LONDON — About one year ago, our senior correspondent Sheena Butler-Young who covers the Workplace & Talent beat at BoF, began reporting a story on the internal culture at Lululemon, the Vancouver-based yoga lifestyle juggernaut worth more than $50 billion.

This week, following months of investigation, and rigorous editorial and legal reviews, that story — At Lululemon, Being Black Is ‘Off-Brand’ — was finally published. It quickly became one of BoF’s most read stories of 2023 eliciting more than 1,000 comments on Instagram and LinkedIn, which made for worthy reading themselves.

The gist of the story was this: In 2020, in the wake of George Floyd’s murder, like many companies, Lululemon took steps to improve internal diversity and inclusion and create a more equitable playing field for people coming from marginalised backgrounds. But in interviews conducted over the past year, 14 current and former employees told The Business of Fashion things at Lululemon only got worse.

They allege that the company has a corporate culture that remains unwelcoming to Black people; where leaders regularly use stereotypes to define minority employees; and where these employees face barriers to career advancement that don’t seem to apply to white colleagues. Employees who spoke up say they were ostracised or even terminated.

As one BoF reader, mdnight.hr on Instagram, wrote: “Every Black person that has ever worked at Lululemon has a story like this. Shoutout to the people being brave enough to go on the record. One day we will all be able to tell our stories.”

Please take the time to read Sheena’s story if you haven’t done so already. It’s a cautionary tale for all creative and business leaders, however well-intended, aiming to create more inclusive places of work.

Don’t Miss BoF VOICES 2023 Next Week

It’s my favourite time of year when the BoF team and a global community of hand-selected c-suite leaders, designers, entrepreneurs, activists and more decamp to Oxfordshire in the English countryside for BoF VOICES, our annual gathering for big thinkers.

This year’s speakers are a bumper crop, including Diane von Furstenberg, Loewe and JW Anderson creative director Jonathan Anderson, Bottega Veneta creative director Matthieu Blazy, Chanel’s global CEO Leena Nair, Gap Inc CEO Richard Dickson and Fast Retailing president of global creative John C. Jay.

They join a stellar group of speakers from outside fashion including Emmy Award-winning actor Dan Levy, designers Thomas Heatherwick CBE and Kelly Wearstler, space scientist Hélène Huby, powerhouse filmmakers Waad Al-Kataeb and Sharmeen Obaid Chinoy, musicians Ali and Rita Ora, artist Andres Reisinger and Deepak Chopra, guru and advisor to some of the world’s most influential people.

For the full list of this year’s speakers and to sign up for the global livestream, please click here.

This Weekend on The BoF Podcast

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In the dynamic world of fashion magazines, Gabriella Karefa-Johnson has always stood out. In 2021, she became the first Black woman to style a cover for American Vogue, featuring then 23-year-old poet laureate Amanda Gorman. Later that year, she worked on the cover shoot featuring US Vice President Kamala Harris.

But recently, Gabriella decided to leave Vogue. “The truth of the matter is we grow and sometimes our containers don’t grow with us. And so I am excited to build a new container for all of these ideas and this energy,” Gabriella says on this week’s episode of The BoF Podcast.

Imran Amed, Founder, CEO and Editor-in-Chief, The Business of Fashion

Plus, here are my other top picks from our analysis on fashion, luxury and beauty:

1. Saks Owner Raises $340 Million After Retailer Didn’t Pay Vendors For Months, Sources Say. Seven brands confirmed reports of chronic late payments that sparked some vendors to halt shipments to the US department store. Owner Hudson’s Bay Company said it monetised some real estate to help fund its retail operations.

2. Can A Spanish Men’s Jewellery Start-Up Take Its Hype Machine Global? Twojeys has driven multi-million-euro sales of its accessibly priced jewels to Spanish Gen-Z shoppers by pushing engaging, voyeuristic content to its online community. Now the brand aims to take its concept international with the opening of a London store.

3. Gen-Z Is Already Worried About Looking Old. Despite being known for their body positivity and authenticity, young people are buying into anti-aging products and procedures more than ever and earlier than ever. How will they grow old?

