Fashion

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.

Permira has many motives to kill its Golden Goose

19 Jun 2024

The sneaker brand blamed Europe’s political uncertainty for pausing its $1.9 bln listing. Yet a sluggish luxury market and slower growth had already forced it to scale back its price ambitions. For the private equity shop, avoiding a repeat of Dr. Martens’ IPO flop is paramount.

A Shein London IPO would require careful stitching

3 Jun 2024

The fashion giant could file to go public in the city this week after its New York listing hit a snag, per Sky News. Its Plan B could yet unravel: UK lawmakers are seeking greater scrutiny of the China-founded firm, last valued at $66 bln. A Plan C may be necessary.

Inditex’s golden era is coming to an end

3 May 2024

Asian disruptor Shein is threatening the $142 bln Zara owner’s fast-fashion crown with ultra-cheap wares. Dismissing the risk may threaten its market share. To protect the Spanish giant’s business, CEO Óscar García Maceiras has plenty of cash but no obvious M&A solution.

Global retailers are headed for Shein reckoning

30 Apr 2024

Zara owner Inditex, H&M and other apparel giants are holding ground against the Asian fast-fashion upstart. However, AlixPartners’ retail expert Matt Clark argues in this Exchange podcast that Shein’s focus on garment quality could threaten the dominance of pricier rivals.

How one firm made child’s play of tricky M&A games

24 Apr 2024

Imagine buying a company without tedious negotiations, rival bids or pricey premiums. A Saudi investor pulled it off by snapping up enough shares to gain control of US retailer The Children’s Place. The feat will be hard to replicate, but there’s now a model for deal masterminds.

Time for Kering’s king to consider a step back

24 Apr 2024

François-Henri Pinault, heir to the family fortune, has been at the helm of the 40 bln euro French luxury conglomerate for nearly 20 years. With returns shrinking and as flagship brand Gucci struggles, Kering may benefit from fresh blood – and possibly a new CEO.

Kate Spade deal veto is lucky dip for trustbusters

23 Apr 2024

US competition cops want to stop Tapestry, owner of the handbag brand, from buying rival Capri. The $8.5 bln merger is a tempting target: well-known products, few political issues, and none of Big Tech’s mighty resources. That offers a chance to road-test novel legal theories.

ESG is ghost at global retailers’ annual feast

19 Apr 2024

LVMH, Amazon and peers gathered in Paris for the industry’s yearly shindig. The growth areas in the $30 trln sector are Shein-style cheap garments and the Middle East. Both jar with retailers’ previous focus on environmental, social and governance factors.

Luxury’s great divide will get more striking

17 Apr 2024

Sales at $420 bln LVMH rose a dull 3% in the first quarter. The Tiffany-to-Dior behemoth’s insipid performance points to a broader fragility within the sector. With revenue in the luxury industry flattening, the gap between winners and losers is set to grow wider.

Rabanne-owner IPO offers a scent of prestige

9 Apr 2024

Perfumes-to-skincare conglomerate Puig wants to list in Madrid. At a discount to beauty giants L’Oréal and Estée Lauder, the Spanish group may be worth $18 bln. European markets remain fragile, but premium fragrances’ rising appeal may turn the listing into a rare bright spot.

Beauty boom is busted

4 Apr 2024

Ulta Beauty’s stock plummeted 15% after the $21 bln makeup company’s CEO said lipstick-wearers had less money to put towards their routines. The industry’s M&A trend suggests the glam business can’t stay attractive forever – it has succumbed to a typical cycle like everyone else.

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.

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.

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.

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.

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.