JD is logical winner of odd UK retail bidding war 19 Feb 2024 The $37 bln Chinese e-tailer is mulling an offer for Britain’s Currys, also the subject of interest from Elliott Advisors. A feeding frenzy for a sub-$1 bln UK asset with an unproven turnaround story sounds weird. But JD.com’s need to expand overseas is a strong motivation.
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.
Unilever is test case for ‘edible stranded assets’ 2 Feb 2024 The $123 bln consumer goods group relies on brands that look vulnerable to sugar taxes and changing eating habits. Like oil majors facing lower demand, Unilever and others like Nestlé may have to write down the value of these assets. Unfortunately, the problem defies easy fixes.
Capital Calls: Paramount takeover bid 31 Jan 2024 Concise views on global finance: Media mogul Byron Allen, whose company owns The Weather Channel, is offering to buy the TV and film conglomerate for $30 bln. Even if he doesn’t become the next owner, his presence should help get a sale process moving and plump up the price tag.
Tired trends make their way to Macy’s 26 Jan 2024 The department store chain dressed down a $5.8 bln takeover bid by two investment shops because of financing concerns. From Kohl’s to Saks, the designs are typically the same: split stores from property or online from brick-and-mortar. Neither option looks especially attractive.
Shein’s China and ESG risk puts IPO on iffy ground 25 Jan 2024 The fast-fashion giant is preparing a New York stock market listing. In this Viewsroom podcast, Breakingviews columnists explain how US investors might be wary of links to Beijing, and how its hard-to-recycle $5 tops and sweaters could be vulnerable to future regulation.
P&G cleans up by getting its hands dirty 23 Jan 2024 The $366 bln consumer goods company raised prices just enough to exact pain onto consumers without sacrificing overall sales. It isn’t feeling the effects of inflation either, which helped gross margins. That enabled P&G to reinvest in brands, creating a sweet spot.
Shein’s waste factor is its ultimate IPO risk 19 Jan 2024 The China-linked retailer’s lean production model helps it keep inventory low. Yet its polyester garments are carbon-intensive and hard to recycle. Regulators’ growing unease about textile pollution, and the cost of addressing the mess, may require giving up clients or margins.
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.
Athleisure boom offers edge to premium retailers 18 Jan 2024 Wealthy shoppers are splurging on pricey leggings and sneakers despite inflationary pressure. That helps premium brands like $59 bln Lululemon and On while Nike and others deal with inventory pile-ups. If the big players can’t catch up, valuation gaps will only get wider.
Burberry’s weakness could entice luxury shopper 12 Jan 2024 After a profit warning, the $6 bln UK fashion group is worth 45% less than it was a year ago. Potential buyers will have noticed. While private equity firms may struggle to make decent returns in a slow market, sector leader LVMH could find the situation more tempting.
‘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.
Macy’s best option now is profitable oblivion 11 Dec 2023 An investor group has offered to take the US retailer private for $5.8 bln, following past proposals to fix the struggling department store chain by Starboard and Jana. Going private could have logic, if Macy’s properties can be sold. The chain should grab value when it can.
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.
Temu takes edge, and shine, off Shein 29 Nov 2023 The shopping app’s huge success helped parent PDD double quarterly revenue, sending its New York stock up 18%. It puts the planned US debut of its rival, valued at $60 bln, in perspective. Shein will test appetite for hot China-linked deals but it’s not a singular phenomenon.
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.
Capital Calls: Goodyear, Target 15 Nov 2023 Concise views on global finance: By offloading assets, the 125-year-old tire maker is succumbing to a similar overhaul as many other iconic US industrial centenarians; the $60 bln retailer has finally taken aim at what it can control – keeping watch over inventory and costs.
Natura takes a bath to pass on Body Shop stink 14 Nov 2023 The Brazilian beauty giant is selling the shower gel retailer for around $260 mln six years after buying it from L’Oréal for $1.1 bln. The 80% price discount reflects the eco-friendly brand’s loss of relevance. For buyer Aurelius, restoring glow requires applying a lot of polish.