Good morning, Broadsheet readers! The average weekly pay gap between men and women remained almost the same in 2023, tennis legends Chris Evert and Martina Navratilova speak out against the WTA, and Reformation focused on profitability to build a lasting brand. Have a relaxing weekend!
– Dress for success. Reformation CEO Hali Borenstein is leading the 15-year-old apparel company through its adolescence. The period can be awkward for brands—especially those that came of age in the direct-to-consumer era, like Reformation—but Borenstein says an early focus on profitability is helping the sustainability-minded retailer thrive.
Borenstein joined me onstage at the National Retail Federation’s Big Show in New York last week for a conversation about what adolescence is like for the trendy and sustainable—but no longer new—brand.
Reformation’s age places it squarely in the 2010s direct-to-consumer generation of brands that grew quickly—some of which have since flamed out. Borenstein, a Reformation veteran who’s been CEO since 2020, says the company has emerged from that era in a strong place, thanks to a focus on profitability dating back to 2016. The brand with more than $350 million in revenue is known for a commitment to environmental sustainability, which influenced its business practices. Borenstein says it has “double-digit profits.” Fifty-six percent of people who walk into a Reformation dressing room buy something, she says.
“When we set out to bring sustainable fashion to everyone, part of that was recognizing we had to be profitable,” Boreinstein told me. “We needed to build not only a sustainable business but a business that can fund itself and its expansion. Today, that’s part of the zeitgeist, but it certainly wasn’t five years ago. That’s really helped us weather the storms of the last couple years.”
Reformation has passed up on some opportunities to grow faster. “There was always a conversation—what would happen if we spent more on marketing?” Borenstein says. During the early pandemic, the company chose not to make a quick pivot to athleisure—and much-needed profit—because the available fabric wasn’t up to its sustainability standards.
Instead, Borenstein has steered slower growth through category and geographical expansion. For years, Reformation was best known as a place to buy dresses (often worn to attend weddings). In 2019, about 65% of product the brand sold was dresses; today, it’s expanded into sweaters, denim, and more. Dresses now make up about 35% of sales. International expansion is the next major opportunity.
While Reformation has been rumored to be pursuing an IPO, Borenstein says “there’s nothing to report.” Yet “at some point, [the brand’s growth] will obviously translate to value for shareholders,” she says.
Emma Hinchliffe
emma.hinchliffe@fortune.com
@_emmahinchliffe
The Broadsheet is Fortune’s newsletter for and about the world’s most powerful women. Today’s edition was curated by Joseph Abrams. Subscribe here.
ALSO IN THE HEADLINES
- Uncompetitive pay. Women made an average of $1,005 per week in 2023 compared to $1,202 for men, the Bureau of Labor Statistics found, a disparity that hasn’t changed much by percentage over the last decade. Experts point out that this divide is much more significant among high-paying jobs with long hours that are more difficult for primary caregivers to manage. Bloomberg
- Serving up criticism. Women’s tennis legends Chris Evert and Martina Navratilova wrote an op-ed in the Washington Post on Thursday lamenting the Women’s Tennis Association Tour’s likely plan to stage finals in Saudi Arabia. The two women described how the country’s restrictive laws against women and the LGTBQ community stand in the face of the progress they fought for in the sport. Washington Post
- Coach on trial. A Spanish judge recommended that Luis Rubiales, the former president of the country’s soccer association, face trial for kissing a player on the women’s team without her consent while celebrating the team’s Women's World Cup win in August. Three other men will also face trial for allegedly coercing the player, Jenni Hermoso, into calling the kiss consensual. Forbes
- Taking it to the Hill. Allie Phillips was forced to travel across the country to access abortion last year after her home state of Tennessee denied her request to terminate a pregnancy that jeopardized her health. Now running for Tennessee state legislature against an anti-abortion Republican, Phillips says she’s seeking elected office to "protect women and girls and families.” Washington Post
- Unhappy and unhealthy. A new report found that women’s health did not improve from the height of the pandemic to 2022. This data comes from the 2024 Hologic Global Women’s Health Index report, which noted increases in the amount of women who were struggling to afford food, feeling worried, and reporting physical pain. The Hill
ON MY RADAR
Sanna Marin is still dancing Elle
How Sofía Vergara created her Tony Soprano role New York Times
I would never vote for Nikki Haley. Why do I kind of want to see her win? Vogue
PARTING WORDS
"You can either become more rigid as you become older, but you can also become more free."
—Actress Nicole Kidman on continuing to change and stay curious as she ages
Correction, Jan. 27, 2024: This newsletter has been updated to correct the office Allie Phillips is seeking; it's the Tennessee state legislature, not the Senate.
This is the web version of The Broadsheet, a daily newsletter for and about the world’s most powerful women. Sign up to get it delivered free to your inbox.
