Essilor Luxottica to buy Supreme for $2.2 billion
European eyewear giant EssilorLuxottica has purchased the streetwear brand Supreme from VF Corporation (VFC) for US$1.5 billion (A$2.2 billion).
Originally acquired by the company for $2.1 billion in 2020, according to The Business of Fashion VFC will offload Supreme at a significant discount due to declining sales and interest in streetwear.
The brand generated revenues of $523.1 million last year, down from $561.5 million in 2022. Profit also fell, according to VF Corp, which didn’t break out figures for Supreme in its fiscal year ending March.
“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,” remarked VF Corp CEO Bracken Darrell.
VF Corp is an American-headquartered apparel and footwear company founded in 1899 by John Barbey and owns several brands, including The North Face, Timberland, Vans, Dickies, Icebreaker, Altra, Kipling, Majestic, and Jansport.
Francesco Milleri, chairman and CEO, and Paul du Saillant, deputy CEO of EssilorLuxotica, said Supreme’s acquisition aligns with its journey to connect with new audiences.
“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,” said the pair in a statement. “They will be well-positioned to leverage our group’s expertise, capabilities, and operating platform.”
The deal is expected to close by the end of this year.
The post Essilor Luxottica to buy Supreme for $2.2 billion appeared first on Inside Retail Australia.