EssilorLuxottica Acquires Supreme for $1.5 Billion: Expanding into Streetwear and Connecting with New Audiences

New York, New York, USA United States of America
EssilorLuxottica acquired Supreme for $1.5 billion on July 17, 2024
EssilorLuxottica plans to maintain Supreme's exclusive sales approach under their ownership
Supreme is a streetwear brand with loyal following and limited-edition releases
VF Corp. expects the sale of Supreme to be dilutive to their earnings per share in fiscal 2025
VF Corporation saw limited synergies between Supreme and their company
EssilorLuxottica Acquires Supreme for $1.5 Billion: Expanding into Streetwear and Connecting with New Audiences

In a major move in the fashion industry, eyewear giant EssilorLuxottica announced on July 17, 2024, that it had reached an agreement with VF Corporation to acquire the Supreme brand for $1.5 billion in cash. The acquisition marks EssilorLuxottica's expansion into streetwear and aligns with their innovation and development journey.

Supreme, founded by James Jebbia in 1994, has built a loyal following of mostly young customers through its limited-edition clothing and accessories releases, collaborations with other brands, and exclusive direct-to-consumer sales approach. The brand operates 17 stores across the U.S., Asia, and Europe.

VF Corporation saw limited synergies between Supreme and their company, making the sale a natural next step. VF Corp.'s brands include outdoor gear companies such as The North Face and Napapijri, as well as footwear brand Vans.

EssilorLuxottica executives Francesco Milleri and Paul du Saillant expressed excitement about the acquisition, stating that Supreme's unique brand identity would offer them a direct connection to new audiences, languages, and creativity. The company plans to maintain Supreme's exclusive sales approach under their ownership.

VF Corp. expects the sale of Supreme to be dilutive to their earnings per share in fiscal 2025. VF had been working with Goldman Sachs to review its portfolio, and Supreme was identified as one of the brands for sale. EssilorLuxottica is serving as exclusive financial advisor to EssilorLuxottica on the transaction, while Goldman Sachs & Co. LLC is serving as lead financial advisor and UBS Investment Bank is serving as financial advisor to VF.

EssilorLuxottica reported consolidated revenues of 24.5 billion euros in 2022 and operates under brands such as Oakley, Ray-Ban, Persol, Oliver Peoples, Chanel, Coach, and Dolce & Gabbana. The acquisition of Supreme is expected to complement their existing portfolio.

Supreme's loyal following includes celebrities and cool kids who appreciate the brand's unique style and exclusivity. The company has faced criticism for its high prices and limited availability, which have contributed to a decline in resale value on websites like StockX. However, EssilorLuxottica's strong distribution capabilities and expertise in brand management may help revive Supreme's fortunes.


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Confidence

91%

Doubts
  • Is the acquisition price of $1.5 billion accurate?
  • Will EssilorLuxottica be able to maintain Supreme's exclusive sales approach?

Sources

95%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Supreme is getting a surprising new owner

CNN News Site: In-Depth Reporting and Analysis with Some Financial Conflicts and Sensational Language Jordan Valinsky Wednesday, 17 July 2024 12:07
  • Unique Points
    • Supreme aligns with EssilorLuxottica's innovation and development journey, offering a direct connection to new audiences, languages and creativity.
    • EssilorLuxottica is expanding into streetwear with a $1.5bn deal for Supreme
    • VF sees limited synergies between the brand and their company, making the sale a natural next step.
  • Accuracy
    • ][Article.facts[1]] The sale was made from VF Corp., the parent company of Vans and Dickies, who bought Supreme for $2.1 billion in 2020.[
    • ][OtherArticles[0].facts[3]] EssilorLuxottica is expanding into streetwear with a $1.5bn deal for Supreme[
    • ][Article.facts[7]] VF sees limited synergies between the brand and their company, making the sale a natural next step.[
    • ][OtherArticles[2].facts[6]] VF Corp.'s strategic portfolio review concluded there are limited synergies between Supreme and VF, making a sale a natural next step.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (85%)
    The article contains a few informal fallacies and an example of inflammatory rhetoric. It uses an exaggeration when stating that Supreme is 'adored by celebrities and cool kids alike', which is an overgeneralization. Additionally, the statement 'buying a streetwear brand at a time when that aesthetic has gone off the boil is risky' employs an appeal to tradition fallacy. The author also uses inflammatory rhetoric in saying that EssilorLuxottica has 'strong distribution capabilities and is good at brand management', which implies that VF Corp. was unable to manage Supreme effectively.
    • . . . Supreme, the trendy streetwear clothier adored by celebrities and cool kids alike, . . .
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

95%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

EssilorLuxottica expands into streetwear with $1.5bn Supreme deal

Financial Times Wednesday, 17 July 2024 13:54
  • Unique Points
    • EssilorLuxottica is expanding into streetwear with a $1.5bn deal for Supreme
  • Accuracy
    No Contradictions at Time Of Publication
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (0%)
    None Found At Time Of Publication

100%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Supreme brand to be sold to Ray-Ban maker EssilorLuxottica

CBS News Site: https://www.cbsnews.com/articles/about-us/ Megan Cerullo Wednesday, 17 July 2024 13:55
  • Unique Points
    • Supreme will be sold to EssilorLuxottica for $1.5 billion in cash.
    • Supreme has a loyal following of mostly young customers.
    • VF sees limited synergies between the brand and their company, making the sale a natural next step.
    • Supreme exclusively sells its products directly to consumers and plans to maintain this approach under EssilorLuxottica.
  • Accuracy
    No Contradictions at Time Of Publication
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

97%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

EssilorLuxottica to Acquire Supreme

WWD (World Wide Web Design) Luisa Zargani Wednesday, 17 July 2024 06:40
  • Unique Points
    • EssilorLuxottica reached an agreement with VF Corporation to acquire the Supreme brand for $1.5 billion in cash.
    • Francesco Milleri, chairman and CEO of EssilorLuxottica, sees an opportunity in bringing Supreme into their company.
    • Supreme operates 17 stores in the U.S., Asia, and Europe.
    • VF Corp. expects Supreme sale to be dilutive to their earnings per share in fiscal 2025.
    • VF Corp. has been working with Goldman Sachs to review its portfolio and Supreme was identified as one of the brands for sale.
    • , EssilorLuxottica is serving as exclusive financial advisor to EssilorLuxottica on the transaction, respectively. Goldman Sachs & Co. LLC is serving as lead financial advisor and UBS Investment Bank is serving as financial advisor to VF.
    • Established in 2018, EssilorLuxottica reported consolidated revenues of 24.5 billion euros in 2022.
  • Accuracy
    • Supreme has been sold to Italian eyewear manufacturer EssilorLuxottica for $1.5 billion in cash.
    • EssilorLuxottica is expanding into streetwear with a $1.5bn deal for Supreme
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (95%)
    The article contains an appeal to authority when Francesco Milleri and Paul du Saillant of EssilorLuxottica make statements about the opportunity they see in acquiring Supreme and how it will complement their portfolio. However, no formal or informal fallacies were found beyond this.
    • “We see an incredible opportunity in bringing an iconic brand like Supreme into our company,” -- Francesco Milleri, chairman and CEO of EssilorLuxottica
    • “It 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.” -- Francesco Milleri
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication