VF Corp Bets Big on Supreme With $600M Revenue Projection
VF Corporation continues to bet big on Supreme with expectations of the brand bringing in $600 million in revenue for the 2022 fiscal year.
The American apparel and footwear company unveiled third-quarter financial results, which exceeded expectations. Revenue increased 22% to $3.6 billion with positive growth stemming from their brands Supreme, Vans, The North Face, and Timberland.
VF Corp predicts to rang in the 2022 fiscal year with $11.8 billion in revenue, with Supreme's anticipated $600 million included.
While quarterly earnings are hopeful, the global conglomerate's internal operations will be key in generating this forecasted moolah for 2022.
Two years into the global pandemic, it is no secret the fashion industry has taken significant hits from COVID-19 with worsening supply shortages and even goodbyes made to beloved labels. VF Corp even faced issues with shipping and inventory back in October, producing challenges for fans looking to cop limited product releases.
Like Nike, the VF Corporation also faced some backlash on its controversial vaccine mandate as the company planned to terminate unvaccinated employees without approved accommodations by January 31st.
Despite a few operational complications, the odds are in VF Corp's favor. Promising third-quarter results reiterate that the company is on the right track, especially with its brands.
"The broad-based momentum across our brands is testament to the resilience of our diversified portfolio model, which has enabled us to deliver a strong quarter and reaffirm our full-year earnings outlook in a challenging environment," said Steve Rendle, VF's Chairman, President and CEO. "I am confident that VF remains well-positioned for continued, profitable, long-term growth.”
In 2020, VF Corp acquired Supreme in a $2.1 billion deal, doubling the iconic streetwear brand's value. For over 20 years, Supreme has generated steady hype with its exclusive drops and coveted collaborations. With a noteworthy business model rooted with immense cultural influence, Supreme proved to be "worth the buy" for VF Corp.
So, would it come as a surprise for them to pull off income projections with Supreme racking up $600M? Probably not.
