VF Corp said on Monday it would pay $2.1 billion to buy streetwear apparel company Supreme, adding another popular brand to the Vans shoe maker’s roster.
VF Corp, which also houses brands such as The North Face and Timberland, said it would make an additional payment of up to $300 million subject to satisfaction of certain post-deal closing milestones.
Shares of VF Corp rose 10% to $77.24 in premarket trading.
It added that current investors Carlyle Group and New York-based private equity firm Goode Partners are selling their stakes in Supreme, which was founded by American-British businessman James Jebbia in 1994.
Known for its red box logo with “Supreme” written in white, the brand has gained a following among “hypebeats,” or fans of the streetwear style, with product launches selling out in minutes and people lining up outside stores for hours.
VF Corp’s deal with Supreme will help bolster its e-commerce business that has become the need of the hour for apparel and footwear makers due to the COVID-19 pandemic.
“The Supreme brand will further accelerate VF’s hyper-digital business model transformation,” VF Corp Chief Executive Officer Steve Rendle said.
Supreme, which has collaborated with many prominent fashion names including Louis Vuitton as well as Nike, Levi and Vans, gets over 60% of its revenue from the online business.
The deal, which is expected to be completed late in calendar year 2020, is anticipated to contribute at least $500 million of revenue and adjusted earnings per share of 20 cents in fiscal 2022.
1. "They need to cut all skateboarders and Odd Future a check." In response to Reply # 0
The brand is about to go commercial just like Timberland and North Face did
Pre 90s
Tim’s were original for lumberjacks and foresters. We were rocking them when they didn’t have company stores and weren’t sold in department stores. We had to go way out to outdoor stores to buy them.
North Face was just used by skiers and winter mountain climbers.
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3. "RE: They need to cut all skateboarders and Odd Future a check." In response to Reply # 1
>The brand is about to go commercial just like Timberland and >North Face did > >Pre 90s > >Tim’s were original for lumberjacks and foresters. We were >rocking them when they didn’t have company stores and >weren’t sold in department stores. We had to go way out to >outdoor stores to buy them.
They were for construction workers too.. Steel toe tims were the boot of choice.
>North Face was just used by skiers and winter mountain >climbers.
yup, the only kids i knew who rocked northface back then also had the ski lift pass things attached to their zippers.
8. "Tims, Carhartt.. then you had Dickies for the dudes on a budget..." In response to Reply # 4
...i used to work at a army & navy store that sold all these ..in 92 the store started getting different clientele who wanted them not for work but the style
6. "Can't wait to see Supreme at my local Macy's" In response to Reply # 0
Maybe I'm just old now, but Supreme hasn't been cool to me for a while now. It got too big. I know thats very "I was a fan of the band before they were popular" of me.
I think it used to be like you rocked it knowing most people had no clue what it was, but it garnered a lot of respect in the right circles. You had to be a head.
Now its just LOOK AT ME IM WEARING SUPREME THIS SAYS SUPREME ON IT
Tbh I think the whole sneakerhead/streetwear thing played itself out over the past few years. But like I said maybe I'm just old and washed now.
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