Clothing

Corona Capital: China on Wall Street, Wind power

20 May 2020

Concise views on the pandemic’s corporate and financial fallout: U.S. senators want Chinese firms to share their audited accounts – or face being kicked off American stock exchanges. Plus: why wind energy is the key to an economic and social, as well as environmental, resurgence.

Corona Capital: Airbnb

15 Apr 2020

Concise views on the pandemic’s corporate and financial fallout: Airbnb’s new $1 bln loan doesn’t come cheap, especially when compared to Booking Holdings. But the home-renting unicorn has troubles, from few assets to offer as security to how to ensure properties are virus-free.

Corona Capital: Corporate debt

3 Apr 2020

Concise views on the pandemic’s corporate and financial fallout: Despite uncertainty, investors have big appetites for investment-grade bonds.

Corona Capital: India on lockdown

24 Mar 2020

Concise views on the pandemic’s corporate and financial fallout: India's prime minister, Narendra Modi, tells 1.3 billion people to stay at home as the country grapples with the early stages of an outbreak.

Dolce & Gabbana will toil to hit Versace’s heights

17 Feb 2020

The Italian brand has been approached by suitors. With sales of 1.4 bln euros, it would command a 4 bln euro price tag if sold on Versace multiples. Lower margins, coronavirus and an ongoing battle to fully restore its damaged image in China are reasons to be more cautious.

Moncler loyalty share plan sullies poster boy look

14 Feb 2020

The $11 bln down-jacket maker wants to double voting rights for long-term owners. That would give boss Remo Ruffini a stronger hand in talks with potential suitors. Weakening shareholder rights might however dent Moncler’s good public company image and irk investors.

Fashion’s climate Frankenstein has no off-switch

7 Feb 2020

Retailers like H&M are promising to slash their carbon footprint by using more recycled products. That’s good, but quick fixes like using sustainable cotton simply move the problem to landfills. Real change would come from tackling the throwaway culture that they represent.

Burberry checks right boxes on path to turnaround

14 Nov 2019

Strong demand for designer Riccardo Tisci’s new collections has helped the UK fashion group offset disruption at its Hong Kong hub. It expects sales in the Asian city to stay under pressure, but teaming up with Tencent to help a push into mainland China may offer some protection.

Under Armour is unwitting ad for good governance

4 Nov 2019

Flagging growth and federal accounting probes are bad, but in a normal company they wouldn’t knock 20% off the shares. The $7 bln apparel maker, though, is not normal. An unfireable boss and jumbled accountability make it hard to convince investors anything at all is going right.

U.S. retail can get better before it gets worse

22 Aug 2019

Big store chains are bucking the gloom, some thanks to their former inefficiency. Nordstrom is cutting stock, J.C. Penney is slashing costs and Target’s bid to compete with Amazon is starting to take effect. That creates room for pleasant surprises – if only in the short term.

Epstein case shows lingerie giant’s fraying seams

8 Aug 2019

Leslie Wexner, CEO of Victoria’s Secret owner L Brands, is in the spotlight for letting the financier charged with sex trafficking manage his money. His firm needs scrutiny, too. For investors, Wexner’s slow response to online threats and falling margins are another worry.

H&M gets too much credit too soon

27 Jun 2019

The Swedish fashion retailer’s shares rose 10% after strong June sales. The company also said it would sell more clothes at full price and divert more resources to its online business. But to fully deserve the richer valuation, a drop in the operating margin has to be reversed.

LVMH sales fizz is sign of strong getting stronger

10 Apr 2019

Like-for-like sales at the 165 bln euro luxury giant grew a chunky 11 pct in the first quarter. The “buoyant” performance defies both slowing global economic expansion and trade tensions. It’s a good omen for other fashion conglomerates, but not for weaker single-brand rivals.

Levi Strauss schools Big Tech on IPO success

10 Apr 2019

The $9 bln jeans maker reported a healthy profit in its first results since going public last month, giving the stock a fresh boost. It now trades 35 pct above its initial offering price. Levi’s may not be flashy, but the company delivers the goods better than the likes of Lyft.

Stitch Fix models tech’s terminal problem

11 Dec 2018

The outfit-delivery service’s shares fell 29 pct despite profit that beat expectations. That’s because tech valuations hang on terminal value – the cash flows that come once the business is mature. Slowing customer growth raises doubt about whether this one will reach middle age.

Levi Strauss IPO would be financially retro

16 Nov 2018

The jeans group may go public more than 30 years after a family-led LBO. It has done well in the recent retail turmoil that hit the likes of Nordstrom and a mooted $5 bln valuation looks fair. But the skinny from Levi’s own ups and downs is that staying private is a better fit.

New threats cloud Benetton’s lasting legacy

23 Oct 2018

Gilberto Benetton led the Italian group’s diversification from garments into concessions. His vision protected the business from the threat of globalisation. But even seemingly stable assets like infrastructure, as the Genoa bridge tragedy shows, can hide great perils.

ASOS’ fast-fashion surge lacks high-end profit

17 Oct 2018

The internet retailer’s shares rose 12 pct after it beat forecasts, and touted its “huge” potential. But more profitable own brands made up a smaller proportion of its sales, and new ranges such as a gender-fluid style are cheaper. Competition in online retail is huge too.

China worries give luxury investors excuse to sell

9 Oct 2018

Reports of stricter customs checks on Chinese tourists returning from the week-long national holiday triggered a selloff in luxury stocks. Government curbs are nothing new. But the sector’s high valuations make shareholders nervous about any sign of weaker demand from China.

Wrangler jeans breakup gets a dressing down

13 Aug 2018

Owner VF is separating its denim brands from the rest of its wares. The Wrangler and Lee jeans division will be more indebted and pay a higher dividend. But VF’s pieces add up to less than its $37 bln valuation, which takes the impact out of the company's big reveal.