Good morning, Broadsheet readers! Women are criticizing Nike’s Olympic track and field uniforms, more than 40% of Florida voters say they’ll vote to reverse the state’s six-week abortion ban, and Rent the Runway’s stock surge shows how seismic AI will be for fashion. Have a thoughtful Monday!
– Fashion forward. Rent the Runway, which languished as a penny stock less than two months ago, quadrupled its share price last week thanks, in part, to two letters: AI.
The clothing rental service led by CEO Jennifer Hyman saw its stock rise about 360%—its best week ever. Following a 1-for-20 reverse stock split that allowed the company to avoid a delisting from the Nasdaq, an earnings call mention of AI seems to have convinced investors that the beleaguered business still has some life left.
“It is the biggest thing to happen to consumer-facing businesses since the launch of the iPhone,” Hyman said. “You’re either going to be a beneficiary of AI as a consumer-facing company or you’re going to die because of AI. Fashion overall is going to benefit.”
Like many fashion brands, Rent the Runway is now relying on AI to help customers search for not just a type of clothing (“jean shorts,” for example) but an aesthetic like “Miami vibes.” My colleague Sasha Rogelberg dove into Rent the Runway’s share price and AI news in a story for Fortune.
Rent the Runway is attempting to stage a turnaround; it recently hired a new CMO, Natalie McGrath, to invest in marketing again after years of pulling back and focusing on surviving as a business. The pandemic halted the momentum of clothing subscription services.
If AI can convince investors that Rent the Runway has a promising future ahead, what can it accomplish for fashion brands that are already doing well? Rent the Runway’s value proposition depends on its inventory, ease of use, and curation; customers turn to the service to spice up their day-to-day wardrobes, participate in trends, solve problems like not knowing what to wear to work, and dress themselves for special events and travel. Instead of users having to envision how Rent the Runway rentals would improve their wardrobes, Rent the Runway can now provide customers with ready-made Pinterest-style examples.
For a business seeking a lifeline as it attempts a comeback, that’s a dramatic change. For everyone else, it’s one to watch.
Emma Hinchliffe
emma.hinchliffe@fortune.com
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
- Design flaws. Nike is under fire for a new Team USA track and field bodysuit, featuring a high-on-the hip cut, that women describe as too revealing. U.S. national champion distance runner Lauren Fleshman said the design promotes unrealistic body standards and sexualizes female athletes. Nike’s chief innovation officer said the uniform is one of several designs women will be able to choose from during the 2024 Paris Olympics. New York Times
- Ballot watch. More than 40% of Florida voters plan on voting to replace the state’s six week abortion ban in November with a constitutional amendment allowing abortions until about 24 weeks, according to an Emerson College survey. Nearly one-third of voters are undecided. Forbes
- Stuck in my thread. Internet searches for “women's Levi’s jeans” jumped more than 250% and company shares soared 20% after Beyoncé released the “Levii’s Jeans” song on her new album Cowboy Carter. Levi Strauss CEO Michelle Gass says the nod from Beyoncé is “evidence” of the company's cultural relevance. Guardian
- Hospital stays. A new study published in Jama Health Forum found that hospitalizations from alcohol misuse almost doubled for women aged 40 to 64 during the pandemic compared to pre-pandemic statistics. Dr. Bryant Shuey, an author of the study, wrote that the increase may be due to women losing touch with their health care providers or support groups during the pandemic. CNN
- Lawyers on leave. DLA Piper is shrinking its parental leave benefits, citing the need to properly cover client matters. The law firm cut paid parental leave for its non-partner lawyers from 18 weeks to 12. Birth mothers still qualify for 18 weeks of leave, but some in the industry argue they may be penalized for taking full advantage of the benefit. Axios
ON MY RADAR
She won the Boston marathon 10 years ago. She’s still waiting for her $100,000 The Wall Street Journal
O.J. Simpson died the comfortable death in old age that Nicole Brown should have had Guardian
Taylor Swift's return to TikTok shows even the world's biggest stars still need the app Business Insider
PARTING WORDS
“In too many places, there’s a war on women, and women are still fighting the most basic battles for their freedom.”
— Lawyer Amal Clooney, who founded the Clooney Foundation for Justice, which supports victims of human rights abuses, with her husband George Clooney
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