VF Corp. Sells Supreme Brand to EssilorLuxottica for $1.5 Billion
Jul/19/2024
VF Corp. announced on Wednesday that it is selling its Supreme brand to EssilorLuxottica for $1.5 billion, with the deal expected to close by the end of 2024. Supreme, which generated $538 million in revenue during VF’s latest fiscal year, is anticipated to reduce VF’s earnings per share in fiscal 2025. VF, which also owns brands like Vans, Timberland, and The North Face, previously conducted a strategic review of its brand portfolio, leading to the decision to sell Supreme. VF acquired Supreme in 2020 for about $2.1 billion, a deal that David Swartz of Morningstar Research Services criticized as overvalued, negatively impacting VF’s balance sheet. This sale will help VF pay down debt and refocus on its core brands. Analysts view the deal as a mixed bag; while it offers VF much-needed balance sheet flexibility, it also means parting with its most profitable brand. EssilorLuxottica, known for owning Sunglass Hut and Ray-Ban, sees significant opportunity in integrating Supreme into its portfolio, aiming to leverage its expertise and operating platform to enhance Supreme’s market position. Tag cloud below shows the list of textual registered and pending trademarks by EssilorLuxottica with related classes.
