ESG is ghost at global retailers’ annual feast 19 Apr 2024 LVMH, Amazon and peers gathered in Paris for the industry’s yearly shindig. The growth areas in the $30 trln sector are Shein-style cheap garments and the Middle East. Both jar with retailers’ previous focus on environmental, social and governance factors.
Luxury’s great divide will get more striking 17 Apr 2024 Sales at $420 bln LVMH rose a dull 3% in the first quarter. The Tiffany-to-Dior behemoth’s insipid performance points to a broader fragility within the sector. With revenue in the luxury industry flattening, the gap between winners and losers is set to grow wider.
Rabanne-owner IPO offers a scent of prestige 9 Apr 2024 Perfumes-to-skincare conglomerate Puig wants to list in Madrid. At a discount to beauty giants L’Oréal and Estée Lauder, the Spanish group may be worth $18 bln. European markets remain fragile, but premium fragrances’ rising appeal may turn the listing into a rare bright spot.
Beauty boom is busted 4 Apr 2024 Ulta Beauty’s stock plummeted 15% after the $21 bln makeup company’s CEO said lipstick-wearers had less money to put towards their routines. The industry’s M&A trend suggests the glam business can’t stay attractive forever – it has succumbed to a typical cycle like everyone else.
A Dr Martens sale may cause multiple blisters 4 Apr 2024 An investor thinks the struggling $1 bln UK bootmaker could sell itself. Low valuations may woo buyers, but a bid is unlikely to make up for a 75% share slide since the group’s IPO. A rushed exit may also dampen top investor Permira’s effort to list sneaker brand Golden Goose.
Shein’s fast fashion comes with fast-finance risks 28 Mar 2024 Influencers and US shoppers love the online retailer, but the one product that’s not yet for sale is the company’s shares. If all goes very right, a $200 bln valuation in a mooted IPO isn’t unthinkable. Yet Shein’s business model may shift as quickly as its cut-price clothing.
Hermès lawsuit attacks luxury’s FOMO premium 26 Mar 2024 A suit against the $274 bln fashion house claims it’s so hard to buy a Birkin, it’s illegal, alleging the handbag’s must-have aura lets the company force purchases of unwanted extras. If successful, it could crimp both Hermès’ top growth areas and ultra-luxe goods’ mystique.
Deeper Gucci woes test new CEO’s luxury touch 20 Mar 2024 Sales at Kering’s top brand are falling fast. An unproven designer, China weakness and a volatile client base are behind the group’s discount valuation. With M&A limiting hopes of buybacks, Gucci boss Jean-François Palus has a harder task convincing investors to stay the course.
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: 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.
Capital Calls: Birkenstock 19 Jan 2024 Concise views on global finance: The German sandal maker gets a reality check from investors three months after its much-hyped IPO.
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.
Shein’s ‘Made in China’ label clashes with IPO 15 Jan 2024 The fast-fashion retailer is seeking Beijing’s nod to go public in New York. It’s a setback for the Singapore-based company which has tried to distance itself from its Chinese roots. Whatever the decision, it’ll set an awkward precedent for peers like ByteDance’s TikTok.
China’s challenges come dressed in sportswear 5 Jan 2024 Li Ning, which sells athletic goods and leisure wear, was the worst-performing Hong Kong blue chip in 2023. A real-estate play bombed while cost-conscious shoppers are switching back to cheap local brands and foreign rivals like Nike. The retailer reflects its country’s woes.
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.
‘Polluter pays’ doctrine will take on new meaning 3 Jan 2024 Carbon-intensive throwaway fashion and ubiquitous plastic waste are dirtying the globe. That may change as governments start to crack down on discarded textiles and polymer-based items. Companies and their investors face a costlier journey to a more sustainable world.