EssilorLuxottica buys Supreme for $1.5 billion, but is it past its prime?
Italian eyewear giant EssilorLuxottica scooped up US streetwear brand Supreme for $1.5 billion. It’s buying the brand from VF Corporation, which owns popular outdoor and lifestyle brands like Uggs, North Face, Timberland, and Vans.
VF had paid $2.1 billion to buy Supreme in 2020.
EssilorLuxottica already owns trendy eyewear brands like Ray-Ban and Oakley, but Supreme is its first foray into the shoe and apparel industry. Founded in 1994, Supreme's blocky red-and-white logo has gained a cult following in recent years, with its simple yet recognizable skater style.
While EssilorLuxottica believes the acquisition will help give it a "direct connection to new audiences," analysts warn that the global streetwear boom is already starting to fall out of fashion. Shares of VF were recently up 7.8% in US trading, while EssilorLuxottica stock fell about 4% in France.
EssilorLuxottica already owns trendy eyewear brands like Ray-Ban and Oakley, but Supreme is its first foray into the shoe and apparel industry. Founded in 1994, Supreme's blocky red-and-white logo has gained a cult following in recent years, with its simple yet recognizable skater style.
While EssilorLuxottica believes the acquisition will help give it a "direct connection to new audiences," analysts warn that the global streetwear boom is already starting to fall out of fashion. Shares of VF were recently up 7.8% in US trading, while EssilorLuxottica stock fell about 4% in France.