4. Don’t Believe What Consumers Say When It Comes to Sustainability. A growing body of consumer surveys suggests interest in sustainable consumption is reaching a tipping point. Those surveys are deeply flawed, writes Kenneth P. Pucker.

5. The Rise of the Fast Fashion Converts. A small but growing online fashion community is practising a more critical form of consumption, marrying the quiet luxury trend with a desire for value and environmentally responsible products.

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“LVFW”: Las Vegas Fashion Week. The caption on Lewis Hamilton’s Instagram post — featuring the veteran driver and style star decked out in looks by Versace, Valentino, Bottega Veneta and Burberry during Formula One’s inaugural Grand Prix in the American gambling and entertainment capital — said it all.

The blockbuster race, which took place last weekend, saw the fashion industry launch itself full-throttle into the world of Formula One, with a flurry of partnership announcements, product launches and events.

French team Alpine unveiled a three-way apparel “collab” with streetwear brand Palace and its official apparel partner Kappa (the football brand owned by Italian licensor BasicNet). Japanese designer label Sacai launched a capsule collection with German carmaker Mercedes-AMG, while sportswear giant Puma flexed its new F1 deal by revealing the first products from a partnership with the league and rapper A$AP Rocky, who has been named creative director of the collaboration.

Did the event live up to the hype? Early stumbling blocks included underwhelming ticket sales (many felt the event aimed too high with its prices), concern over frigid desert temperatures at night (risking perilous driving conditions and uncomfortable viewing), and early discontent from event-goers, who filed a class-action lawsuit against organisers for failing to refund tickets to a cancelled practice.

Still, the race — won by Dutch champion Max Verstappen of Red Bull Racing — turned out to be a thrilling contest, attracting an average TV audience of 1.3 million viewers in the US, according to ESPN. The event also drew 300,000 fans in person including a VIP guestlist that most sporting events could only dream of, including David Beckham, Brad Pitt and Rihanna.

The Grand Prix came to Las Vegas for the first time as fashion brands invest unprecedented sums to embed themselves at the intersection of sports, entertainment and pop culture. Labels well beyond sports marketing stalwarts like Nike and Adidas, from luxury houses to fast-fashion retailers, increasingly see sports as key to reaching a young and diverse consumer audience. This has led to a boom in the sports-sponsorship market, which is expected to grow from $63.1 billion in 2021 to $109.1 billion by 2030, according to PwC.

But with so much excitement on and off the track, it was tricky for brands to cut through the noise and make an impact.

Louis Vuitton pulled ahead of luxury rivals by being the first of the weekend to dress Hamilton, the league’s seven-time champion, who wore a black knitted vest with pearl buttons signed by new creative director Pharrell Williams for his arrival at the racetrack for the first practice session. With brands clamouring to dress Hamilton for each appearance at every race, it felt like a coup for Vuitton to get there first.

But ultimately it was the brands who dressed Hamilton in extravagant ensembles later in the race weekend who reaped the most attention: His Burberry, Bottega Veneta and Valentino looks each garnered media impressions valued between $780,000 and $830,000 according to consultancy Launchmetrics, roughly 10 times the estimated value of Vuitton’s look for the driver.

British streetwear label Palace also won big on its Vegas gamble. Limited-edition jackets — with its famous triangle logo stretched across the back — designed for the Alpine F1 team with Kappa were worn by fans across the racetrack throughout the weekend and stood out among the typical F1 merch assortments. Palace also placed its logo on the team’s cars on the racetrack as part of the collaboration, which garnered $1.2 million worth of media impact, according to Launchmetrics.

The biggest winner, however, was likely Puma. On the evening of 17 November, motorbikes roared through the streets clearing the way for a black truck where A$AP Rocky was filmed leaning out the window, waving at screaming fans dressed head-to-toe in products from his inaugural collection for the Puma-F1 tie-up. Rihanna — Rocky’s partner and fellow Puma collaborator — joined soon after, sending the crowd into a further frenzy.

