VF Corporation, parent company of, among others, Kipling and The North Face, acquires the exclusive fashion brand Supreme for 2.1 billion dollar (1.8 billion euro). The acquisition should give a new boost to the company’s e-commerce turnover.
Streetwear brand Supreme is very popular with skaters and in the hip-hop world. It is the life's work of James Jebbia. He managed to create a unique image around the brand, which is nurtured and maintained by creating artificial scarcity. For example, the garments are produced in a few hundred copies at most. Sales are mainly online – Supreme has only 12 stores worldwide, 2 of which are in Europe. Most items are sold out in a matter of minutes.
Relatively little is known about Supreme's sales and profits. According to newspaper De Tijd, sales this financial year should exceed 500 million dollar (422 million euro). The label is also counting on an annual growth of 8 to 10%.
VF Corporation will eventually put 2.1 billion dollar (1.8 billion euro) on the table for Supreme. The acquisition will support the online sales of the American fashion group. Supreme derives more than 60% of its turnover from sales via the internet.