VF Corporation is mulling a sale of streetwear brand Supreme

In less than four years since its acquisition, VF Corporation is reportedly mulling a sale of its streetwear brand Supreme. Back in December 2020, the group bought the New York skater brand, valuing it at 2.1 million dollars, making it one of the largest fashion transactions of the year.

According to WWD, VF Corp is considering divesting Supreme as part of a broader portfolio review, which also operates The North Face, Vans, Eastpak and Kipling. The group’s backpack business is thought to already be up for sale. The group has thus far not confirmed reports of divesting Supreme, with a spokesperson telling WWD: “As a matter of policy, we don’t comment on market rumours or speculation.”

The brand’s post-acquisition performance has been volatile, which struggled to keep its DNA of a niche and cult brand, as its drops no longer generated the buzz seen in its heyday. Despite notable luxury collaborations with Louis Vuitton, Missoni and Gucci, when a streetwear brand is available in every city in every country it can no longer be considered cult.

When Supreme’s creative director Tremaine Emory departed after just 18 months into his tenure, citing “systemic racism,’ it may have set a tone.

VF Corporation’s financial report for 2023 indicated a marginal 2 percent decline in revenues, mirroring the 3 percent sales decrease in the fourth quarter, reflecting ongoing obstacles confronting the conglomerate, WWD said.

Bracken Darrell, VF Corporation’s new chief executive who joined the company in 2023, aims to trim down the portfolio as it focuses on innovation.