VF Corp. has sold Supreme to French Italian eyewear company Essilor Luxottica for $1.5 billion. The company purchased the company in 2020 for $2.1 billion. Supreme brought in revenues of $523.1 million in 2023 a decline from from $561.5 million the year prior. With the addition of locations in Seoul and China, the store has since returned to positive revenue growth.
Commenting on the sale, Supreme founder James Jebbia said in a press release, “In Essilor Luxottica, 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.”
Commenting on the acquisition, Essilor Luxottica CEO Francesco Milleri said, “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. With its unique brand identity, fully-direct commercial approach and customer experience, a model we will work to preserve, Supreme will have its own space within our house brand portfolio and complement our licensed portfolio as well.”
While the purchase of Supreme by Essilor Luxottica was not expected, the sale itself comes as no surprise. Under the new leadership of CEO Bracken Darrell, VFC had noted in recent earnings calls that it was seeking to offload properties to help tackle heavy debt which has weighed on the company’s stock price. As well, WWD had reported VF Corp. had brought on Goldman Sachs to sell Supreme.
The deal is expected to close by the end of the year.
