Tesla Takes On Ford; J. Crew Says Bye to Own Icon; Burberry Wants to Go Big

Race to the finish…

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Image courtesy of Danilo Rizzuti/FreeDigitalPhotos.net

Tesla’s market cap just left Ford Motor Co. in the eco-friendly dust today. It’s all because of a much anticipated, yet massive Model 3 rollout scheduled for later this year. Assuming everything goes smoothly with that massive rollout – and why wouldn’t it? – Tesla has pinned some very pricey hopes and dreams in the form of growth targets. Those growth targets sent the company’s stock up 5.7% and why shouldn’t they? After all, the luxury electric car company smacked down analysts estimates when it reported a shipment of 25,000 vehicles for its first quarter. In case you were wondering – because I know you were – that was almost a 70% increase from last year at this time. To be fair, however, the increase is not as impressive at second glance considering that Tesla experienced some production pains beginning in October. So the company was basically making up for the pains. In the meantime, as the second largest auto company in the United States, Ford delivered 6.7 million cars and trucks last year while Tesla delivered less than 80,000. Then, last year Ford hauled in a revenue of close to $152 billion while Tesla took in just $7 billion. Yet Tesla’s very magical market capitalization now comes in at $47.6 billion, compared to the much much older Ford Motor Co.’s $44.9 billion. Let that one sink in for a bit. And in case you were in the market for some Tesla shares, its stock is currently trading at around $293 a share.

Crew-cuts…

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Image courtesy of Stuart Miles/FreeDigitalPhotos.net

J. Crew’s long-time creative director, Jenna Lyons, is out after just five years on that gig and over 20 years at the label. Which is just so cray cray since she is responsible for making so much of what made J. Crew…well, J. Crew. She is credited with turning the brand around a few years ago and making it super-popular and ultra-hip. In fact, she was so good at what she was doing that she became the face/icon of the prepster brand. But then there were a bunch of unfashionable issues, a 6.7% sales drop, following a more than 8% drop the year before.  The company, if you recall – and it’s okay if you don’t – was purchased for $3 billion back in 2011. Now the retailer is staring at the wrong end of $1.5 billion in debt. All that had company brass scratching its preppy head and wondering where did things go south and how could they be remedied. Apparently, part of that remedy involved saying goodbye to Lyons. Despite that, J. Crew is a retailer like any other, and we all know how darn ugly the fiscal landscape has been like as of late for all the players, big and small. But back to Lyons, rumor has it that her exit was a mutual decision.  Although, I’ve often wondered if the word mutual takes on a very different definition when describing people who find themselves leaving their high-level executive jobs.

Just so ya know…

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Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Pish-posh designer Burberry just signed a $225 million licensing deal with Coty. – as in the musk-maker. However, rest assured as there will be no trench coats involved. Instead, Coty will get exclusive global rights to Burberry’s make-up and fragrance brands – which might make zero sense to you but makes plenty of cents – and dollars for both Burberry and Coty. And here’s how it’s going to work: Burberry, which pulled down revenue of 203 million pounds last year (well, it is an English company) has got the creativity end covered because, well, it does. There is a reason, after all, why Burberry can charge so much money for its merchandise. But Coty is all about distribution, and in fact, the company is quite accomplished in that arena. Burberry was shrewd enough to recognize where it could use a little oomph. Or in this case, the English brand needed a lot of oomph. So the brand did some research and shopped around before it settled on a deal with Coty.  And Burberry will be in good company at Coty, as it will join other premium fragrances including Balenciaga, Gucci and Marc Jacobs, not to mention the Clairol and Rimmel brands.

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