Dive Brief:
- Streetwear giant Supreme saw decreased revenues in its most recent fiscal year, with $523.1 million compared to $561.5 million the year prior, according to parent company VF Corporation’s annual report.
- Net income for Supreme was similarly down to $64.8 million from $82.4 million. The news comes after the company initially predicted the brand could generate $600 million in revenue in 2022.
- Meanwhile, VF Corp.’s North Face brand represented the largest revenue increase for the year, up 11%. Its other large brands, Vans and Timberland, were down 12% and 2%, respectively.
Dive Insight:
The results were disclosed in VF Corp.’s annual report released Monday ahead of its shareholders meeting in July.
After acquiring Supreme in 2020 for $2.1 billion, VF Corp. bet big on the brand, predicting it could generate $600 million in revenue in the full fiscal year for 2022. At the time of the acquisition, VF Corp.'s CEO at the time Steve Rendle said the brand solidified the parent company’s vision of evolving its portfolio to address market opportunities in the footwear and apparel sector. VF Corp.’s segments include outdoor, active and work wear.
Supreme launched a collaboration in 2021 with Tiffany & Co. which included necklaces and a t-shirt inspired by pieces originally launched in the 1960s. Prior to that collaboration, it worked with Japanese brand Junya Watanabe Comme des Garçons Man. More recently it collaborated with other streetwear label Stone Island for a spring-summer 23 collection.
Supreme was one of the top selling streetwear brands on eBay in 2022, along with Fear of God, Stone Island and others.
Supreme has transitioned from what was once a competitive shopping environment for collectors to more of a traditional fashion company. In March, GQ noted how “easy it is to actually buy Supreme gear these days” and said the brand is “is entering a new period of normalcy.”
As a whole, VF Corp.’s revenue for its 2023 fiscal year was $11.6 billion, down 2% from the year prior.
VF Corp.’s Timberland recently hired a longtime Nike leader as its chief merchandising officer, a newly created role for the company.
