Lululemon is diving into the $30 billion resale market by offering money for used yoga pants

Lululemon
Resale is becoming an increasingly important market.

  • Lululemon is piloting a new service to enable customers to swap used clothes for gift cards.
  • These clothes will be washed and resold at a discount.
  • Analysts are advising retailers to get into resale to make money and attract sustainability-conscious customers.
  • See more stories on Insider’s business page.

Lululemon is dipping its toes into the booming resale market.

The athleisure clothing giant, which is known for its $100 workout leggings, announced Tuesday that it is launching a new resale initiative known as Like New.

Starting in May, customers will be able to return “gently used” Lululemon clothing to certain stores in California and Texas in exchange for a gift card to spend online at the brand.

These items will be washed and then available for other customers to buy back at a discount. A company spokesperson told Insider that the level of discount will depend on whether the item is in “like new” condition or “gently used.” Any items that don’t make the cut will be recycled. Lululemon said it is partnering with resale operations expert Trove to roll out this new service.

Lululemon is among the first major retailers in the US to make moves into the $30 billion resale market. Analysts say that there an immediate opportunity for companies to cash in on this growing market, while also showing customers and investors that they are more sustainability-minded.

Jefferies analysts recently estimated that the secondhand market will represent more than 10% of the apparel market over the next 10 years.

“Legacy retailers should start to take note, and find a way to participate,” these analysts wrote.

Offering resale options is especially important if Lululemon wants to attract younger customers, who are spending more on resale than any generation before, according to Jefferies.

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The maker of Lil Nas X’s ‘Satan Shoes’ has settled a trademark dispute brought by Nike, and will buy back doctored Nike shoes it has sold

Lil Nas X's "Satan Shoe" collaboration with MSCHF.
Lil Nas X’s “Satan Shoe” collaboration with MSCHF.

  • Nike settled its lawsuit with MSCHF over the controversial “Satan Shoe,” the retailer told Insider.
  • The terms of the settlement include a voluntary recall for MSCHF buy back the shoes.
  • “The parties are pleased to put this dispute behind them,” Nike said in a statement.
  • See more stories on Insider’s business page.

Nike has settled with the maker of Lil Nas X’s controversial “Satan Shoe” for an undisclosed amount.

Nike filed a trademark infringement suit on March 29 after art startup MSCHF collaborated with Lil Nas X on a shoe that knocks off the Nike Air Max 97 and claimed to insert a drop of human blood to the midsole.

The terms of the settlement include a voluntary recall that allow MSCHF to buy back the Satan Shoes for their original retail price. MSCHF said on April 1 it had shipped at least 200 pairs of the shoe before a judge granted Nike’s temporary restraining order to stop processing the orders.

“If any purchasers were confused, or if they otherwise want to return their shoes, they may do so for a full refund,” Nike said in a statement to Insider. “The parties are pleased to put this dispute behind them.”

Read more: Nike tried to sue the controversial ‘Satan Shoes’ out of existence. Instead, it’s fueling hype as pairs sell for thousands of dollars on the resale market.

Nike added customers who do not want to return the shoe or encounter a “product issue, defect, or health concern,” should contact MSCHF. The shoe giant reiterated Nike had no role in selling the Satan Shoe.

MSCHF has made a reputation selling unorthodox, “meme-worthy” products, including a $10 toaster bath bomb and an app for making stock investments based on astrological signs.

Last year, the startup sold a Jesus-inspired sneaker filled with holy water that also appeared to be altered Nike Air Max 97s. The “Jesus Shoe” will also be part of the voluntary recall as part of Nike’s settlement.

“If we can make people a fan of the brand and not the product, we can do whatever the f–k we want,” Daniel Greenberg, the head of commerce at MSCHF, told Insider’s Paige Leskin last year. “We build what we want. We don’t care.”

MSCHF was not immediately available for comment.

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Take a look at Adidas’ new running shoes that can be customized with Legos

adidas_Ultraboost_DNA_x_LEGO(r)_Plates_Shoes_White_FY7690_011_hover_standard
  • Adidas’ new running shoes can be fitted with Lego bricks on either side of the shoe.
  • The Ultraboost DNA x Lego shoes come with different plates that can be swapped out.
  • The $200 shoes became available for purchase on Thursday morning.
  • See more stories on Insider’s business page.

Adidas revealed its newest shoes that can be customized with Lego blocks on Wednesday.

The Ultraboost DNA shoes, which went on sale Thursday, look like regular Adidas running shoes, but with a Lego twist: they feature plastic strips on the side that can be used to hold Lego plates.

