Choo On This: Luxury Shoe Brand Not in Step with Coffee; Jack Ma Isn’t Feeling the Automation Love; Supreme Court to GM: Too Bad For You


Jimmy Choo

Luxury shoe brand, Jimmy Choo, will be getting a new owner now that JAB Holding Co. has decided that the company, wants to focus on its more carb/caffeinated brands. And who can blame the billionaire Reimann family that controls Jab. In the last few years, the company spent billions picking up various other food and beverage entities in the form of Krispy Kreme and Panera Bread, and well, 125 millimeter stilettos don’t really go so well with the stuff that carb dreams are made of. But Jimmy Choo may prove to be a very tempting company to a lot of potential buyers. While a pair of Jimmy Choo’s, whose fashion stock soared thanks to Carrie Bradshaw and “Sex and the City”,  may not hold the same appeal as a fresh hot donut – well, to some anyway – the fact is that shares of the luxury goods company are up 44% since the company’s debut back in October of 2014. JAB had the good business sense to pick up the iconic shoe company for 500 million pounds back in 2011. Revenue for 2016 increased over 14% to $465 million with a 43% profit increase to $54.4 million. Wall Street also digs the idea of a sale as shares of Jimmy Choo, which are traded in London, rose over 10% today.

The Jetson’s it ain’t…


Image courtesy of Simon Howden/

In case you were in the mood for a downer, then turn your attention to Alibaba founder and chairman, Jack Ma. During a conference hosted by the China Entrepreneur Club, Ma suggested that the future will suck. Because of robots.  He’s convinced that in the next thirty years, “the world will see much more pain than happiness.” Ma expects our automated companions to take over the workplace which might mean fewer work days but also fewer positions that require actual human attention. And the watercolor talk will be decidedly less entertaining. In fact, Ma is convinced that within thirty years, a robot will eventually grace a Time Magazine cover for being the “best CEO.” So if you think your boss has no personality now, just wait. And before you go calling Ma overly-dramatic, consider that according to the World economic Forum, it is estimated that there will be a net loss of 5 million jobs across 15 major economies thanks to automation. Sure technology is great, as long as it’s not taking over your paycheck.

Well at least they tried…


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GM tried to get the Supreme Court to block hundreds of lawsuits over its faulty ignition switches that could end up costing the automobile company billions. But the Supreme Court said no dice and the lawsuits can proceed. The reason: The company’s 2009 bankruptcy. If you recall, those faulty ignition switches were responsible for 125 deaths and more than twice as many injuries. More than 2.5 million vehicles were recalled and $2.5 billion worth of settlements dished out. GM knew about the problem before the bankruptcy so technically, it’s on the hook, since it could have just as easily notified all the owners of the vehicles that had the problem. Of course, that decision did not sit well with GM and a spokesperson said as much saying the appeal “was not a decision on the merits…” Amazingly enough, the appeal denial didn’t even freak out Wall Street – this time anyway – as shares actually rose today, albeit slightly.

GM Gets Buffet-ed, Great Earnings Are Beautiful and Missed Earnings = Score for Killer Whales

Warren Buffet auto know…

Image courtesy of Salvatore Vuono/

Image courtesy of Salvatore Vuono/

There’s no denying GM had nothing short of a disastrous year. Not quite as disastrous as it was for the victims of their faulty ignition switches, of course. But as far as Wall Street was concerned their earnings were a fiscal nightmare (and deservedly so for not being on its safety “A” game). But despite GM’s lousy earnings and even lousier – make that non-existent profits – Warren Buffet’s Berkshire Hathaway (BRKA) holding company picked up 3 million shares of the embattled auto maker, according to an SEC regulatory filing. Laugh all you want but they don’t call him the Oracle of Omaha for nothing. The stock is at what you would call a “discount” and Warren Buffet loves himself a good discount. The man knows a thing or two about investing, seeing as how his company’s stock just hit  $200,00 a share. He also happens to think GM CEO Mary Barra is friggin’ awesome. Just don’t expect a quick turn-around as Mr. Buffet is known for holding onto stocks for the long-term. And in this case, that term might just be longer than usual.

Make-up retail wake-up….

Image courtesy of keakguru/

Image courtesy of keakguru/

Apparently the quest for beauty is well…priceless. Estée Lauder Companies Inc. released really good and very attractive earnings, especially considering lots of other retailers posted less than glamorous earnings and the US Department of Commerce reported that July retail sales were virtually flat, effectively spooking plenty on Wall Street. Estée Lauder Companies Inc. also owns MAC, Clinique and La Mer (famous as much for the cost of its products as it is for the products themselves). The $28 billion make-up company pulled in $2.73 billion in revenues. Wall Street clearly underestimated the love for make-up and had pegged estimates at $2.66 billion. As for net income – it more than doubled coming up to $257.7 million. The company’s guidance also expects some nice growth hopefully adding a little height to a very unsightly, flattened retail graph.

A whale of tale…

Image courtesy of bandrat/

Image courtesy of bandrat/

Nothing like some bad earnings to get killer whales some new and much bigger digs. Following its really bad earnings the other day, with shares of SeaWorld falling 35%, the amusement park company is pledging $10 million for killer whale research and ocean health. Its CEO is also hoping that doubling the size of its Orca tanks will attract more people to its park and boost revenue. SeaWorld attributed some of its losses to the unflattering film “Blackfish” which SeaWorld called a “propaganda film. Two California lawmakers are hoping get a ban on killer whale performances. Of course PETA entered the fray telling whoever that a “bigger prison is still a prison.”