EssilorLuxottica to Acquire Supreme® Brand from VF Corporation for $1.5 Billion

EssilorLuxottica, a major player in the optical industry, announced on July 17, 2024, that it will acquire the Supreme® brand from VF Corporation for $1.5 billion. The deal aims to enhance EssilorLuxottica's brand portfolio with the addition of the highly sought-after streetwear label.

VF Corporation, which owns several lifestyle apparel and footwear brands, stated that the sale of Supreme® is a strategic decision driven by limited synergies between Supreme® and VF's existing business model. VF noted that Supreme® has experienced strong growth under its ownership, especially in key markets like China and South Korea. The company believes Supreme® is well-positioned for continued success within EssilorLuxottica's portfolio.

EssilorLuxottica executives expressed optimism about integrating Supreme®. They highlighted the brand's alignment with their innovation and development goals and its potential to connect with new audiences. The company intends to preserve Supreme®'s unique brand identity and customer-centric approach, which operates primarily through digital channels and 17 physical stores globally. Supreme® will function as a distinct brand within EssilorLuxottica’s structure.

The acquisition is anticipated to be complete by the end of the calendar year 2024, pending standard regulatory approvals. VF Corporation anticipates the sale will be dilutive to its earnings per share in fiscal year 2025, while the transaction is expected to strengthen VF’s balance sheet and support its long-term growth strategy.