Luxury Goods

Capital Calls: Pharma, Volvo delay, Hotels

24 Feb 2021

Concise views on global finance in the Covid-19 era: Big Pharma’s new popularity could give it leverage in Congress; China’s Geely can profit from Volvo IPO delay; and boutique hotels feel the heat.

Capital Calls: Petrobras CEO, Kohl’s

22 Feb 2021

Concise views on global finance in the Covid-19 era: Brazilian President Jair Bolsonaro nominates a former general to replace the oil group's market-friendly boss, tanking the shares; and U.S. department store Kohl’s has some unhappy shareholders.

Capital Calls: Petrobras

19 Feb 2021

Concise views on global finance in the Covid-19 era: Brazil's president becomes Petrobras' activist.

Capital Calls: Tribune, Shopify

17 Feb 2021

Concise views on global finance in the Covid-19 era: Chicago Tribune sells to a hedge fund known for stripping out newsroom costs; Shopify’s strong year doesn’t shield it from competition.

Capital Calls: Disney+, SPAC romance

12 Feb 2021

Concise views on global finance in the Covid-19 era: The entertainment giant’s streaming growth comes at a cost; blank-check companies are trashing all records in 2021.

Capital Calls: Third Point, Kraft Heinz/Hormel

11 Feb 2021

Concise views on global finance in the Covid-19 era: Dan Loeb’s hedge fund gets a good start in 2021, while Hormel Foods buys peanuts, but pays anything but.

Speed-loving billionaires to keep Ferrari running

2 Feb 2021

The luxury carmaker reported an 8% revenue drop during the pandemic and was cautious on future profit. Much of the hit stemmed from F1 woes rather than dwindling appetite for supercars. At least the next CEO can take some comfort from a rising cohort of the global super wealthy.

Corona Capital: GDP, Corruption, Norway

28 Jan 2021

Concise views on the pandemic’s corporate and financial fallout: U.S. output growth slows from a surge to a gentle trot; Transparency International flags that corruption and pandemic-fighting don’t mix; and Norway’s sovereign wealth fund sees its tech bets pay off.

LVMH is doing just fine with or without Tiffany

26 Jan 2021

The pandemic wiped 16% off sales at Bernard Arnault’s conglomerate last year. Even so, its shares gained 21%, outperforming most rivals. Luxury bets from handbags to hotels will help it recover. That should keep investors sweet while LVMH gets to work on the U.S. jeweler.

UK’s duty-free golden goose will become albatross

30 Dec 2020

The government’s plan to end tax rebates for inbound tourists was part of its EU horse-trading. But it’s a needless hit to ailing retailers’ Asian custom. Instead of raising revenue in 2021, it will just become a symbol of the UK’s Brexit-era capacity for reckless self-harm.

Stars align for luxury circular economy

23 Dec 2020

The pandemic and a desire to save the planet will prompt shoppers to buy pre-owned apparel. Luxury items’ lasting charm may unlock a $600 bln market for old Gucci, Hermès and other high-end brands. Even manufacturers could get in on the act, marrying financial and ESG goals.

Hainan luxury license rubs salt in Hong Kong wound

22 Dec 2020

Top marques are betting affluent Chinese tourists will stick around the island province’s new duty-free stores after the pandemic. That shift would probably come at the expense of nearby Hong Kong, long favoured by mainland shoppers. Unfortunately Beijing doesn’t seem to care.

Corona Capital: Vaccine dibs

21 Dec 2020

Concise views on the pandemic’s corporate and financial fallout: Vaccine prioritization is about to get competitive.

Corona Capital: Private jet deal

17 Dec 2020

Concise views on the pandemic’s corporate and financial fallout: Blackstone bets that plutocrats will be back in the air before the rest of us.

Ferrari’s next boss will need luxury credentials

14 Dec 2020

The race is on to replace CEO Louis Camilleri, who suddenly quit. Fiat boss Mike Manley ticks many boxes, but John Elkann, chair of both groups, needs him to smooth a merger with Peugeot. Leading $42 bln Ferrari will be as much about enhancing its bling status as engine parts.

Del Vecchio channels Arnault spirit on eyewear bid

10 Dec 2020

Like the LVMH founder, the Ray-Ban billionaire is suffering from buyer’s remorse. His EssilorLuxottica may rethink its pre-pandemic 7 bln euro bid for GrandVision. The glasses retailer won’t easily find another buyer. As with Tiffany, a lower price is the most likely outcome.

Corona Capital: Supercars, Cooking, Home working

10 Dec 2020

Concise views on the pandemic’s corporate and financial fallout: Debt-laden carmaker McLaren tries to hitch a ride on the SPAC bandwagon; meal-kit deliverer HelloFresh’s virus feast only goes so far; and America’s working-from-home boom survives the crisis.

Corona Capital: Gaming M&A, Beauty’s bold face

9 Dec 2020

Concise views on the pandemic’s corporate and financial fallout: Consolidation in video games reaches the next level as Sweden’s MTG buys Hutch Games for $375 million; and Spanish cosmetics, fashion and perfume group Puig predicts revenue will double by 2023.

Corona Capital: Airbnb IPO, IKEA catalog

7 Dec 2020

Concise views on the pandemic’s corporate and financial fallout: Vacation-rental app Airbnb ups its likely market valuation when it goes public later this week; and IKEA kills off its doormat-denting printed catalog after 70 years.

Corona Capital: Chevron, Boeing, OPEC, Orange

3 Dec 2020

Concise views on the pandemic’s corporate and financial fallout: Chevron cuts spending, prudently; Boeing orders are a solid step; OPEC makes up its mind; and Orange’s Belgian deal has some juice.