Fashion

Make-up artist’s star power tested by $1 bln tag

4 June 2020

That’s how much Puig is close to paying for Charlotte Tilbury’s cosmetics company, Bloomberg reports. Famous friends and e-commerce helped the entrepreneur boost sales. To justify the price, the Spanish perfumer needs to lift margins after Covid-19, without smudging the brand.

Luxury will fly only when travellers do

22 May 2020

Burberry and its fashion rivals face a summer of discontent. European stores are starting to reopen, and more bling is being sold in mainland China. But purchases by tourists won’t rebound for a while. Rising inventory is a sign that the current season is partly lost.

China’s wannabe fashion empire unravels

3 April 2020

Two years after agreeing to buy Swiss luxury brand Bally from JAB for $600 mln, Shandong Ruyi has failed to nail down financing. Its large and complex debt structure looks increasingly shaky. Even an HNA-like fire sale for the Lycra and SMCP owner will be tough in these times.

Corona Capital: Cirque du Soleil, Airlines, France

27 March 2020

Concise views on the pandemic’s corporate and financial fallout: Cirque du Soleil may leave TPG sunburnt. Airlines get a sweet bailout. And France joins the campaign against dividends.

Review: Fashion is the true villain of “Greed”

13 March 2020

Michael Winterbottom’s movie dramatises the life of a textile mogul loosely modelled on Philip Green. The Topshop owner’s love of mega yachts and celebrities make him an easy target for satire. But grim scenes from Asian factories suggest retailers and shoppers share the blame.

Moncler loyalty share plan sullies poster boy look

14 February 2020

The $11 bln down-jacket maker wants to double voting rights for long-term owners. That would give boss Remo Ruffini a stronger hand in talks with potential suitors. Weakening shareholder rights might however dent Moncler’s good public company image and irk investors.

Fashion’s climate Frankenstein has no off-switch

7 February 2020

Retailers like H&M are promising to slash their carbon footprint by using more recycled products. That’s good, but quick fixes like using sustainable cotton simply move the problem to landfills. Real change would come from tackling the throwaway culture that they represent.

Moncler sings like canary in China’s lux coal mine

18 September 2019

Boss Remo Ruffini’s statement of the obvious, that Hong Kong protests will dampen sales of its bling puff jackets, is a warning sign for rivals. With unrest deterring shopping-mad tourists, fully rebuilding on the mainland what’s been lost in the Fragrant Harbour will be tough.

Inditex high street reign comes with higher bar

11 September 2019

The Zara owner’s strong first-half sales growth was overshadowed by downward pressure on its gross and operating margin in the second quarter. Investors’ concern about the cost of growing revenue may be valid but a widening valuation discount to peer H&M seems harsh.

Dan Loeb could give Ray-Bans a better look

26 August 2019

The pushy U.S. investor is building a stake in $63 bln EssilorLuxottica, maker of the sunglasses brand and others. Although his plans are unclear, the company has unveiled another big deal despite the lack of a CEO and messy corporate governance. A fresh outside lens may help.

Western luxury brands’ China dilemma will worsen

14 August 2019

Givenchy, Swarovski and Versace have made grovelling apologies to Beijing for incorrectly implying Hong Kong is a country. The humility comes easily now. Abasement would become more painful, and costly, if China turns up the heat on the special administrative region’s protests.

Prada’s independence hinges on green millennials

31 July 2019

As creative guru Miuccia turns 70, the fashion brand’s stock sits 35% below its IPO price. To return there Prada needs Gucci’s sales growth and LVMH’s margins. Unless neophyte 31-year-old son Lorenzo’s renewables push enthuses his peers, it may not stay independent.

Ted Baker offers tricky embrace for private equity

22 July 2019

Shares in the seller of colourful shirts rose 15% on hopes of a buyout. A low valuation, and the opportunity to expand in Asia may appeal. But the likely involvement of hug-loving founder Ray Kelvin could deter some buyers. And the group’s sluggish growth will limit returns.

H&M gets too much credit too soon

27 June 2019

The Swedish fashion retailer’s shares rose 10% after strong June sales. The company also said it would sell more clothes at full price and divert more resources to its online business. But to fully deserve the richer valuation, a drop in the operating margin has to be reversed.

Rocket exerts downward drag on German fashion IPO

26 June 2019

A clothing site in which Oliver Samwer’s tech investor owns 20% is struggling to float. Global Fashion Group was tainted by association with Home24, another Rocket-backed group which flopped, despite their differences. Investors’ growing aversion is a big problem for Samwer.

Chanel’s bling valuation will keep suitors at bay

17 June 2019

The privately held label made 2 bln euros of net profit in 2018. Valued like rival Hermes, it’s worth 90 bln euros. Chanel may be in flux after Karl Lagerfeld’s death, but its bulk would make suitors think twice even if its controlling investor wanted to sell.

Philip Green escape is bad omen for UK high street

13 June 2019

The British retail baron saved his empire by pushing through an aggressive restructuring. Landlords agreed to cut rents by up to half, despite the risk that other tenants will demand similar discounts. The deal shows the fragility of UK retailers – and the property they occupy.

Tisci’s medicine can ease Burberry’s China aches

16 May 2019

The UK fashion group reported static sales and sluggish growth in the People’s Republic. A strong reception for new designer Riccardo Tisci’s debut collections should reinvigorate sales. Burberry’s prediction of “broadly stable” revenue in the coming year may prove too cautious.

Bernard Arnault dances to Rihanna’s fashion tune

10 May 2019

The French billionaire is hooking up with the pop icon to launch a label for fancy clothes and bags. A repeat of Rihanna’s wildly popular Fenty cosmetics line would add just 1% to LVMH’s sales. Still, tapping into 70 mln Instagram fans is faster and cheaper than buying a brand.

LVMH sales fizz is sign of strong getting stronger

10 April 2019

Like-for-like sales at the 165 bln euro luxury giant grew a chunky 11 pct in the first quarter. The “buoyant” performance defies both slowing global economic expansion and trade tensions. It’s a good omen for other fashion conglomerates, but not for weaker single-brand rivals.