Clothing

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.

Review: House of Gucci’s broken family capitalism

26 Nov 2021

A sprawling dynasty can lead to corporate disaster. Ridley Scott’s star-studded movie is a kaleidoscopic portrait of the infighting that saw the Gucci family lose control of their namesake brand. Stepping aside at the right time can make all the difference.

Prada’s new look merits fashion league promotion

18 Nov 2021

After years of drift, the $18 bln Italian brand has got a grip on its retail chain, axed discounts and rejuvenated its image. That should help it hit a 4.5 bln euro sales target and double its margins. For investors, the catch-up with snazzier rivals is something worth having.

Capital Calls: Tesla, Daimler

11 Nov 2021

Concise views on global finance: The electric-car maker’s directors have, like Elon Musk, cashed in; the German company is racing against Agnelli-controlled CNH Industrial to spin off a trucks division.

Allbirds upsizes its IPO, downsizes its ideals

3 Nov 2021

A $2.2 bln offering raised more money than the ethical shoe company expected. Its blueprint for a "sustainable" IPO got diluted, though - and a pledge to pick banks on ESG credentials vanished. Even a red-hot brand can only push Wall Street's underwriting oligopoly so far.

Rent the Runway models two clashing looks

26 Oct 2021

The clothing-rental company is pitching a way to lessen the load on its balance sheet as it plans to go public. It’s trying to share the risk of wear and tear of dresses and coats with designers. If it can be less Avis, more Airbnb, its $1.3 bln valuation could be a good fit.

Capital Calls: Spanx’s “velvet ghetto”

20 Oct 2021

Concise views on global finance: Blackstone’s investment in the undergarments company was closed by an all-woman team. That’s progress, but not the best kind.

Burberry’s new boss revives upmarket hopes

20 Oct 2021

The UK maker of chic trench coats poached Versace boss Jonathan Akeroyd to be its next CEO. He pushed up the Italian brand’s sales by focusing on high-margin products. Burberry is eager for a similar luxury glow. Yet the $10 bln group’s scale makes it a much bigger challenge.

Time to end Richemont’s online fashion drag

18 Oct 2021

The Cartier owner may sell its e-commerce business YNAP just three years after taking it over. A deal with Farfetch or other rivals might reap at most 3.6 bln euros. Yet, by cutting exposure to a lossmaking unit, boss Johann Rupert would smarten up his company’s dowdy valuation.

High fashion has golden shot at green revamp

12 Oct 2021

LVMH has recovered from Covid-19. With a record valuation and lavish cash flows, the $370 bln luxury giant can afford an overdue splurge on axing its carbon footprint. Setting the trend in an industry that accounts for 4% of emissions will also pile pressure on rivals.

Capital Calls: Green investors, ASOS, Renren

11 Oct 2021

Concise views on global finance: Al Gore’s asset manager finds listed equities can influence a larger chunk of global emissions; the online retailer parts company with its CEO; the startup investor’s $300 mln settlement with aggrieved investors is likely to be an exception.

Capital Calls: NatWest’s guilty-plea logic

7 Oct 2021

Concise views on global finance: The UK lender could receive a lower money-laundering fine for accepting culpability.