fashion

Under Armour: Underperformer

Magic Markets2024-03-20T20:33:26+02:00

Under Armour is a bit like ordering Nike on Wish. As the joke goes, you aren’t quite getting what you thought you paid for. The business operates in the apparel market, yet it has struggled to gain proper traction with consumers. The leadership of the group is now in disarray, after the sudden departure of the CEO and the return of the founder to that role. Is Under Armour truly broken, or is this an interesting speculative play?

Under Armour: UnderperformerMagic Markets2024-03-20T20:33:26+02:00

Magic Markets Ep159: Crocs and Birkenstock

Magic Markets2024-01-24T21:34:12+02:00

In this episode of Magic Markets, we dug in the back of our cupboards for the shoes we are too embarrassed to wear. Perhaps we just aren’t fashionable enough, as there are many celebrities wearing Birkenstocks. As for Crocs, there are few who would put those on a pedestal for beautiful design. Moe covered Crocs in this show, starting with a recap of some of the points we covered when issuing our Magic Markets Premium report on Crocs some time ago. Ghost took on the responsibility of Birkenstock, which executed its IPO just a few months ago. Of the two ugly shoe contenders, which one is a buy? And does Birkenstock make a decent case for itself to be covered in Magic Markets Premium at some stage? Listen to this podcast to find out.

Magic Markets Ep159: Crocs and BirkenstockMagic Markets2024-01-24T21:34:12+02:00

EssilorLuxottica: Ray-Bans and Plans

Magic Markets2024-01-25T00:05:05+02:00

Ray-Bans are the eyewear of choice on the highway to the danger zone. High valuations are always a danger zone, as investors in some of the most famous brands in the world have found out the hard way. EssilorLuxottica certainly isn’t light on brands, but it’s a complicated task to figure out whether the valuation reflects the consumer part of the business or the professional lenses side, which is more of a medical devices operation.

EssilorLuxottica: Ray-Bans and PlansMagic Markets2024-01-25T00:05:05+02:00

Abercrombie & Fitch: From Abs to Riches

Magic Markets2024-01-17T21:46:43+02:00

Abercrombie & Fitch is proof that a retail leopard can change its spots – and its entire brand for that matter! There was a time in the world when this business was famous for having shirtless men helping in the stores. That business model aged about as well as the washboard abs themselves: i.e. not very well at all. Today, the brand has much broader appeal and the results are clear for all to see, with the share price up more than 250% in the past year! Is there any value left in it, or can we only learn lessons here about how well a retailer can be turned around?

Abercrombie & Fitch: From Abs to RichesMagic Markets2024-01-17T21:46:43+02:00

Magic Markets Ep155: Lululemon and SA Fashion Retail

Magic Markets2023-12-10T20:23:44+02:00

Welcome to episode 155 of Magic Markets. This week, we’re talking about fashion retail. Moe is representing the global north with his choice of athleisure brand Lululemon, while Ghost is keeping things more general with a selection of South African fashion retail brands including The Foschini Group and Mr Price.

Magic Markets Ep155: Lululemon and SA Fashion RetailMagic Markets2023-12-10T20:23:44+02:00

Crocs: Ugly shoes; pretty profits

Dave0012023-03-14T12:19:17+02:00

Use the podcast player below to listen to our discussion on Crocs and its Q3'22 result, which accompanies the detailed write-up below: (Date of report: 15 December 2022) You might not like Crocs, but the group sold over 30 million shoes this quarter. It was a record quarter for revenue and full year guidance has been raised. Clearly, there are enough people out there who like the shoes to make this a potent business. Sitting at the centre of trends like casualisation and direct-to-consumer, the immense share price performance over 5 years is far less polarising than the shoes. Can the [...]

Crocs: Ugly shoes; pretty profitsDave0012023-03-14T12:19:17+02:00

Nike: Just Don’t Do It?

Magic Markets2023-01-04T20:16:23+02:00

Use the podcast player below to listen to our discussion on Nike and its Q2'23 result, which accompanies the detailed write-up below: (Date of report: 5 January 2023) The intersection of sport, music and fashion: Nike is definitely still that business, with all the sports endorsements and cultural influences you would hope for in an apparel brand. Of course, this doesn’t necessarily make it a good investment. Shareholders are looking for cash flows, not signed basketballs. Nike has been trying very hard to convince the market that it is a growth stock. If there’s one thing the last year has revealed, [...]

Nike: Just Don’t Do It?Magic Markets2023-01-04T20:16:23+02:00

Recap: Levi’s and Lululemon

Magic Markets2022-12-21T23:52:25+02:00

Use the podcast player below to listen to our recap on Levi's and Lululemon's recent results, which accompanies the detailed write-up below: (Date of report: 22 December 2022) They both start with the letter L. They are both retailers. They both sell directly to consumers. There are other similarities too, as we will discover. In this recap show, we update our research on Lululemon and Levi’s, two iconic clothing brands that trade at vastly different valuation multiples. Facing a critical Christmas period with full shelves and consumers under pressure, it’s all to play for. We covered Lululemon back in April (read [...]

Recap: Levi’s and LululemonMagic Markets2022-12-21T23:52:25+02:00

Crocs: Ugly shoes; pretty profits

Magic Markets2022-12-15T01:19:51+02:00

Use the podcast player below to listen to our discussion on Crocs and its Q3'22 result, which accompanies the detailed write-up below: (Date of report: 15 December 2022) You might not like Crocs, but the group sold over 30 million shoes this quarter. It was a record quarter for revenue and full year guidance has been raised. Clearly, there are enough people out there who like the shoes to make this a potent business. Sitting at the centre of trends like casualisation and direct-to-consumer, the immense share price performance over 5 years is far less polarising than the shoes. Can the [...]

Crocs: Ugly shoes; pretty profitsMagic Markets2022-12-15T01:19:51+02:00

Levi’s: Selling Jeans in a Gold Rush

Magic Markets2022-07-18T15:56:28+02:00

Use the podcast player below to listen to our discussion on Levi Strauss & Co and its Q2’22 result, which accompanies the detailed write-up below: (Date of report: 13 July 2022) Levi Strauss was a Bavarian emigrant who arrived in San Francisco in 1850 during the gold rush. He sold the miners durable pants rather than shovels, bucking the trend of the old saying about selling shovels in a gold rush! The patent to add metal rivets to work pants was granted in 1873 and blue jeans were born. Levi’s traded publicly between 1971 and 1985 before being taken private in [...]

Levi’s: Selling Jeans in a Gold RushMagic Markets2022-07-18T15:56:28+02:00

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