EssilorLuxottica SA to Buy Streetwear Label Supreme
BGC, Philippines — French-Italian eyewear company EssilorLuxottica SA, the force behind Ray-Ban and Oakley, is set to purchase streetwear label Supreme from VF Corp. for $1.5 billion in cash.
Supreme has been fueled by so-called “hype marketing,” including limited-edition collaborations with musicians, watchmakers and lifestyle and luxury brands such as Louis Vuitton and The North Face with frequent “drops” of new products.
Founded by James Jebbia in New York in 1994, Supreme has been embraced by style fans for its clothes and footwear, targeting urban trends and skateboarding culture. It has since become a cult fashion label, distinct for its red and white logo. It now has 17 stores in the US, Asia and Europe, and a strong online business and presence.
Jebbia shared in a statement that the sale to Essilor will allow Supreme to focus on its brand, products and customers. EssilorLuxottica shares traded 3% lower early Wednesday in Paris, trimming their year-on-year gain to 10%. VF was down 0.5% in premarket US trading.
VF acquired Supreme in 2020 as part of a $2.1 billion deal with private equity firm Carlyle Group and investors including Goode Partners.
EssilorLuxottica was formed from the merger of two of Europe’s most prominent eyewear companies — Italy’s Luxottica and France’s Essilor. It is a global leader in the production and sale of prescription eyeglasses, sunglasses and contact lenses.