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A decline in revenue for Supreme in 2023
Supreme's decline in revenue in 2023
Supreme, the renowned streetwear brand, reported revenues of $523.1 million in the fiscal year ending March 2023, reflecting a decline of $38.4 million compared to the previous year, according to VF Corp, its parent company.
The revenue figures fell significantly short of VF Corp's target of $600 million. Additionally, Supreme's net income dropped to $64.8 million, down from $82.4 million the previous year.
VF Corp report findings
In 2020, VF Corp, the owner of well-known brands like Dickies, The North Face, Vans, and Timberland, acquired Supreme in a notable $2.1 billion transaction. This acquisition raised concerns among fans about Supreme's ability to maintain its prominent position in the streetwear industry. To reinforce its foundation and bring a fresh perspective, Supreme appointed Tremaine Emory, the creative director of Denim Tears, in February of the preceding year.
It's important to note that Supreme operates under a distinctive business model compared to VF Corp's other labels. Its focus on frequent, limited product releases through its direct-to-consumer channel exposes the brand to unique risks. The report highlights the importance of VF Corp adapting its operations to address these distinct characteristics, complexities, and market dynamics, as failure to do so could have adverse effects on revenue, business condition, and overall performance.
The future of Supreme and fashion
Supreme's decline in revenue may be attributed to its unique business model, but it also reflects the rapidly evolving trend cycle in the fashion industry. In recent years, many luxury brands have broadened their focus beyond streetwear, which could have impacted Supreme's revenue. Additionally, Business of Fashion reported that Supreme lost its position as the most-traded brand on StockX, with Fear of God by Jerry Lorenzo claiming the top spot.
