The Supreme ‘spark’

How the streetwear legend could shape the future of VF

View this email in your browser.      Mike Kemp—In PIctures/Getty Images The Supreme 'spark': How the streetwear legend could shape the future of VF   M&A is the very foundation of portfolio companies like VF Corp, the owner of brands such as Vans, The North Face, and Timberland. But CEO Steve Rendle waited almost four years into his tenure to make his first blockbuster acquisition, searching for a buy that would have a transformative effect on the whole organization. He believes he found it in December, when the company inked a $2.1 billion deal—the largest in its history—to acquire streetwear label Supreme.   Known for its snarky, pop culture-referencing products and the snaking lines that appear outside its retail stores the day of its weekly "drops," the cult brand might seem like a strange fit for VF, a low-profile company based in Colorado. But Rendle is betting that the Supreme will punch above its weight (the streetwear label is about one-tenth the size of Vans), playing an outsized role in shaping VF's future and offering its new sister brands valuable lessons about how to thrive in today's retail landscape. Supreme excels at moving product at its own stores and online (shunning department stores), has a supercharged metabolism for launching new products, and has forged deep connections with its customers—all strengths Rendle would like to see in more of his company's brands.   Dealmaking often has a 'Hail Mary' aspect to it. And some retail watchers were quick to tag VF's Supreme acquisition a missed pass. But Rendle is confident that his bet on modernizing the successful but 121-year-old company will ultimately prove the doubters wrong. Read Now This email was sent to acozocom.news01@blogger.com Unsubscribe from these messages here. Fortune Media (USA) Corporation 40 Fulton Street New York, NY 10038