Luxury Goods

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.

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: AB InBev

5 May 2022

Concise views on global finance: Anheuser-Busch InBev’s revenue grew 11% in the first quarter compared to last year, but rising prices are a particular headache for the debt-laden brewer.

Capital Calls: Gap falls through the inflation gap

22 Apr 2022

Concise views on global finance: Shares in the clothing retailer fell over 19% after the company warned of a sharper drop in sales and announced the departure of Nancy Green, the boss of its Old Navy unit.

Sanctions sound alert for art – and its regulators

20 Apr 2022

Private sales and the use of shell companies make for anonymity. Russians are not top of the art-world heap, but recently imposed financial constraints and the rise of digital assets could change that. U.S. oversight has not kept up. Dealers and watchdogs alike need to wise up.

Porsche IPO is slow road to a higher VW valuation

20 Apr 2022

The German carmaker’s luxury brand could easily be worth 90 bln euros. Yet a plan to only sell 25% may limit the benefit for shareholders by leaving the company with a small free float and complex governance. Their consolation is that this listing may not be the final model.

Capital Calls: LVMH and Arnault

16 Mar 2022

Concise views on global finance: The 315 bln euro luxury group’s plan to raise the age limit for its CEO role may mean Bernard Arnault is struggling to decide on a successor, though for now shareholders won’t care.

Capital Calls: DraftKings, Shake Shack, Fanatics

18 Feb 2022

Concise views on global finance: The online gambling firm predicts fast growth but heavy losses; the U.S. burger chain had disappointing earnings yet its valuation is sky-high; the sports merchandiser teams up with Jay-Z to buy a streetwear firm for a song.

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.

Capital Calls: Continental, Harley-Davidson

8 Feb 2022

Concise views on global finance: German car-parts maker Continental may spin off its self-driving unit, while the iconic maker of motorbikes has turned supply shortages to its own advantage.

Capital Calls: Wizz investor sides with workers

7 Feb 2022

Concise views on global finance: Denmark’s AkademikerPension picks an odd moment to offload its stake in the $6 bln budget airline over a lack of union representation among its staff.

Ferretti float may be back in same boat

24 Jan 2022

After a bold $1.2 bln valuation target sank its Milan IPO effort in 2019, the Italian yacht maker owned by China’s Weichai is now sailing for Hong Kong. Growth is buoyant, but luxury goods have charted a patchy course on Asian bourses. It’ll be hard, again, to make a splash.

Capital Calls: Activist investors, P&G, Rivian

19 Jan 2022

Concise views on global finance: Underperforming UK stocks lure cage-rattling shareholders to London; sickness and germaphobia boost the $380 bln company’s earnings: And Ford Motors and Amazon.com book big gains on investments in the electric carmaker as its stock tumbles.

Porsche IPO may only partly aid VW’s odd valuation

9 Dec 2021

Volkswagen could finally list its luxury marque. Porsche may be worth up to 100 bln euros or more, making VW’s own $150 bln valuation look underpowered. The value assigned to both, however, may depend on how much control VW is prepared to give up.

Review: House of Gucci’s broken family capitalism

26 Nov 2021

A sprawling dynasty can lead to corporate disaster. Ridley Scott’s star-studded movie is a kaleidoscopic portrait of the infighting that saw the Gucci family lose control of their namesake brand. Stepping aside at the right time can make all the difference.

Prada’s new look merits fashion league promotion

18 Nov 2021

After years of drift, the $18 bln Italian brand has got a grip on its retail chain, axed discounts and rejuvenated its image. That should help it hit a 4.5 bln euro sales target and double its margins. For investors, the catch-up with snazzier rivals is something worth having.

Richemont beats orderly retreat from digital fight

12 Nov 2021

Under pressure from activists, the Cartier owner plans to spin off its loss-making online arm to rival Farfetch and others. If valued in line with peer Zalando it would be worth a respectable 4.7 bln euros. A sale should help Richemont close the valuation gap with luxury rivals.

Capital Calls: Tesla, Daimler

11 Nov 2021

Concise views on global finance: The electric-car maker’s directors have, like Elon Musk, cashed in; the German company is racing against Agnelli-controlled CNH Industrial to spin off a trucks division.

Richemont activism is more coaxing, less conflict

8 Nov 2021

Funds including Dan Loeb’s Third Point may push the Cartier owner to close a 20%-plus valuation discount to luxury peers. With half of the voting rights, Chairman Johann Rupert is in firm control. Unlocking value will depend on convincing him to make sensible strategic changes.

Capital Calls: KKR, Ferrari, HelloFresh

2 Nov 2021

Concise views on global finance: The private equity company is making the most of ideal market conditions; the Italian sports car maker raises its guidance; and a positive sales update turbocharges the German meal-kit delivery firm’s share price.