The $200 shoes have three strips on each side and each strip can fit three two-by-two Lego plates.

The running shoes come with a selection of Legos for the shoe, but can also be swapped out for other bricks. They also have a tongue with a Lego design on it, as well as grooves on the toe of the shoe and on the inside of the shoe that emulate the ridges on Lego pieces.

Adidas has been working with Lego on products for quite some time. In October, the two companies announced a multi-year brand partnership.

The new shoe design is Adidas’ latest effort to compete with other brands like Nike. In February, Nike released its first hands-free sneaker for $120.

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A judge granted Nike’s temporary restraining order against the startup that made Lil Nas X’s ‘Satan shoe’

Lil Nas X's "Satan Shoe" collaboration with MSCHF.
Lil Nas X’s “Satan Shoe” collaboration with MSCHF.

  • A judge granted Nike’s request for a temporary restraining order against MSCHF, the brand that made Lil Nas X’s “Satan shoe.
  • During the hearing, MSCHF argued the shoe was not meant to be worn.
  • Nike cited an example in Miley Cyrus, who posted photos wearing the shoes with the caption “Can you see Satan?”
  • See more stories on Insider’s business page.

A court granted Nike’s request for a temporary restraining order against MSCHF, the retail startup that made Lil Nas X’s “Satan Shoe.”

Singer Lil Nas X and MSCHF collaborated on the shoe to promote his new music video “MONTERO (Call Me By Your Name),” which uses imagery resembling heaven and hell. The shoe resembled Nike’s Air Max 97, and MSCHF said it included one drop of human blood in the midsole.

Nike, which had no involvement in the Satan Shoe, filed the request for the temporary restraining order Wednesday morning, demanding MSCHF not ship orders on the shoe.

But MSCHF had shipped at least 200 pairs of Satan shoes before Nike filed the request, Megan Bannigan, the startup’s attorney, said during a court hearing Thursday morning.

Bannigan said no other pairs of the shoes exist and it will not ship any more. During the hearing, MSCHF argued the shoe was a work of art protected by the First Amendment.

“These are not shoes that are worn, there are very few of them. That’s the kind of artwork that we’re talking about,” Bannigan said.

But Nike cited an example in pop star Miley Cyrus, who earlier this week posted photos on Instagram wearing the shoes with the caption “Can you see Satan?”

MSCHF’s Satan shoes poses “substantial threat of irreparable harm” to Nike, the company argues, because consumers will associate the shoe retailer with satanic themed shoes. Nike asked the court to prohibit MSCHF from using the Satan shoes in advertising, and assisting other people in promoting the shoe.

Nike filed a trademark infringement suit against MSCHF on Tuesday over the use of its “Swoosh,” and claimed the retail startup confused customers into believing Nike “endorsed satanism.” Some social media users, including basketball player Nick Young, said they would boycott Nike for the MSCHF shoe.

Read more: Being sued by Nike for its Lil Nas X’s Satan blood sneaker is the ultimate endgame for viral streetwear and art company MSCHF

In the suit, Nike is demanding MSCHF to deliver all products that bear resemblance to Nike products for destruction, and that MSCHF pay for the cost of the suit and lawyer fees on top of damages.

MSCHF sold out all available pairs of the shoe in under one minute on Monday. The shoes cost $1,018, as a nod to the Bible verse Luke 10:18: “So He told them, ‘I saw Satan fall like lightning from heaven.'”

Lil Nas X announced a giveaway of what was supposed to be the 666th pair on Twitter: “if u want the 666th pair of the satan shoes quote this tweet and use #satanshoes to be entered and I’ll pick someone by thursday,” he said.

Nike, MSCHF, and representatives for Lil Nas X were not immediately available for comment.

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A judge ordered Lil Nas X’s ‘Satan shoe’ maker to halt all orders, but they’ve reportedly already started shipping and the rapper is hosting a giveaway for the 666th pair

Lil Nas X's "Satan Shoe" collaboration with MSCHF.
Lil Nas X’s “Satan Shoe” collaboration with MSCHF.

  • A judge ruled MSCHF, the brand that made Lil Nas X’s “Satan shoe,” must stop fulfilling orders.
  • Nike filed a temporary restraining order Wednesday morning requesting MSCHF not ship orders.
  • Lil Nas X and MSCHF collaborated on the shoe, which resembles the Nike Air Max 97.
  • See more stories on Insider’s business page.

A court ordered MSCHF, the retail startup that made Lil Nas X’s “Satan Shoe,” to stop fulfilling orders immediately on Wednesday evening.

