Thursday, July 18, 2024

The Potential Listing Of Shein Is A Test Of London's Allure

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Headlines:

• "Zara's parent company, Inditex, sees sales surge as pandemic restrictions ease" (Source: Reuters)

• "Gucci owner Kering reports strong quarterly sales growth" (Source: Financial Times)

• "Sephora to introduce AI-powered beauty assistant in US stores" (Source: Retail Dive)

• "Amazon Fashion expands same-day delivery in London" (Source: The Drum)

• "LVMH reports strong sales growth... driven by makeup and jewelry" (Source: Bloomberg)

• "Nordstrom to hire 13,000 employees ahead of holiday season" (Source: CNN Business)

• "H&M to launch online shopping in China" (Source: SCMP)

• "Zalando to expand logistics network in Europe" (Source: Just-Style)

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There's a lot on the line. The LSE needs fast-growing companies to list there but also wants to avoid being seen as a dumping-ground for contentious firms. By becoming a public company Shein means to subject itself to more intensive levels of scrutiny. Each would hope to burnish the other's reputation. The risk is that the shine comes off them both. "It's a fertile environment for something bad to happen," says one analyst.

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