Victoria's Secret earnings, Torrid store closures, Disney vs. Midjourney, and luxury's labor problem
The Glossy Podcast · with Danny Parisi and Zofia Zwieglinska · June 13, 2025 · 44 min
Summary
This episode provides critical insights into the recent financial performance of Victoria's Secret, the strategic store closures by Torrid, and significant legal disputes surrounding AI and copyright infringement involving Disney and Midjourney. It culminates in a deep dive into the ethical quagmire of labor exploitation within the luxury fashion supply chain, exemplified by Dior. Ecommerce operators will gain a clearer understanding of the evolving challenges in brand reputation, supply chain ethics, and the financial implications of digital vulnerabilities and retail footprint optimization.
Key takeaways
Victoria's Secret's web outage due to a cyberattack highlights the critical need for robust cybersecurity measures and disaster recovery plans for all ecommerce platforms.
Torrid's store closures underscore the ongoing shift in retail strategy; businesses must continually evaluate and optimize their physical footprint in response to market changes.
The lawsuit against Midjourney by Disney and NBCUniversal signals increasing scrutiny on AI-generated content and intellectual property rights, urging ecommerce brands using AI for content creation to review their legal compliance.
The Dior investigation reveals the reputational and financial risks associated with unethical labor practices in the supply chain; brands must ensure transparency and ethical sourcing, even with third-party manufacturers.
The luxury industry's labor problem, with underpaid immigrant workers in grueling conditions, necessitates that all brands audit their manufacturing processes for ethical compliance and social responsibility to avoid significant financial penalties and brand damage.
This week, senior fashion reporter Danny Parisi, editor-in-chief Jill Manoff and international reporter Zofia Zwieglinska talk about Victoria’s Secret’s earnings report and the expected impact of its three-day web outage due to a cyberattack on the company. We also talk about the mall brand Torrid closing down 180 stores, and discuss a lawsuit filed jointly by NBCUniversal and Disney over AI image generator Midjourney’s alleged copyright infringement. Later in the episode (19:39), we talk about recent probes into the manufacturing practices of luxury brands like Dior. One probe, conducted by an Italian competition authority, found that Dior was sourcing products from workshops in Italy where underpaid immigrants worked in grueling conditions to create its handbags. These workers, some of whom were undocumented, worked long shifts, with energy signatures indicating that the workshops were running 24 hours a day. As part of a settlement, Dior agreed to pay $2.3 million over five years toward initiatives to reduce labor exploitation. Both the probe and its settlement put a spotlight on some of the luxury industry’s open secrets.
What does this episode say about retail & omnichannel?
Victoria's Secret's web outage due to a cyberattack highlights the critical need for robust cybersecurity measures and disaster recovery plans for all ecommerce platforms.
What does this episode say about supply chain & operations?
Torrid's store closures underscore the ongoing shift in retail strategy; businesses must continually evaluate and optimize their physical footprint in response to market changes.
What does this episode say about brand & content?
The lawsuit against Midjourney by Disney and NBCUniversal signals increasing scrutiny on AI-generated content and intellectual property rights, urging ecommerce brands using AI for content creation to review their legal compliance.
What does this episode say about ai & automation?
The Dior investigation reveals the reputational and financial risks associated with unethical labor practices in the supply chain; brands must ensure transparency and ethical sourcing, even with third-party manufacturers.
What does this episode say about retail & omnichannel?
The luxury industry's labor problem, with underpaid immigrant workers in grueling conditions, necessitates that all brands audit their manufacturing processes for ethical compliance and social responsibility to avoid significant financial penalties and brand damage.
