Highsnobiety
Double Tap to Zoom

VF Corp — the parent company of The North Face, Vans, Timberland, Eastpak, Napapijri, Dickies, and now Supreme — estimates that its latest acquisition will generate $500 million in revenue in its next fiscal year.

This was communicated in a Q3 earnings call, during which VF also reiterated its belief that Supreme runs itself and that the parent company would be taking a hands-off approach to its new cash cow.

When Supreme sold 100 percent of its business to the conglomerate for an aggregate base purchase price of $2.1 billion in December, VF was betting on the continued growth of the global streetwear market and the success of its plan for international and direct-to-consumer expansion.

Some of Supreme's longstanding devotees voiced their concern over how the industry-shifting acquisition might impact its potent social influence, but recent comments from VF's chief executive Steve Rendle suggest that the parent company is going to great lengths to minimize disruption as it integrates the streetwear brand.

“This is a beautiful, simple machine and we don’t want to mess it up, frankly,” Rendle told BoF. While analysts predict expansion into Asian markets to be a key driver of growth for the brand in the coming years, the model itself will remain largely intact.

Speaking to WWD, Rendle explained: “We understand the skill set that sits inside that team… We don’t want to disrupt this business, [it’s] really well run. It always makes me chuckle if people think we’re going to come in and change Supreme.”

Store closures related to the coronavirus have dealt VF a heavy blow, but Supreme's well-oiled digital model has proved invaluable for the brand’s resilience in the face of market instability.

 

We Recommend
  • Leave It to Stone Island to Make Its Own Techy "Snakeskin"
    • Style
  • Cactus Jack Presents: Abloh Invitational, Sponsored By Supreme (EXCLUSIVE)
    • Culture
  • Supreme Takes Nike's Craziest Clog for a Ride
    • Sneakers
  • The Year Business Wear Beat Streetwear
    • Style
  • Tyler, The Creator for Supreme? Finally
    • Style
What To Read Next
  • Nike's Laceless Air Maxes Are Even Better in Scrumptious Premium Leathers
    • Sneakers
  • The Confusing Case of and wander x Zara
    • Style
  • Chopova Lowena's Whimsical World Now Features Fragrance
    • Beauty
  • Nike's Latest (& Most Handsome) Cross Training Shoe Looks Hike-able
    • Sneakers
  • For Valentino, New Year Beginnings Are Best Served With Old Traditions
    • Style
  • It Took Jordan Brand to Unlock the Fashion Potential of PSG Merch
    • Style