London Daily

Focus on the big picture.
Thursday, Jul 10, 2025

What Supreme’s $2.1 Billion Sale Means for Fashion

What Supreme’s $2.1 Billion Sale Means for Fashion

Even during a retail slump, high-stakes fashion deals persist. After some turmoil, LVMH is moving forward with its acquisition of Tiffany & Co.

Alibaba and Richemont recently invested $300 million each in Farfetch, plus another $250 million to establish Farfetch China to create a global luxury-fashion conglomerate. Supreme, the behemoth skateboarding company based in New York, is the latest fashion company acquired in a mega-deal: Today the brand announced its $2.1 billion sale to VF Corporation, the company that owns Vans, The North Face, and Timberland-all frequent Supreme collaborators-and Dickies.

“We are proud to join VF, a world-class company that is home to great brands we’ve worked with for years, including The North Face, Vans, and Timberland,” said Supreme’s founder James Jebbia in a statement. “This partnership will maintain our unique culture and independence while allowing us to grow on the same path we’ve been on since 1994.” Prior to the VF Corp deal, Supreme sold a 50% stake in the brand to The Carlyle Group for $500 million in 2017.

The news of the sale rippled through the fashion industry-and not just for its price tag. Supreme has long been a gold standard for success: Its uncompromising attitude toward aesthetics, products, and customers won the brand a CFDA Award in 2018 and the envious eye of many of its competitors. Here, Vogue Runway breaks down what fashion can learn from Supreme’s ongoing success.

Streetwear Is Far From Dead


While the term “streetwear” is overused, our collective preference for casual, fashionable clothing isn’t going anywhere. Supreme’s emphasis on unisex products like tees, hoodies, outerwear, and accessories like beanies, socks, hats, and skateboards, means it has broad appeal to consumers of all genders and age groups.

The work-from-home era ushered in by the COVID-19 pandemic has probably only made Supreme more covetable to consumers. If you are sitting at home all day, why not invest in stylish sweatpants or a fashionable hoodie?

Supreme’s Direct-to-Consumer Model Looks Better Than Ever


The failing wholesale model has been the subject of much conversation during the pandemic, with a group of designers led by Dries Van Noten lobbying retailers to shift their delivery calendars and sales practices. In the United States, multi-brand stores have also taken a hit with Neiman Marcus declaring bankruptcy and beloved boutiques like Totokaelo and Jeffrey shuttering. Supreme, however, has maintained a healthy customer flow. Much of that is thanks to its coveted product, but there’s also the fact that a bricks-and-mortar Supreme store and Supreme’s e-commerce site are the only places to buy official Supreme merchandise.

By owning 100% of its retail channels, Supreme incentivizes customers to line up and wait for its weekly drops. It has also created a thriving secondary market for its items on sites like Grailed, StockX, and Goat, where sellers promote Supreme and its goods at no additional cost to the brand. (While you could argue that Supreme doesn’t turn a profit on secondary market sales, well, the $2.1 billion valuation proves the brand does well without that revenue stream.) Other fashion companies have started to shrink their wholesale footprints, due to the pandemic and other causes. In 2019, Prada announced it would “rationalize”-read: scale back-its wholesale accounts. Hermès, meanwhile, already exclusively sells its products in wholly owned stores, adding to the mystique and allure of the brand.

                            

Limited Stock and Smart Collaborations Make All the Difference


The fashion industry is in the midst of an overproduction crisis. Common growth models require flooding the market with product, but when that product doesn’t sell, brands are stuck with warehouses of back stock. While some companies like Gucci, Stella McCartney, and Burberry have partnered with resale sites like The RealReal, the vast majority struggle with unsold merchandise-and yet continue to make more goods for consumption.

Supreme’s limited-release runs only add to its value in the eyes of shoppers. During its Thursday drops, almost every piece sells out, often in a matter of minutes. What’s more: The products Supreme does release are usually the result of offbeat collaborations with companies as diverse as Pat McGrath, Everlast, Louis Vuitton, and Fender. Consider this proof that making less can, in fact, be very financially viable.



