Luxury Goods

Burberry looks better without boardroom wrinkles

9 May 2017

In two months, designer Christopher Bailey will be replaced as CEO but keep outsize influence and a board seat. That might be tolerable were Burberry performing better. Now, it’s clear new boss Marco Gobbetti needs a free hand. Bailey has a role, but ideally a lesser one.

Coach pays luxury price to catch up with LVMH

8 May 2017

The U.S. handbag maker is plunking down $2.4 bln for Kate Spade, a figure not justified strictly by the numbers. But Coach's owners like the move to a multibrand portfolio, which has worked for LVMH and Kering. Mature luxury marques can no longer expect to succeed on their own.

Viewsroom: Apple starts iPhone birthday bash early

4 May 2017

Lucre from apps and other services should get investors in the party mood ahead of the company’s iconic device turning 10. Big Oil gets buoyed by rising prices – and the New York Times by more readers. And Coach shows the retail industry how to cope with upheaval, up to a point.

Coach’s luxury shopping habit risks distraction

2 May 2017

The high-priced handbag maker’s good third quarter is a bright spot amid struggling retailers. It doesn’t justify buying Jimmy Choo or Kate Spade, however. CEO Victor Luis vows no poor deals, but most are likely to be a tougher fit than his 2015 acquisition, Stuart Weitzman.

Hillhouse makes cautious pass at China’s Belle

28 Apr 2017

The Chinese investment manager has joined with CDH and bosses to take the struggling mainland shoe retailer private. At $6.8 bln, this could be one of Asia's largest management buyouts. The offer isn't extravagant, but making Belle's results pretty again won't be easy.

Gucci shows up rivals – and analysts

26 Apr 2017

The Italian label’s first-quarter sales rose 48 percent, double even bullish predictions. Global luxury spending is flat so rivals are probably losing market share. The difficulty of spotting winners and losers in this skittish sector makes current lofty valuations suspect.

Arnault’s new-look Dior pleases almost everyone

25 Apr 2017

The French tycoon is offering to buy out minority investors in Christian Dior for 12 bln euros. LVMH shareholders will also welcome a streamlined empire. The most stylish twist is that Arnault is using the luxury giant’s balance sheet and shares in rival Hermes to pay for it.

Jimmy Choo seeks new owner for scuffed brand

24 Apr 2017

The high-heel label is for sale less than three years after its IPO. Owner JAB may need cash following its $7.5 billion purchase of Panera Bread. There is room to increase Jimmy Choo’s operating margin, but with slow sales growth, it already looks expensive.

Burberry’s brand shows worrying fragility

19 Apr 2017

The UK luxury group's revenue is falling on a constant-currency basis. The strong dollar has hit demand in the U.S., but Burberry also restricted sales to protect its brand. The fact that it has to do so isn't great for investors after multiple rejected takeover offers.

LVMH has cash to burn but no hot targets

10 Apr 2017

First-quarter sales at the French maker of Moet champagne and Louis Vuitton handbags grew 13 pct year-on-year. Falling debt and strong cash flows are swelling the acquisitive group’s M&A war chest. But the most attractive targets are protected by family shareholdings.

The sober case for China’s national spirit

29 Mar 2017

Kweichow Moutai's market value has soared to a heady $70 bln, putting the liquor firm almost on par with Britain’s Diageo. Investors are toasting the baijiu distiller for riding out China's anti-corruption drive. High valuations are offset by fast growth and fat margins.

Burberry self-help makes light work for activists

1 Mar 2017

Billionaire Albert Frere, who was among investors that drove change at Adidas, has built up a 3 percent stake in the trenchcoat-maker. With a turnaround plan and new boss in place, there’s less to do at Burberry. Still, Frere can help ensure the company sticks to its knitting.

Luxury watch deal builds on Hong Kong shell pile

1 Mar 2017

Luxury watch retailer Hengdeli wants to sell its prized China business to its chairman and leave stakeholders Swatch and LVMH with a gutted listed entity. Proliferating empty shells is a real problem in Hong Kong. Better to force a buyout, or block such sales.

Signet’s gender defense rings hollow

28 Feb 2017

The jeweler’s acknowledgement of a 2008 class-action suit alleging pay discrimination helped push its stock down 13 pct. A muddy rejection of sexual harassment allegations didn’t help. Signet’s long-winded statement raises more questions than it provides reassurances.

Activist applies some Italian polish to Tiffany’s

21 Feb 2017

With a long slump threatening to tarnish its brand, the luxury jeweler is embracing new blood. Barry Rosenstein's Jana Partners has teamed up with former Bulgari boss Francesco Trapani to nab a stake and three board seats. They need to move quickly to restore the group's luster.

Prada can grow into frilly valuation

14 Feb 2017

An investor who bought shares in the Italian luxury company's 2011 flotation is 12 percent worse off today. But the slide in Prada’s sales is slowing. If China recovers and the handbag maker makes up lost ground online, its sky-high price-earnings ratio will look more fitting.

LVMH snaps up some strategic hand-me-downs

8 Feb 2017

The French luxury giant has set up a unit to invest small sums in promising startups. It's a departure from the multi-billion euro deals the group is known for. The only catch: its slightly less stylish domestic peers L'Oreal and Danone already set the trend.

Tiffany CEO exit takes ring off luxury finger

6 Feb 2017

Frederic Cumenal is out after less than two years, just after Ralph Lauren ditched its new boss. Having Tiffany's flagship store next to Trump Tower doesn't help. But both suffer from a long-term sales slump and a lack of new products and ideas. A fix requires more than a new CEO.

Hong Kong loses its luxury scarcity value

3 Feb 2017

Tourist arrivals from mainland China rose 3.6 pct over the New Year, and Chinese consumer spending is accelerating. If only that were enough for luxury companies who have hung their hat on the city's unique charms. Luxury isn't quite passé, but buyers have moved further afield.

PETA’s anti-leather push at LVMH faces handbagging

13 Jan 2017

The animal-rights group has acquired an undisclosed stake in the French luxury firm. It will keep LVMH on its toes. Yet a likely rebound in bag margins this year means that the usual goal of the activist – disposals of offending businesses – is firmly off the agenda.