Battered online retailers need new fashion model 16 Jun 2022 Shares in ASOS and Zalando are in full-on retreat as cash-strapped consumers send back unwanted clothes. Scrapping free returns, as 69 bln euro Inditex has done, will cut costs but also dent sales. But with inflation squeezing disposable spending, a radical rethink is required.
Cricket rights will bowl India Inc a new line-up 10 Jun 2022 A third of teams in the sport’s premier league fit poorly with owners like Diageo. One, Reliance, wants the broadcast rights too. CVC’s entry into the club creates more uncanny parallels to a changing corporate India. The outcome of the $6 bln TV auction may spur a clean-up.
Capital Calls: Twitter snubs investors 27 May 2022 Concise views on global finance: The social media platform refused to accept the resignation of director Egon Durban, one more check for bad corporate governance. But it’s not like investors have held the company to a high standard.
Shopify’s governance revamp is so 2021 26 May 2022 Shareholders are being asked to give Tobi Lütke the ability to keep his voting power even if his ownership stake falls. That might have been palatable at the end of last year, when Shopify’s shares were worth five times as much as they are now. Now it just adds insult to injury.
Capital Calls: Airbnb, Prudential, Glencore 25 May 2022 Concise views on global finance: The $68 bln vacation-booking platform will shut its Chinese business; the insurer appoints a new CEO – finally; the commodities giant has a $10 bln reason to keep its nose clean, after a $1.5 bln settlement for corruption allegations.
Capital Calls: Didi delists from the NYSE 24 May 2022 Concise views on global finance: Shareholders have voted to remove the beleaguered ride-hailing service from the Big Board. One way to play the company now is as a risky bet on which road Beijing’s regulators decide to take.
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.
Klarna’s $46 bln price tag endures only in theory 19 May 2022 Investors heavily marked down the value of the Swedish startup’s buy-now-pay-later rivals like Affirm. On their sales multiples, privately held Klarna’s valuation would be cut by 75%. While the business is diversified with better funding, it still requires lots of red pen.
Zara owner has $10 bln for online shopping spree 18 May 2022 Marta Ortega, the fresh-faced boss of the world’s largest fashion retailer, is sitting on a record cash pile. Typically, such spoils trickle back to shareholders as special dividends. But with its battered share price, buying an online upstart like Zalando may create more value.
Amazon takes hit from foggy outlook 28 Apr 2022 The e-commerce giant shed nearly $140 bln in market value after it forecast sluggish sales growth. The pandemic was good for Amazon and other online retailers. Now, while cloud services remain a bright spot, shipping, wage costs and macroeconomic factors are stumbling blocks.
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.
Capital Calls: THG’s lowball bids 21 Apr 2022 Concise views on global finance: Britain’s 1.4 bln pound lipstick-to-protein-shake maker THG rejects “numerous” bids as it warns of higher costs.
Capital Calls: GoTo debuts in smart fashion 11 Apr 2022 Concise views on global finance: The Indonesian e-commerce, ride-hailing and financial technology firm, valued at $28 bln, jumped more than 20% in opening trade on its first day in Jakarta.
Capital Calls: U.S. truck drivers go missing 4 Apr 2022 Concise views on global finance: Bonuses and concessions from Washington aren't enough to fill the industry's empty cabs.
Instacart’s painful price cut may not be enough 25 Mar 2022 The grocery delivery service firm slashed its valuation by nearly 40% to $24 bln. That’s partly a reflection of peers’ market prices. But based on sales, it’s still valued twice as high as DoorDash. With competition growing from Amazon and Walmart, a further cut may be in store.
The Covid effect: Sheds, Hong Kong, Conferences 24 Mar 2022 The pandemic continues to shape business and policy around the world. In this Viewsroom podcast, Breakingviews columnists debate a possible 21 bln euro bid for city-centre warehouses, the relaxing of restrictions in Hong Kong, and a recent conflab of M&A advisers in New Orleans.
Prologis has to go extra mile for Blackstone sheds 22 Mar 2022 The property giant offered over $23 bln for Mileway, which owns European warehouses. Sky-high valuations and frenetic M&A imply it’s a good time for Steve Schwarzman’s group to cash out. But limited city space and booming online deliveries mean asset values can keep rising.
How Mad Men are waking up to the metaverse 22 Mar 2022 The pandemic sped up the shift to online advertising and e-commerce. In this episode of The Exchange Mark Read, CEO of WPP, tells how his clients coped with Covid-19, why virtual reality is the next big thing for consumer giants, and why corporate purpose is more than a buzzword.
Alibaba’s $400 bln selloff makes case for buybacks 24 Feb 2022 The Chinese giant delivered a dismal set of results with sales at its core business falling for the first time. After a 60% drop in the stock over the past year, a big repurchase would send a signal of confidence. With $60 bln of net cash, Alibaba can afford to splurge on itself.
India Insight: Digital diplomacy builds bridges 21 Feb 2022 Open architecture underpinning the country’s booming fintech market is being adopted by Nepal and partly by Bhutan. Google also recommended it to the U.S. Fed. It’s a cheaper way to court allies than China’s Belt and Road projects. The soft power returns are valuable too.