Luxury Goods

Viewsroom: Credit-UBS, Bernard Arnault and Japan

17 Sep 2020

A merger of Credit Suisse and UBS has some merits on paper, but would be bloody in practice, says Liam Proud. Plus, the LVMH billionaire’s impeccably ruthless dealmaking is on full display with the Tiffany takeover. Pete Sweeney and Sharon Lam discuss Japan’s new man at the helm.

Amazon luxury success requires network effect

17 Sep 2020

The $1.5 trln e-commerce behemoth has wooed fashion house Oscar de la Renta to its new high-end platform. Access to Amazon Prime’s over 150 mln high-spending members is a selling point. But big brands may all wait for peers to take the plunge. That could mean a slow start.

Cox: Bernard Arnault is acting like a spoiled brat

15 Sep 2020

Europe’s richest man had to have Tiffany when times were good and agreed to pay too much for the American jeweller. When Covid-19 hit the fan, LVMH’s boss got buyer’s remorse. Now he's throwing all the toys out of his cashmere-lined crib to get his way. Which he probably will.

Tiffany bust-up risks double defeat for LVMH

9 Sep 2020

Bernard Arnault’s luxury giant delayed completing its $16 bln marriage with the U.S. jeweller, blaming iffy French trade concerns. Tiffany is suing for the deal to go ahead. Even if LVMH negotiates a discount, other targets like Moncler or Prada will be wary of future proposals.

Corona Capital: Palantir presents

9 Sep 2020

Concise views on the pandemic’s corporate and financial fallout: Potential shareholders have had their first look at the data company ahead of its planned direct listing later this month. One of the more memorable moments was boss Alex Karp making his pitch from a nature trail.

Tiffany’s business loses even if shareholders win

27 Aug 2020

There’s little doubt the jeweler is no longer worth the $16 bln LVMH agreed to pay last year. Yet Tiffany’s board is duty bound to push for the highest price. That’s good for investors, but not for Tiffany itself. To earn a decent return, LVMH may have to trash an American icon.

Corona Capital: KFC ditches finger lickin’

25 Aug 2020

Concise views on the pandemic’s corporate and financial fallout: The Yum Brands’ fast-food chain made eating fried chicken synonymous with cleaning your digits with your mouth. KFC has at last realized that’s a no-no in a pandemic.

Richemont tries luxury goods thinking for shares

7 Aug 2020

The Cartier owner likes to sell glittery things for more than they’re objectively worth. In a similar spirit, a proposed “shareholders’ loyalty scheme” gives three-year warrants to compensate for a 50% dividend cut. But any gains on the warrant are a cost to future shareholders.

Corona Capital: Ford narrows the gap

30 Jul 2020

Concise views on the pandemic’s corporate and financial fallout: The Detroit automaker put in a better second-quarter performance than expected. That’s good news for under-pressure CEO Jim Hackett – and allows Ford to close some of the distance to rival GM.

China wallets will decide winners in bling rebound

27 Jul 2020

The pandemic may shrink global sales of fancy handbags and shoes by up to 35% this year. And it will make fashion houses even more dependent on rich Middle Kingdom buyers. Owners of brands with strong local appeal, like Richemont’s Cartier or LVMH’s Louis Vuitton, stand to gain.

Corona Capital: Expense accounts, Zoom’s new box

15 Jul 2020

Concise views on the pandemic’s corporate and financial fallout: Goldman Sachs’ earnings give an insight into pandemic-era client schmoozing, and virtual meeting facilitator Zoom tiptoes into the high-priced hardware market.

Corona Capital: Lockdown diets, Beating the Fed

14 Jul 2020

Concise views on the pandemic’s corporate and financial fallout: Covid-19 is prompting diets for both animal and human; and the Fed takes a hit on a garbage deal.

New L’Oreal boss will put e-commerce above M&A

3 Jul 2020

The $180 bln cosmetics giant is looking for Jean-Paul Agon’s successor as CEO. Buying brands like CeraVe or Urban Decay and selling them globally has added growth. But high valuations raise the relative importance of reaching more consumers with what it has already got.

Corona Capital: UK debt, Oaktree, KKR, Chanel

19 Jun 2020

Concise views on the pandemic’s corporate and financial fallout: UK government borrowing surges past GDP; Howard Marks is sceptical about the stock market revival; KKR bets on cheap and local European holidays; Chanel takes a gloomier view than rivals on the luxury rebound.

Ray-Ban mogul’s late financial quest is baffling

19 Jun 2020

Leonardo Del Vecchio is building his shareholding in Mediobanca. The investment bank’s stake in insurer Generali puts it at the heart of Italian corporate power. The 85-year-old may be motivated by financial gains or prestige. Equally unclear is who inherits his expanded empire.

Corona Capital: KKR, Rugby, Centene

12 Jun 2020

Concise views on the pandemic’s corporate and financial fallout: KKR volunteers advisers to share the pain, Super Rugby heads back to the pitch, and Centene's best bet.

Tiffany-LVMH battle underscores can vs. should

9 Jun 2020

The U.S. jeweler’s rejigged debt covenants allow it to fend off a possible LVMH attempt to lower a $16 bln bid. Still, a 45% sales slump shows Tiffany needs to marry its larger French suitor. Closing a deal amicably and quickly is best. It doesn’t mean LVMH boss Arnault will.

Corona Capital: U.S. recession, Grubhub, Airlines

8 Jun 2020

Concise views on the pandemic’s corporate and financial fallout: U.S. falls into a recession, Grubhub looks for leverage, airlines have optimistic investors.

Tiffany share drop offers LVMH a bargaining chip

3 Jun 2020

Fears that Bernard Arnault may pull his $16.2 bln bid amid U.S. unrest have hit the jeweler’s shares. The French billionaire may see an opportunity to renegotiate, but it’s not without risk. Buying Tiffany shares on the market would be a less aggressive way to meet a similar end.

Corona Capital: GE cash burn, Macy’s lifeline

28 May 2020

Concise views on the pandemic’s corporate and financial fallout: General Electric’s cash flow will be more negative than expected as Covid-19 damages its aviation and power businesses; and U.S. department-store chain Macy’s borrows more, buying time but not much else.