No, not dermatological-affliction acne; Swedish design conglomerate Acne.
Acne, pronounced ACK-nay by the locals, stands for Ambition to Create Novel Expressions.¹ It's best known in the States as a denim line, but in reality jeans aren't even the half of it. Acne, the enterprise, is a collective ideas machine powered by a diversely talented and, it's worth mentioning, drop-dead-beautiful team of designers and agents. Since 1966, when ["mastermind" Jonny] Johansson founded the house with three friends, its Ambition has yielded a film company, a digital graphics division, a toy department, and Acne Paper, a large-format biannual culture magazine that runs an intoxicating mass of information: optimism in print. Everything but the magazine's Paris office--jeans and the extensive men's, women's and children's lines; the art and advertising agencies, too--is housed in Acne headquarters, a former bank in Stockholm's Gamla Stan, or Old Town.
-- Jane Herman in Vogue, September 2008
The feature story isn't online, but you can read more from fangirl Jane Herman about Acne here, where she gives the pronunciation slightly differently: ACH-nay. FYI, current-season Acne jeans for women are priced at $249 to $299 a pair; a denim clutch bag is $900 at Nordstrom. And parents take note: there's an Acne Jr., which "develops and produces character-based toys and concepts."
Other Swedish initialisms you may know:
ABBA, which got its name from the first letters of the first names of the band's members: Anni-Fried, Benny, Björn, and Agneta.
IKEA, from the initials of the founder's name (Ingvar Kamprad), the farm where he grew up (Elmtaryd), and his home county (Agunnaryd).
H&M, the international chain of low-price clothing stores; the initials stand for Hennes (Swedish for "hers") and Mauritz (for Mauritz Widforss, the name of a Stockholm hunting-equipment store acquired by the company in 1968).
¹ Hm. Sounds like a backronym to me.