the past four years, a strategic portfolio review revealed limited synergies between Supreme and VF, leading to the decision to sell.
The potential buyer, EssilorLuxottica, is a notable eyewear company known for its portfolio including Ray-Ban, Oakley, and Barberini. This acquisition marks EssilorLuxottica's first venture into the clothing brand industry, with the company expressing confidence in Supreme's potential fit within its portfolio. Supreme founder James Jebbia also expressed positivity about the acquisition, emphasizing the importance of preserving the brand's identity and operational approach.
With 17 stores across the U.S., Asia, and Europe, Supreme looks forward to focusing on the brand, products, and customers, setting itself up for long-term success. The deal is expected to close by the end of 2024.
us.supreme.com
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