The ubiquity of cult streetwear brand โ Supreme โ may soon be taken to a whole new level after its US$2.1 billion acquisition by Denver-based operation VF Corporation. Joining a stable of established brands which include Timberland, The North Face, and Vans, this deal is effectively valued at close to double of Supremeโs 2017 valuation.
While the cultural impact and social currency of Supreme is undeniable, on a more tangible front, VF Corporation has revealed the iconic box logo currently generates over US$500 million in annual revenue (a considerable increase from the US$200 million earned back in 2017). And given 60% of said revenue comes directly from e-commerce โ read: essentially pandemic proof โ coupled with its seemingly limitless momentum among a youth market, growth projections indicate +8-10% across the next three years. A worthwhile addition to VFโs already heavy-hitting portfolio, indeed.
The major benefit for Supreme is, of course, operational expertise. As a seasoned player in the apparel game, VF will provide even greater opportunities by allowing Supreme to leverage its global supply chain, international platforms, digital capabilities, and โconsumer understandingโ. Because the best way to scale up is to side with the big dogs.
โWe are thrilled to welcome Supreme to the VF family and to build on our decades-long relationship as we create value for all of our stakeholders,โ says Steve Rendle, VF Corporation Chairman, President, and CEO.
โWe are not coming in to make changes. Weโre here to support and enable.โ
โThis partnership will maintain our unique culture and independence while allowing us to grow on the same path weโve been on since 1994,โ says James Jebbia, Founder of Supreme.
Given VF Corporation has acquired the entirety of Supreme, this will also mark the complete divestment of previous stakeholders The Carlyle Group and Goode partners.
