Eyewear giant EssilorLuxottica has announced an agreement with VF Corporation to acquire streetwear brand Supreme for $1.5 billion. The cash deal is expected to be finalized by year-end, marking EssilorLuxottica’s first venture into the apparel sector. Traditionally, the Italian-French company has focused on producing eyewear for popular brands such as Ray-Bans and Oakley.
“We see an incredible opportunity in bringing an iconic brand like Supreme into our company,” stated CEO Francesco Milleri and deputy chief Paul du Saillant in a joint statement. They emphasized that the acquisition aligns perfectly with EssilorLuxottica’s “innovation and development journey” and provides a “direct connection to new audiences.”
VF Corporation’s CEO Bracken Darrell noted that Supreme has significantly expanded its presence in key markets like China and South Korea, demonstrating strong growth. However, Darrell mentioned that Supreme’s distinct business model provided limited synergies with VF’s integrated model, making the sale a natural progression.
Founded in downtown Manhattan in 1994, Supreme quickly became a landmark in skateboarding and urban fashion culture, employing skaters and local artists. The 30-year-old company, which operates primarily online, has 17 stores across the U.S., Asia, and Europe.
The sale is anticipated to reduce VF Corp.’s earnings per share in fiscal 2025.