Paris fashion IPO will struggle for luxe valuation 18 Sep 2017 SMCP, the French owner of the Sandro and Maje labels, is planning a listing. Pitched between luxury and the high street, the Chinese-owned group has sales growth and an efficient supply chain to rival retail leader Zara. But its smaller size and high debt will weigh on its worth.
Viewsroom: Corporate America dumps CEO president 17 Aug 2017 Donald Trump’s inflammatory comments about white supremacists have lost him the support and advice of business leaders, leaving him increasingly isolated and ineffectual. Qatar’s stake in the LSE may prompt Saudi Aramco to shun the exchange for its IPO. Plus: M&A for the MAGA era.
VF stitches up signature deal for the MAGA era 14 Aug 2017 The North Face owner is dropping $820 mln for Dickies, a maker of apparel for manufacturing and construction laborers. It gives VF a strong position in the workwear marketplace, which Donald Trump has promised to revitalize – or at least a hedge against fashion's fickleness.
Michael Kors and Ralph Lauren improve their looks 8 Aug 2017 Shares in the U.S. fashion houses leapt as tighter distribution and inventory curbs yielded earnings beats. Yet a harsh retail climate is depressing sales and both shops are late in their turnaround efforts. It will take more work to get their valuations off the discount rack.
Next’s classic model is key to a better look 3 Aug 2017 Sales at the fashion chain returned to growth in the second quarter, helped by better online sales. Next’s direct-sales catalogue gave it a head start over rivals when it comes to selling on the web. It also provides a potential hedge against fewer shoppers in its stores.
Brazil pork mongers find comfort in flip-flops 31 Jul 2017 Selling trendy sandal maker Alpargatas to wealthy banking families will help meatpacking-to-pulp firm J&F pay a huge fine for bribing politicians. The original purchase, from a company also embroiled in scandal, is being probed by authorities too. It's a Brazilian microcosm.
Gucci gives luxury an eye-catching makeover 27 Jul 2017 Operating profit at Kering, the Italian brand’s 39 bln euro parent, rose 57 pct in the first half of 2017. The catwalk-worthy performance avoided discounting or the sector’s old trick of opening new stores. Until rivals can copy it, they will envy the French group’s look.
LVMH’s only bad look is a now-fashionable euro 27 Jul 2017 Operating profit at the Louis Vuitton owner jumped 23 percent in the first half. The French group’s lucrative clothing and handbag division last performed this strongly during China’s shopping frenzy in 2011. Europe’s strengthening currency could yet cramp the company’s style.
Shanghai Tang sale pushes against M&A current 4 Jul 2017 An Italian textile maker has purchased the China-inspired fashion brand from luxury giant Richemont. The deal is at odds with the image of wealthy mainland buyers snapping up cash-strapped European brands. But Shanghai Tang was never very Chinese, and that's the problem.
LBO orphan J.Crew tries patch-up job with new CEO 6 Jun 2017 Owners TPG and Leonard Green have effectively written off the ailing retailer. Now long-serving boss Mickey Drexler is out. His replacement, James Brett, has to deal with falling sales, bickering creditors and vultures preparing for bankruptcy. Survival will be a tall order.
Art world upstart sprays tech fortune on canvas 2 Jun 2017 Japan's Yusaku Maezawa is building a collection of Basquiats and other masterpieces. The soaring value of his fashion portal vividly illustrates how investors are enchanted by the tech industry’s fast growth and fat margins. It also means he can afford to paint the town red.
France makes life too easy for pushy bosses 12 May 2017 Vivendi, Christian Dior and Safran are all doing complex deals driven by big shareholders’ interests – and minority investors can’t do much about it. Muting dissent is meant to make French companies more nimble. It does, but at the cost of helping insiders get their way.
Richemont’s downsizing is worth copying 12 May 2017 The Swiss luxury watchmaker’s full-year sales disappointed and margins are now touching financial crisis lows. At least chair Johann Rupert has recognised the need to shrink. It’s an example that others like Prada would do well to follow.
Viewsroom: Comey ouster bad for business 11 May 2017 Donald Trump’s surprise firing of the FBI director could bog down policies from tax cuts to regulatory reform and even throw the rule of law into question. South Korea elects a new leader to put its own presidential scandal in the past. Plus: Coach goes shopping for Kate Spade.
Burberry looks better without boardroom wrinkles 9 May 2017 In two months, designer Christopher Bailey will be replaced as CEO but keep outsize influence and a board seat. That might be tolerable were Burberry performing better. Now, it’s clear new boss Marco Gobbetti needs a free hand. Bailey has a role, but ideally a lesser one.
Coach pays luxury price to catch up with LVMH 8 May 2017 The U.S. handbag maker is plunking down $2.4 bln for Kate Spade, a figure not justified strictly by the numbers. But Coach's owners like the move to a multibrand portfolio, which has worked for LVMH and Kering. Mature luxury marques can no longer expect to succeed on their own.
Coach’s luxury shopping habit risks distraction 2 May 2017 The high-priced handbag maker’s good third quarter is a bright spot amid struggling retailers. It doesn’t justify buying Jimmy Choo or Kate Spade, however. CEO Victor Luis vows no poor deals, but most are likely to be a tougher fit than his 2015 acquisition, Stuart Weitzman.
Gucci shows up rivals – and analysts 26 Apr 2017 The Italian label’s first-quarter sales rose 48 percent, double even bullish predictions. Global luxury spending is flat so rivals are probably losing market share. The difficulty of spotting winners and losers in this skittish sector makes current lofty valuations suspect.
Arnault’s new-look Dior pleases almost everyone 25 Apr 2017 The French tycoon is offering to buy out minority investors in Christian Dior for 12 bln euros. LVMH shareholders will also welcome a streamlined empire. The most stylish twist is that Arnault is using the luxury giant’s balance sheet and shares in rival Hermes to pay for it.
Jimmy Choo seeks new owner for scuffed brand 24 Apr 2017 The high-heel label is for sale less than three years after its IPO. Owner JAB may need cash following its $7.5 billion purchase of Panera Bread. There is room to increase Jimmy Choo’s operating margin, but with slow sales growth, it already looks expensive.