Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guidance and tools
Guidance and tools
Choosing investments Choosing accounts ISA calculator Retirement calculators
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
VF offloads Supreme to EssilorLuxottica for $1.5bn
(Sharecast News) - Vans, Timberland and North Face owner VF Corp is selling Supreme to EssilorLuxottica for $1.5bn, just four years after the apparel conglomerate bought the streetwear brand for $2.1bn. Supreme, founded in 1994 by James Jebbia, is a digital-first brand but has 17 physical stores across the US, Europe and Asia, having expanded into key markets like China and South Korea in recent years.
However, Supreme operates a different business model than VF's 12 other core brands, given its focus on frequent, weekly and limited product drops through the direct-to-consumer channel.
This model presents "unique risks", according to VF's most recent annual report published in May, given the brand's different product volume requirements and harder-to-predict seasonality.
"VF's failure to make the necessary adaptations to its operations to address these different characteristics, complexities and market dynamics could adversely affect VF's revenue, business condition and results of operations," the company said at the time.
On Wednesday, VF's chief executive Bracken Darrell said that, after delivering strong growth since the 2020 takeover, there are now "limited synergies" with Supreme and the rest of the group, "making a sale a natural next step".
Meanwhile, EssilorLuxottica's boss Francesco Milleri said Supreme "perfectly aligns with our innovation and development journey, offering us a direct connection to new audiences, languages and creativity".
"With its unique brand identity, fully-direct commercial approach and customer experience - a model we will work to preserve - Supreme will have its own space within our house brand portfolio and complement our licensed portfolio as well," Milleri said in a statement.
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity, Equity & Inclusion | Doing Business with Fidelity | Diversity, Equity & Inclusion Reports | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Security | Statutory and Regulatory disclosures | Whistleblowing policy
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.