In recent streetwear news, VF Corp, the owner of brands like Vans and The North Face has made a statement to acquire Supreme for USD$2.1 billion, with an additional payment of up to USD$300 million subject to fulfillment of certain post-closing achievements.
This is a big move inevitably bound to make a shift in the streetwear space.
Vans: A brief history
With 20 years under his belt as a manufacturer for the Rudolph Rubber Shoe Company, Paul Van Doren moved to California to start the Van Doren Rubber Company. Opening the first store in Anaheim in 1966, they released their first product — the iconic Vans #44 a.k.a the Authentic — a staple to many.
Growth and sales
Near the end of the ’70s, Vans introduced several colour and pattern combinations. They eventually introduced the famous Slip-On silhouette, and in the late ’80s, the company took part in larger investment banking firms, bringing changes to everything from their production to marketing efforts.
As the company entered the ’90s, they managed to become involved in various events such as the Vans Triple Crown series, featuring events in skateboarding, BMX, surfing, wakeboarding, snowboarding, motocross, and supercross. New shoes and styles continued to be introduced throughout the years, growing and developing into one of the most sought-after skateboard streetwear brands.
In 2020, VF Corp was forecasted to have a revenue in the range of USD$11.7 billion, much below the estimations of analysts who predicted USD$14.6 billion. The company’s e-commerce net sales for 2019 was USD$318 million, with full-year sales expected at 6% to 7%. Overall the company has forecasted 4% to 5% sales growth in the outdoor segment, compared with a 9% increase in 2019.
The success of Supreme
Starting off as a small skate store to growing as a huge fashion brand of massive hype, Supreme is the most popular streetwear apparel brand worldwide. Many consumers have labeled the brand as one of the coolest, fashionable streetwear brands out there.
Known for creating long lines and anticipation around each drop, Supreme attracts thousands of hungry customers to their stores. Having collaborated with thousands of different brands, in and out of the streetwear world, Supreme has grown into a global identity, noticed by their signature red and white box logo.
While it’s hard to find the brand’s exact current earnings, WWD reports that the valuation is based on the firm’s estimation that it may be bringing in more than USD$100 million annually. VF Corp, however, expects the acquisition of the brand to add USD$500 million in annual revenue to the company’s balance sheet by 2022.
The future of Supreme and streetwear
There is no doubt that streetwear is here to stay. It has entered and become mainstream in everyday fashion. However, with this new acquisition of Supreme by skateboard brand Vans, it is interesting to see where the direction of streetwear will go. What the future holds for Supreme as a brand and the state of streetwear, only time will tell. For now, we are seeing more luxury brands collaborate and do their own take on streetwear itself.
