|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||143.64 - 144.71|
|52 Week Range||101.48 - 165.01|
|Beta (3Y Monthly)||0.56|
|PE Ratio (TTM)||32.30|
|Forward Dividend & Yield||1.88 (1.32%)|
|1y Target Est||224.53|
Aug.08 -- Kasper Rorsted, chief executive officer of Adidas AG, discusses second-quarter operating profit which missed estimates, squeezed by the cost of flying clothing from Asia to North America to fill a supply gap. He also discusses the negative consequences of a China-U.S. currency war during an interview on "Bloomberg Markets: European Open."
When it comes to Under Armour (NYSE:UAA) stock, I've loved to play the contrarian for some time. And being contrarian on UAA stock has been immensely profitable over the past year.Back in November 2018, UAA stock was flying high at $24 after the athletic apparel brand reported third- quarter numbers which easily beat average expectations. I warned that the pop was unsustainable and that the bearish thesis actually looked pretty good. By December 2018, after Under Armour had a bad Investor Day and amid a broader market selloff, UAA stock had dropped to below $17.I recommended that investors buy the dip of UAA stock. Within a month, Under Armour stock had rebounded by more than 20%, at which point I advised investors to sell Under Armour stock. UAA stock continued to rally well after that, all the way to $28, and I kept insisting that the rally was unsustainable.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIn late July, Under Armour reported underwhelming numbers. Ever since, UAA stock has fallen off a cliff. Today, the stock trades hands at $18, roughly where it was in late 2018. * 10 Cheap Dividend Stocks to Load Up On Now it's time to buy the dip of Under Armour stock again. Here's why. Under Armour Stock Is Too CheapThere are three main reasons why it's time to buy the dip of UAA stock again. The first reason is that the stock is now way too cheap.My core thesis on Under Armour is pretty simple.: UAA is the wrong company in the right space. Under Armour is the wrong company because it hasn't innovated or adapted to trends . Namely, the athletic apparel market has pivoted from performance apparel to lifestyle clothes.Under Armour hasn't made that pivot, and as a result, it continues to launch products that - while good - aren't as relevant as the new lifestyle products from Nike (NYSE:NKE), Lululemon (NASDAQ:LULU), and Adidas (OTCMKTS:ADDYY). That's why Under Armour has continued to grow at a much slower pace than those peers (in Q2, for example, UAA's constant currency revenue growth was just 3%).Nonetheless, the athletic apparel space is the right space to be in now. Consumers increasingly want to live active and healthy lifestyles and look like they do so. This is creating a rising tide that's lifting all boats in the athletic apparel space, even the ugliest boats like Under Armour. That's why Under Armour's revenue has continued to grow, despite the company's lack of product innovation.This dynamic will persist. Going forward, Under Armour's top line looks poised to rise about 5% annually , with healthy margin drivers through continued gross margin expansion and positive operating leverage. I've said time and time again that UAA's earnings per share should reach $1,50 by fiscal 2025. Based on Nike's average forward price- earnings multiple of 25, UAA stock should reach $37.50 in 2024. Discounted back by 10% per year, that equates to a 2019 price target for UAA stock of about $23.Thus, in late July, UAA stock was way overvalued. Now it's way undervalued. The Optics Will ImproveThe second reason to buy the dip of Under Armour stock is that it will look more attractive over the next few months.A big driver behind the recent selloff of Under Armour stock is President Donald Trump's threat to impose tariffs on more Chinese imports. Ostensibly, that's a bad thing for all athletic-apparel companies, since a bunch of athletic-apparel products are made in China. As a result, investors have indiscriminately sold athletic-apparel stocks over the past two weeks.But Under Armour's China exposure isn't huge (only 10% of its products are made in China ). Further, a big chunk of these tariffs have already been delayed , yet another sign that Trump doesn't actually want the trade war to escalate that much and is just doing some chest-puffing with the tariffs he's already announced.All these trade-war fears will likely cool over the next several months as they have always done after trade-war flare-ups under Trump. This cooling will provide a lift for UAA stock. The Stock Is OversoldThe third reason to buy the dip of Under Armour stock is that the stock is technically way oversold, and is due for a bounce-back.The Relative Strength Index of UAA stock has dropped to 20, well into oversold territory. The last time the RSI of UAA stock was this low was back in late 2018. Under Armour stock proceeded to bottom in late 2018 and rally by more than 20% over the next month.A similar dynamic could play out this time around. Consequently, the technicals are saying that UAA stock is near a bottom and on the verge of a nice bounce-back rally. The Bottom Line on UAA StockUnder Armour is the wrong company in the right space., so Under Armour stock will not be a long term winner. Instead, it's a "buy the dip, fade the rally" stock. Right now, UAA stock is in the middle of its biggest selloff in recent memory, meaning that it's time to start thinking about buying the shares on weakness.As of this writing, Luke Lango was long UAA, NKE, and LULU. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post Why It's Time to Buy the Dip of Under Armour Stock appeared first on InvestorPlace.
