Surprise: Supreme Sold Again
Photo: Costfoto/Getty Images
European eyewear group EssilorLuxottica — maker of Ray-Ban and Oakley — reached a surprise deal to buy Supreme from VF Corporation early Wednesday morning for $1.5 billion cash.
"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 CEO Francesco Milleri and Deputy CEO Paul du Saillant said, in a joint statement.
VF Corporation, which bought Supreme in 2020 for $2.1 billion, was reportedly shopping around for potential buyers earlier in the year, per WWD. Bracken Darrell, the company's CEO, said in the announcement that the cash deal "gives us increased balance sheet flexibility."
There may have been a more pressing desire to shed the hype-producing brand from its roster: Despite being at the center of streetwear's 2010s boom, Supreme reported declining revenue last fiscal year amid executive turnover and internal friction.
"Under VF, Supreme expanded its presence in the key markets of China and South Korea and has returned to delivering strong growth," Darrell said. "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."
James Jebbia, Supreme's founder, said that, with 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. This move lets us focus on the brand, our products, and our customers, while setting us up for long-term success."
As for the brand's future, Milleri and du Saillant hinted that "Supreme will have its own space within our house brand portfolio and complement our licensed portfolio as well."
The deal is expected to close by the end of the year.