Singer Lil Nas X and MSCHF collaborated on the shoe to promote his new music video “MONTERO (Call Me By Your Name),” which uses imagery resembling heaven and hell. The shoe resembled Nike’s Air Max 97, and MSCHF said it included one drop of human blood in the midsole.

Nike, which had no involvement in the Satan Shoe, filed a temporary restraining order Wednesday morning requesting MSCHF not ship orders on the shoe.

MSCHF’s Satan shoes poses “substantial threat of irreparable harm” to Nike, the company argues, because consumers will associate the shoe retailer with satanic themed shoes. Nike asked the court to prohibit MSCHF from using the Satan shoes in advertising, and assisting other people in promoting the shoe.

“Issuance of the requested temporary restraining order is in the public interest to protect the public against confusion, deception, and mistake,” the court order reads.

Nike filed a trademark infringement suit against MSCHF on Tuesday over the use of its “swoosh,” and claimed the retail startup confused customers into believing Nike “endorsed satanism.” Some social media users, including basketball player Nick Young, said they would boycott Nike for the MSCHF shoe.

Read more: Being sued by Nike for its Lil Nas X’s Satan blood sneaker is the ultimate endgame for viral streetwear and art company MSCHF

In the suit, Nike demanded MSCHF to deliver all products that bear resemblance to Nike products for destruction, and that MSCHF pay for the cost of the suit and lawyer fees on top of damages.

MSCHF sold out 665 pairs of the shoe in under one minute on Monday. The shoes cost $1,018, as a nod to the Bible verse Luke 10:18: “So He told them, ‘I saw Satan fall like lightning from heaven.'”

Lil Nas X announced a giveaway of the 666th pair on Twitter: “if u want the 666th pair of the satan shoes quote this tweet and use #satanshoes to be entered and I’ll pick someone by thursday,” he said.

Nike, MSCHF, and representatives for Lil Nas X were not immediately available for comment.

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Nike is suing the maker of Lil Nas X’s blood shoe, alleging it has ‘suffered significant harm’ – including complaints from customers who ‘believe that Nike is endorsing satanism’

Lil Nas X Satan shoes
Nike is suing Mschf on allegations of trademark infringement over the retail startup’s “Satan Shoes.”

  • Nike is suing Mschf, accusing it of trademark infringement over the retail startup’s “Satan Shoes.”
  • Mschf collaborated with Lil Nas X for the shoe, which sold out in under one minute on Monday.
  • The shoe looks like a modified Nike Air Max 97 and includes the brand’s trademarked Swoosh.
  • See more stories on Insider’s business page.

Nike filed a lawsuit against Mschf over its “Satan Shoes,” made in collaboration with the rapper Lil Nas X.

Nike accused Mschf of trademark infringement after it appeared to use the Air Max 97 shoe for inspiration for its Satan Shoes, which add red ink and a drop of human blood to the midsole. Mschf collaborated with Lil Nas X for the sneaker around the release of his song “Montero (Call Me By Your Name).”

The retail giant said Mschf’s “unauthorized” Nike-inspired shoe confused consumers into thinking Nike had created the product. Nike also alleged Mschf’s use of the company’s trademarked “Swoosh” confused and misled consumers.

Nike said customers had called for a boycott of the company over Mschf’s shoe. The basketball player Nick Young tweeted he debated wearing Nike after the announcement of the Satan Shoes.

“Nike files this lawsuit to maintain control of its brand, to protect its intellectual property, and to clear the confusion and dilution in the marketplace by setting the record straight – Nike has not and does not approve or authorize MSCHF’s customized Satan Shoes,” the suit said.

Mschf was not immediately available for comment.

Nike is requesting that Mschf pay for the cost of the suit and lawyer fees on top of damages, as it alleged it suffered harm to its reputation that “money cannot compensate.”

Read more: 2 former Nike execs have been tapped to turn underwear brand Tommy John into a billion-dollar company – and they’re going all-in on product innovation and wholesale partnerships to get there

The company also alleged it had suffered “significant harm to its goodwill, including among consumers who believe that Nike is endorsing satanism.” Nike asked the court to order Mschf to deliver all products that bear resemblance to Nike products for destruction.

The Satan Shoes sold out in under one minute, Mschf told Insider Monday morning. Mschf released 666 pairs for $1,018 each as a nod to the Bible verse Luke 10:18, which says: “So He told them, ‘I saw Satan fall like lightning from heaven.'”

