Clothing

Hermès’ “MetaBirkin” win misses the big picture

17 Feb 2023

A court ruled an artist’s digital version of the $198 bln group’s iconic Birkin bag violated trademark rights. The verdict gives luxury firms more clout to commercially exploit the metaverse. Yet the jury is still out on whether such forays will be anything more than marketing.

Capital Calls: Adidas kitchen sink

10 Feb 2023

Concise views on global finance: Shares in the sportswear maker fell 11% amid forecasts of a high-single-digit decline in sales in 2023.

Capital Calls: TikTok’s Beltway visit

30 Jan 2023

Concise views on global finance: The social media app’s CEO Shou Zi Chew is going in front of a U.S. Congressional committee. But it’s leaders outside of Washington that Chew needs to convince.

Capital Calls: AI out-buzzes the blockchain

27 Jan 2023

Concise views on global finance: Digital publishing outfit BuzzFeed’s stock surges in part because it’s using AI to help create content. But investors’ excitement is likely to be short-lived.

Capital Calls: Dr. Martens’ stomping

19 Jan 2023

Concise views on global finance: The bootmaker’s stock fell nearly 30% after a profit warning on Thursday, and is down 60% since Permira listed it in 2021.

LVMH has smarter way to tackle succession dilemma

11 Jan 2023

Bernard Arnault picked his daughter Delphine to run the luxury giant’s Dior brand. If she proves her mettle, she may win the race among her siblings to eventually replace the 73-year-old tycoon. Naming one heir would help LVMH extend its success to the next generation.

New CEO gives Prada more stylish look for listing

6 Dec 2022

Former Luxottica executive Andrea Guerra will replace founder Patrizio Bertelli at the $15 bln fashion house. It’s a breath of fresh air for the family-controlled firm. Putting an experienced outsider in charge may increase Prada’s appeal as it eyes a share sale in Milan.

Capital Calls: Farfetch

1 Dec 2022

Concise views on global finance: Shares of the New York-listed online retailer dropped over 20% as its plan to sell e-commerce services to luxury groups like Salvatore Ferragamo failed to convince investors.

Gucci designer’s exit boosts Kering’s M&A urgency

24 Nov 2022

Alessandro Michele’s departure from the bling group’s top label puts CEO François-Henri Pinault on the spot. Finding a new creative star will be hard, and he needs more brands to cut his $71 bln firm’s reliance on Gucci. A recent miss on Tom Ford also weakens his dealmaking hand.

Burberry revival rests on more leather power

17 Nov 2022

New CEO Jonathan Akeroyd wants to grow sales by 40% in coming years at the stagnating fashion house. Success hinges on star designer Daniel Lee’s ability to create alluring high-margin bags and shoes. But the move will take time and may hurt demand for items currently in store.

Capital Calls: Disney’s Netflix problem

8 Nov 2022

Concise views on global finance: The Magic Kingdom’s shares tanked on Tuesday after it reported widening losses in its streaming service division, but it can overcome the challenges.

Tom Ford return offers remedy for Gucci fatigue

4 Nov 2022

Kering is considering a swoop on the U.S. fashion house. Bringing back Gucci’s ex-star designer could ease the $60 bln fashion giant’s reliance on its largest brand, which needs reinvigorating. Kering’s vast retail network would also make the Tom Ford label a winner.

Victoria’s Secret hides in M&A small print

2 Nov 2022

The $3 bln lingerie merchant agreed to buy online rival Adore Me to enhance its tech savvy and appeal to more diverse shoppers. The $400 mln headline price doesn’t reveal all; it could jump 75%, partly based on synergy targets. Covering up the details leaves investors guessing.

Adidas’s Kanye West bet is still in credit

27 Oct 2022

The 18 bln euro sportswear maker severed ties with the musician over offensive comments. In this Viewsroom podcast, Breakingviews columnists discuss how the financial benefits to Adidas nevertheless outweighed the costs. That may spur other brands to pursue outspoken stars.

Capital Calls: Mobileye IPO, Loafer buyout

26 Oct 2022

Concise views on global finance: Intel’s autonomous driving subsidiary benefited from lower expectations, while Tod’s founder Diego Della Valle may have a Plan B after resistance from minority investors forced him to abandon plans to take the luxury shoemaker private.

Adidas-Kanye split leaves investors in the money

25 Oct 2022

The $18 bln sportswear group cut ties with the musician, now called Ye, after he made offensive comments. Its sluggish response risks a boycott. But given Yeezy sneakers’ high profit margins in recent years, shareholders may already have won more than they stand to lose.

Capital Calls: Adidas

21 Oct 2022

Concise views on global finance: The 19 bln euro sportswear maker slashed its 2022 revenue outlook, dragging shares down 10%.

Capital Calls: Chevron, Pickleball

29 Sep 2022

Concise views on global finance: The oil driller has sold its California headquarters building and is moving employees to Texas, while one of the fastest-growing U.S. games is beefing up its professional ambitions with an investment from basketball superstar LeBron James.

Capital Calls: Ralph Lauren

19 Sep 2022

Concise views on global finance: The $6 bln retailer known for its iconic Polo shirts is cheaply valued compared to European counterparts.

Patagonia lobs ESG breakup calls back to the wild

16 Sep 2022

Founder Yvon Chouinard has ceded control of the clothing firm to use its earnings to fight climate risk. A sale would have built a bigger war chest. But he wants to defend his company’s values and workers, too. It shows how splitting environmental and social goals is wrongheaded.