Armani / Agnellis: understated elegance, overestimated value

The latest information on luxury goods

The front row chatter suggests that the eponymous fashion company, founded by Giorgio Armani, may have been stuck in a fashion pack remodel. The family-owned Italian costume maker Zegna Open to the public..Brand of streetwear Cartish White Luxury conglomerate LVMH has abandoned its avant-garde independence for stability under the roof.

The Agnelli family Apparently Courting an Italian company founded in 1975. There might be room to build a luxury powerhouse around the Ferrari group.

It’s not that strange. High speed motors and luxury yarns target similar (wealthy) customers. That’s why Ferrari launched it independently Clothing line Armani clothing, books, flowers and even Chocolate..

It is assumed that Agneris pushed their efforts forward, without being fooled by previous refusals, by relying on the years of progress of the founder and the apparent absence of heirs. Also remember Armani signal He will consider partnering with another Italian company – and the latest interim results show the company must be optimistic.

Sales are up by a third compared to the same period last year, which was hit by a pandemic. However, turnover has been declining for years and profitability has fluctuated. For private fashion companies, Catwalk’s reputation often trumps commercial performance.

Armani lost an operating loss of 29 million euros last year. Let’s generously assume that next year will return to the 2019 level of 175 million euros. Apply the sector average 30 times (range 20-40) and add € 1.1 billion in cash and equivalents at the end of June. It reached an enterprise value of 6.3 billion. That is more than 7 billion euros with control premium.

This is the world of ego, not metrics. Italian buyers might find it useful to splash out to give French competition to LVMH.

But even in combination with Armani, Ferrari owners will stay behind the house built by Bernard Arnault for many laps. A better role model might be the obnoxious Michael Kors, who harbored similar ambitions. Its share price is significantly lower than in September 2018, when it announced its intention to acquire Versace, a dynamic Italian design group.

A popular newsletter for premium subscribers is published twice a week. On Wednesday we will analyze hot topics from financial centers around the world. On Friday, we analyze the major themes of the week. Thank you for registering here

Armani / Agnellis: understated elegance, overestimated value Source link Armani / Agnellis: understated elegance, overestimated value

Source link

About Larry Struck

Larry Struck

Check Also

Cody Bellinger strikes twice as Dodgers beat Phillies – San Bernardino Sun

Philadelphia – Winning the game is like an inning. I’m still not sure if he …

Leave a Reply

Your email address will not be published. Required fields are marked *