Fashion

LVMH has smarter way to tackle succession dilemma

11 Jan 2023

Bernard Arnault picked his daughter Delphine to run the luxury giant’s Dior brand. If she proves her mettle, she may win the race among her siblings to eventually replace the 73-year-old tycoon. Naming one heir would help LVMH extend its success to the next generation.

New CEO gives Prada more stylish look for listing

6 Dec 2022

Former Luxottica executive Andrea Guerra will replace founder Patrizio Bertelli at the $15 bln fashion house. It’s a breath of fresh air for the family-controlled firm. Putting an experienced outsider in charge may increase Prada’s appeal as it eyes a share sale in Milan.

Gucci designer’s exit boosts Kering’s M&A urgency

24 Nov 2022

Alessandro Michele’s departure from the bling group’s top label puts CEO François-Henri Pinault on the spot. Finding a new creative star will be hard, and he needs more brands to cut his $71 bln firm’s reliance on Gucci. A recent miss on Tom Ford also weakens his dealmaking hand.

Burberry revival rests on more leather power

17 Nov 2022

New CEO Jonathan Akeroyd wants to grow sales by 40% in coming years at the stagnating fashion house. Success hinges on star designer Daniel Lee’s ability to create alluring high-margin bags and shoes. But the move will take time and may hurt demand for items currently in store.

Estée Lauder plus Tom Ford is tricky defensive act

16 Nov 2022

The beauty giant will buy the fashion house for $2.8 bln. It allows the $81 bln group to cling on to the designer’s fast-growing fragrances, which it licenses. But outsourcing the eyewear and clothes units risks being a distraction, especially if Ford himself leaves after a year.

Capital Calls: Disney’s Netflix problem

8 Nov 2022

Concise views on global finance: The Magic Kingdom’s shares tanked on Tuesday after it reported widening losses in its streaming service division, but it can overcome the challenges.

Tom Ford return offers remedy for Gucci fatigue

4 Nov 2022

Kering is considering a swoop on the U.S. fashion house. Bringing back Gucci’s ex-star designer could ease the $60 bln fashion giant’s reliance on its largest brand, which needs reinvigorating. Kering’s vast retail network would also make the Tom Ford label a winner.

Adidas’s Kanye West bet is still in credit

27 Oct 2022

The 18 bln euro sportswear maker severed ties with the musician over offensive comments. In this Viewsroom podcast, Breakingviews columnists discuss how the financial benefits to Adidas nevertheless outweighed the costs. That may spur other brands to pursue outspoken stars.

Capital Calls: Mobileye IPO, Loafer buyout

26 Oct 2022

Concise views on global finance: Intel’s autonomous driving subsidiary benefited from lower expectations, while Tod’s founder Diego Della Valle may have a Plan B after resistance from minority investors forced him to abandon plans to take the luxury shoemaker private.

Adidas-Kanye split leaves investors in the money

25 Oct 2022

The $18 bln sportswear group cut ties with the musician, now called Ye, after he made offensive comments. Its sluggish response risks a boycott. But given Yeezy sneakers’ high profit margins in recent years, shareholders may already have won more than they stand to lose.

Capital Calls: Adidas

21 Oct 2022

Concise views on global finance: The 19 bln euro sportswear maker slashed its 2022 revenue outlook, dragging shares down 10%.

Prada homecoming would set a financial fashion

18 Oct 2022

A decade after its Hong Kong IPO, the $12 bln maker of Galleria bags is seeking to trade also in Milan. That will help it into European indices and create a hedge against Western decoupling from China. It would also make sole listings in the Asian hub less desirable.

Capital Calls: Chevron, Pickleball

29 Sep 2022

Concise views on global finance: The oil driller has sold its California headquarters building and is moving employees to Texas, while one of the fastest-growing U.S. games is beefing up its professional ambitions with an investment from basketball superstar LeBron James.

Capital Calls: Richemont’s activist spat

7 Sep 2022

Concise views on global finance: Shareholders at the Cartier owner rejected investor Bluebell’s attempt to install former Bulgari CEO Francesco Trapani on the board.

Richemont finds tolerable way to refocus

24 Aug 2022

The $60 bln Cartier owner has finally sold part of e-commerce unit YNAP to Farfetch. Richemont gets a lower price than it could have last year, but keeps online presence via payment in its U.S.-listed rival’s shares. And cutting its stake helps it focus on more promising sectors.

Richemont’s governance armour is hard to pierce

12 Aug 2022

Activist Bluebell wants ordinary investors to appoint their own director on the board of the $63 bln Cartier owner. Yet Chair Johann Rupert’s big voting power means he could stifle the attempt. Without a fresh voice, contrarian business ideas may not get much airtime.

Ray-Ban heirs inherit wasteful Mediobanca feud

9 Aug 2022

Eyewear tycoon Leonardo Del Vecchio, who died in June, bought nearly 20% of the Italian bank as part of a fight with CEO Alberto Nagel. Making a return on the $1.5 bln stake will test his successors. Backing Nagel in his hunt for a target may be the more prudent choice.

Italy loafer buyout is a bet on a higher price tag

3 Aug 2022

Two decades after listing shoemaker Tod’s, founder Diego Della Valle is taking it private at the same 40 euro share price. His hope, with partner LVMH, may be that the group is worth more split up than his 1.4 bln euro bid implies. Weary investors may take the cheap offer anyway.

Ray-Ban tycoon leaves behind unfinished business

27 Jun 2022

EssilorLuxottica Chairman Leonardo Del Vecchio has died at 87 without publicly anointing an heir. That raises questions about the eyewear giant’s future and investments in Mediobanca and Generali. Though trusted lieutenants may reassure investors, they lack his track record.

Capital Calls: Inflation-proof Dr Martens, Saipem

1 Jun 2022

Concise views on global finance: The UK bootmaker’s polished results offer glimmer of hope to embattled retailers; the Italian energy-services group reassures investors with $550 mln sale of its onshore drilling unit.