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.
