Yahoo Finance’s Brian Sozzi, Adam Shapiro and Seana Smith speak with VF Corporation CEO Steve Rendle on his company’s $2.1B deal to buy Supreme.
BRIAN SOZZI: Steve, my ears perked up on the conference call that you held this morning to discuss the transaction. He said, this is a resilient brand, and it appears to be making money. We're right in the middle of a pandemic. Why do you think this brand has held up so well, while so many a retailer are really struggling?
STEVE RENDLE: Yeah, [INAUDIBLE] it's true. I mean, as we think about [INAUDIBLE] business, we've been-- you know, we've been [INAUDIBLE] in working with Supreme for many years, our Vans business. First collab was in 1996, Timberland in 2006, North Face in 2007. So, you know, this relationship is not new.
And as we have continued our conversations culminating in today's announcement, warnings that really cost was the year to date [INAUDIBLE] premium was up 9%. And continuing to drive a profitable business model. Why do we think that's true? It's this deep engagement that they have with consumers, and it's also, you know, their very thoughtful approach to merchandising, really driving [INAUDIBLE] products [INAUDIBLE] price that meets their consumer's needs.
ADAM SHAPIRO: Steve, we were talking in the commercial break about Vans. That's something that some of us who are now 30 years after Spicoli first wore them can still identify with and like the product. Do you see that kind of potential brand loyalty with Supreme as youngsters who might wear that clothing now become adults, parents, and then, dare I say, grandparents?
STEVE RENDLE: Now, there's not similarities between Supreme and Vans and North Face. [INAUDIBLE] entered the VF portfolio back in the early 2000s. There are the interesting similarities. You know, Supreme is anchored in East Coast skateboarding and a deep connection to art, music, street culture that really speaks to, you know, the New York City vibe, you know, that this brand drives on a global basis.
And if you compare that to Vans, which is a West Coast [INAUDIBLE] and deeply connected are [INAUDIBLE] in now creative self-expression, there are a lot of similarities--