Fashion

Gucci gives luxury an eye-catching makeover

27 Jul 2017

Operating profit at Kering, the Italian brand’s 39 bln euro parent, rose 57 pct in the first half of 2017. The catwalk-worthy performance avoided discounting or the sector’s old trick of opening new stores. Until rivals can copy it, they will envy the French group’s look.

LVMH’s only bad look is a now-fashionable euro

27 Jul 2017

Operating profit at the Louis Vuitton owner jumped 23 percent in the first half. The French group’s lucrative clothing and handbag division last performed this strongly during China’s shopping frenzy in 2011. Europe’s strengthening currency could yet cramp the company’s style.

Shanghai Tang sale pushes against M&A current

4 Jul 2017

An Italian textile maker has purchased the China-inspired fashion brand from luxury giant Richemont. The deal is at odds with the image of wealthy mainland buyers snapping up cash-strapped European brands. But Shanghai Tang was never very Chinese, and that's the problem.

LBO orphan J.Crew tries patch-up job with new CEO

6 Jun 2017

Owners TPG and Leonard Green have effectively written off the ailing retailer. Now long-serving boss Mickey Drexler is out. His replacement, James Brett, has to deal with falling sales, bickering creditors and vultures preparing for bankruptcy. Survival will be a tall order.

Art world upstart sprays tech fortune on canvas

2 Jun 2017

Japan's Yusaku Maezawa is building a collection of Basquiats and other masterpieces. The soaring value of his fashion portal vividly illustrates how investors are enchanted by the tech industry’s fast growth and fat margins. It also means he can afford to paint the town red.

France makes life too easy for pushy bosses

12 May 2017

Vivendi, Christian Dior and Safran are all doing complex deals driven by big shareholders’ interests – and minority investors can’t do much about it. Muting dissent is meant to make French companies more nimble. It does, but at the cost of helping insiders get their way.

Richemont’s downsizing is worth copying

12 May 2017

The Swiss luxury watchmaker’s full-year sales disappointed and margins are now touching financial crisis lows. At least chair Johann Rupert has recognised the need to shrink. It’s an example that others like Prada would do well to follow.

Viewsroom: Comey ouster bad for business

11 May 2017

Donald Trump’s surprise firing of the FBI director could bog down policies from tax cuts to regulatory reform and even throw the rule of law into question. South Korea elects a new leader to put its own presidential scandal in the past. Plus: Coach goes shopping for Kate Spade.

Burberry looks better without boardroom wrinkles

9 May 2017

In two months, designer Christopher Bailey will be replaced as CEO but keep outsize influence and a board seat. That might be tolerable were Burberry performing better. Now, it’s clear new boss Marco Gobbetti needs a free hand. Bailey has a role, but ideally a lesser one.

Coach pays luxury price to catch up with LVMH

8 May 2017

The U.S. handbag maker is plunking down $2.4 bln for Kate Spade, a figure not justified strictly by the numbers. But Coach's owners like the move to a multibrand portfolio, which has worked for LVMH and Kering. Mature luxury marques can no longer expect to succeed on their own.

Coach’s luxury shopping habit risks distraction

2 May 2017

The high-priced handbag maker’s good third quarter is a bright spot amid struggling retailers. It doesn’t justify buying Jimmy Choo or Kate Spade, however. CEO Victor Luis vows no poor deals, but most are likely to be a tougher fit than his 2015 acquisition, Stuart Weitzman.

Gucci shows up rivals – and analysts

26 Apr 2017

The Italian label’s first-quarter sales rose 48 percent, double even bullish predictions. Global luxury spending is flat so rivals are probably losing market share. The difficulty of spotting winners and losers in this skittish sector makes current lofty valuations suspect.

Arnault’s new-look Dior pleases almost everyone

25 Apr 2017

The French tycoon is offering to buy out minority investors in Christian Dior for 12 bln euros. LVMH shareholders will also welcome a streamlined empire. The most stylish twist is that Arnault is using the luxury giant’s balance sheet and shares in rival Hermes to pay for it.

Jimmy Choo seeks new owner for scuffed brand

24 Apr 2017

The high-heel label is for sale less than three years after its IPO. Owner JAB may need cash following its $7.5 billion purchase of Panera Bread. There is room to increase Jimmy Choo’s operating margin, but with slow sales growth, it already looks expensive.

Burberry’s brand shows worrying fragility

19 Apr 2017

The UK luxury group's revenue is falling on a constant-currency basis. The strong dollar has hit demand in the U.S., but Burberry also restricted sales to protect its brand. The fact that it has to do so isn't great for investors after multiple rejected takeover offers.

Moms’ fashion chain returns going out of style

2 Mar 2017

J.Jill's IPO may quintuple its private-equity owner's investment. The company has stitched together a better set of financial threads than many rivals, but faces the same threats all retailers do. Buyers hoping to replicate TowerBrook's successful design are pushing the seams.

Burberry self-help makes light work for activists

1 Mar 2017

Billionaire Albert Frere, who was among investors that drove change at Adidas, has built up a 3 percent stake in the trenchcoat-maker. With a turnaround plan and new boss in place, there’s less to do at Burberry. Still, Frere can help ensure the company sticks to its knitting.

LVMH snaps up some strategic hand-me-downs

8 Feb 2017

The French luxury giant has set up a unit to invest small sums in promising startups. It's a departure from the multi-billion euro deals the group is known for. The only catch: its slightly less stylish domestic peers L'Oreal and Danone already set the trend.

Tiffany CEO exit takes ring off luxury finger

6 Feb 2017

Frederic Cumenal is out after less than two years, just after Ralph Lauren ditched its new boss. Having Tiffany's flagship store next to Trump Tower doesn't help. But both suffer from a long-term sales slump and a lack of new products and ideas. A fix requires more than a new CEO.

Viewsroom: The cost of jingoism

2 Feb 2017

President Trump's trade-tariff threats and his temporary immigration ban risk undermining business-friendly policies like deregulation and tax cuts. Meanwhile, he has nominated a Supreme Court justice. And Under Armour takes center stage in the battle for shareholder rights.