Burberry’s risky new look rules out missteps 9 Nov 2017 CEO Marco Gobbetti’s plans to take the UK brand upmarket mean no sales or operating margin growth until 2020. Investors who lopped 1 bln pounds off Burberry’s market value will now be unforgiving. Only perfect execution and the right new designer can prevent a further slide.
M&S swaps comfort food for tougher diet 8 Nov 2017 The UK retailer will speed up closures of its clothes stores, aiming to move sales online. A fresh urgency addressing changing consumer habits bears the hallmark of Archie Norman, the new chairman. That’s all the more important with the usually reliable food business going off.
ABF’s sweet tooth will weigh on valuation 7 Nov 2017 The beets-to-boots seller is doing well in fashion as its Primark stores win market share from rivals. But profit in the sugar business will fall as EU prices dip. The exposure to commodity price swings makes it hard to justify a valuation approaching that of Zara owner Inditex.
Bumper listing in Vietnam sets speedy precedent 7 Nov 2017 Byzantine rules have discouraged flotations, subduing trading and deterring foreign investors. The faster, simpler structure used by Warburg Pincus for a $700 mln deal is a step towards changing that. More private equity-backed debuts could follow.
Alibaba splurges to impress China’s store owners 2 Nov 2017 Sales are soaring at Jack Ma's $477 bln e-commerce giant. But it is investing heavily in experimental supermarkets and malls that show off its payments, logistics and marketing prowess to others. It's a costly way to keep Alibaba’s technology and services revenue growing.
Under Armour’s governance is a value trap 31 Oct 2017 The sportswear firm’s stock tanked after a rare drop in quarterly sales. Broader retail woes don’t help. But shares have plunged two-thirds since founder Kevin Plank cemented control with non-voting stock. That gives investors little room to exercise the company back to health.
Burberry can lose kid gloves along with Bailey 31 Oct 2017 Designer Christopher Bailey is leaving the British fashion brand after 17 years. It has taken the company three years to unpick the deferential 2014 decision to hand him the CEO role. His exit gives new boss Marco Gobbetti a freer hand to implement much-needed turnaround plans.
Warburg Pincus bucks mall trend in Vietnam 27 Oct 2017 The U.S. private-equity firm is floating Vincom. The $3.4 bln mall operator is a way to bet on booming consumption, and has safeguarded itself against the rise of e-commerce by carefully picking key tenants. No wonder investors were queuing up.
Generational shift augurs holiday blues for Mattel 26 Oct 2017 The toymaker’s shares tumbled after it posted a 13 pct quarterly sales drop and suspended the dividend. Toys R Us’ bankruptcy hurt Barbie and Hot Wheels, but American Girl, which sells direct to consumers, suffered even more. Digital kids are the nightmare of Christmas present.
Heavy Amazon investment aims at rivals – and costs 26 Oct 2017 The $470 bln online giant’s third quarter again showed prodigious growth and a desire for more. CEO Jeff Bezos is pouring money into warehouses, gear and employees to beat Wal-Mart on the ground and Alphabet in the cloud. The bigger challenge may be outrunning rising expenses.
Hudson’s Bay buildings are its real luxury goods 24 Oct 2017 The C$2.2 bln department-store owner is selling Lord & Taylor's New York building for $850 mln to WeWork. It may not satisfy activist Jonathan Litt, who's waging a proxy fight for bolder steps. But with retail in retreat, the firm is conceding it needs to monetize its property.
Time for Kering to hang up its boots at Puma 24 Oct 2017 The sneaker maker has been a poor investment for the fashion group and sullies its luxury image. Puma’s recovery could let Kering get out without a loss, even if finding buyers looks tricky. Spinning off the 5 billion-euro unit would be easier, and leave less cash to squander.
Whirlpool and Sears engage in war of weaklings 24 Oct 2017 The appliance maker will no longer supply the retailer with most of its brands after a price-hike request was denied. Whirlpool cited higher costs and growing competition. Sears is struggling to keep its business alive and out of bankruptcy. Neither has the upper hand.
Stitch Fix IPO fits better than Blue Apron 23 Oct 2017 The personal-clothing shopping service faces tough competition. Yet unlike the meal-delivery service whose public offering flopped in June, it has largely financed rapid growth through profit. Success depends on its shoppers and algorithms continuing to nail fickle fashion.
Meituan orders up help to be China’s next web star 20 Oct 2017 The food-delivery to hotel-bookings startup raised $4 bln at a $30 bln valuation. Investors reckon Meituan-Dianping could be China’s next huge online platform. With scale benefits from offering many different services, and this warchest to fight off rivals, they could be right.
Exchange Podcast: Scott Galloway 19 Oct 2017 The NYU marketing guru swung by Times Square to discuss what's next for "The Four" tech behemoths - Google, Apple, Amazon and Facebook. Among his predictions: one of them will be hit with a $10 bln-plus antitrust fine and Amazon will choose New York for its second headquarters.
Qudian IPO feeds debt-hungry Chinese millennials 18 Oct 2017 The online lender backed by e-commerce giant Alibaba’s financial arm has priced its U.S. listing above expectations, says Reuters. It boasts fast growth, low defaults and - shockingly for tech - profitability. As young Chinese shoppers rack up debt, Qudian will keep earning.
Nordstrom sale season may be long time coming 16 Oct 2017 With large insider stakes and growing revenue, the $7 bln department-store chain was a prime candidate for a buyout. Now it is shelving its sale until after the holidays. It may be hoping for a higher price. But the delay suggests even risk-tolerant buyers are cool on the sector.
Fast Retailing tailors a bright future in Asia 13 Oct 2017 Full-year results from the $32 bln fashion retailer behind Uniqlo show it is back on track overseas. Fast Retailing is growing rapidly across Asia, has staunched U.S. losses, and has bold plans for China. After earlier missteps, this Japanese group is going global in fine style.
Wal-Mart gets into e-commerce groove 10 Oct 2017 The $250 bln grocer said U.S. online sales will jump 40 pct next year. Additions like Jet.com help and it is using its 5,000-plus stores well. The channel represents less than 4 pct of Wal-Mart revenue stateside, so there’s room to grow. Maybe even Amazon should watch its back.