Photo: Cheng Xin/Getty Images
These are the stories making headlines in fashion on Friday.
Nike expects tariff-fueled sales decline after beating expectations
Nike, Inc. reported earnings for the third quarter of fiscal 2025 on Thursday, announcing a revenue decline of 9% to $11.3 billion, which actually exceeded analysts’ expectations. “The progress we made against the ‘Win Now’ strategic priorities we committed to 90 days ago reinforces my confidence that we are on the right path,” President and CEO Elliott Hill (who took on the role in October) said in a statement. Still, the struggling sportswear giant said it expects a steeper revenue decline in Q4, in the “mid-teens,” CFO Matt Friend shared during a conference call, attributing it to external factors “including geopolitical dynamics, new tariffs, volatile foreign exchange rates and tax regulations, as well as the impact of this uncertainty and other macro factors on consumer confidence.” {Nike}
‘Why ultrathin is in’ on the runway (again)
As we know from Vogue Business’s Fall 2025 size inclusivity report, body diversity on runways has declined significantly, and the return of extreme thinness as an aesthetic ideal, following a brief push for plus-size representation, has been been a hot topic of conversation. Vanessa Friedman reports on this dangerous phenomenon, citing Ozempic and the current political climate as contributing factors {The New York Times}
The rise of AI tools for inventory management
Consumer brands and marketplaces are turning to AI tools to streamline their inventory management, via algorithms that help them process and list new items faster, or predict and keep up with demand. Modern Retail’s Melissa Daniels looks at companies like Thredup which saw a 10% productivity lift after implementing a new AI-powered visual tool that automatically identifies listing details for inbound items. Meanwhile, Banksy Beauty has avoided waste and extra expenses thanks to algorithms that forecast inventory needs. That said, these algorithms aren’t perfect yet and regular updates and training are needed to ensure accuracy. {Modern Retail}
Getting into mass retail now even harder for BIPOC beauty founders
DEI rollbacks from mass retailers like Walmart, Amazon and Target — where many beauty brands dream of being stocked — have forced BIPOC founders to rethink their expansion strategies. For early-stage companies especially, a likely reduction in accelerators, mentorship programs and other support initiatives means that scaling, gaining exposure and raising capital will become even more of an uphill battle than it was already. Moving forward, brands should search out likeminded retail partners. “Crucial allies” right now include Thirteen Lune, Lumimicole Beauty, Macy’s, Nordstrom, Moda Operandi and Blue Mercury, Nateisha Scott writes. {Vogue Business}
Are drop-shipping marketplaces a real solution to fashion’s wholesale problems?
The challenges of participating in traditional wholesale have pushed some fashion brands to online marketplaces like The Folklore, Garmentory and Cult Mia that don’t buy any inventory and instead use drop shipping, wherein brands themselves fulfill customers’ orders. This way, brands are paid quickly and can still reach consumers, and all parties involved take on less risk. There are also potential downsides like less curation and customer service from the retailers, and logistical challenges for small brands with limited resources. {Business of Fashion}
Source: Fashionista.com
