Fashion

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.

LVMH and peers have a suitably high-quality issue

30 January 2019

The top four makers of luxury bags and watches could wind up with 12 bln euros of net cash by 2020. If they gear up to manageable levels, they’d have a 40 bln euro war chest. So far, so good – except investors might start to complain if it’s not used for M&A or returned to them.

Burberry’s hopes rest on new designer’s magic

23 January 2019

The British fashion house eked out 1 pct growth in same-store sales last quarter, worse than luxury rivals. A looming hard Brexit could also be a massive headache. The weak results mean the group badly needs 44-year-old Riccardo Tisci’s debut collection to be a hit.

New Look makeover is bad trend for UK high street

14 January 2019

The ailing retailer is writing off three-quarters of its 1.35 bln pounds of debt in an effort to repair its finances. Like rival Debenhams, it can only survive if UK high street sales pick up. But after a bleak Christmas and with Brexit looming, a revival looks far from assured.

Ted Baker shoppers pick money over mores

9 January 2019

The British fashion house posted higher than expected sales over Christmas despite founder Ray Kelvin’s hugs-related scandal. Festive promotions certainly helped. However, the brand looks more resilient than its current stock price implies. It’s a mixed blessing for Kelvin.

French squeeze-out plans may tempt Arnault on Dior

7 January 2019

Paris wants to ease buyouts by cutting to 90 pct the bar for forcing out minorities. The new rules, along with a dip in luxury stocks, can revive the magnate’s interest in taking Christian Dior private. There’s no urgency for a leaner structure. But the bill may rise.

Next divides UK retail into strugglers and losers

3 January 2019

The retailer reported better-than-expected Christmas sales, helped by its larger online presence. But weak store sales suggest many high street peers, like Debenhams, are still on shaky ground. And even Next’s more diversified business is barely growing.

Italy’s woes could spell LVMH moment for Moncler

2 January 2019

Italian luxury brands have so far resisted becoming conglomerates like the French behemoth and rival Kering. But generational shifts by founders, combined with an aversion to political risk by global investors, may afford Moncler boss Remo Ruffini his opportunity to change that.

Ted Baker is stuck in a bear hug trap

4 December 2018

Ray Kelvin’s habit of embracing employees has become a liability for investors. If an internal probe shows he is culpable of more than unwanted coziness, the fashion brand could push its largest shareholder away. Even if he holds on, Ted Baker will grapple with other challenges.

New threats cloud Benetton’s lasting legacy

23 October 2018

Gilberto Benetton led the Italian group’s diversification from garments into concessions. His vision protected the business from the threat of globalisation. But even seemingly stable assets like infrastructure, as the Genoa bridge tragedy shows, can hide great perils.

ASOS’ fast-fashion surge lacks high-end profit

17 October 2018

The internet retailer’s shares rose 12 pct after it beat forecasts, and touted its “huge” potential. But more profitable own brands made up a smaller proportion of its sales, and new ranges such as a gender-fluid style are cheaper. Competition in online retail is huge too.

H&M gets too much credit for a patchy new look

27 September 2018

A glitchy supply chain sent the 23 billion euro fast-fashion retailer’s pre-tax profit down a fifth in the third quarter. Strong online demand was a rare bright spot. Investors who bid up the stock 10 percent ignore high levels of unsold stock and sales growth well below targets.

Versace gives Blackstone a suitably flash exit

24 September 2018

Fashion group Michael Kors may pay 2 billion euros for the Italian label. The deal adds a high-profile name to CEO John Idol’s growing stable of luxury brands, but may take years to pay off. Minority investor Blackstone has stitched together a clean sale, and respectable return.