Fashion

EU firms’ barriers to Russia re-entry are sky-high

10 Mar 2025

Groups like Renault and Inditex quit the country after Moscow’s 2022 invasion of Ukraine. Contracts make it theoretically feasible for them to return. But even if a peace deal proves possible, the risks are too great for European groups to go back.

Shein’s IPO haste implies an ill-fitting outcome

12 Feb 2025

The fast fashion retailer seems set on a $50 bln listing by mid-year. With the US applying new tariffs and trade tensions heating up, the normal banker advice would be to wait. If Shein’s motivation is to gain recognition, a cut-price valuation is the wrong way to get it.

LVMH signals US is yet to be luxury’s new China

29 Jan 2025

The $368 bln French group’s China weakness meant its shares had a torrid time in 2024. A surge in richer Americans’ wealth implies the US could be an alternative luxury growth engine. Underwhelming results at LVMH, normally a bellwether, suggest this remains a work in progress.

Puma offers bad mix of sprained ankle and silence

23 Jan 2025

The $5 bln German sportswear group’s shares plunged 20% after a bad fourth quarter, in contrast to Adidas’ strength. Puma’s plan to compete involves selling direct to consumers and a flashy new sports shoe. A key part of investors’ concern is its caginess on what’s going awry.

Richemont shine casts fuzzy light on luxury rally

16 Jan 2025

The $94 bln Swiss group’s shares rose 16% as the Cartier owner smashed quarterly sales forecasts. The numbers pushed up rival stocks like LVMH. That seems premature. US consumers may offset weak Chinese spending but most of its competitors lack Richemont’s jewellery focus.

Versace is an awkward fit for most luxury buyers

10 Jan 2025

Michael Kors owner Capri has put the storied brand on the block. A potential $3 bln valuation wouldn’t be a financial stretch for the likes of Prada. Even so, Versace would represent a different strategic direction to the one the healthier luxury players have embarked on.

Moutai will raise a glass to its LVMH moment

2 Jan 2025

China’s $260 bln liquor giant wants to appeal to young shoppers. A tie-up with local sportswear retailer Li Ning can be the answer. Moutai’s $25 bln cash pile and the potential target’s beaten-down valuation offer a tantalising opportunity to create a national consumer champion.

Luxury firms will warily cut prices to boost sales

19 Dec 2024

High-end goods cost 54% more than before Covid. Yet the likes of LVMH refuse to blame lower volumes on more expensive wares. The fact is that rich Chinese consumers care more about savings than status symbols. Sacrificing margins will be an uncomfortable but inevitable strategy.

Shein margin wobble takes bite out of IPO value

14 Nov 2024

The e-commerce giant’s revenue growth slumped in the first half of 2024, and the net margin fell to 2% per The Information. Even if the business recovers, it creates uncertainty that’s compounded by a protectionist US government. Investors may struggle to see the upside.

Burberry buyer would need steel-plated trench coat

6 Nov 2024

Shares in the $4 bln UK luxury group rose after a website reported that Moncler was eyeing a bid. But the returns on offer look low, while boosting the brand will be costly. Possible suitors require deep pockets, and the patience to wait a long time for any kind of payback.

Richemont exits online hell, but heaven is way off

9 Oct 2024

The $70 bln luxury group is offloading its ailing platform YNAP in exchange for a stake in US-listed buyer Mytheresa. Chair Johann Rupert gets rid of a loss-making arm. But the sector’s dubious economics make it hard to see how he winds up with a holding that offsets his blushes.

New consumer CEOs start life in the slow lane

24 Sep 2024

Nike joined Campari, Nestlé and Starbucks in abruptly ditching its boss. There’s plenty of scope for the new CEOs to remedy their predecessors’ missteps. But a common thread at the four groups is slowing sales amid consumer weakness, making the turnaround jobs much tougher.

China-EU trade spat’s next swipe may hit LVMH

23 Sep 2024

Beijing is weighing up retaliating against EU tariffs on electric cars. Targeting the French luxury giant and its rivals would cause minimal strategic pain and hit Paris rather than Berlin. Higher consumption taxes, rather than import duties, could also fit with domestic reforms.

Luxury’s legal pain is new threat to valuations

20 Aug 2024

Italian prosecutors allege sweatshop-like worker conditions at subcontractors of houses like LVMH’s Dior. That’s a bad look after recent luxury price rises. But if the sector has to hike costs to improve its supply chains, investors may find a new reason to mark valuations down.

Rose-colored Ray-Bans shade brand rehab realities

26 Jul 2024

EssilorLuxottica is paying $1.5 bln for Supreme, whose cachet suffered under Vans owner VF. Streetwear strays from the buyer’s eyewear expertise and the imputed return on capital looks modest. American Apparel also serves as one of many cautionary tales on fashion after it frays.

Meta stake may blur vision for Ray-Ban maker

18 Jul 2024

The $1.2 trln tech giant may buy 5% of eyewear group EssilorLuxottica. It’s a show of confidence in the companies’ smart glasses partnership. But the investment could complicate the Paris-listed firm’s governance and limit its options for working with rivals like Apple.

Burberry faces a lengthy stay in the bargain bin

15 Jul 2024

Shares in the $3.4 bln UK fashion group fell 17% after it replaced its CEO and suspended its dividend. New boss Joshua Schulman’s plan to refocus on trench coats isn’t certain to work. But Burberry fare’s waning appeal also limits the scope for a deep-pocketed acquirer like LVMH.

Ambani wedding allows rich Indians to flaunt it

12 Jul 2024

Anant Ambani's Mumbai nuptials this week cap seven months of extravagant, star-studded celebrations. For many in the deeply inequitable country, the family’s public display of wealth sparks aspiration, not anger. Unlike in China, officials are happy for them to show it off.

Shein maps out how to charm the world in India

5 Jul 2024

The $63 bln fast fashion giant is relaunching four years after it was banned, this time in an alliance with Mukesh Ambani's Reliance. If Shein can claw its way back into a country that aggressively curtailed Chinese interests, partnerships may be the way forward elsewhere too.

Shein would lose all its shine in a Hong Kong IPO

2 Jul 2024

The $63 bln online retailer may debut in the Asian hub if its plan to list in London fails, per the FT. Not only would that confirm its failure to thread the needle between its Western markets and its Chinese roots. It would result in a slashed valuation and orphan-stock status.