Earlier last year, a few well-known fashionistas were suggesting that Supreme is dead. They pointed to an apparent Supreme brand decline. Our intention is to assess Supreme’s current status in the streetwear scene. We aim to find out if its overwhelming growth has rendered it “uncool” by streetwear standards.
The journey
Supreme‘s journey from a niche skate brand to a global phenomenon has been nothing short of spectacular. Founded in New York in 1994, Supreme quickly gained a cult following with its limited-edition drops and collaborations with artists and other brands. This strategy created an aura of exclusivity and desirability. Yet, even amidst declining fortunes, Supreme remains a household name in the streetwear community.
However, the brand’s meteoric rise also led to challenges. Supreme’s growing cultural irrelevance, potent competitors, unsold products, and a sense of creeping corporatisation suggested serious issues. These problems indicated that the brand was no longer leading the streetwear charge. This was further evidenced when Supreme’s parent company, VF Corporation, reported disappointing revenue figures. These figures included a notable decline in Supreme’s earnings. According to VF Corp, Supreme’s revenue fell by seven percent, from $561 million to $523 million year-over-year.
Adding to the turmoil, Supreme’s new creative director, Tremaine Emory, left amidst controversy. He cited systemic racism within the company, leaving the brand vulnerable to further decline. Despite these issues, Supreme was aggressively expanding. It opened flagship stores in Shanghai, South Korea, Chicago, and Berlin within a span of two years. This rapid expansion was previously unheard of for the brand. It seemed like a desperate attempt to assert dominance and reclaim market share from emerging streetwear designers.
The situation became more precarious when reports surfaced in May 2024. These reports suggested that VF Corp was looking to sell Supreme. Although VF Corp has not confirmed these rumors, the speculation alone speaks volumes about Supreme’s current decline. CEO Bracken Darrell’s comments about having “no sacred cows” in VF’s portfolio further fuelled these rumors. Darrell, who took over in June 2023, has been actively addressing VF Corp’s debt issues. This includes considering the sale of brands like Eastpak and JanSport.
Supreme’s sale could mark a significant turning point. When VF Corp acquired Supreme for over $2 billion in 2020, they promised minimal interference. Former CEO Steve Rendle emphasized that Supreme would continue to operate independently. However, the brand’s declining performance and VF Corp’s financial struggles might necessitate a change in ownership.
The Future
A potential sale presents both challenges and opportunities. If Supreme ends up with another publicly traded corporation, the pressures of growth and profitability could continue to undermine its authenticity. This is amidst brand decline. Conversely, if a more nimble, private entity acquires Supreme, there might be a chance for revitalization. The success of brands like Stüssy provides a blueprint for Supreme’s possible resurgence. Stüssy has managed to reinvent itself and stay relevant. Its ability to downsize and rebrand shows that there can be life after perceived “death” in the streetwear world.
Supreme’s journey underscores a broader trend in the streetwear industry and reflects declining fortunes. Brands that once thrived on exclusivity and a curated image face immense pressure as they scale. The balance between maintaining cultural relevance and achieving financial success is delicate. Supreme’s story is a reminder that in streetwear, as in life, nothing is permanent. The brand’s current struggles do not erase its past successes, nor do they preclude a future comeback.
As Supreme navigates this challenging phase, its loyal followers and the broader streetwear community will be watching closely. The brand’s ability to adapt, innovate, and reconnect with its roots will determine its place in the ever-evolving landscape of streetwear fashion. For now, the question remains:
Can Supreme reclaim its former glory, or will it continue to fade into the background of a rapidly changing industry that feels its decline? Do you think Supreme is dead? We’re not sure if that’s the case.
