Capital Calls: DraftKings, Shake Shack, Fanatics 18 Feb 2022 Concise views on global finance: The online gambling firm predicts fast growth but heavy losses; the U.S. burger chain had disappointing earnings yet its valuation is sky-high; the sports merchandiser teams up with Jay-Z to buy a streetwear firm for a song.
Kering gets dressed up for elusive mega-deal 17 Feb 2022 François-Henri Pinault’s luxury powerhouse is boosting sales and profit, thanks to star brand Gucci. That, plus a robust balance sheet, means the $90 bln group is well placed to splash out on a deal. The snag is that there are few obvious targets, raising the risk of overpaying.
Capital Calls: Continental, Harley-Davidson 8 Feb 2022 Concise views on global finance: German car-parts maker Continental may spin off its self-driving unit, while the iconic maker of motorbikes has turned supply shortages to its own advantage.
Capital Calls: Wizz investor sides with workers 7 Feb 2022 Concise views on global finance: Denmark’s AkademikerPension picks an odd moment to offload its stake in the $6 bln budget airline over a lack of union representation among its staff.
Ferretti float may be back in same boat 24 Jan 2022 After a bold $1.2 bln valuation target sank its Milan IPO effort in 2019, the Italian yacht maker owned by China’s Weichai is now sailing for Hong Kong. Growth is buoyant, but luxury goods have charted a patchy course on Asian bourses. It’ll be hard, again, to make a splash.
Capital Calls: Activist investors, P&G, Rivian 19 Jan 2022 Concise views on global finance: Underperforming UK stocks lure cage-rattling shareholders to London; sickness and germaphobia boost the $380 bln company’s earnings: And Ford Motors and Amazon.com book big gains on investments in the electric carmaker as its stock tumbles.
Porsche IPO may only partly aid VW’s odd valuation 9 Dec 2021 Volkswagen could finally list its luxury marque. Porsche may be worth up to 100 bln euros or more, making VW’s own $150 bln valuation look underpowered. The value assigned to both, however, may depend on how much control VW is prepared to give up.
Review: House of Gucci’s broken family capitalism 26 Nov 2021 A sprawling dynasty can lead to corporate disaster. Ridley Scott’s star-studded movie is a kaleidoscopic portrait of the infighting that saw the Gucci family lose control of their namesake brand. Stepping aside at the right time can make all the difference.
Prada’s new look merits fashion league promotion 18 Nov 2021 After years of drift, the $18 bln Italian brand has got a grip on its retail chain, axed discounts and rejuvenated its image. That should help it hit a 4.5 bln euro sales target and double its margins. For investors, the catch-up with snazzier rivals is something worth having.
Richemont beats orderly retreat from digital fight 12 Nov 2021 Under pressure from activists, the Cartier owner plans to spin off its loss-making online arm to rival Farfetch and others. If valued in line with peer Zalando it would be worth a respectable 4.7 bln euros. A sale should help Richemont close the valuation gap with luxury rivals.
Capital Calls: Tesla, Daimler 11 Nov 2021 Concise views on global finance: The electric-car maker’s directors have, like Elon Musk, cashed in; the German company is racing against Agnelli-controlled CNH Industrial to spin off a trucks division.
Richemont activism is more coaxing, less conflict 8 Nov 2021 Funds including Dan Loeb’s Third Point may push the Cartier owner to close a 20%-plus valuation discount to luxury peers. With half of the voting rights, Chairman Johann Rupert is in firm control. Unlocking value will depend on convincing him to make sensible strategic changes.
Capital Calls: KKR, Ferrari, HelloFresh 2 Nov 2021 Concise views on global finance: The private equity company is making the most of ideal market conditions; the Italian sports car maker raises its guidance; and a positive sales update turbocharges the German meal-kit delivery firm’s share price.
Burberry’s new boss revives upmarket hopes 20 Oct 2021 The UK maker of chic trench coats poached Versace boss Jonathan Akeroyd to be its next CEO. He pushed up the Italian brand’s sales by focusing on high-margin products. Burberry is eager for a similar luxury glow. Yet the $10 bln group’s scale makes it a much bigger challenge.
Time to end Richemont’s online fashion drag 18 Oct 2021 The Cartier owner may sell its e-commerce business YNAP just three years after taking it over. A deal with Farfetch or other rivals might reap at most 3.6 bln euros. Yet, by cutting exposure to a lossmaking unit, boss Johann Rupert would smarten up his company’s dowdy valuation.
High fashion has golden shot at green revamp 12 Oct 2021 LVMH has recovered from Covid-19. With a record valuation and lavish cash flows, the $370 bln luxury giant can afford an overdue splurge on axing its carbon footprint. Setting the trend in an industry that accounts for 4% of emissions will also pile pressure on rivals.
New light emerges from China’s shadowy shoppers 24 Sep 2021 Cross-border traders known as daigou have been hurt by the pandemic, curbing sales of everything from A2 milk powder to Gucci handbags. Shrinking this once-thriving grey market will come at a cost, as evidenced by one Aussie company. Lower risks and clearer pictures are worth it.
Capital Calls: China/TPP, Flavourings, Chill-boxes 17 Sep 2021 Concise views on global finance: China formally applies to join the Pacific trade pact; EQT-owned Azelis has a strong market debut; Sweden’s Dometic is shelling out a cool $677 mln for Texan chill-box maker Igloo.
Brad Pitt watchmaker warrants celebrity valuation 10 Sep 2021 Breitling, the Swiss maker of aviator timepieces touted by the actor and Charlize Theron, nearly doubled sales on CVC’s four-year watch. Now the buyout firm may flog a 20% chunk. The luxury label merits a $3 bln-plus price tag although buyers will want a minority-stake discount.
Bernard Arnault’s farewell to Carrefour is overdue 1 Sep 2021 The LVMH founder sold his remaining 5.7% stake in the $15 bln Gallic grocer, at one-third the likely price he paid in 2007. It’s a rare miss for the luxury guru. Yet given the sector’s shaky outlook and French government opposition to takeovers, even a painful exit makes sense.