Fashion

China’s middle-class push has luxury silver lining

23 Aug 2021

President Xi Jinping’s plans to rein in the super-rich may mean more, not less, conspicuous consumption. With China accounting for 40% of designer demand, LVMH and others are nervous. But wealth reallocation may swell the ranks of bourgeoisie. The luxury selloff looks excessive.

Capital Calls: Salmon, M&S, Sydney airport, BHP

20 Aug 2021

Concise views on global finance: SalMar places $1.3 bln order for Norway Royal Salmon; the UK retailer’s improving fortunes may ward off predators; the Australian firm provides scant evidence for rejection of a $16 bln takeover bid; Santiago dings the Aussie miner over water use.

Capital Calls: Brookfield, Macquarie

9 Aug 2021

Concise views on global finance: An insurance wing of the Canadian financial empire may bring a dash of risk to a conservative Texan insurer, while Australian investment bank Macquarie has snapped up a stake in British utility Southern Water.

Capital Calls: GM, Hugo Boss, NYT, Frontier tech

4 Aug 2021

Concise views on global finance: The U.S. automaker finds inflation cuts both ways; the German-listed fashion brand hopes to double sales by 2025; advertising is a bright spot for the New York Times; Zymergen vaporized 75% of its value under four months after a $3 bln IPO.

Tiffany shine contradicts LVMH deal tantrum

27 Jul 2021

The French luxury giant’s jewellery division, now including the famed U.S. brand, is more profitable than in 2019. Soaring first-half sales are also at odds with boss Bernard Arnault’s attempts to wriggle out of the deal during the pandemic. Future LVMH targets will take note.

Capital Calls: Volvo, Moderna, Mediobanca

21 Jul 2021

Concise views on global finance: The Swedish automaker boosts its appeal ahead of a possible IPO by buying out its Chinese joint venture partner; joining the S&P 500 will cut both ways for the vaccine maker; another Italian tycoon ups his stake in the Italian investment bank.

Zegna’s SPAC deal offers discounted path to luxury

19 Jul 2021

The Italian maker of pricey men’s suits is shedding its stock market aversion to list in New York via a blank-cheque company. At an enterprise value of $3.2 bln, it’s more affordable than most peers. Still, investors have to trust its ability to navigate the shift to casualwear.

Brand IPO hinges on Elvis not leaving the building

7 Jul 2021

The Brooks Brothers owner is prepping a float with a mooted $10 bln valuation. Its model of scooping up retail roadkill and rights to dead icons like Elvis Presley is thriving, and fresh funds will let it snap up new bankruptcies. The risk is its brands fall out of favour again.

Capital Calls: U.S. jobs, Didi probe, Pharma LBO

2 Jul 2021

Concise views on global finance: The U.S. added 850,000 jobs in June but the recovery isn't happening everywhere. Meanwhile, Didi is hit with an investigation by a Chinese regulator days after its U.S. listing, and a pharma buyout by EQT and Goldman is a game of hot potato.

Pre-owned watch IPOs ride second-hand wave

30 Jun 2021

As with fashion, demand for “pre-loved” bling timepieces is booming. That, and a switch to online buying, underpins the mooted $1 billion-plus listing valuations of web players Chronext and Chrono24. For investors, the latter’s breadth of choice makes it more Rolex than Timex.

Capital Calls: Didi IPO, Space SPAC, Travel SPAC

30 Jun 2021

Concise views on global finance: The Chinese ride-hailing outfit snags an $80 billion valuation early in its New York debut; a blank-check deal for satellite-transport group Momentus cuts its valuation in half; high-end vacation club Inspirato takes subscriptions to a new level.

Burberry CEO steps off catwalk with job unfinished

28 Jun 2021

Marco Gobbetti is leaving the $13 bln maker of high-end trench coats to join smaller Italian shoe and leather group Ferragamo. His four-year drive to relaunch the British brand is incomplete. It’s a setback for Burberry’s hopes to quickly revive its underperforming share price.

EssiLux has clear view to Dutch deal discount

22 Jun 2021

The Ray-Ban maker’s target, GrandVision, breached terms of a 7.2 bln euro takeover agreed in 2019. EssilorLuxottica can walk away, but a better option would be to negotiate a lower price. Lopping off 15% would reflect GrandVision’s weaker earnings and lack of alternative buyers.

Armani’s smartest fit is on Agnelli shoulders

15 Jun 2021

The suit maker’s 86-year-old founder, Giorgio, is measuring up prospective buyers, ideally from his native Italy. Despite some pandemic creases, the brand could fetch 8 bln euros. A sale to the Turin dynasty, rather than rivals Prada or Moncler, would preserve more of his legacy.

Fashion moves to the centre of activist crosshairs

14 Jun 2021

Covid-19 has exacerbated the $2.5 trln industry’s ESG-unfriendly flogging of cheap clothes. Recycling is no more than a partial fix for the problem. Inditex and H&M are insulated by their big family holdings, but Boohoo, Adidas and ASOS look vulnerable to investor attacks.

Capital Calls: Warren Buffett’s taxes

8 Jun 2021

Concise views on global finance: A ProPublica report unveils the true tax rate of the Sage of Omaha, Jeff Bezos and other members of the uber-rich elite.

Pandora adds green polish to its lab-diamond bet

28 May 2021

The $13 bln Danish trinket maker is switching to all synthetic stones, a move driven more by profit than sustainability. Man-made rocks can be 90% cheaper than natural ones, putting them in Pandora’s mass-market ambit. The reduced carbon footprint adds some millennial sparkle.

Capital Calls: Klarna, Dan Loeb, Fashion IPO

28 May 2021

Concise views on global finance: The Swedish “buy now, pay later” group’s possible $50 bln price tag may leapfrog rivals Afterpay and Affirm; the corporate agitator deserves a taste of his own medicine; About You’s mooted 3 bln euro valuation implies a discount to rivals.

Richemont’s perfect match has luxury price tag

27 May 2021

The $58 bln Cartier owner has been talking to rivals. A tie-up with a peer like Kering makes more sense than gobbling up smaller players, but would require boss Johann Rupert to give up control. With the business going strong, he is in as good a position as ever to strike a deal.

Chinese buyer can put spring back in Reebok’s step

26 May 2021

Owner Adidas thinks Anta Sport and Li Ning, as well as private equity firms, may bid for the ailing brand, worth maybe $1.8 bln. Buyout barons have scored big apparel wins. But a red-hot domestic market means Chinese groups are best-placed to succeed where the German firm failed.