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The products also hit the mark. Puma dropped items including neon gloves with a spider-web motif, a tattered balaclava, and distressed baseball cap — a considerable departure from the logo-heavy replica jerseys which make up the bulk of F1′s merch offering.

The brand feted the launch at a petrol station on the outskirts of town, with pieces from the collection up for grabs amid customisation pumps, backdropped by neon signs celebrating the collaboration. Despite all the fanfare on the Las Vegas Strip, Puma’s less-central event showed how a mixture of star power, design and a unique pop-up can pull consumers’ attention, securing a spot in the narrative at one of the most hotly-anticipated sporting events in recent history.

THE NEWS IN BRIEF

FASHION, BUSINESS AND THE ECONOMY

Louis Vuitton is set to stage its first ever fashion show in Hong Kong. The show was planned in partnership with the billionaire Cheng family and will debut Pharrell Williams’ second collection for the brand on Nov. 30.

Nordstrom revenue sags as inflation turns holiday shoppers picky. The company’s eponymous label recorded a 9.4 percent drop in sales while discount banner Rack declined only 1.8 percent. Shares of the upmarket department store chain fell nearly 1 percent in volatile after-market trading.

Designer Nancy Gonzalez pled guilty to smuggling exotic-skin designer handbags. The designer was charged with one count of conspiracy and two counts of smuggling handbags made from python and caiman skins between February 2016 and April 2019 into the US. She is facing up 20 years in prison, as well as hundreds of thousands of dollars in fines.

Moncler and EssilorLuxottica announced a licensing agreement. The agreement, which goes into effect January 2024, will allow EssilorLuxottica to design, produce and globally distribute Moncler eyewear. The agreement will be in effect until December 2028 with an option to renew the partnership for an additional five years.

Amazon’s logistics workers in Spain plan Cyber Monday walk-outs. The Spanish union CCOO called on 20,000 warehouse workers to stage a one-hour strike on each shift on Nov. 27. Logistics workers on both sides of the Atlantic have complained about working conditions and unionisation is starting to build pressure on the company.

Kohl’s sales miss estimates as shoppers trim spending on non-essential items. The retailer’s shares dropped more than 4 percent and its comparable sales decreased for a seventh-straight quarter. The company reported a profit of 53 cents per share in the third quarter.

Black Friday and Cyber Monday spending is projected to hit a new high. Consumers plan to spend an average of $567 during Black Friday and Cyber Monday shopping events, up 13 percent from last year. About 84 percent of shoppers plan to stay within budget limits during the economic downturn and will do most of their shopping during this period.

Abercrombie & Fitch lifted its annual sales forecast after an upbeat quarter. The move sends a signal that there is strong demand for its lifestyle brands heading into the crucial holiday shopping season. Net sales at Abercrombie namesake brand soared 30 percent in the quarter ended Oct. 28.

American Eagle raised its annual revenue on strong holiday-season demand. The company now expects annual revenue to be up mid single digits, compared with its prior forecast of a rise in low single digits. Analysts on average had expected revenue to grow 2.61 percent, according to LSEG data.

Billionaire separation erases $180 million at Raymond Ltd. The company, which is the world’s largest producer of suit fabric, fell for the seventh day as the acrimonious separation between its chairman Gautam Singhania and his wife Nawaz Singhania sparked uncertainty among investors.

Waste from Adidas, Walmart and other brands is fuelling Cambodia brick kilns. The factories were burning garment waste to save on fuel costs. Workers are falling ill, especially pregnant workers, who reported the burning of garment waste is causing headaches and respiratory problems.

Renewcell launched a strategic review to explore fresh funding options. The company has been under pressure since October, when a weaker-than-expected sales update sent its share price plummeting and prompted the abrupt replacement of its CEO.

THE BUSINESS OF BEAUTY

Bankrupt male-focused skincare brand Disco shuttered. Founded in 2019, the label raised over $8 million in funding. By 2022, access to capital dried up, as interest rates began to rise and investors began to shift focus onto profitable brands. The label filed for Chapter 7 bankruptcy on Nov. 16.