For Adidas, big cities are key in shaping “global trends and consumers’ perception, perspectives and buying decisions”. Karen Parkin, head of global human resources at Adidas, admits without hesitation that, were consultants searching for the ideal base for a multibillion-euro sports and fashion brand, “of all the locations in the world, I doubt whether a pin would fall in Herzogenaurach”.
Skechers (SKX) is benefiting from its focus on new line of products, cost-containment efforts, inventory management, and global distribution platform.
Adidas celebrated its 70th anniversary on Friday with appearances at its Bavaria campus by sponsored athletes such as tennis veteran Stan Smith and German soccer legend Philipp Lahm, as well as celebrity partners like Pharrell Williams. Adidas opened a new building resembling a football stadium and housing 2,000 employees at its sprawling site outside the town of Herzogenaurach. "This puts us in a perfect position for the future, continuing on our international growth track," Chief Executive officer Kasper Rorsted told employees.
(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. The trade war’s August escalation has spooked markets -- and central banks -- around the world. The bad news, though, is that while President Donald Trump has fired two large weapons in the past week by green-lighting his biggest swathe of tariffs yet and formally branding China a currency manipulator, his arsenal is far from exhausted.The loudest shot Trump could take may be the one that he increasingly appears focused on: weaponizing the dollar, the world’s reserve currency.In a series of tweets on Thursday he called for the Federal Reserve to cut rates and weaken the dollar to benefit American exporters, effectively shrugging off a long-standing G-20 compact the U.S. signed again just weeks ago for the world’s major economies not to engage in competitive currency devaluations.Inside the White House, hawks have been pushing for a direct intervention in currency markets by the Treasury by pointing to a slowdown in U.S. manufacturing, which many economists have blamed on tariffs imposed by Trump and uncertainty surrounding his trade war with China.Just how effective either a Fed cut or an intervention would be is unclear. The relevant Treasury fund has $92 billion in it. Even if the Fed were to join in, as it has in past interventions, and match that amount -- a $180 billion injection into a $5 trillion per day global foreign-exchange market might have a limited effect. It might also unnerve markets and have longer-term economic consequences.But while the president and markets are focused on a possible currency intervention, that’s far from the last weapon he has available, according to current and former U.S. officials, advisers to the administration and analysts.Drop in the Bucket“He’s only dipped into the deep well of the measures that could be used against China,” said Gary Hufbauer, a trade expert at the Peterson Institute for International Economics who was among the first analysts to identify the array of tariff measures Trump had available to him during the 2016 presidential campaign.Trump could turn back to his favorite tool, tariffs, and double-down on his threat to impose import taxes on all remaining imports from China, or some $300 billion in annual trade, by raising the levies he last week vowed to impose Sept. 1 from 10% to 25%. At a time when Trump is focused on currency movements, the irony is that move would weaken the yuan, as it has before, thus undermining his efforts to talk down the dollar. Yet Trump has used currency swings as justification for tariffs before.That’s far from the end of it.A Commerce Department proposal that would allow companies to ask for targeted duties against imported Chinese products would benefit from this week’s Treasury designation of China as a currency manipulator and, if implemented, could see a flood of new cases seeking protection and retaliatory tariffs.Beyond all that, Hufbauer argues the administration could raise further barriers to Chinese investment in the U.S. or target China’s energy supply by revoking waivers that allow Beijing to continue purchasing oil from Iran and Venezuela.Trump has said an easing of restrictions on sales to China’s Huawei Technologies Co. that was part of a now-ended truce during a meeting with Chinese leader Xi Jinping in Japan at the end of June will