The acquisition is expected to finalize by the end of 2024.
VF Corporation has announced the sale of Supreme, the renowned streetwear brand, to EssilorLuxottica, a global leader in the optical industry, for $1.5 billion USD in cash. This move comes after months of speculation and marks a strategic shift for both companies. EssilorLuxottica, known for its ownership of iconic eyewear brands such as Ray-Ban and Oakley, confirmed the acquisition in a definitive agreement. This deal values Supreme at significantly less than its previous acquisition price by VF Corporation in November 2020, which was $2.1 billion USD. Despite the change in ownership, Supreme’s operational structure and global presence as a lifestyle apparel brand will remain intact. Strategic implications and vision James Jebbia, the founder of Supreme, expressed his commitment to the brand’s ethos and growth under EssilorLuxottica’s ownership. He emphasized that the partnership with EssilorLuxottica allows Supreme to stay true to its identity while leveraging the global expertise and operational platform of its new parent company. Francesco Milleri, Chairman and CEO, along with Paul du Saillant, Deputy CEO of EssilorLuxottica, highlighted the strategic rationale behind the acquisition. They emphasized the synergies between Supreme’s unique brand identity and EssilorLuxottica’s innovation capabilities. The acquisition is seen as an opportunity to expand Supreme’s reach into new markets and demographics while preserving its distinct commercial approach and customer experience. Operational continuity and market expansion Supreme, under VF Corporation’s ownership, expanded significantly into key international markets, including China and South Korea. Currently, the brand operates 17 stores globally with a strong emphasis on digital channels. The transition to EssilorLuxottica aims to further bolster Supreme’s market presence and innovation efforts. Closing remarks and future outlook The acquisition is expected to finalize by the end of 2024, pending regulatory approvals. It represents a strategic pivot for EssilorLuxottica into the apparel and lifestyle segment, complementing its existing portfolio of eyewear brands. For Supreme, the acquisition signals a new chapter of growth and innovation, supported by EssilorLuxottica’s global stature and operational capabilities.
