Clothing

Capital Calls: LVMH’s US dip, Rolls-Royce revival

26 Jul 2023

Concise views on global finance: Shares in the 413 bln euro luxury conglomerate fell 4% as investors fretted about weakness in its once booming US business; the UK airplane engine maker raised its profit forecast for 2023 as its new CEO benefits from travel tailwinds.

Capital Calls: Netflix, Thailand

20 Jul 2023

Concise views on global finance: The streaming giant warned its revenue will fall short of Wall Street’s expectations; a court’s move to suspend the leader of the election-winning Move Forward Party as a lawmaker raises the stakes in the underperforming $500 bln economy.

Moncler can inspire Golden Goose’s next step

15 Jun 2023

Skirting a pandemic and war, the maker of Super-Star sneakers doubled sales to 500 mln euros in three years, with rich margins. That’s where Remo Ruffini’s down jackets brand stood before its 2013 IPO. It may tempt owner Permira into a $3 bln sale, or Moncler into a purchase.

Capital Calls: Amazon, Aramco

9 May 2023

Concise views on global finance: Rising costs and cautious consumers are driving the e-commerce giant to sell goods through mobile games and push incentives; the $2 trillion Saudi oil company’s new dividend policy is one way to interest investors in future share sales. 

Capital Calls: Crypto mysteries, HSBC

5 May 2023

Concise views on global finance: A court decision adds pressure on the US SEC to say which digital assets are securities, which would bring clarity to Coinbase and others; None of the $150 bln global bank’s big investors other than Ping An back an AGM breakup proposal.

Ending the retailers’ crisis has a high price tag

2 May 2023

Luring inflation-wary shoppers back to the high street won’t be cheap, executives at last week’s World Retail Congress said. Heavyweights like Zara owner Inditex, which has room to plough money into stores, stand to win big. H&M and others cutting to survive face a slow decline.

Failed merger drifts have message in scrap heap

20 Apr 2023

Clothing retailer Lululemon may be mulling a sale of its smart fitness Mirror three years after buying it. Peloton has had a similar problem. Bold acquisitions that stray from a company’s knitting are exciting when funding is cheap but come at a high price when markets turn.

Capital Calls: Bridal bankruptcy

18 Apr 2023

Concise views on global finance: David’s Bridal, which dresses one in four American brides, has filed for Chapter 11 bankruptcy for the second time in five years. Trends that push women to spend more on themselves suggest the chain would have better luck with bachelorettes.

John Lewis needs a breakup more than a rescue

23 Mar 2023

The UK employee-owned retailer wants to raise $2.5 bln to improve its ailing stores. But that could leave a new investor owning nearly half the company, undermining its mutual status. Merging its grocer Waitrose with rival M&S would bring in cash and forge a more viable player.

Kanye West blunder puts Adidas in play

15 Mar 2023

The $28 bln sportswear maker is battling to restore its image after ditching a lucrative but dubious alliance with the musician. That requires CEO Bjorn Gulden to splurge on marketing, hitting dividends and margins. Adidas’s depressed valuation may soon catch the eye of rivals.

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.