Restaurant Group self-criticism bitter but healthy 26 Aug 2016 Bigger companies could learn from the UK restaurant chain’s honesty. It blamed a like-for-like sales fall of 3.9 pct on ill-thought-out menu changes, bad pricing and poor service. Closing stores helps, but stimulating demand is more important than tinkering with expansion plans.
India’s Welspun is in a tangle of its own making 26 Aug 2016 The Indian firm's shares have nearly halved since customer Target alleged Welspun passed off cheap sheets as Egyptian cotton. Markets tend to assume the worst. Fuzzy language and absence of the CEO amplify the problem. Welspun is failing at the basics of crisis communications.
All that glitters in corporate finance isn’t gold 25 Aug 2016 Shareholders went nuts when jeweler Signet paid $1.4 bln for Zales in 2014, sending its shares way above the value of future earnings from the deal. Now it's unraveling, sparking a surprise injection of costly private equity, providing a useful reminder that most mergers fail.
Jimmy Choo works hard to get just an inch 25 Aug 2016 The luxury shoemaker’s sales grew 9.2 percent in the first half and operating profitability improved. Its shares still trade at a discount to peers, hit by Brexit worries and exposure to one product. Despite good growth prospects, investors remain reluctant to toe the line.
Best Buy managing to turn showroom into business 23 Aug 2016 The $13 bln electronics retailer's quarterly results were nearly a mirror image of a year ago, but buffed by share buybacks. Underneath the hood, the share of online sales is steadily growing. Amazon's still an existential threat, but Best Buy is figuring out how to hold its own.
Big hand points to volatility for Swiss watches 23 Aug 2016 Exports to the UK grew 13.4 pct in July as the weak pound brought bargain-hunting tourists. But globally, shipments continued to slump. Falling, lumpy demand and increasingly mobile customers mean there is little for luxury brands like Swatch and Richemont to set their watch by.
More marriages of convenience (stores) on the way 22 Aug 2016 Canada's Couche-Tard is paying $4.4 bln for U.S. gas-mart owner CST Brands. That's steep, but the cost savings cover the 42 pct premium. It's another savvy deal from a Quebecois giant that has racked up an 800 percent-plus return for shareholders over the last decade.
Department store death spiral enters phase two 18 Aug 2016 Lower footfall is taking its toll on the likes of Macy's, which is closing 100 shops. But its last line of defence – deep discounts to lure shoppers – is irritating labels like Hugo Boss and Michael Kors. If brands withdraw their products, the doom loop will accelerate.
Wal-Mart benefits from more than famed efficiency 18 Aug 2016 The $230 bln U.S. retailing giant turned in good second-quarter numbers and raised full-year guidance. Investments in a better shopping experience, including higher wages for workers, are paying off. It shows there's more to profit than just squeezing suppliers and employees.
Post-Brexit UK consumers are oddly rational 18 Aug 2016 Flagging confidence didn’t stop Britons from spending a month after their vote to leave the EU. Consumers may be blind to the recession threat. Or they may be anticipating that a slumping pound will push up the price of imported goods, and pre-empting higher inflation.
Nestle’s rich valuation needs recipe to match 18 Aug 2016 The Swiss kibble-to-Kit Kat maker, like its peers, trades on a high multiple of earnings because of its defensive qualities. Generating cash is a formula Nestle has down, but creating growth to justify consumer goods companies' lofty share prices calls for disruptive thinking.
Carlsberg barely livens up a lousy party 17 Aug 2016 The Danish brewer missed first-half sales and operating profit expectations. Its cost-cutting strategy is starting to bear fruit in better profit margins. But even a perfectly executed turnaround risks being watered down by exposure to some of the world’s trickiest beer markets.
Unilever finds new ways to banish grubbiness 16 Aug 2016 The consumer goods giant is buying Blueair, a posh Swedish air purifier that is big in China and Japan. It follows a $1 billion purchase of subscription service Dollar Shave Club. On one hand, both are strategic shifts; on the other, they’re just creative takes on cleanliness.
Macy’s keeps hope alive for miracle on 34th Street 11 Aug 2016 The $12 bln U.S. retailer plans to close 100 of 700 or so stores and sell property as an activist has been urging. Mainstay clothiers like Ralph Lauren and Coach are pulling back, however, as are customers. Macy's faces more trouble ahead, but investors for now want to believe.
Alibaba notches up milestones and millstones 11 Aug 2016 The Chinese e-commerce giant's quarterly sales jumped 59 pct year on year, the highest since its IPO. Alibaba now gets more from each dollar of mobile sales than from desktop - and has upped its disclosure. It takes the edge off ongoing regulatory problems and logistics losses.
Ralph Lauren’s new gait may yet turn into gallop 10 Aug 2016 Despite swinging to a loss, the $8 bln retailer improved its quarterly operating margin and sold more Polo gear than expected. It's a promising sign for new boss Stefan Larsson's "Way Forward" plan. Getting clothes to shelves quicker could help the company hit a valuation stride.
Wal-Mart pays again for past mistakes 8 Aug 2016 The giant retailer is shelling out $3.3 bln for Jet.com, nine times the year-old shopping site's estimated 2017 sales. It might bolster Wal-Mart's poor online growth. But it's an expensive do-over for a company which Amazon beat to Jet.com founder Marc Lore's Diapers.com in 2010.
Steinhoff stuffs its cash into the U.S. mattress 8 Aug 2016 The South African retailer is paying $3.8 billion for U.S. speciality bedding retailer Mattress Firm, a chunky 115 percent premium that promises a return of just 5 percent. If South Africa's prospects weren't so troubling, such a deal wouldn’t be worth getting out of bed for.
Hugo Boss offers preview of luxury retrenchment 5 Aug 2016 The German brand's new CEO is cutting 20 stores and 50 million euros of costs to deal with falling sales. While second-quarter revenue beat expectations, net profit fell 84 percent. Hugo Boss's peers will also face a painful reckoning after their own rapid expansions.
Wal-Mart has long unicorn ride in Amazon chase 3 Aug 2016 The $220 bln retail titan is reportedly in talks to buy Jet, a fledgling online-shopping site. Wal-Mart has been accelerating acquisitions of tech startups in a bid to beef up digital efforts. Amazon, however, keeps moving ahead with efforts like one-day shipping and groceries.