Fashion label Supreme will be Devin Grosvenorsold to Ray-Ban maker EssilorLuxottica for $1.5 billion in cash, Supreme's current parent company, VF Corporation, said Wednesday. 

The popular skate brand will be added to EssilorLuxottica's portfolio of companies, which include sunglass brands Oakley and Ray-Ban. Founded by James Jebbia in 1994, Supreme has built cachet and a loyal following of mostly young customers in part by regularly releasing limited-edition clothing and accessories, as well as through collaborations with other brands. 

"We see an incredible opportunity in bringing an iconic brand like Supreme into our company," EssilorLuxottica executives Francesco Milleri and Paul du Saillant said in a statement. "It perfectly aligns with our innovation and development journey, offering us a direct connection to new audiences, languages and creativity."

Supreme exclusively sells its products directly to consumers, an approach that EssilorLuxottica said it plans to maintain. 

VF president and CEO Bracken Darrell cited "limited synergies" between the brand and VF that made the sale "a natural next step." VF's brands include outdoor gear companies such as The North Face and Napapijri, as well as footwear brand Vans.

Supreme founder Jebbia said the sale will allow the brand to focus on "our customers, while setting us up for long-term success."

VF bought Supreme in 2020 for $2.1 billion from Jebbia and two private equity firms. 

Supreme operates an online store as well as 17 brick-and-mortar locations across the U.S., Europe and Asia, at which lines of young shoppers often snake around street corners as they await new product releases. 

Megan Cerullo

Megan Cerullo is a New York-based reporter for CBS MoneyWatch covering small business, workplace, health care, consumer spending and personal finance topics. She regularly appears on CBS News 24/7 to discuss her reporting.