Consumer Products and Services

Capital Calls: Instacart IPO

18 Aug 2023

Concise views on global finance: The grocery delivery startup once valued at $39 bln is gearing up to unveil plans for a market debut after two years of flirting with the process. The delay may prove costly.

Union fights grow US workers’ slice of profit pie

18 Aug 2023

Collective bargaining groups who negotiate for workers in industries from steel to trucking are making life hard for companies. The still-hot job market is giving unions a leg up. With employees getting $120 billion less of corporate cash than in late 2019, workers can win more.

‘Lipstick effect’ boosts beauty’s resilience

15 Aug 2023

Despite rising inflation and sluggish spending, beauty and skincare have bucked the trends dragging on other parts of retail. Tarang Amin, CEO of e.l.f. Beauty, explains in this Exchange podcast how the $400 bln-plus segment can survive economic hardship.

CFOs are stepping into a rapidly revolving door

14 Aug 2023

From Alphabet to Tesla to Walgreens, finance chiefs are moving on at a faster rate than usual. One-tenth of the 1,000 largest US companies lost their CFO in the first half. Economic whiplash and expanded job duties are both factors. Higher turnover looks here to stay.

Coach and Michael Kors design a raggedy ensemble

10 Aug 2023

Tapestry’s $8.5 bln purchase of Capri would unite the luxury brands and could help it defend share against European giants like LVMH. Adding 8 times the buyer’s debt load to juggle a big turnaround while maintaining a squeaky-clean credit rating looks less prudent.

American price elasticity stretched to the limit

10 Aug 2023

At 3.5%, US weekly wages are steadily outpacing inflation for the first time in two years. PepsiCo and P&G, vendors of staples like soda and diapers, have retained power to charge shoppers more. It may be a while, however, before producers of discretionary goods can do so again.

L’Occitane buyout is bad look for Hong Kong

10 Aug 2023

Boss Reinold Geiger wants full ownership of his skincare group. At $7 bln, it would be the city’s largest take-private and L’Occitane could relist at a higher valuation at home in Europe. It’s a no-brainer others will want to copy and shows up the Asian hub’s helplessness.

Bubble tea will test limits of China’s consumers

8 Aug 2023

Half a dozen boba-drink makers including Mixue Bingcheng are looking to list abroad. Profit margins are low in the $20 bln sector. But as shoppers reduce higher-end spending, the cheap-and-cheerful brews can thrive – even if Beijing holds back on much-needed stimulus.

PayPal pays price for prolonged CEO hunt

3 Aug 2023

Despite 7% quarterly revenue growth under retiring boss Dan Schulman, the company’s adjusted operating margin fell short of its 22% projection. Bad small-business loans also contributed to another 11% drop in the share price. Vital strategic plans are in a costly holding pattern.

US luxury brands strut down a narrow catwalk

3 Aug 2023

Fashion houses like Ralph Lauren and Michael Kors have lost market share to higher-end European rivals as the spending gap between wealthy shoppers and the aspiring rich widens. A quicker pivot to Asia or M&A may help offset a US consumer squeeze. Neither are easy solutions.

Birkenstock kicks Europe in the rear with US IPO

2 Aug 2023

The German brand is eyeing an $8 bln New York listing. Owner L Catterton is betting on a US market uptick and publicity from the Barbie movie to double its money. Ditching Europe is not illogical. But as American luxury sales slow, dressing up its no-frills sandals looks hard.

Capital Calls: Sequoia, Heineken, Moneyball

31 Jul 2023

Concise views on global finance: The venture capital firm issues a refund to cryptocurrency investors; the $57 bln brewer slashes its operating profit outlook; Steve Cohen’s New York Mets baseball team and its whopping $364 mln payroll is a mess, but in sports beta is the alpha.

Digital ad vultures descend on TV’s carcass

28 Jul 2023

Meta and Alphabet got their mojo back thanks to renascent marketing activity. Ebbing fears of recession and Chinese vendors are helping. With $130 bln still earmarked for commercials on dying television, the pack of scavengers has grown to include Uber, Netflix and others.

Detroit automakers are winning yesterday’s war

27 Jul 2023

General Motors and crosstown rival Ford are healthy, happy and enjoying rising prices - in their gas-guzzler businesses, that is. Unfortunately for them, uncertainty on their electric futures amid rising competition and a still-dominant Tesla spoils the party.

For Meta, what’s old is finally new again

26 Jul 2023

Facebook’s owner is rebounding from the ad slump, evidenced by an 11% quarterly revenue jump. It’s a good sign for boss Mark Zuckerberg as he tries to boost the business with AI. Virtual reality will be a money pit, but at least some investment is paying faster dividends.

Tidy-up puts $70 bln tobacco giant in good company

26 Jul 2023

India’s ITC is spinning off its hotels business but keeping a 40% stake. It’s a partial break from the firm that counts British American Tobacco as its top owner. Yet it may be the best way to close a valuation gap with its Tata-backed rival and fully cash in on a tourism boom.

Verizon’s frequency ducks rivals’ interference

25 Jul 2023

The $144 bln telecom giant unexpectedly added a lucrative set of subscribers this quarter. Focus on areas less pressured by rising cable rivals shines through fierce competitive intensity. That makes its coveted dividend safer than competitor AT&T's.

Capital Calls: Biotech alarm, Spotify’s tightrope

25 Jul 2023

Concise views on global finance: Pharma supplier Danaher’s reduced forecast contrasts biotech doldrums against broader market exuberance, in a warning sign for investors; the Swedish music streamer is caught between margin-hungry investors and music labels.

Unilever new broom’s best sweep is towards Asia

25 Jul 2023

The $137 bln Dove shampoo maker hiked prices without losing many sales in the first half. Yet falling European volumes and limited scope for structural tinkering make it hard for new CEO Hein Schumacher to boost margins. His best hope is to bulk up in his strongest region.

Royal Mail owner may have a breakup on the way

20 Jul 2023

Parent company IDS chose international-parcels boss Martin Seidenberg as its new CEO. The struggling UK unit doesn’t show up in the near-$3.5 bln group’s share price. But Seidenberg has a window to fix it. If that works, he could boost value by splitting the company in two.