Fashion

Permira risks tripping on rushed Golden Goose IPO

21 Dec 2023

The buyout shop may list the fast-growing Super-Star sneakers brand. With its track record tainted by bootmaker Dr. Martens’ poor post-listing performance, the investment firm has little room for error. Hurrying a share sale while the luxury segment faces headwinds seems unwise.

Richemont digital strategy goes back to square one

29 Nov 2023

The Swiss group’s sale of its YNAP online platform is in doubt due to troubles at US-listed buyer Farfetch. Extracting itself from the deal, though potentially messy, looks the best option for the Cartier owner. Yet that still leaves Chairman Johann Rupert with an old problem.

Capital Calls: Gap earnings

17 Nov 2023

Concise views on global finance: Investors rewarded improvements at the apparel company's Old Navy brand by sending shares up over 30%. Yet overall third-quarter results remain muted. It’s a promising sign for new boss Richard Dickson, even if the bar was low to begin with.

Capital Calls: Walmart, HelloFresh

16 Nov 2023

Concise views on global finance: Although the US retailer lost nearly 8% of its market value after it indicated that price increases are starting to ease, it should be able to navigate the challenge; the 2.7 billion euro meal-delivery company has become a tasty buyout target.

Capital Calls: Regulating crypto

7 Nov 2023

Concise views on global finance: The US Securities and Exchange Commission is struggling to hire digital token experts, partly because prospective recruits aren’t willing to acquiesce to the agency’s requirement that they sell their holdings in bitcoin and beyond.

Vans owner VF is due a wardrobe refresh

6 Nov 2023

The $6 bln apparel empire’s debt soared as shares sank 40% under its ex-CEO, whose costly deal for Supreme ran counter to its modus operandi. New boss Bracken Darrell’s cost-cutting plan has promise. Selling the streetwear brand and investing in known hits is the best next step.

Kering’s woes are tip of melting luxury iceberg

25 Oct 2023

Sales at Gucci’s $54 bln owner plunged 9% last quarter. Inflation suppressed less affluent shoppers’ appetite for its products and geopolitical risks are clouding its most coveted market - China. While a complex turnaround ups Kering’s challenge, bling rivals are also vulnerable.

Capital Calls: Birkenstock flop

11 Oct 2023

Concise views on global finance: The sandal maker took a tumble, as its shares opened more than 10% below the IPO price, leaving questions about its venue and valuation.

Capital Calls: Birkenstock IPO

2 Oct 2023

Concise views on global finance: The German footwear brand is offering shares at between $44 and $49 ahead of its market debut next week.

Capital Calls: Pelululemon

28 Sep 2023

Concise views on global finance: The apparel firm and the exercise-bike maker have entered into a five-year partnership, ending a costly feud. For Lululemon, it removes the risk of an outright acquisition. Peloton gains a valuable partner, but still faces an uphill climb.

Bankers’ IPO support could easily buckle

26 Sep 2023

Arm, Instacart and Klaviyo egged on opening pops for their listings by selling a meager number of shares, but have fallen since. While big debuts are good for the companies, their inability to outpace a still-weak market means the opportunity for others to follow remains narrow.

Bausch pushes debt escape plans to extremes

19 Sep 2023

BHC’s CFO just quit as the drugmaker mulls a dicey plan to spin off its $5.5 bln Bausch + Lomb stake. Such engineering increasingly pits creditors against shareholders, in this case Carl Icahn and John Paulson. Stronger covenants would help, but CEOs keep getting more creative.

Birkenstock risks stepping into fashion fad trap

13 Sep 2023

Riding a sales boost from the Barbie movie, the German footwear brand has filed for a US listing. Its potential $8 bln valuation rests on shoppers continuing to love its iconic sandals. For IPO-hungry investors, Dr. Martens’ crushed bling ambition is a cautionary tale.

Capital Calls: Shein/Forever 21

24 Aug 2023

Concise views on global finance: The Chinese retailer is partnering with Sparc, the operator behind Forever 21. That helps validate Shein before a public listing without the messiness of a merger. Forever 21 gets a new omnichannel and potentially a way to an IPO.

‘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.

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.

Everyone is trying to steal Amazon’s cloud thunder

3 Aug 2023

Growth at the $1.3 trln company’s AWS cash engine leaped a low bar, beating expectations but lagging peers. With rivals increasingly leaning on cloud and AI hype, boss Andy Jassy’s task of keeping enough share to buoy improving but less-profitable operations gets ever tougher.

Fast-fashion wars are warmup for Amazon battle

1 Aug 2023

E-commerce app Temu is taking on larger rival Shein in selling cheap Chinese-made goods to Western consumers. The company owned by $119 bln PDD offers a broader range, making it more like an online dollar store. That puts it on a collision course with the $1.4 trln US titan.

Kering dons Valentino scent to ease Gucci malaise

28 Jul 2023

The $72 bln luxury giant is buying 30% of the Italian fashion house for 1.7 bln euros. The premium price reflects François-Henri Pinault’s need to cut its reliance on tottering star brand Gucci. Yet Valentino is much smaller, and its acquirer may not own it in full until 2028.

Capital Calls: LVMH’s US dip, Rolls-Royce revival

26 Jul 2023

Concise views on global finance: Shares in the 413 bln euro luxury conglomerate fell 4% as investors fretted about weakness in its once booming US business; the UK airplane engine maker raised its profit forecast for 2023 as its new CEO benefits from travel tailwinds.