Clothing

Canada Goose IPO may lead investors on wild chase

27 Feb 2017

The fast-growing maker of downy winter coats will be controlled by backer Bain Capital using super-voting shares. High-end Italian rival Moncler offers an aspirational comparison and suggests a possible $1 bln valuation. Trendy fashion companies, however, can be fretful pursuits.

Prada can grow into frilly valuation

14 Feb 2017

An investor who bought shares in the Italian luxury company's 2011 flotation is 12 percent worse off today. But the slide in Prada’s sales is slowing. If China recovers and the handbag maker makes up lost ground online, its sky-high price-earnings ratio will look more fitting.

Nordstrom handed a presidential gift certificate

8 Feb 2017

The higher-end U.S. retailer added some $300 mln in market value after Donald Trump deemed a business decision to discontinue his daughter's clothing line a personal attack. By overstepping his boundaries yet again, the president managed to turn shopping into an act of protest.

Next’s retail crisis has distinctly British twist

4 Jan 2017

The clothing chain warned pre-tax profit may fall 14 percent this year. As well as Next's own problems, that's down to Brexit-related inflation, higher business rates and wage bills. British shoppers have also embraced online retail more readily than in some other markets.

Kering shows up luxury’s diversity problem

14 Dec 2016

Unlike peers, Gucci's owner now has a relatively progressive new global parental leave policy. Women also make up two-thirds of Kering's board. Beyond that, the sector is a relative underperformer on diversity - even though at some labels women drive 80 pct of sales.

Sugar can’t sweeten AB Foods’ retail slowdown

12 Sep 2016

Sales are slowing at Primark, the fast-fashion chain that accounts for two-thirds of operating profit at the sugar-and-retail conglomerate. The weaker pound may hit the clothing chain's profitability next year. A widening pension deficit further sours AB Foods' prospects.

Minority investors should check the returns policy

7 Sep 2016

Sports Direct's shareholders are being trampled by a strong entrepreneur with a 55 pct stake. Italian luxury brand Prada has a similar issue: entrenched founders whose strategy isn’t working. Big shareholders can benefit companies, but other investors end up stuck if things sour.

Hugo Boss offers preview of luxury retrenchment

5 Aug 2016

The German brand's new CEO is cutting 20 stores and 50 million euros of costs to deal with falling sales. While second-quarter revenue beat expectations, net profit fell 84 percent. Hugo Boss's peers will also face a painful reckoning after their own rapid expansions.

Profit upgrade puts Zalando back in fashion

19 Jul 2016

The German online fashion retailer has calmed worries about competition from Amazon by raising full-year operating profit margin guidance by around a quarter and forecasting strong revenue growth. While shares are up by a fifth in a day, valuations can grow richer still.

Time to end Swatch margin destruction

15 Jul 2016

The watchmaker has warned profit will fall 50-60 percent in the first half. Sales will underperform the wider Swiss watch industry and there's limited scope to raise prices. Yet there are no real cost-cutting plans. Swatch is in denial about the scale of the problems it faces.

British retail sleepwalks into Amazon-ageddon

8 Jul 2016

Real-world stores are burdened with poor demand, too much property and thinning profit. The U.S. tech giant, meanwhile, is hiring 1,000 UK staff and pushing into fashion and groceries. The UK's economic problems could be a decisive moment in the online land grab.

UK fashion profit risks becoming too skinny

7 Jul 2016

British retailers M&S and Next were losing ground to foreign rivals like Zara even before sterling’s sharp drop boosted the cost of sourcing clothes from Asia. Few can pass on higher costs to thrifty shoppers. Brexit will make it even tougher to regain share and mend margins.