It is a growing trend in the sneaker and streetwear world, with major brands finding themselves financially downtrodden. Adidas was forced to rekindle its relationship with Kanye West to stave off a $1 billion loss. Footlockers stock took a 27% hit and now, the stalwarts of streetwear, Supreme, need help living up to Fortune 500-type expectations.
Supreme was acquired by Denver-based VF Corp in 2020 and was projected to see revenues exceed $600 million this past year. Alas, the brand generated only $523 million, which was not only short of expectations but also down from the previous year's revenue of $561 million according to the VF Corps annual report. Not only was overall revenue down significantly, but net income was also down to $64.8 million of the prior year's $82.4 million. It's hard to shed a tear for Supreme after they accepted a $2.1 billion check from VF Corp just a few years ago, and the new parent company obviously wants to see a return on their investment.
Creative director Tremaine Emory has his work cut out for him in a streetwear world that sees brands like Teddy Santis' Aime Leon Dore go from upstart to international world-beater seemingly overnight. The hypebeast reseller crowd may have overstated the demand for Supreme, or the game passed them by. We can only say that if they want to stay "World Famous," they need to figure something out fast because this type of downward trend does not bode well in today's business world. Follow us on Twitter and Instagram for more news on sneakers, streetwear, and collectibles.
Image via NYCgo