Vans shoe’s roster is about to become even more elite with the addition of Supreme, which they are completing the deal to own the popular streetwear brand for a cool $2.1 Billion. VF Corp also owns popular brands such as The North Face, Dickies, and Timberland.
Founded by American-British businessman James Jebbia in 1994 Supreme has become a staple item for millennials, Gen Z’ers, skateboarders, hip-hop fans and fans of streetwear fashion. Their product launches are known to sell out within minutes both outside of their stores and online.
This deal with Supreme aims to boost its e-commerce business that has been affected by the current epidemic through the use of VF’s expertise and resources. It’ll allow the brand to reach a sustainable amount of long-term growth after the loss its taken over the past year. Previous years have been the most profitable as they have received over 60% of its revenue from their online sales.
Selling to VF Corp is anticipated to bring in at least $500 million of revenue to the brand. The deal is expected to be completed late in 2020.
The stock prices for VF Corp skyrocketed 13% to $78.94 after the news was revealed early Monday morning. It seems many people are happy about this merge. Readers, is this a smart move?