Fashion

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.

Jumia to test faith in the rare African unicorn

27 March 2019

The e-commerce startup from Rocket Internet is hoping for a $1.4 bln price tag when it goes public in New York. Sales are galloping but so are losses. That’s a punchy valuation given the poorest continent’s social and political problems – unless Alibaba or Amazon are the buyers.

Levi Strauss IPO looks a few sizes too big

21 March 2019

The 166-year-old jeans-to-jumpsuits maker is worth $8.7 bln after shares popped 33 pct on its return to the public market. That’s perhaps justified, but it’s a stretch, suggesting denim will remain in vogue. Recent bankruptcies of two rivals are a reminder such fashion fads fade.

Time for Ted Baker to embrace overseas offers

4 March 2019

The UK fashion group’s founder Ray Kelvin has left amid an ongoing probe relating to his hugging of colleagues. With the shares down a third in a year and Kelvin still holding 35 pct, Ted Baker could be in play. Chinese luxury players eyeing mid-market brands may come calling.

Moncler’s strength will whet its M&A appetite

1 March 2019

The Italian puffer-jacket maker’s 2018 sales grew 18 percent year-on-year, disproving fears it might miss out on the recent spate of strong luxury results. Moncler could become an LVMH-style sector aggregator. A rising net cash position and share price give it greater firepower.

Zalando copies Amazon recipe for success

28 February 2019

The online fashion retailer wants to focus more on being a shop window for others rather than buying and posting out stock itself. Shifting inventory and delivery costs to retailers mimics the strategy followed by Jeff Bezos’ behemoth and will boost operating margins.

If Chanel were a normal company, it’d be in play

19 February 2019

The Parisian fashion house’s designer for 36 years, Karl Lagerfeld, has now died at 85. Its co-owners, two brothers, are approaching retirement. LVMH boss Bernard Arnault has the firepower to make a $40 bln purchase. Bankers may be salivating, but a deal looks a long way off.

Levi’s IPO fails the Marie Kondo test

14 February 2019

The denim maker plans to list its shares after decades in private hands. But the super-voting stock and staggered board that entrench the family owners detract from its strong growth. To quote the Japanese wardrobe-sifting guru: Does it spark joy? As it stands, the answer is no.