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Market Watchers Tackle the Complicated Marriage of DSW, Camuto Group & ABG

Another footwear megamarriage is close to sealed — but this time, it’s complicated.
DSW and Authentic Brands Group announced today a nearly unprecedented deal — in which the former, a retailer, and the latter, a brand management firm — would partner to snap up several facets of Camuto Group — a business comprising several brands.
The news sent DSW shares tumbling — ending the trading day down nearly 13 percent to $28.51 — as investors likely displayed their uncertainty around the complicated nature of the deal as well as Camuto’s recent struggles with profitability. (The firm is just a year outside of a failed merger with Aldo Group.)
“First and foremost, it’s pretty well known that Camuto has had some challenges and that the brand was available and obviously looking for financial support,” explained Wedbush Securities analyst Christopher Svezia. “Couple that with the fact that DSW is [predominantly] a retailer, and here they are acquiring sourcing expertise, distribution and brand attributes that they didn’t have before. This is new territory for them, and it creates some risk, which [worries investors].”
Coming off several quarters of unevenness, DSW this year appeared to move closer to finding its footing, posting in August robust Q2 revenues of

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Via:: https://footwearnews.com/2018/business/mergers-acquisitions/dsw-authentic-brands-camuto-merger-1202694088/