Adidas catch-up remains off the necessary pace 13 Mar 2024 The $37 bln sneaker maker is emerging from its Yeezy trainer crisis. CEO Bjorn Gulden’s focus on fashionable trainers is helping to grow sales. But given the ropey economic outlook, which is hitting rival Nike, investors don’t yet look convinced he can deliver on his ambitions.
Capital Calls: Estée Lauder, European banks 5 Feb 2024 Concise views on global finance: The cosmetics giant behind Le Labo is cutting jobs and redoubling restructuring efforts, but the changes only go skin-deep; Santander and Lloyds are under pressure after a report they banked entities controlled by a US-sanctioned Iranian company.
Basketball-maker will bounce back from IPO brick 1 Feb 2024 Amer Sports sold shares at $13 apiece, below its $16 to $18 range, valuing the owner of the Wilson, Salomon and Arc’teryx brands at just $6 billion. The steep discount to Lululemon, Nike and On partly stems from overblown fears about China. Buying now should be a slam dunk.
Capital Calls: Paramount takeover bid 31 Jan 2024 Concise views on global finance: Media mogul Byron Allen, whose company owns The Weather Channel, is offering to buy the TV and film conglomerate for $30 bln. Even if he doesn’t become the next owner, his presence should help get a sale process moving and plump up the price tag.
LVMH could use a bit more transparency 25 Jan 2024 The $375 bln luxury group had a decent 2023, but shares are flagging after a decade-long surge. Boss Bernard Arnault hasn’t had to fret about being in investors’ good books. One way to cheer them now is to make it possible to see how well key brands like Louis Vuitton are doing.
Shein’s China and ESG risk puts IPO on iffy ground 25 Jan 2024 The fast-fashion giant is preparing a New York stock market listing. In this Viewsroom podcast, Breakingviews columnists explain how US investors might be wary of links to Beijing, and how its hard-to-recycle $5 tops and sweaters could be vulnerable to future regulation.
Shein’s waste factor is its ultimate IPO risk 19 Jan 2024 The China-linked retailer’s lean production model helps it keep inventory low. Yet its polyester garments are carbon-intensive and hard to recycle. Regulators’ growing unease about textile pollution, and the cost of addressing the mess, may require giving up clients or margins.
Sporting goods IPO plays winning China game 18 Jan 2024 Amer is growing fast in the home market of Fujian-based Anta, which co-bought the maker of Arc’teryx parkas and Salomon skis in 2019. Using Nike, Lululemon and On as guides imputes a $15 bln valuation. But chunky debt and the Wilson tennis brand weaken its competitive edge.
Athleisure boom offers edge to premium retailers 18 Jan 2024 Wealthy shoppers are splurging on pricey leggings and sneakers despite inflationary pressure. That helps premium brands like $59 bln Lululemon and On while Nike and others deal with inventory pile-ups. If the big players can’t catch up, valuation gaps will only get wider.
Burberry’s weakness could entice luxury shopper 12 Jan 2024 After a profit warning, the $6 bln UK fashion group is worth 45% less than it was a year ago. Potential buyers will have noticed. While private equity firms may struggle to make decent returns in a slow market, sector leader LVMH could find the situation more tempting.
Temu hurts Amazon more than it helps 4 Jan 2024 The $1.5 trln e-commerce giant is defending itself against FTC Chair Lina Khan. The Chinese retailer and rival Shein’s quick seizure of market share could keep her happy. Less thrilled will be Amazon’s own shareholders, who have added some $660 bln to its market cap in a year.
Kim Kardashian will be kicked off Instagram 22 Dec 2023 The influencer is worth $1.7 bln, which could climb with her shapewear brand’s IPO. That’s value that doesn’t flow to the owners of platforms sustaining content creators’ fame, like Elon Musk or Mark Zuckerberg. The best way for them to pull some back: suspend her privileges.
Macy’s best option now is profitable oblivion 11 Dec 2023 An investor group has offered to take the US retailer private for $5.8 bln, following past proposals to fix the struggling department store chain by Starboard and Jana. Going private could have logic, if Macy’s properties can be sold. The chain should grab value when it can.
Capital Calls: Gap earnings 17 Nov 2023 Concise views on global finance: Investors rewarded improvements at the apparel company's Old Navy brand by sending shares up over 30%. Yet overall third-quarter results remain muted. It’s a promising sign for new boss Richard Dickson, even if the bar was low to begin with.
Capital Calls: Walmart, HelloFresh 16 Nov 2023 Concise views on global finance: Although the US retailer lost nearly 8% of its market value after it indicated that price increases are starting to ease, it should be able to navigate the challenge; the 2.7 billion euro meal-delivery company has become a tasty buyout target.
Capital Calls: Regulating crypto 7 Nov 2023 Concise views on global finance: The US Securities and Exchange Commission is struggling to hire digital token experts, partly because prospective recruits aren’t willing to acquiesce to the agency’s requirement that they sell their holdings in bitcoin and beyond.
Vans owner VF is due a wardrobe refresh 6 Nov 2023 The $6 bln apparel empire’s debt soared as shares sank 40% under its ex-CEO, whose costly deal for Supreme ran counter to its modus operandi. New boss Bracken Darrell’s cost-cutting plan has promise. Selling the streetwear brand and investing in known hits is the best next step.
Capital Calls: Birkenstock flop 11 Oct 2023 Concise views on global finance: The sandal maker took a tumble, as its shares opened more than 10% below the IPO price, leaving questions about its venue and valuation.
Capital Calls: Birkenstock IPO 2 Oct 2023 Concise views on global finance: The German footwear brand is offering shares at between $44 and $49 ahead of its market debut next week.
Capital Calls: Pelululemon 28 Sep 2023 Concise views on global finance: The apparel firm and the exercise-bike maker have entered into a five-year partnership, ending a costly feud. For Lululemon, it removes the risk of an outright acquisition. Peloton gains a valuable partner, but still faces an uphill climb.