Just like the sneaker industry, every brand has its ups and downs. However, sometimes those same sneaker brands dig themselves into a deeper hole as they try to come up to the surface. Which could have been the case of Supreme. There was a time when the Box Logo took over the world. And of course, we can’t deny the fact that Supreme is one of the most recognizable streetwear brands out there.
However, this doesn’t deny the fact that lately many have been questioning: Is Supreme dead? And reporting the Supreme revenue decline did not exactly deny the above question. So, is the brand killing the hype on purpose, or is it all part of a repurposing plan? Let’s check this out together.
Supreme Revenue Decline
So, Supreme has reported a decline in revenues for the fiscal year ending March 2023. And just like IVY PARK, Supreme overestimated the expected target revenues. The brand was expected to earn revenues worth $600 Million. But the dream was interrupted by a hit from reality when Supreme added the numbers up at the end of the fiscal year. And instead of the $600 million, their revenues accumulated for only $523.1 million. Noting that this number was even lower than the previous fiscal year’s revenues, which amounted to $561.5 million.
Additionally, it’s only normal that the Supreme revenue decline and drop in sales lead to a decrease in net income. And this is exactly the Box Logo’s case. The Supreme revenue drop eventually resulted in a 17.6 decline in net income from year to year. Precisely, Supreme’s net income dropped from $82.4 Million to $64.8 Million.
It’s also worth noting that in November 2020, VF Corporation- owners of Timberland, The North Face, and Dickies acquired- acquired Supreme for $2.1 Billion. The company did some work, such as opening a new brick-and-mortar in both West Hollywood and Chicago. However, despite all the efforts, Supreme’s revenues are declining. So, where exactly does the problem lie?
We can’t deny the fact that Supreme is still selling, and such a decline doesn’t necessarily mean the brand’s stepping down to a lower position in the hierarchy. But on the long term, if Supreme doesn’t do anything about it, the unexpected might just happen…
Supreme Nike Collab
So, we all know that the Supreme x Nike collab is one of the best Nike collaborations of all time. But why did the duo’s potential take a nosedive out of the blue, we still got no idea. The Supreme Nike collab was doing pretty well until it wasn’t.
If you take a look at Supreme’s Nike collaborations, you’d notice that the lowest ranks mostly belong to Supreme x Nike sneakers released in 2019 forwards. Which means that, the brand is taking on kind of the lamest Nike silhouettes and calling it a good old collab.
In addition, Supreme don’t seem to focus on their OG products. Take the simple Supreme White Tees and hoodies with Supreme’s OG Box logos in red on them. Yeah, that we ain’t seeing much of. All we’re seeing is some prints, colors on colors, and more prints.
So, all in all, we don’t know if this is part of Supreme’s future plan of maybe going back to strictly being a skateboard brand and laying low in the rest of the field. Maybe Supreme DOES want to be dead. And being honest, it kinda is working if they keep up this pace.
However, we got mixed feelings about this analysis. Because at the end of the day, Supreme switched to Shopify shortly before the Supreme revenue drop hit the headlines. So, is the brand working on a new strategy and starting fresh? As in, will this shift bring the hype back? That we still don’t know. All we can do is wait and see!