Eyewear giant EssilorLuxottica has finalized an agreement with VF Corporation to acquire the streetwear brand Supreme for $1.5 billion, the companies announced on Wednesday.
The cash transaction, scheduled to be completed by the end of the year, signifies the eyewear company’s first major venture into apparel. EssilorLuxottica, known for producing eyewear for well-known brands like Ray-Ban and Oakley, sees this acquisition as a strategic move.
“We see an incredible opportunity in bringing an iconic brand like Supreme into our company,” said CEO Francesco Milleri and Deputy Chief Paul du Saillant in a joint statement. They also noted that the deal aligns perfectly with EssilorLuxottica’s ongoing innovation and development initiatives, offering a direct link to new consumer demographics.
Bracken Darrell, CEO of VF Corp., acknowledged Supreme’s robust growth in key markets such as China and South Korea. However, he mentioned that the distinct business model of Supreme made it challenging to find significant synergies with VF’s integrated model, rendering the sale a natural decision.
Founded in 1994 in downtown Manhattan, Supreme quickly established itself as a cornerstone of skateboarding and urban fashion culture, initially employing skaters and local artists. The 30-year-old company, which primarily operates online, also has 17 stores across the U.S., Asia, and Europe.
The sale of Supreme is anticipated to negatively impact VF Corp.’s earnings per share in fiscal 2025.