Benzinga | Nov 11, 2020 04:10PM EST

VF Corp CEO On Integrating Supreme Streetwear: 'We Will Leave Them Very Much Alone'

Apparel and fashion giant VF Corp (NYSE:VFC) reached an agreement to acquire the iconic brand Supreme and the $2.1 billion is part of VF's multi-year long to reshape its portfolio, CEO Steve Rendle said on CNBC.

Aligning With The Consumer: VF sought out an acquisition of Supreme because of the brand's strong exposure segments "where we see the market" shifting to, Rendel said. Specifically, consumers are gravitating towards brand associated with active, outdoors, and most important, streetwear.

"Supreme is just a great fine point on that move and it's very complementary to the other brands within our portfolio," the CEO said.

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Let Supreme Be Supreme: VF's corporate philosophy is to let individual brands focus on serving their customers to the best of their ability, Rendle said. VF's role as the parent company is to merely provide support to help brands achieve their unique growth objectives.

VF will do the same with Supreme under its corporate umbrella.

"We will leave them very much alone," the CEO said. "Their strategy is very clear, their operating principles have led them to be extremely successful. We are here to support that long-term growth and by no means to disrupt it."

Different Price Points: Supreme's products spans from "streetwear to lux" and it does sell some products for hundreds of dollars, Rendle said. But at its core, Supreme is an "East-coast skate brand" and its core products sell on average for around $40.

"In general, very accessible price points for that core consumer," he said.