Updated: Nov 17, 2020
Streetwear brand Supreme has been acquired by VF Corporation, the owner of Vans, Timberland and The North Face, in a deal worth $2.1bn.
The brand was founded by child actor turned skateboarder James Jebbia in New York in 1989 and has been credited with making people rethink streetwear, with its tightly controlled product drops changing the way streetwear is marketed.
The brand’s limited edition collaborations with artists, actors and musicians including Lou Reed and Chloe Sevigny have also helped it maintain its status among youth counter-culture.
VF says Supreme currently generates more than $500m in annual revenues, up from around $200m in 2017, and that more than 60% of Supreme’s revenues come from online. It expects revenues to grow between 8% to 10% over the next three years.
Steve Rendle, VF’s Chairman, President, and Chief Executive Officer.“We 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. VF is the ideal steward to honor the authentic heritage of this cultural lifestyle brand while providing the opportunity to leverage our scale and expertise to enable sustainable long-term growth.”
“The acquisition of the Supreme® brand is further validation of our vision and strategy to further evolve our portfolio of brands to align with the total addressable market opportunities we see driving the apparel and footwear sector. The Supreme® brand will further accelerate VF’s hyper-digital business model transformation and will be a meaningful driver of VF’s commitment to top quartile total shareholder return and long-term value creation.”
“We are proud to join VF, a world-class company that is home to great brands we’ve worked with for years, including The North Face®, Vans®, and Timberland®,” said Jebbia. “This partnership will maintain our unique culture and independence, while allowing us to grow on the same path we’ve been on since 1994.”