Retail

Corona Capital: Gilead Sciences, Virtual Santa

23 October 2020

Concise views on the pandemic’s corporate and financial fallout: Remdesivir gets formal approval; Santa goes missing from Macy’s.

Unilever finds better recipe with new growth focus

22 October 2020

The Magnum maker’s sales jumped in the third quarter. CEO Alan Jope hopes price cuts and higher spending on marketing will ensure this is not a one-off. Sacrificing a goal of lifting the operating margin is the right thing to do. But more guidance would inspire more confidence.

Nestlé without KitKats is logical next step

21 October 2020

The $340 bln Swiss giant’s food and drink business is shrinking, while CEO Mark Schneider is bulking up in pet care and health science. Covid-19 is accelerating the shift. Selling or spinning off confectionery, worth say $30 bln, could unlock value and sidestep a sugar backlash.

Corona Capital: U.S. state budget woes

20 October 2020

Concise views on the pandemic’s corporate and financial fallout: Some conservative U.S. states are hurting as much as liberal New York.

Alibaba grocery deal may stall at final checkout

19 October 2020

The Chinese e-commerce giant is buying out its French partner in supermarket chain Sun Art, for $3.6 bln. A mere 2% premium suggests an eager retreat for the seller. Given Alibaba’s brick-and-mortar ambitions, minority shareholders have less reason to settle for a discount price.

Unibail activist riot leaves leaky roof exposed

15 October 2020

Telecom mogul Xavier Niel and the mall operator’s former CEO want to block its $4 bln rights issue. Their plan to sell the U.S. business instead would save money but is trickier if Covid-19 persists. Doubling down on Europe also leaves the group more at risk from online shopping.

Corona Capital: Black Friday, JPMorgan’s new tower

14 October 2020

Concise views on the pandemic’s corporate and financial fallout: Walmart’s Black Friday rejig makes for a curious experiment; JPMorgan goes all-in on New York real estate.

Chinese discount chain Miniso sells upscale IPO

14 October 2020

Now more than ever consumers should be attracted to the retailer’s fast-changing inventory of cheap-and-cheerful items. Overseas growth also looks promising despite the pandemic hit. A potential $6.2 billion valuation, however, would put a luxury price on designer dollar stores.

Corona Capital: Soap, Zalando, Aussie oil

9 October 2020

Concise views on the pandemic’s corporate and financial fallout: Vigorous handwashing has helped Henkel’s soaps business, but not enough to offset its other bits; homebound shoppers give Zalando a boost; and Canberra may need to refine its refinery strategy.

Corona Capital: Fiscal stimulus, Fitness riches

6 October 2020

Concise views on the pandemic’s corporate and financial fallout: Central bankers including the Federal Reserve’s Jerome Powell urge more fiscal help as Covid-19 cases rise again; and the owner of NordicTrack treadmills raises cash at a $7 billion-plus valuation.

Wall Street can’t keep its finger off the trigger

5 October 2020

Credit Suisse and JPMorgan led the IPO of Academy Sports, a retailer of assault-style rifles that supplied the perpetrator of a 2017 mass shooting. Like Academy owner KKR, their part in America’s gun violence problem is relatively small. Still, it’s one they have taken willingly.

Corona Capital: Donald Trump, Kenzo Takada

5 October 2020

Concise views on the pandemic’s corporate and financial fallout: U.S. President Donald Trump’s fight with the coronavirus could lead to a less fiercely contested election result; the death of Japanese designer Kenzo Takada comes at a bad time for the global fashion industry.

Duty-free group bags the ultimate Chinese shopper

5 October 2020

Dufry struck a joint venture with Alibaba, while the e-commerce giant will pump up to $273 mln into the pandemic-struck Swiss travel retailer. CEO Julián González has secured a powerful local partner at a small price. It’s a good deal, assuming the duty-free business recovers.

Daniel Kretinsky’s grocer grab has sliver of sense

1 October 2020

The Czech billionaire has bought $1.5 bln worth of shares in European supermarkets like J Sainsbury and Casino. Anaemic growth and low margins suggest that’s unwise. But if his targets can slash costs and take advantage of an online boom, his bet may begin to look shrewd.

Corona Capital: Covid-19 tests, Bed Bath & Beyond

1 October 2020

Concise views on the pandemic’s corporate and financial fallout: Diagnostic company Quidel predicts a quarterly earnings bonanza; meanwhile the pandemic turns a struggling retailer into a winner, at least temporarily.

Walmart pays price for late UK checkout

30 September 2020

The retail giant may sell grocer Asda to buyout firm TDR and two petrol station tycoons for $8.3 bln. It’s a cheaper and riskier exit than a planned union with peer J Sainsbury, thwarted by watchdogs last year. Online competition, a pandemic, and Brexit have weakened its hand.

Heady Polish e-commerce IPO calls for brisk tempo

29 September 2020

Allegro’s float values it at $12 bln including debt. That’s a punchy 32 times EBITDA, in line with global rival Amazon. As it processes 36% of the country’s online sales, a promise of speedy growth relies on new revenue sources. Meanwhile, competition will squeeze margins.

Corona Capital: Financial centers, Costco

25 September 2020

Concise views on the pandemic’s corporate and financial fallout: New York, London and other financial centers still have their luster even if workers will trudge in less to the office; Costco’s coronavirus costs add up.

Corona Capital: Millionaire tax, Rent the Runway

18 September 2020

Concise views on the pandemic’s corporate and financial fallout: New Jersey taxes the rich to help close a budget gap; and high fashion has trouble competing against sweats.

ZTO digs deep trench in China’s logistics war

18 September 2020

Competition has crushed the courier’s margins and with reduced forecast earnings it trades on a valuation multiple higher than its investor and customer, Alibaba. Proceeds from a $1.6 bln Hong Kong secondary listing will help ZTO triumph in a price war and any consolidation.