Supreme, the New York-based streetwear giant, faced a significant challenge in the financial year ended March 2023. According to the annual report from parent company VF Corp, Supreme's revenue fell to $523.1 million, a decline from $561.5 million in the previous year.
The brand's net income also took a tumble, decreasing to $64.8 million from $82.4 million the year before. These figures fell short of VF Corp's projections, which had anticipated Supreme to generate revenues of $600 million last year.
One of the most significant factors contributing to this decline is the shift in the fashion trend cycle. Streetwear, once the darling of the fashion world and a key driver of Supreme's success, has seen its significance fade as new trends emerge.
Gen-Z, a key demographic for Supreme, has been diverting their attention to smaller brands. Brands like Aimé Leon Dore, Corteiz, and Free The Youth are connecting with youth culture and taking market share from Supreme. This shift in consumer preference was highlighted last year when Supreme lost its crown as the most traded brand on the resale platform StockX for the first time ever, replaced by Jerry Lorenzo's Fear of God.
While the streetwear trend may be shifting, it's clear that the culture it represents still holds relevance in the fashion world. As Supreme navigates these changes, it will be interesting to see how the brand evolves to meet the changing demands of its audience.