EssilorLuxottica Acquires Supreme for $1.5 Billion
VF Corporation, the current parent company of Supreme, announced on Wednesday that the iconic fashion brand will be sold to Ray-Ban maker EssilorLuxottica for $1.5 billion in cash. This acquisition will add Supreme to EssilorLuxottica’s portfolio of companies, which includes sunglass brands Oakley and Ray-Ban. Founded in 1994 by James Jebbia, Supreme has garnered a loyal following among young consumers for its limited-edition releases and collaborations with other brands.
Strategic Acquisition and Growth Plans
EssilorLuxottica executives Francesco Milleri and Paul du Saillant expressed their excitement about bringing Supreme into their company, citing the brand’s iconic status and alignment with their innovation and growth strategy. The acquisition will provide EssilorLuxottica with access to new audiences, languages, and creativity. Despite the acquisition, Supreme will continue its practice of selling products directly to consumers, a strategy that has been crucial to its success.
Plans for the Future
VF President and CEO Bracken Darrell described the sale of Supreme as a natural next step due to the limited synergies between the brand and VF. VF Corporation, known for brands like The North Face and Vans, acquired Supreme in 2020 for $2.1 billion. Supreme founder James Jebbia expressed optimism about the acquisition, stating that it will allow the brand to focus on its customers and set the foundation for long-term success.
Supreme currently operates an online store and 17 brick-and-mortar locations in the United States, Europe, and Asia. The brand has a strong presence in the streetwear community, with young shoppers often lining up for new product releases. The acquisition by EssilorLuxottica is expected to bring new opportunities for growth and expansion for Supreme.
