EssilorLuxottica to Buy Supreme Brand From VF for $1.5 Billion -- Update

By Adria Calatayud and Andrea Figueras

Ray-Ban maker EssilorLuxottica agreed to buy streetwear brand Supreme from VF Corp. for $1.5 billion in a move aimed at helping the company expand further beyond eyewear.

The acquisition will let EssilorLuxottica connect with new customer groups, and aligns with its goals in innovation and development, the European eyewear and lenses company said Wednesday.

"We see an incredible opportunity in bringing an iconic brand like Supreme into our company," EssilorLuxottica Chief Executive Francesco Milleri said.

U.S. apparel brand VF, which owns the footwear brand Vans, said the sale follows a portfolio review, which found the move a logical step given the limited synergies with Supreme, VF said. The company paid $2.1 billion for Supreme in 2020.

Supreme was founded by James Jebbia in New York in 1994. Known for its hoodies, T-shirts and accessories, the streetwear brand has been popular among skateboarders as well as celebrities like Justin Bieber and Rihanna.

The sale of the Supreme brand, which runs a digital-first business and 17 stores in the U.S., Asia and Europe, will dilute VF's earnings per share in fiscal 2025, the companies said.

Analysts at Bernstein called the acquisition a surprise that would take EssilorLuxottica out of its "comfort zone."

The companies expect to close the deal by the end of 2024, they said.

Write to Adria Calatayud at [e-mail] and to Andrea Figueras at [e-mail]

(END) Dow Jones Newswires

07-17-24 0402ET