Luxury Goods

Capital Calls: Eli Lilly gorges on obesity options

27 Jun 2023

Concise views on global finance: The drugmaker found patients losing an incredible 24% of their weight on one of its latest treatments. First-movers don’t always win out in pharma, however, as Pfizer proved with Lipitor. That’s why Lilly is wise to keep investing in alternatives.

Yacht maker’s Italy pivot shows the way for Prada

8 Jun 2023

A year after its Hong Kong IPO, the Chinese-owned maker of boats loved by Hollywood stars is rushing to also list shares in Milan. The move offers scant valuation upside, but hedges geopolitical risks. If Ferretti can pull it off, luxury brand Prada will follow.

Stingy European savers will help the ECB, not LVMH

6 Jun 2023

Euro zone citizens have 1 trln euros in pandemic-era savings. Unlike their US peers, they are unlikely to splash the cash in malls and restaurants. That’s bad news for retailers and service providers, but it will help Frankfurt’s rate-setters slow the economy and cool inflation.

Geely’s Aston Martin stunt could backfire

19 May 2023

The Chinese auto giant is doubling its stake in the storied carmaker to 17%, and snagging a board seat. But the 45% premium looks rich. Aston Martin needs to speed electrification and sales in China, but Geely will struggle to squeeze value from a stalling British business.

Ending the retailers’ crisis has a high price tag

2 May 2023

Luring inflation-wary shoppers back to the high street won’t be cheap, executives at last week’s World Retail Congress said. Heavyweights like Zara owner Inditex, which has room to plough money into stores, stand to win big. H&M and others cutting to survive face a slow decline.

Ferrari’s green journey takes surprise turn

30 Mar 2023

Europe’s plan to support carbon-neutral fuels is good news for the $50 bln luxury carmaker, CEO Benedetto Vigna says on the Exchange podcast. It will allow the group to flog the roaring engines that made its fortune. Electric cars remain a goal, but self-driving Ferraris are not.

Capital Calls: Maserati

21 Mar 2023

Concise views on global finance: The Italian sports car maker owned by Stellantis wants to lift its operating margin to 20% before considering a spinoff.

Clinging to Richemont is Rupert’s smartest bet

9 Mar 2023

At 72, billionaire Johann Rupert may face questions over the future of his Cartier-to-Piaget empire. Merging the $81 bln bling group with a large rival would be fiddly, and he could lose clout. Hidden value suggests holding onto it while grooming a successor is a better plan.

Hermès’ “MetaBirkin” win misses the big picture

17 Feb 2023

A court ruled an artist’s digital version of the $198 bln group’s iconic Birkin bag violated trademark rights. The verdict gives luxury firms more clout to commercially exploit the metaverse. Yet the jury is still out on whether such forays will be anything more than marketing.

LVMH has smarter way to tackle succession dilemma

11 Jan 2023

Bernard Arnault picked his daughter Delphine to run the luxury giant’s Dior brand. If she proves her mettle, she may win the race among her siblings to eventually replace the 73-year-old tycoon. Naming one heir would help LVMH extend its success to the next generation.

New CEO gives Prada more stylish look for listing

6 Dec 2022

Former Luxottica executive Andrea Guerra will replace founder Patrizio Bertelli at the $15 bln fashion house. It’s a breath of fresh air for the family-controlled firm. Putting an experienced outsider in charge may increase Prada’s appeal as it eyes a share sale in Milan.

Gucci designer’s exit boosts Kering’s M&A urgency

24 Nov 2022

Alessandro Michele’s departure from the bling group’s top label puts CEO François-Henri Pinault on the spot. Finding a new creative star will be hard, and he needs more brands to cut his $71 bln firm’s reliance on Gucci. A recent miss on Tom Ford also weakens his dealmaking hand.

Burberry revival rests on more leather power

17 Nov 2022

New CEO Jonathan Akeroyd wants to grow sales by 40% in coming years at the stagnating fashion house. Success hinges on star designer Daniel Lee’s ability to create alluring high-margin bags and shoes. But the move will take time and may hurt demand for items currently in store.

Estée Lauder plus Tom Ford is tricky defensive act

16 Nov 2022

The beauty giant will buy the fashion house for $2.8 bln. It allows the $81 bln group to cling on to the designer’s fast-growing fragrances, which it licenses. But outsourcing the eyewear and clothes units risks being a distraction, especially if Ford himself leaves after a year.

Tom Ford return offers remedy for Gucci fatigue

4 Nov 2022

Kering is considering a swoop on the U.S. fashion house. Bringing back Gucci’s ex-star designer could ease the $60 bln fashion giant’s reliance on its largest brand, which needs reinvigorating. Kering’s vast retail network would also make the Tom Ford label a winner.

Capital Calls: Mobileye IPO, Loafer buyout

26 Oct 2022

Concise views on global finance: Intel’s autonomous driving subsidiary benefited from lower expectations, while Tod’s founder Diego Della Valle may have a Plan B after resistance from minority investors forced him to abandon plans to take the luxury shoemaker private.

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: SoftBank

14 Sep 2022

Concise views on global finance: The $62 bln conglomerate may be considering a third instantiation of its Vision Fund.

Capital Calls: ECB rate hike

8 Sep 2022

Concise views on global finance: Europe’s central bank risks recession to combat inflation.

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.