PEOPLE

Antoine Arnault relinquished his role as CEO at Berluti. The move has triggered an executive shuffle in LVMH’s watches and jewellery unit. Chaumet chief executive Jean-Marc Mansvelt will succeed Arnault at the French menswear brand, while Fred chief executive Charles Leung will succeed Mansvelt at Chaumet.

Amandine Ohayon named CEO of Stella McCartney. She will succeed Gabriele Maggio, who is exiting the business next month “to pursue other opportunities,” the company said.

Terry Richardson accused of sexual assault in new lawsuit. Model Minerva Portillo alleged she was abused by the photographer after concerns she raised were dismissed by her agents at Trump Model Management.

MEDIA AND TECHNOLOGY

Temu and Shein lag behind Amazon as online shopping ramps up. The e-tailers are drawing millions of window shoppers to their websites this holiday season but are having trouble turning the visitors into shoppers. Amazon trounces both online retailers with 56 percent of its 268 million unique monthly visits in October resulting in purchases, its data shows.

Compiled by Yola Mzizi and Darcey Sergison.

Paris-based publicist Michele Montagne is shuttering her namesake firm, according to an email sent from the agency.

Since the 1980s, Montagne has advised cult designers like Rick Owens, Ann Demeulemeester, Helmut Lang and Haider Ackermann, supporting on everything from PR and communications strategy to design direction and business advice.

It was not clear whether Montagne would continue to work on non-press related projects. A representative for Montagne did not immediately respond to a request for comment.

Learn more:

The Shifting Power Dynamics in Fashion PR

As mid-sized and large-scale communications firms build out their operations, boutique agencies are placing value on quality over quantity.

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Subscribe to the BoF Podcast here.

Background:

In the dynamic world of fashion magazines, Gabriella Karefa-Johnson stands out. Karefa-Johnson has always stood out, growing up as a self-described loud, weird, driven kid. In 2021, she became the first Black woman to style a cover for the American Vogue, featuring then 23-year-old poet laureate Amanda Gorman. Later that year, she worked on the cover shoot featuring US Vice President Kamala Harris.

But recently, Karefa-Johnson decided to leave Vogue. “The truth of the matter is we grow and sometimes our containers don’t grow with us. And so I am excited to build a new container for all of these ideas and this energy,” Karefa-Johnson says.

This week on The BoF Podcast, Karefa-Johnson joins BoF founder and editor-in-chief Imran Amed to discuss her professional journey, how she harnesses her creative energy in a high-pressure industry and why she is laying the foundation for the next generation of fashion creatives.

Key Insights:

• On excelling in the demanding, hyper-creative world of fashion media, Karefa-Johnson avoids burnout by focusing on her inner self. “Staying true to who you are and… really maintaining the purity of that creative exchange is something that keeps me grounded,” she says.
• Looking back at some of her most challenging assignments, Karefa-Johnson recalls the 2021 cover shoot during the Covid-19 pandemic with US Vice President Kamala Harris. “It’s very hard to communicate with your subject, which is super crucial in executing an image. You need to have a relationship and a rapport and there needs to be mutual trust,” she explains. “But it’s hard to establish that between 15 masks, because it was during Covid, 14 secret service agents, a press secretary and a chief of staff.”
• Reflecting on her decision to leave Vogue, Karefa-Johnson is excited about what lies ahead. “I just hope that whatever comes to be of this career of mine is something that models possibilities for the next Gabriella Karefa-Johnson,” she explains. “I can’t wait to take those tools and apply them in ways that are really just true to who I am, serve me and serve people who look like me.”
• Karefa-Johnson is passionate about nurturing emerging talent and has used her network to support the development of Central Saint Martins graduate Torishéju Dumi. “It’s very easy to feel invisible in these cities as a young designer, period. Full stop. But as a young black female designer, I knew that the hurdles she was up against would be exponentially bigger than some of her colleagues,” Karefa-Johnson says. “I wanted to be able to bridge the gap. I wanted to be able to give her a leg up, which I think in a lot of ways is something that has produced so many of the most enduring young designers.”

Additional Resources: