https://www.highsnobiety.com/2017/10/09/supreme-stocks-billion-carlyle-group/?

After Supreme founder James Jebbia confirmed the sale of a minority stake of Supreme to private equity giant the Carlyle Group (and was typically tight-lipped about it), possible further details of the deal have now been made public, however nothing has been confirmed as of yet.


As Women’s Wear Daily reports, Supreme has allegedly sold a 50 percent stake in its business to the Carlyle Group for around $500 million. If true, this would put Supreme’s enterprise valuation at around $1.1 billion, $1 billion in equity and $100 million in debt.

According to WWD’s sources, the deal was kept under wraps because Jebbia feared if the sum became public knowledge, it could hurt the street cred Supreme has meticulously cultivated since its establishment.

The report goes on to claim that Supreme has projected earnings of $100 million. With the valuation being more than 10 times that, the big question is what Supreme will do with all that money. Supreme lives off of exclusivity and the fact that more people want their product than can actually have it.

Although Supreme’s true profitability is unknown, WWD speculates that the projected earnings are a step up from the current revenue Supreme generates, meaning some of the investment will need to be used to expand the business, something that directly contradicts its current business model of scarcity.

All signs point to expansion in Asia, where the brand already has six stores in Japan, but none in China, Korea and Hong Kong — all massive markets that could help Supreme reach the projected revenue.

More stores generally mean more stock, which makes Supreme less limited and therefore, by definition, less cool. But industry insiders such as Agenda Trade Show founder Aaron Levant believe more stock directly benefits consumers that miss out and have to pay resale.

All that exclusive shit can no longer be that exclusive if they got earning estimates to meet. Going to be interesting to see how they transition into a more traditional fashion house

i got a jersey back in 09 (the joint frank ocean wore on snl) and that's the only thing i've ever copped from them. 8 years and a ton of wears later i have people trying to buy it off my back.

one college looking dude offered me $500 for it off my back last winter.

Prolly have some type of subliminal shit in the logo.

and put that shit everywhere

while there will be increased pressure to perform, they are answering to a handful of people and not a few thousand shareholders.
IPO vs Private Equity is a world apart. There is no share price to watch so they are somewhat insulated from some of the metrics that the market watches. As long as they keep making money, they will be good.

Good on them for cashing out though. I don't know how long they will be "hot" for. It's a streetwear brand, the hype can't last forever.

Ps I assume Supreme has had a few investors over the years and this would just be the biggest one.

>All that exclusive shit can no longer be that exclusive if
>they got earning estimates to meet. Going to be interesting to
>see how they transition into a more traditional fashion house

https://www.businessoffashion.com/articles/bof-exclusive/supreme-grew-1-billion-business-with-secret-partner

all that expansion could not be fuelled simply by ploughing back their profits.

nice move hypebeast supreme
picture Dubya's grandkids rockin it

Not that I feel any way about the clothes themselves (other than they're absolutely nothing special and not worth the price), but I fucking abhor the fact that people stand outside for hours to buy some basic ass tshirts with a red rectangle on them. How they have fleeced these poor dumb-dumbs is truly remarkable

When I think Supreme I think very fashionable Asian kid.


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"Everyone has a plan until you punch them in the face. Then they don't have a plan anymore." (c) Mike Tyson

"what's a leader if he isn't reluctant"

lower east side and the streets in Tokyo?