Nike previously told The New York Times the retailer had no involvement with the Mschf shoe. “We do not have a relationship with Little Nas X or MSCHF. Nike did not design or release these shoes, and we do not endorse them,” the company said in a statement to The Times.

Mschf previously turned pairs of Nike Air Max 97s into Jesus-inspired sneakers filled with holy water that came from the Jordan River and was blessed by a priest, The Independent reported. The retailer sold one pair of the “Jesus Shoes” for $3,000.

Lil Nas X responded to the news of the suit with a meme, much like how he’d been responding to criticism of the song’s music video.

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Amazon has reportedly surpassed Walmart as the top apparel retailer in the US

walmart new test stores
The apparel signs at Walmart.

Amazon has surpassed Walmart as the country’s top apparel retailer, CNBC reported.

Last year’s e-commerce boom increased Amazon’s apparel and foot ware sales to $41 billion in 2020, representing 11-12% of all clothes sold in the US, according to a Wells Fargo analyst note cited by CNBC.

Wells Fargo analysts said Amazon had 20% to 25% more apparel sales in 2020 than Walmart, and the online retailer will surpass $45 billion in apparel and footwear this year.

Analysts had predicted Amazon would soon lead Walmart in apparel, the space where Americans spend the most money online relative to things like electronics and furniture.

Walmart said it does not comment on analyst notes. Amazon declined to comment.

Read more: A Walmart exec reveals why its new partnership with the fashion designer who dresses Lady Gaga, Oprah, and Michelle Obama will elevate premium private-label offerings and boost apparel sales

As decreased foot traffic in malls hurt sales at department stores like Macy’s and JCPenny, Amazon grew its clothing and accessory business. Of the 26% of consumers who said they spend less on apparel at Macy’s than they did three years ago, over 42% said they’ve switched that spending to Amazon, according to a 2018 report by Insider Intelligence.

Walmart introduced new clothing brands and partnered with fashion designers in recent years to boost sales. Walmart.com recently added a whole selection of sports apparel, and partnered with with a fashion designer who dressed Michelle Obama.

Amazon’s rise comes as some fashion brands stopped selling on its platform. Nike stopped selling shoes and other products on Amazon’s site in 2019. The two previously had a deal where Nike would sell on Amazon if the e-commerce giant stopped third-party sellers from listing fake items. Birkenstock removed items after the shoe brand’s CEO accused Amazon of failing to crack down on counterfeits.

Amazon posted its highest e-commerce growth in three years during the COVID-19 pandemic, when many Americans avoided shopping indoors. The company’s Web Services generated huge growth last year as well due to companies transitioning to work-from-home models.

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Dick’s Sporting Goods launches new men’s athleisure line to take on Lululemon

Dicks Sporting Goods VRST
Dicks Sporting Goods VRST.

  • Dick’s Sporting Goods is launching a men’s activewear line, VRST.
  • The line will have athletic wear and casual clothing.
  • Athletic wear has done well during the pandemic as overall apparel suffers.
  • See more stories on Insider’s business page.

Dick’s Sporting Goods is launching a men’s athleisure brand called VRST to compete with Lululemon and other athletic brands.

VRST is a “men’s athletic apparel brand built for the modern active man who lives life on-the-go,” Dick’s Sporting Goods said in a press release. The line will include pants, joggers, shorts, tees, and hoodies priced from $30 to $120. It will be sold in Dick’s stores across the US, along with its own e-commerce platform.

Read more: Echelon Fitness’ CEO reveals how the connected-fitness company grew sales by 700% during the pandemic, thanks in part to its focus on accessibility

Activewear and athleisure have fared well throughout the pandemic of the past year as people increasingly turn towards comfortable, functional clothes. While apparel overall lagged behind other sectors, sporting goods saw 75% growth according to Adobe’s Covid-19 report. Apparel sales were down 34% between March and July, but shorts, sweatpants, and sports bra sales all rose.

Dick’s Sporting Goods, Athleta, and other brands reported increased demand for athleticwear in the second quarter of 2020. Target’s athletic brand All in Motion reached $1 billion in sales in 2020, within only a year of launching, Avery Hartmans reported for Insider.

Dicks Sporting Goods VRST
Dicks Sporting Goods VRST.

Athleisure brands like Lululemon have traditionally relied on women for the majority of sales, but they’re turning to men as potential customers, too.

Lululemon attracted men with casual wear and an office commute line. Specifically, the stretchy ABC (anti-ball-crushing) pant is one of the most popular in the line, Mary Hanbury reported for Insider in 2018. Dick’s and VRST seem to be going for the same customers with “a variety of commuter pants” in the new line for men.

