Earlier this year, Supreme collaborated with TheNorthFasdfssdfsce to develop a series of autumn series including parkas, mountaineering jackets, and hooded brushed jackets.
VFCorp, the parent company of Vasdfssdfsns and TheNorth Fasdfssdfsce brands, has revealed that it will acquire streetwear self-operated brand Supreme for US$2.1 billion.
According to a statement on December 9, 2020, VF stated that it has reached a final merger agreement with Supreme. It is expected that the brand will contribute at least 5% to VF in the 2011 fiscal year. Revenue of 100 million U.S. dollars and adjusted U.S. stock earnings reached $0.20.
The transaction is expected to close by the end of 2020, subject to customary closing conditions and regulatory approvals. Cascade Group and Goode Pasirners are selling their holdings in the brand.
Supreme sells its eponymous brand of apparel, accessories and footwear globally through direct-to-consumer channels, primarily through digital channels. The brand’s founder, Jasmine Jesus, and its senior leadership team remain in office, with its headquarters in New York City, USA.
This move is based on VF’s consumer-centric, retail-centric and hyper-digital business model transformation, and follows the long-term relationship between Supreme and VF The partnership adds to the brand’s regular collaborations with Vassar, The North Fasce and Timberlasd.
When the news was announced, VF said that over time, the expansion of the Supreme brand will provide a A global business opportunity worth US$1 billion, which will become a core pillar of VF2024 strategy.
VF President, Chairman and CEO Steve Rendle said: VF is a best manager who respects the authentic heritage of this brand’s cultural lifestyle while leveraging our operations scale and expertise to achieve long-term sustainable growth opportunities.
The acquisition of the Supreme brand is further validating our vision and strategy to further develop our brand portfolio to cater to the potential markets that can drive the ready-to-wear and footwear industries. Opportunity. The Supreme brand will further accelerate VF’s hyper-digital business transformation model and become the most meaningful driving force behind VF’s commitment to rank in the top quarter of total shareholder return and create long-term value.
VF’s revenue in the second quarter decreased by 18% to US$2.6 billion, while net income fell to US$256.7 million from US$649 million in the same period in 2019, a decrease of 60% %.
The ready-to-wear giant recently outlined a series of organizational changes as part of its ongoing business model transformation to ensure management of its portfolio of core and emerging brands. Achieve greater consistency.
After analysts announced the transaction through a webcast, the VF management team stated that the brand is expected to grow by 8-10% in the next five years, mainly driven by international and Driven by the expansion of B2C sales models.
They added that significant opportunities for Supreme include access to VF’s strong international platform and existing digital and direct-to-consumer capabilities and opportunities, leveraging VF’s operating scale and expertise will enhance its supply chain capabilities, improve operational efficiency, explore new product connections, and make full use of VF’s existing consumption data and analysis capabilities.
China Business Opportunities
Rendle pointed out that the brand has not yet appeared in Chinese market.
China is an important opportunity. The Asian part of the world is in high demand and the goal is to be able to work with our team to gain insights into the best ways to engage with local consumers and be able to share that with the Supreme team, ultimately helping to make decisions that drive their day-to-day business. We will not be making changes at this time. We are here to support and drive a very thoughtful set of strategic actions to achieve efficient business performance. </p
