VF Corporation has agreed to sell Supreme to EssilorLuxottica for $1.5 billion.
- This move marks a significant divestment by VF Corp, which acquired Supreme for $2.1 billion in 2020.
- EssilorLuxottica’s acquisition is subject to customary closing conditions, expected to conclude by late 2024.
- Supreme maintains a strong retail presence globally, with 17 stores across major regions.
- The sale reflects strategic shifts within VF Corporation’s portfolio management.
VF Corporation, a notable entity in the fashion industry, has confirmed the sale of its streetwear brand, Supreme, to eyewear leader EssilorLuxottica. The transaction is valued at $1.5 billion (£1.15 billion) and is anticipated to close by the end of 2024, subject to necessary regulatory approvals.
The decision to divest Supreme comes after VF Corp’s acquisition of the brand in 2020, alongside its purchase of shares from The Carlyle Group and Goode Partners, totalling $2.1 billion (£1.6 billion). This sale signifies a notable shift in VF Corp’s business strategy, focusing on realigning its brand portfolio.
Supreme, renowned for its pioneering role in streetwear fashion, operates 17 retail stores across key markets in the United States, Asia, and Europe, including a flagship outlet in London’s Soho. Its transition to a new owner, EssilorLuxottica, a leader in the eyewear sector, is indicative of potential new synergies and market expansions.
EssilorLuxottica’s involvement in this acquisition suggests a strategic diversification into the streetwear segment, which could enrich its existing product offerings. The company is expected to leverage Supreme’s established market presence to strengthen its position in the fashion industry.
The sale of Supreme to EssilorLuxottica underscores significant strategic shifts within VF Corp towards optimising its portfolio.
