Fashion

Adidas-Kanye split leaves investors in the money

25 Oct 2022

The $18 bln sportswear group cut ties with the musician, now called Ye, after he made offensive comments. Its sluggish response risks a boycott. But given Yeezy sneakers’ high profit margins in recent years, shareholders may already have won more than they stand to lose.

Capital Calls: Adidas

21 Oct 2022

Concise views on global finance: The 19 bln euro sportswear maker slashed its 2022 revenue outlook, dragging shares down 10%.

Prada homecoming would set a financial fashion

18 Oct 2022

A decade after its Hong Kong IPO, the $12 bln maker of Galleria bags is seeking to trade also in Milan. That will help it into European indices and create a hedge against Western decoupling from China. It would also make sole listings in the Asian hub less desirable.

Capital Calls: Chevron, Pickleball

29 Sep 2022

Concise views on global finance: The oil driller has sold its California headquarters building and is moving employees to Texas, while one of the fastest-growing U.S. games is beefing up its professional ambitions with an investment from basketball superstar LeBron James.

Capital Calls: Richemont’s activist spat

7 Sep 2022

Concise views on global finance: Shareholders at the Cartier owner rejected investor Bluebell’s attempt to install former Bulgari CEO Francesco Trapani on the board.

Richemont finds tolerable way to refocus

24 Aug 2022

The $60 bln Cartier owner has finally sold part of e-commerce unit YNAP to Farfetch. Richemont gets a lower price than it could have last year, but keeps online presence via payment in its U.S.-listed rival’s shares. And cutting its stake helps it focus on more promising sectors.

Richemont’s governance armour is hard to pierce

12 Aug 2022

Activist Bluebell wants ordinary investors to appoint their own director on the board of the $63 bln Cartier owner. Yet Chair Johann Rupert’s big voting power means he could stifle the attempt. Without a fresh voice, contrarian business ideas may not get much airtime.

Ray-Ban heirs inherit wasteful Mediobanca feud

9 Aug 2022

Eyewear tycoon Leonardo Del Vecchio, who died in June, bought nearly 20% of the Italian bank as part of a fight with CEO Alberto Nagel. Making a return on the $1.5 bln stake will test his successors. Backing Nagel in his hunt for a target may be the more prudent choice.

Italy loafer buyout is a bet on a higher price tag

3 Aug 2022

Two decades after listing shoemaker Tod’s, founder Diego Della Valle is taking it private at the same 40 euro share price. His hope, with partner LVMH, may be that the group is worth more split up than his 1.4 bln euro bid implies. Weary investors may take the cheap offer anyway.

Ray-Ban tycoon leaves behind unfinished business

27 Jun 2022

EssilorLuxottica Chairman Leonardo Del Vecchio has died at 87 without publicly anointing an heir. That raises questions about the eyewear giant’s future and investments in Mediobanca and Generali. Though trusted lieutenants may reassure investors, they lack his track record.

Capital Calls: Inflation-proof Dr Martens, Saipem

1 Jun 2022

Concise views on global finance: The UK bootmaker’s polished results offer glimmer of hope to embattled retailers; the Italian energy-services group reassures investors with $550 mln sale of its onshore drilling unit.

Capital Calls: Richemont’s China fears, THG offer

20 May 2022

Concise views on global finance: Shares in the Cartier owner shed 13% after caution about a rebound in the People’s Republic added to subpar full-year results and slow progress on the YOOX Net-a-Porter sale; the UK online retailer rejected one bid, yet higher ones look unlikely.

Zara owner has $10 bln for online shopping spree

18 May 2022

Marta Ortega, the fresh-faced boss of the world’s largest fashion retailer, is sitting on a record cash pile. Typically, such spoils trickle back to shareholders as special dividends. But with its battered share price, buying an online upstart like Zalando may create more value.

Global brands set too much store in China recovery

13 May 2022

Western companies like Estée Lauder and Remy Cointreau remain hopeful about the country even though lockdowns have hit revenue. Yet continued mass testing due to Beijing’s zero-Covid push will weigh on demand. Excessive optimism risks delaying a much-needed diversification drive.

Capital Calls: Business travel, Adidas China woes

6 May 2022

Concise views on global finance: British Airways owner IAG faces stormy UK skies; Chinese lockdowns and boycotts are slowing down the German sneaker maker.

Hypebeast finds SPAC shortcut to dual listing

4 Apr 2022

The Hong Kong-listed lifestyle, advertising and e-commerce firm is selling a stake to a blank-check vehicle, thereby collecting a U.S. listing as well. The implied valuation, despite being at a premium, is sober by SPAC standards. The novelty is involving two stock exchanges.

Capital Calls: U.S. truck drivers go missing

4 Apr 2022

Concise views on global finance: Bonuses and concessions from Washington aren't enough to fill the industry's empty cabs.

Capital Calls: Chip supply chain bites own tail

31 Mar 2022

Concise views on global finance: Semiconductor factories rely on machines made by ASM International. Paradoxically, the firm is having trouble finding the chips it needs. Untangling the mess will take a while.

Fosun fashion deal hangs on ‘Made in China’ label

23 Mar 2022

The conglomerate is showcasing its Lanvin-led collection of upscale brands in a Primavera-backed New York SPAC. The $1.9 bln valuation, impressive growth and international flair should make this mini LVMH wannabe prêt-à-porter. Chinese red is a tricky shade for investors, though.

Kering gets dressed up for elusive mega-deal

17 Feb 2022

François-Henri Pinault’s luxury powerhouse is boosting sales and profit, thanks to star brand Gucci. That, plus a robust balance sheet, means the $90 bln group is well placed to splash out on a deal. The snag is that there are few obvious targets, raising the risk of overpaying.