Authenticity Is Everything


During a presentation this morning, VF Corp executives described Supreme as “anchored in cultural legitimacy.” Despite trafficking in unexpected collaborations, partnerships, and sponsorship deals-as well as opening a global network of stores in Los Angeles, San Francisco, Paris, and Tokyo-Supreme has never lost the cultural caché of a downtown New York skate shop.

That’s not to say the brand is one note; it still delights and surprises its customers with out-there ideas, but tries to stay true to its roots. “My thing has always been that, the clothing we make is kind of like music,” Jebbia told Vogue in 2017. “There are always critics that don’t understand that young people can be into Bob Dylan but also into the Wu-Tang Clan and [John] Coltrane and Social Distortion. Young people-and skaters-are very, very open-minded…to music, to art, to many things, and that allowed us to make things with an open mind.”

Newsletter

Related Articles

0:00
0:00
Close
Severe Heatwave Claims 2,300 Lives Across Europe
NVIDIA Achieves Historic Milestone as First Company Valued at $4 Trillion
Declining Beer Consumption Signals Cultural Shift in Germany
Linda Yaccarino Steps Down as CEO of X After Two Years
US Imposes New Tariffs on Brazilian Exports Amid Political Tensions
Azerbaijan and Armenia are on the brink of a historic peace deal.
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Weinstein Victim’s Lawyer Says MeToo Movement Still Strong
U.S. Enacts Sweeping Tax and Spending Legislation Amid Trade Policy Shifts
Football Mourns as Diogo Jota and Brother André Silva Laid to Rest in Portugal
Labour Expected to Withdraw Support for Special Needs Funding Model
Leaked Audio Reveals Tory Aide Defending DEI Record
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
London Stock Exchange Faces Historic Low in Initial Public Offerings
A new online platform has emerged in the United Kingdom, specifically targeting Muslim men seeking virgin brides
Trump Celebrates Independence Day with B-2 Flyover and Signs Controversial Legislation
Boris Johnson Urges Conservatives to Ignore Farage
SNP Ordered to Update Single-Sex Space Guidance Within Days
Starmer Set to Reject Calls for Wealth Taxes
Stolen Century-Old Rolls-Royce Recovered After Hotel Theft
Macron Presses Starmer to Recognise Palestinian State
Labour Delayed Palestine Action Ban Over Riot Concerns
Swinney’s Tax Comments ‘Offensive to Scots’, Say Tories
High Street Retailers to Enforce Bans on Serial Shoplifters
Music Banned by Henry VIII to Be Performed After 500 Years
Steve Coogan Says Working Class Is Being ‘Ethnically Cleansed’
Home Office Admits Uncertainty Over Visa Overstayer Numbers
JD Vance Questions Mandelson Over Reform Party’s Rising Popularity
Macron to Receive Windsor Carriage Ride in Royal Gesture
Labour Accused of ‘Hammering’ Scots During First Year in Power
BBC Head of Music Stood Down Amid Bob Vylan Controversy
Corbyn Eyes Hard-Left Challenge to Starmer’s Leadership
London Tube Trains Suspended After Major Fire Erupts Nearby
Richard Kemp: I Felt Safer in Israel Under Attack Than in the UK
Cyclist Says Police Cited Human Rights Act for Riding No-Handed
China’s Central Bank Consults European Peers on Low-Rate Strategies
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Musk Battles to Protect Tesla Amid Trump Policy Threats
Air France-KLM Acquires Majority Stake in Scandinavian Airlines
UK Educators Sound Alarm on Declining Child Literacy
Shein Fined €40 Million in France Over Misleading Discounts
Brazil’s Lula Visits Kirchner During Argentina House Arrest
Trump Scores Legislative Win as House Passes Tax Reform Bill
Keir Starmer Faces Criticism After Rocky First Year in Power
DJI Launches Heavy-Duty Coaxial Quadcopter with 80 kg Lift Capacity
U.S. Senate Approves Major Legislation Dubbed the 'Big Beautiful Bill'
Largest Healthcare Fraud Takedown in U.S. History Announced by DOJ
×