Founded in 1994, you know the red-and-white logo when you see it.
With more than 30 brands under its belt, VF Corporation has acquired the iconic streetwear brand, Supreme, for US$2.1 billion. This procurement is a fitting addition to VF Corporations already impressive portfolio. Supreme is always drip, cop and never drop. Meaning, if you have a chance to land anything Supreme, you take it. Supreme has sat atop of the streetwear mountain since the dawn of its existence.
With an outstanding annual revenue of above US$500 million, Supreme will join the likes of VF Corporation’s other established brands, including, The North Face and Vans. Supreme has cemented its place within the e-commerce market and the youth market, deeming it a desirable partnership amidst the current pandemic climate. The brand’s favourable position has confidently projected growth of approximately 8-10% by the year 2023.
The acquisition was quite the leap in comparison to Supreme’s brand valuation in 2017, which was nearly half the current value. Although, based on its increasing popularity amongst the youth market, its impact on streetwear culture, and its continual online sales, the US$2.1 billion valuations seem more than suitable.
Supreme has been well-known to collaborate with brands like Louis Vuitton, Nike distinguishing the brand’s flexibility and dominance among its peers in the retail space.
This extremely beneficial acquisition will be almost effortless for VF to retain, as Supreme has been a leading streetwear brand for many years now. With a greater scope of global supply chains and international platforms, under VF’s guidance, Supreme is set to soar.
The Chairman, President, and CEO, Steve Rendle, was not modest when expressing his thoughts on the new acquisition. “We are thrilled to welcome Supreme to the VF family”, he stated as he is explained his preparedness to generate stakeholder value and foster a longstanding relationship.
The addition of Supreme to VF’s portfolio aligns with the corporation’s selling of previous subsidiaries. Rendle has made it clear that he does not want to change the brand, he simply wants to “support and enable.” The Founder of Supreme, James Jebbia, mirrors Rendle’s confidence, as he expressed the importance of maintaining Supreme’s “unique culture and independence” under the new acquisition.