Supreme is a popular name among streetwear fashion moguls. However, it seems the iconic streetwear brand has changed hands once again. This time, EssilorLuxottica, an Italian eyewear brand, has acquired it for $1.5 billion in cash.
This latest development shows a huge drop from the $2.1 billion that VF Corp, the parent company of Vans and Dickies, paid for Supreme just four years ago.
Did Supreme Get Bought Out?
EssilorLuxottica, popularly known for its extensive portfolio in the eyewear industry, recently announced the acquisition. Now, everyone seems confused about Supreme’s future under its new ownership.
According to EssilorLuxottica, Supreme perfectly aligns with its innovation and development journey, fostering a direct connection to new audiences, languages, and creativity. EssilorLuxottica also mentioned that Supreme would maintain its unique identity within its portfolio, marking its first venture into the apparel sector.
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While the name EssilorLuxottica might not resonate with many, its brands certainly do. Their collection features famous names like Oliver Peoples, Ray-Ban, Oakley, and Persol. Additionally, they hold licensing agreements with high-end brands like Chanel, Coach, and Dolce & Gabbana.
Where Did Supreme Originate From?
Supreme originated from a New York skateboard shop in 1994. Ever since, it has gained a loyal following among skateboarders and hip-hop enthusiasts, expanding its appeal to Millennials and Generation Z. In 2007, the Carlyle Group acquired a 50% stake in the company for $500 million.
VF Corp.’s shares surged nearly 7% in premarket trading following the announcement. The company cited “limited synergies” between Supreme and its other brands, indicating that the sale was a logical progression.
The sale appears logical, according to Neil Saunders, a retail analyst at GlobalData. Speaking to CNN, Saunders noted that VF Corp. “overpaid for a trophy asset which it was not sure how to develop or nurture,” leading to financial losses.
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“Acquiring a streetwear brand when that trend has cooled off is a gamble, and it remains uncertain how EssilorLuxottica plans to rejuvenate Supreme’s prospects,” Saunders commented. However, he acknowledged that the Italian company has “strong distribution capabilities and excels at brand management.” So, everything should work perfectly.
How Did Supreme Become a Popular Brand?
If you are a streetwear fan, you’d know that Supreme has been in the game for a while. It began as a modest skate shop on Lafayette Street in downtown Manhattan. But now? It has become a global fashion brand. So, how did this brand grow from its humble beginnings to become one of the most popular names in retail?
As previously stated, Supreme started as a small skate shop but quickly gained a loyal following thanks to its distinctive designs and exclusive releases. Over the years, the brand has collaborated with top-tier brands like Nike, Louis Vuitton, and Comme des Garçons.
Today, Supreme continues to attract more loyal fans who are known to camp out for days to secure the latest limited-edition pieces.
Who Owns Supreme?
James Jebbia, a British fashion designer, owns Supreme. Jebbia initially fantasized about a space where skateboarding and art crossed. It’s pretty obvious that his vision has materialized through many collaborations with artists that defined the brand’s aesthetics.
Today, Supreme’s global presence and exclusive weekly drops have made it a major player in the fashion world—all thanks to Jebbia’s innovative approach! Supreme’s new ownership should not surprise you because brands constantly evolve to meet customer needs.
It’s either they introduce new products or refresh their image. Regardless, growth is crucial to stay relevant. Controversy and criticism have followed Supreme closely. Many accuse the brand of generating hype without substance, while others criticize the brand’s high prices.
Whether you love or hate it, there is no denying that Supreme will still be in the game for as long as it wants. Even under this new ownership, it will remain a powerful force in the fashion industry!
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