Consumer Products and Services

Ben & Jerry’s rocky ESG road bucks vanilla trends

4 Apr 2024

The purpose-driven ice cream brand is being scooped out of Unilever as corporate activism increasingly invites controversy. And yet the maker of flavors like Empower Mint has grown faster than its parent. Social values, especially when authentic, can mix well with financial aims.

A Dr Martens sale may cause multiple blisters

4 Apr 2024

An investor thinks the struggling $1 bln UK bootmaker could sell itself. Low valuations may woo buyers, but a bid is unlikely to make up for a 75% share slide since the group’s IPO. A rushed exit may also dampen top investor Permira’s effort to list sneaker brand Golden Goose.

Soho House’s private party may prove disappointing

2 Apr 2024

Executive Chair Ron Burkle could bless a de-listing of the loss-making $1.1 bln chain of members’ clubs, which he reckons will one day generate handsome earnings. He’s only right if the new sites, like São Paulo and Bangkok, prove as popular as the older ones. It’s a gamble.

Profitability is next sacrifice at inflation altar

2 Apr 2024

Central bankers want LVMH, Pepsi and others to pay higher wages without raising prices. Bottom lines in the euro zone already have dipped to 40% of output, the lowest rate since 2020, and Big Tech accounts for most US margin growth. CEOs and investors can expect leaner times.

Wanda’s mall deal bags petrodollar safety net

2 Apr 2024

Wang Jianlin has found the hottest new shoppers in town. ADIA and Mubadala are taking control of his mall unit for $8.3 bln, alongside existing owners led by buyout firm PAG. Gulf money is emerging as an important lifeline for buyers and sellers in China.

Shein’s fast fashion comes with fast-finance risks

28 Mar 2024

Influencers and US shoppers love the online retailer, but the one product that’s not yet for sale is the company’s shares. If all goes very right, a $200 bln valuation in a mooted IPO isn’t unthinkable. Yet Shein’s business model may shift as quickly as its cut-price clothing.

Tata’s forced IPO will only bring problems

28 Mar 2024

A central bank decision requires the $194 bln holding company of the Indian cars-to-tech conglomerate to list. It could lump Tata Sons with a huge discount and also spotlight the special tax treatment the group’s ultimate owners enjoy. That could force an even bigger upheaval.

Alibaba sends out SOS on Hong Kong’s market

27 Mar 2024

The Chinese e-commerce giant ditched plans to list its logistics unit in the city and offered to buy out minority shareholders including Singapore's Temasek at a $10 bln valuation, half the mooted worth six months ago. It points to more pain for owners of unlisted Chinese assets.

Hermès lawsuit attacks luxury’s FOMO premium

26 Mar 2024

A suit against the $274 bln fashion house claims it’s so hard to buy a Birkin, it’s illegal, alleging the handbag’s must-have aura lets the company force purchases of unwanted extras. If successful, it could crimp both Hermès’ top growth areas and ultra-luxe goods’ mystique.

Nordstrom take-private would strike a hard bargain

25 Mar 2024

The department store chain’s founding family is again mulling a buyout, Reuters reported. Sagging shares and weak results make it a target. Wringing out high enough returns to make a deal worthwhile requires both holding a stern line on price and dramatically reigniting growth.

British M&A refuseniks are playing a risky game

25 Mar 2024

Insurer Direct Line and retailer Currys both rebuffed offers that came with 40% premiums. One possible rationalisation is that a huge UK stock-market discount invites cheeky bids that require knocking back. But certain British stocks may also not merit greater generosity.

European private equity IPO door is only half open

22 Mar 2024

Buyout firms tested the market with cautious pricing for two beauty companies’ listings. Although Galderma performed, Douglas’s debt pile spooked investors. For sellers sitting on $3 trln of unsold assets the message is clear: discounts work, but only for healthy businesses.

Samsonite books a test flight out of Hong Kong

22 Mar 2024

The $6 bln luggage maker is planning another listing in addition to the Asian financial hub where its shares have long suffered from low liquidity. A resulting valuation uplift might be enough to convince potential suitors including KKR and Carlyle that a buyout could make sense.

Tencent is running out of excuses for gaming woes

21 Mar 2024

Revenue at the $350 bln giant is shrinking in its core business in China and abroad. That implies Beijing's crackdowns are not to blame this time. It pledged to double share buybacks but Tencent admits it needs to get its "own house in order". That looks increasingly urgent.

Deeper Gucci woes test new CEO’s luxury touch

20 Mar 2024

Sales at Kering’s top brand are falling fast. An unproven designer, China weakness and a volatile client base are behind the group’s discount valuation. With M&A limiting hopes of buybacks, Gucci boss Jean-François Palus has a harder task convincing investors to stay the course.

Unilever’s sweet exit comes with sour aftertaste

19 Mar 2024

The $126 bln consumer giant is splitting off its unit that makes Cornetto ice cream. Doing so cuts exposure to food, and may boost sales growth. But Unilever investors are bearing the costs of the split, and their company remains big in the edible version of stranded assets.

Reckitt slump offers a cue to slim down

18 Mar 2024

The $41 bln Lysol maker’s shares fell sharply after it lost a US court case. One option for Reckitt Benckiser is to separate the nutrition arm, focus of the legal woes. That would ease the hit to the rest of the group, but also leave a new arm that may yet be worth something.

Adidas catch-up remains off the necessary pace

13 Mar 2024

The $37 bln sneaker maker is emerging from its Yeezy trainer crisis. CEO Bjorn Gulden’s focus on fashionable trainers is helping to grow sales. But given the ropey economic outlook, which is hitting rival Nike, investors don’t yet look convinced he can deliver on his ambitions.

This year’s Oscar winner is…Ozempic

8 Mar 2024

The weight loss drug and its peer Mounjaro will make more than one red-carpet appearance at the Academy Awards. Such free advertising has long helped luxury firms like LVMH and Hermes sustain high pricing power, margins and valuations. Now drugmakers are in on the act.

Taylor Swift is Thai economy’s antihero

6 Mar 2024

Singapore's exclusive deal to host the pop star's Southeast Asia concerts has irked its neighbours. Thailand, with the slowest post-pandemic recovery, is upset at missing out on the spoils. Those are debatable and in any event wouldn't shake off the $500 bln economy's malaise.