Clothing

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.

Richemont finds tolerable way to refocus

24 Aug 2022

The $60 bln Cartier owner has finally sold part of e-commerce unit YNAP to Farfetch. Richemont gets a lower price than it could have last year, but keeps online presence via payment in its U.S.-listed rival’s shares. And cutting its stake helps it focus on more promising sectors.

Italy loafer buyout is a bet on a higher price tag

3 Aug 2022

Two decades after listing shoemaker Tod’s, founder Diego Della Valle is taking it private at the same 40 euro share price. His hope, with partner LVMH, may be that the group is worth more split up than his 1.4 bln euro bid implies. Weary investors may take the cheap offer anyway.

Reliance dresses Gap in more optimistic India garb

7 Jul 2022

A franchise deal with the underperforming U.S apparel outfit is boss Mukesh Ambani’s latest bid to expand his shopping empire. It’s a low-margin business: Gap lost money for an earlier partner. India’s retail king has the scale and supply chains to stitch together better returns.

Capital Calls: Inflation-proof Dr Martens, Saipem

1 Jun 2022

Concise views on global finance: The UK bootmaker’s polished results offer glimmer of hope to embattled retailers; the Italian energy-services group reassures investors with $550 mln sale of its onshore drilling unit.

Zara owner has $10 bln for online shopping spree

18 May 2022

Marta Ortega, the fresh-faced boss of the world’s largest fashion retailer, is sitting on a record cash pile. Typically, such spoils trickle back to shareholders as special dividends. But with its battered share price, buying an online upstart like Zalando may create more value.

Capital Calls: Twitter, Peloton

18 May 2022

Concise views on global finance: The social media company’s directors have too much at stake to renegotiate a deal with Musk; and Apollo and Blackstone’s interest in the $5 bln virtual workout company could benefit more if it fails rather than succeeds.

Capital Calls: Business travel, Adidas China woes

6 May 2022

Concise views on global finance: British Airways owner IAG faces stormy UK skies; Chinese lockdowns and boycotts are slowing down the German sneaker maker.

How Brooks ran into Warren Buffett’s arms

26 Apr 2022

The athletic-shoe company nearly expired while trying to compete with Nike and Adidas. Then Jim Weber stepped in and sharpened its focus to runners. The company’s boss explains in this episode of The Exchange how staying the course caught the attention of the Sage of Omaha.

Hypebeast finds SPAC shortcut to dual listing

4 Apr 2022

The Hong Kong-listed lifestyle, advertising and e-commerce firm is selling a stake to a blank-check vehicle, thereby collecting a U.S. listing as well. The implied valuation, despite being at a premium, is sober by SPAC standards. The novelty is involving two stock exchanges.

Capital Calls: U.S. truck drivers go missing

4 Apr 2022

Concise views on global finance: Bonuses and concessions from Washington aren't enough to fill the industry's empty cabs.