PARIS — French retail-to-luxury group PPR would do better to split off its luxury goods brands and float the remaining general retail divisions rather than sell them off, research firm Bernstein Research said in a report Friday.
PPR chairman and chief executive officer François-Henri Pinault has indicated he wants to divest the group’s European retail businesses, which include furniture chain Conforama and books and electronics seller Fnac, to focus exclusively on consumer and luxury brands including Gucci, Yves Saint Laurent and Puma.
“A split would seem preferable to continuing retail assets divestitures and acquisitions of new assets,” analysts Luca Solca and Matt Wing wrote in the report. They recommended listing the retail divisions, as PPR did with its African distribution business CFAO last year. Grouping these into a new retail company “would potentially create two ‘pure plays,’ giving better focus to investors,” they added.
Analysts have estimated Conforama and Fnac could yield about 4 billion euros, or $5.49 billion at current exchange rates, which PPR is expected to use to shop for apparel and accessories brands in a move to create a mass market division mirroring the luxury goods unit, Gucci Group. However, Bernstein cautioned that turning Puma into a growing lifestyle brand was ambitious enough without adding brands to the mix.
“We also feel this could hardly be the right time to ‘double up’ on Puma, as the value creation bet is yet to be won,” the report said. “We like PPR on its ability to drive growth with its luxury brands, as well as on its ability to maintain efficiency and price discipline with its general retail business.”
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews
@prada is introducing a new project at its men’s fall 2018 show this Sunday: “Prada Invites.” The fashion house invited four celebrated creative minds – @ronanaerwanbouroullec, Konstantin Grcic, @herzogdemeuron and @rem.koolhaas – to each create a unique item with its iconic nylon material. The designs will be unveiled on the runway show, which will take place at the company’s warehouse in Viale Ortles 25. #wwdfashion #mfwm (📷: @martinocarrera)
@kering_official is spinning off its stake in puma in an effort to focus on its luxury brands, the brand operator announced yesterday. “We are proud to have supported the turnaround of Puma, which now has unrivaled capabilities to take full advantage of the specific dynamics of its global markets and is poised to achieve substantial growth,” said François-Henri Pinault, Kering’s chief executive officer and chairman. Artémis will become a “long-term strategic shareholder” of Puma with a 29 percent stake. #wwdnews #wwdfashion (📷: @jilliansollazzo)
The fashion world mourns for celebrated street style photographer, Nabile Quenum, who died at age 32 in Paris.
Quenum, creator of the fashion blog “J’ai Perdu Ma Veste,” was a fashion week fixture, and regularly shot for New York magazine’s The Cut, among other outlets, and brands such as Louis Vuitton, Moncler and Adidas. He was also actively involved in the #NoFreePhotos initiative, which kicked off in the fall. Read more about Quenum in @kbsmoke's story on WWD.com. #wwdnews
@verwanggang and @maisonladuree have teamed up on a dessert collab called Vera Wang Pour Ladurée. The collection, which launched this week, features a specialty macaroon, as well as a wedding cake inspired by one of the designer’s gowns. “I could not imagine a more delicate or sophisticated creation to grace any couple’s celebration,” said Wang. #wwdfashion