The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
The owner of Vans and The North Face reiterated its hands-off approach to its latest acquisition on its third-quarter earnings call.
The company expects Supreme to generate $500 million in revenue in its next fiscal year, which starts at the end of March.
”This is a beautiful, simple machine and we don’t want to mess it up frankly,” said chief executive Steve Rendle on the call.
The forecast demonstrates the brand’s overall resilience in the face of the pandemic, in part due to strong digital channels that account for roughly 60 percent of sales.
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“They have a beautiful model,” said retail research analyst Jessica Ramirez of Jane Hali & Associates. “Supreme doesn’t have many issues.”
Analysts expect expansion into Asian markets to be a key driver of growth for the brand, which currently has no store locations in China.
Widespread store shutdowns in Europe, the Middle East and Africa outweighed digital growth across VF Corp’s portfolio, making Supreme’s digital channels a bright spot for the company. Shares fell 7 percent to $79.15 on Wednesday.
