Clothing

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.

Capital Calls: Chip supply chain bites own tail

31 Mar 2022

Concise views on global finance: Semiconductor factories rely on machines made by ASM International. Paradoxically, the firm is having trouble finding the chips it needs. Untangling the mess will take a while.

Fosun fashion deal hangs on ‘Made in China’ label

23 Mar 2022

The conglomerate is showcasing its Lanvin-led collection of upscale brands in a Primavera-backed New York SPAC. The $1.9 bln valuation, impressive growth and international flair should make this mini LVMH wannabe prêt-à-porter. Chinese red is a tricky shade for investors, though.

Russian shoppers weaken case for companies to stay

11 Mar 2022

Adidas and Unilever are among those cutting back in the country. They make way for locals such as retailer Magnit and Asian consumer giants that stick around to gain market share. The effect of sanctions on disposable incomes, however, makes the financial logic less compelling.

Kering gets dressed up for elusive mega-deal

17 Feb 2022

François-Henri Pinault’s luxury powerhouse is boosting sales and profit, thanks to star brand Gucci. That, plus a robust balance sheet, means the $90 bln group is well placed to splash out on a deal. The snag is that there are few obvious targets, raising the risk of overpaying.

Capital Calls: HSBC and China, Dr. Martens

6 Jan 2021

Concise views on global finance: The Asia-focused lender has a chance to take greater control of its mainland brokerage after recent positive noises from Beijing; buyout firm Permira picks a good time to offload shares in the $5 bln bootmaker.

Glove maker’s governance spoils pandemic bounce

9 Dec 2021

Top Glove, the world’s largest maker of protective handwear, has won investor support for a third listing in Hong Kong. Labour concerns derailed the Malaysian firm’s earlier attempt when markets were hot. With shares back near pre-pandemic levels, the delay has cost it dearly.

Lululemon-Peloton union makes more sense than feud

2 Dec 2021

The exercise firms are locked in legal tussles and each is encroaching on the other’s turf. Given the bike maker’s share price has fallen two-thirds this year and there are obvious costs to cut, the sporty clothing specialist’s better option is to make an offer for its adversary.

Inditex injects doubt into smooth-running machine

30 Nov 2021

Spain’s $100 bln fast fashion group replaced Executive Chairman Pablo Isla with founder Amancio Ortega’s daughter, Marta. Its valuation reflects investor faith in Isla’s digital strategy, which helped Inditex weather Covid-19. The abrupt pivot to untried leaders will test that.