Thesocialtalks’ Post

Golden Goose 😎 has postponed its initial public offering on the #Milan stock exchange because of #market volatility. The Italian #brand of distressed-looking trainers used every tool in the box to create a buzz around its listing. 😉 Its initial pricing expectations (in keeping with its €500 trainers) seemed too high: early suggestions were that Golden Goose was eyeing a €3bn valuation, a substantial premium to luxury peers. The result was the embarrassment of an #IPO pulled amid fears that it would perform poorly. Owner Permira, which had already scorched #investors with the 2021 listing of Dr Martens in #London, couldn’t let another shoe drop. Partly this was unlucky timing. The #luxury sector has been shaken by concerns over slowing demand. #markets #investing #economy #economics #money #branding #retailing #marketing #management #fashion #italia #madeinitaly

Superdry's Dunkerton stops takeover talks 👔👀 Julian Dunkerton, co-founder and CEO of Cheltenham-based fashion retailer Superdry has stepped away from a take-over of the business, but remains committed to the company he founded in 2003. In a statement to the London Stock Exchange, the company said that " a takeover offer from Julian Dunkerton for Superdry is unlikely to deliver an outcome for shareholders." However, the business remains in discussion with Mr Dunkerton on "alternative structures". This includes a possible equity raise fully underwritten by him, which would give the company the liquidity to continue the company's turnaround plan. The statement said: "It is expected that any equity raise would be at a very material discount to the current share price ...... and be conditional on a de-listing of the company." Julian Dunkerton said he remains fully committed to the company over the long term. Continue reading... https://lnkd.in/ebD56qXf #CEO #executive #leadership #deals #finance #businessnews #businessintelligence

US sues to block merger of Coach and Michael Kors handbag makers 👜 The US Federal Trade Commission has sued to block Coach parent Tapestry's $8.5bn deal to buy Michael Kors owner Capri saying it would eliminate "direct head-to-head competition" between the flagship brands of the two luxury handbag makers. It is unusual for the US regulator to try to block a high-end fashion merger. But in December, authorities issued new merger guidelines to encourage fair, open, and competitive markets. By using a new tactic under the guidelines, the FTC has argued that the merger of Tapestry and Capri would directly affect hourly workers who may lose out on higher wages due to reduced competition for employees. Tapestry had offered to buy Capri in August, hoping to create a US fashion behemoth that could effectively battle bigger European rivals such as Louis Vuitton parent LVMH and potentially win more share in the global luxury market. Sources: BBC, Reuters #Fashion #Finance #MergersandAcquisitions #Deals

The reality is that most of these businesses (and I include Wiggle in this - just bought for £50m by Frazer’s) were businesses whose management teams understood only one business model…how to burn cash. At some point you have to actually make money - and retail is a tough business to make money in. These are all businesses that grew up pretending to be tech businesses rather than what they are - retail businesses where you have to buy stuff for less than you sell it for and spend less doing so than the difference between one and the other. If Mike and his team at Frazer’s can’t drag these businesses to profitability I’m not sure anyone can. The core issue is when you apply basic retail fundementals and demand return on investment, the models fall apart.

𝐁𝐢𝐠 𝐍𝐞𝐰𝐬: MATCHES to Appoint Administrators Post-Frasers Deal. This development opens up avenues for companies like Mytheresa and others to double down on customer acquisition strategies, capture new market segments, and fortify their brand presence. Agility and innovation will be crucial in capitalising on Matches' challenges. #FashionBusiness #LuxuryEcommerce

MATCHES assets purchased by Frasers Group as Isabella Fish highlights today. No surprise that the brand and intellectual property rights of the luxury retailer have been acquired by Frasers Group https://lnkd.in/eme4FhgP. If Frasers Group plans to keep and trade under #Matches - as opposed to selling on the acquired assets - the question will then be whether those #fashion brands which are unable to rely on their standard terms and conditions of sale are prepared to do business again with #Matches https://lnkd.in/gwwb2Fna

The U.S. District Court has blocked Tapestry’s $8.5B purchase of Capri Holdings Limited due to competition issues in the luxury handbag market. The ruling highlighted that the merger would result in a company holding 59% of the accessible luxury handbag market, raising concerns about the potential loss of direct competition. Tapestry and Capri are now planning to appeal. This merger would have brought together some iconic brands, including Tapestry’s Coach, Kate Spade, and Stuart Weitzman, alongside Capri’s Versace, Jimmy Choo, and Michael Kors. This situation highlights the increasing regulatory scrutiny in the current M&A market, especially within the luxury consumer goods sector. It’ll be interesting to see how regulatory environment on M&A changes / or doesn’t change with next week’s Presidential election. #MergersAndAcquisitions #LuxuryGoods #Tapestry #CapriHoldings

The battle for accessible luxury! 🤜👜🤛 Competition in the handbag industry is fierce! With companies like Temu and Amazon offering dupes of popular handbags at more affordable prices is there less of a market for a Coach or Michael Kors? 🤔 The FTC blocked the merger of the owners of these two brands saying that this would decrease competition in the accessible luxury market! Michael Kors, the person, appeared at court as well and sighted declining sales in the brand and that this merger could help revitalize the handbag brand! After the FTCs ruling the stock price for the owner of the Michael Kors brand dropped 45%! 😬 What are my thoughts? During the 2000s these brands rained supreme but I have seen a decline in consumer purchases. Personally I don't see a decrease in competition with these two companies merging. If anything it could keep prices more competitive because they can streamline production costs! Also maybe allow for more innovation to remain competitive with the handbag dupe market! Curious what are your thoughts on the FTC rejecting the merger? Was it the right call? Share your thoughts below! ⏬⏬⏬ #accessibleluxury #handbags #katespade #tapestry #capriholdings #luxuryretail #dtc #ecommerce

The US Federal Trade Commission (FTC) has sued to block Tapestry’s (parent company of Coach and Kate Spade) $8.5 billion acquisition of Capri Holdings Limited (a global fashion luxury group consisting of Jimmy Choo, Michael Kors and Versace). How would the proposed deal impact global luxury retail competition and consumer choice? Coresight Research explores the merger’s implications and considers the FTC’s claims, leveraging proprietary US consumer survey analysis. #tapestry #capri #ftc #federaltradecommission

The FTC is trying to block the merger of Coach and Michael Kors, arguing it would reduce competition in the "accessible luxury" handbag market. Coach, Kate Spade, and Michael Kors hit that mark perfectly. But would the merged company still deliver the same value? The FTC thinks choice and innovation could suffer if these rivals join forces. But the brands argue there's plenty of competition from other "accessible luxury" options. #SchroderDavisLaw #FashionLaw #EntertainmentLaw #IPLaw https://lnkd.in/eTM4Avt3