EssilorLuxottica Chairman and Chief Executive Officer Francesco Milleri, the key leader in Burberry and Prada eyewear, is acquiring Supreme for a whopping $1.5 billion.
This is the first time EssilorLuxottica has entered the clothing industry, which is a big step beyond its usual business of making eyewear.
According to reports, the agreement, set to be completed by the end of 2024, marks a big change for EssilorLuxottica.
As we previously reported, the giant corporation was considering selling Supreme due to the challenges with its shrinking revenue.
Hence, According to Supreme's previous owner, VF Corporation, they decided to sell the iconic streetwear brand to EssilorLuxottica due to a limited strategic fit.
EssilorLuxottica's CEO highlighted their commitment to preserving Supreme's unique identity and direct-to-consumer approach.
Despite this, EssilorLuxottica is optimistic about integrating Supreme into its brand portfolio, seeing it as a complement to its existing offerings.
VF Corporation considers this sale part of a strategic portfolio review aimed at long-term growth and debt reduction.
EssilorLuxottica buying Supreme shows that they're not just sticking to eyewear anymore. It also proves they're smartly using Supreme's cool skateboarding factor to make the most of the fast-changing retail scene.
With this acquisition, EssilorLuxottica aims to carve out a new space within the skateboarding industry, using Supreme's brand power to drive growth and innovation in the coming years.