Cosmetics IPO application calls for a steady hand 4 Mar 2024 Buyout firm CVC is braving uncertain markets to list retailer Douglas, possibly for 7 bln euros. Shoppers’ appetite for premium makeup despite inflation is a positive sign. Yet the group’s high leverage and competition from Sephora call for a valuation discount to US rival Ulta.
Europe shares’ granola rush will become thin gruel 26 Feb 2024 The STOXX 600 Index has hit a record, but local funds are seeing outflows. As in the US a small bunch of companies – the so-called GRANOLAS group – are behind the good news. But in the Old Continent they’re more dependent on weak economic growth rather than the AI revolution.
Hermès’ winning style is hard to replicate 9 Feb 2024 The French seller of $10,000 Birkin bags has outshined rivals, shrugging off inflation fears and a slowing China. Elite shoppers who see its high-end leather products as a store of value create resilience. Gucci-like brands, more exposed to fashion moods, look more fragile.
Capital Calls: Estée Lauder, European banks 5 Feb 2024 Concise views on global finance: The cosmetics giant behind Le Labo is cutting jobs and redoubling restructuring efforts, but the changes only go skin-deep; Santander and Lloyds are under pressure after a report they banked entities controlled by a US-sanctioned Iranian company.
Capital Calls: Ferrari closes gap with Hermes 1 Feb 2024 Concise views on global finance: The Italian carmaker’s valuation looks more like its luxury rival Hermes after its record results.
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.
Capital Calls: Richemont revival 18 Jan 2024 Concise views on global finance: Shares in the $72 bln owner of Cartier rallied 9% after its quarterly results beat expectations, but concerns over the luxury sector persist.
Capital Calls: Pandora 8 Jan 2024 Concise views on global finance: Stronger than expected quarterly sales help the $12 bln Danish maker of affordable jewels beat its annual growth target.
‘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.
Kim Kardashian will be kicked off Instagram 22 Dec 2023 The influencer is worth $1.7 bln, which could climb with her shapewear brand’s IPO. That’s value that doesn’t flow to the owners of platforms sustaining content creators’ fame, like Elon Musk or Mark Zuckerberg. The best way for them to pull some back: suspend her privileges.
Capital Calls: Saks and Neiman Marcus 1 Dec 2023 Concise views on global finance: The two luxury retailers are once again contemplating a merger. Fickle consumers, even for high end items, make the marriage ideal.
Richemont digital strategy goes back to square one 29 Nov 2023 The Swiss group’s sale of its YNAP online platform is in doubt due to troubles at US-listed buyer Farfetch. Extracting itself from the deal, though potentially messy, looks the best option for the Cartier owner. Yet that still leaves Chairman Johann Rupert with an old problem.
Capital Calls: Gap earnings 17 Nov 2023 Concise views on global finance: Investors rewarded improvements at the apparel company's Old Navy brand by sending shares up over 30%. Yet overall third-quarter results remain muted. It’s a promising sign for new boss Richard Dickson, even if the bar was low to begin with.
Capital Calls: Walmart, HelloFresh 16 Nov 2023 Concise views on global finance: Although the US retailer lost nearly 8% of its market value after it indicated that price increases are starting to ease, it should be able to navigate the challenge; the 2.7 billion euro meal-delivery company has become a tasty buyout target.
Farfetch turns from Richemont blessing to curse 9 Nov 2023 The $65 bln Cartier-owner hoped to fix a problem by flogging part of digital arm YNAP to the US-listed marketplace in a stock deal that involves extending $450 mln in credit. But Farfetch’s stock has dived and its finances are stretched. Its woes risk infecting the bling giant.
Capital Calls: Aston Martin 1 Nov 2023 Concise views on global finance: The marque favoured by James Bond has lost 50% of its value since a capital increase three months ago.
Kering’s woes are tip of melting luxury iceberg 25 Oct 2023 Sales at Gucci’s $54 bln owner plunged 9% last quarter. Inflation suppressed less affluent shoppers’ appetite for its products and geopolitical risks are clouding its most coveted market - China. While a complex turnaround ups Kering’s challenge, bling rivals are also vulnerable.
Capital Calls: Birkenstock flop 11 Oct 2023 Concise views on global finance: The sandal maker took a tumble, as its shares opened more than 10% below the IPO price, leaving questions about its venue and valuation.
Capital Calls: Pelululemon 28 Sep 2023 Concise views on global finance: The apparel firm and the exercise-bike maker have entered into a five-year partnership, ending a costly feud. For Lululemon, it removes the risk of an outright acquisition. Peloton gains a valuable partner, but still faces an uphill climb.
Coty’s listing treatment is just cosmetic 26 Sep 2023 The $10 bln US-traded beauty firm is going against the tide with a dual listing in Paris. That may give it more visibility with European investors and the funds will cut its debt. But it won’t reduce the risk of its luxury clients boosting their own cosmetic and perfume arms.