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Gap’s CEO says people will emerge from pandemic isolation and start ‘peacocking,’ in what could be a boon for retailers

CEO of Gap Inc. Sonia Syngal
CEO of Gap Inc. Sonia Syngal

Gap has high hopes for the country to soon return to normalcy as vaccinations pick up.

Gap Inc. CEO Sonia Syngal said she expects sales to grow as consumers dress to impress others after months of decreased socializing.

“We’re quite optimistic,” Syngal said in an interview with The Wall Street Journal. “We do think there’s going to be this peacocking effect that happens, as people emerge from Covid.”

Gap appointed Syngal as chief executive in March 2020, months after former CEO Art Peck’s sudden departure. Peck left the company after sales slumped in 2019 due to declining foot traffic from shopping malls. 

Syngal, the former CEO of Old Navy, said she planned to grow Gap Inc. by investing in the firm’s 60 million-person customer base to capitalize on a captive audience. 

But the COVID-19 pandemic upended retail shortly after Syngal took over. As Americans avoided malls and spent more time shopping online, Gap Inc. announced it would close 350 Gap and Banana Republic stores in North America – or 30% of its total locations – by the end of 2023.

Syngal told The Journal that online holiday shopping helped offset some losses. The firm reported online sales increased to 45% of total sales in 2020, up from 25% the year prior.

The chief executive added the firm will cut back on costs spent on making stores “safer” during the pandemic as vaccines become more widely available. 

President Joe Biden said he expects vaccines to become available for all Americans by May shortly after the Food nad Drug Administration granted emergency use authorization for Johnson & Johnson’s shot. The Centers for Disease Control plans to release guidelines on activities vaccinated people can safely do, which include some indoor gatherings.

Some retailers are banking on consumers spending money on new clothes as they going out after getting vaccinated. The menswear brand Suitsupply released an ad titled “The new normal is coming” with a photo of naked models kissing.

“Post-pandemic life is on the horizon,” Fokke de Jong, Suitsupply’s founder and CEO, told Insider’s Kate Taylor. “The campaign is simply a positive outlook on our future where people can get back to gathering and getting close.” 

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Tom Brady covered up his Nike swoosh after winning the Super Bowl to support Under Armour

tom brady nike under armour
Tom Brady is one of the leading spokesmen for Under Armour, and he’s not in the business of giving free PR to the brand’s competitors.

  • Tom Brady is an Under Armour ambassador, and he’s fiercely loyal to the sports apparel brand.
  • After he won Super Bowl LV, the Buccaneers QB acted shrewdly to snub one of Under Armour’s competitors.
  • Brady noticed a Nike swoosh visible on his undershirt, so he pulled up his championship T-shirt to cover it up.
  • Visit the Business section of Insider for more stories.

Tom Brady is one of the leading spokespeople for Under Armour, and he’s not in the business of giving free PR to the brand’s competitors.

Brady and the Tampa Bay Buccaneers beat out Patrick Mahomes’ Kansas City Chiefs to win Super Bowl LV Sunday night. As the 43-year-old quarterback hoisted the Vince Lombardi Trophy for the seventh time in his esteemed career, he caught a glimpse of himself on the stadium’s video board.

tom brady.JPG
Tom Brady holds the Vince Lombardi Trophy after his Tampa Bay Buccaneers won Super Bowl LV.

A red Nike swoosh was peeking out from his undershirt.

Nike has a contract with the NFL that requires all 32 teams to outfit their players in the brand’s apparel, including jerseys, sideline apparel, and more. That deal extends to base layers like undershirts, which aren’t typically visible to viewers.

2021 02 08T033927Z_148751903_MT1USATODAY15544815_RTRMADP_3_NFL SUPER BOWL LV KANSAS CITY CHIEFS VS TAMPA BAY BUCCANEERS
A Nike swoosh is clearly visible as Tom Brady poses with the Vince Lombardi Trophy.

So when Brady saw the Nike swoosh sitting squarely across his chest as he clutched his latest piece of hardware, he acted quickly and shrewdly to show his undying loyalty to Under Armour on football’s biggest stage; the 2021 Super Bowl MVP pulled up his gray Buccaneers Super Bowl Champions T-shirt to cover the decal.

Check out the clip below:

Brady’s likely to run into this issue a few more times over the final years of his career. The NFL’s apparel deal with Nike runs through 2028, so swooshes will continue to feature prominently on the gridiron. But if we’ve learned anything about the quarterback over his 21 years in the league, he will find a way to walk off with a win – no matter if it’s for himself, his team, or his brand.

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