Things are not going well for Supreme

Bad news for Supreme. According to the report released by VF Corp referring to the fiscal year ending March 2023, the brand posted total earnings of $523.1 million, marking a decrease of more than $38 million from the previous year. This is well below the figure envisioned by VF, which was aiming to end the year with earnings of $600 million.

Part of VF Corp since late 2020, Supreme is an exception compared to the other brands in the group, from Dickies to The North Face via Vans and Timberland. Its nature of weekly and limited drops is an obstacle for VF, which, as the report states, has been unable to "make the necessary adjustments to its operations to cope with different market characteristics, complexities, and dynamics." Not even the appointment of Tremaine Emory has served to lift the fortunes of a brand that, somewhat like its competitor Palace, seems to be paying for the shift in the market and public tastes.

As also reported by BoF, it seems that Supreme has failed there where many other streetwear brands have succeeded: in making a real connection with younger audiences. Not only Aimé Leon Dore and Free The Youth, but especially the success of Corteiz is indicative of how there is still a market for this kind of reality, provided that they manage to bring to their side that group of audiences that did not experience the streetwear boom and therefore have no emotional connection with those brands, including Supreme, that were part of it.