Streetwear fashion label Supreme has been sold to VF Corp. for $2.1 billion, 26 years after its founding by James 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,” Jebbia said in a statement.
Supreme has long been the consumer’s choice for Gen-Zers and millennials. The Los-Angeles based brick-and-mortar store located along the infamous boutique section of Fairfax District is normally crowded with Supreme wearers patiently waiting in line for the latest drop.
While many consumers enjoy the experience of shopping at the physical store in person, about 60% of purchases are made through the brand’s website. Aligning with Supreme is a strategic move as VF Corp. prepares to grow its digital imprint. Supreme also serves to benefit from VF Corp.’s reach and expansion potential.
Started in New York, James Jebbia founded Supreme in 1994 as a brand targeting skateboarders. In 2017, equity in the Supreme brand was split when the private equity firm Carlyle Group paid $500 million for a 50% stake. Today, Supreme has 12 shops worldwide. Jebbia will continue to have creative control, along with the leadership board currently with the company.
VF Corp. has a knack for popular streetwear brands that have cult-like followings. The company holds a diverse portfolio of brands in the apparel and footwear industry that include North Face, Timberland, Dickies and Vans.
News of the $2.1 billion sell has sparked a 17% jump in the company’s shares. The acquisition of Supreme will be complete by year’s end.