still go ahead. But the White House is holding off on a decision about licenses for U.S. companies to restart business with Huawei after Beijing boycotted purchases of U.S. farming goods, according to people familiar with the matter.Former and current administration officials also caution other export restrictions and policies targeting China that were on hold, or delayed as Trump pursued a deal, could be revived.Among those is the proposed blacklisting of Chinese companies involved in surveillance operations in China’s western Xinjiang province, where authorities have conducted mass detentions of Muslim Chinese.Robots, AIThe Commerce Department has also been working on broader export restrictions on products from emerging industries such as robotics and artificial intelligence that would require special licenses to be exported to places like China.The process to update the list of controlled technologies has been ongoing and likely will take until later this year to be finalized. American tech companies have been lobbying against a broad interpretation of national security or including wide categories such as semiconductor technology, arguing it could stymie U.S. research spending.There are multiple bipartisan bills in Congress that Trump could back such as one introduced recently that would require the Fed to manage the dollar’s value to benefit American exporters and impose a tax on inbound capital as well as others that would deny Chinese firms access to U.S. equity markets. Also circulating is legislation that would shut off Huawei and fellow Chinese telecoms equipment maker ZTE Corp. entirely from U.S. suppliers.Michael Pillsbury, an occasional adviser to the Trump administration, insists that while Trump “has more guns” he also has a more pragmatic view of China than his aides and is still eager to cut a deal. “The key is to get the message to Xi, and not with a blunderbuss,” Pillsbury said.The pressure Trump has applied already extracted meaningful concessions from China, Pillsbury argues, pointing to Beijing’s implementation of new intellectual-property courts.Pillsbury argued staging a deal to package up things like greater access to China for U.S. investment firms and purchases of U.S. farm products in exchange for some easing of tariffs at first would make sense for both China and Trump. That could leave difficult topics such as a U.S. push for a reduction in Chinese industrial subsidies and other economic reforms off the table for now.But some other people close to the administration see that as risky. Such a move could draw Trump into a bad short-term deal with China, they say. A more likely scenario may be Trump pausing his assault on China once tariffs are in place on all Chinese imports and offering businesses at least certainty over the landscape rather than focusing on a deal.Market PlungeThen again, those people say, a lot could still depend on markets. A thousand point drop in the Dow Jones Industrial Average may not sway the president, but a 5,000-point move could.That the U.S.-China relationship is at its lowest point since Trump took office has created a window for his hawkish advisers to push for a more aggressive approach. The only thing in their way is their own lack of coordination, according to Derek Scissors, a China expert at the American Enterprise Institute who has advised the administration.“The president is upset with China,” he said. “The door is open for critics of China to take a whole number of actions and they’re completely disorganized and have no sense of priorities.”To contact the reporters on this story: Shawn Donnan in Washington at email@example.com;Jenny Leonard in Washington at firstname.lastname@example.orgTo contact the editors responsible for this story: Simon Kennedy at email@example.com, Sarah McGregor, Brendan MurrayFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg Opinion) -- A year ago, Mike Ashley was being hailed as a possible savior of Britain’s rapidly depopulating shopping districts. Now, after the comically delayed announcement of his company’s annual results last month, the colorful sportswear billionaire looks like just any other struggling retailer.It’s 12 months since his Sports Direct International Plc struck a deal to acquire the ailing department store chain House of Fraser. Ashley, who had long stalked the business, now regrets the move. The acquired business has had an instantly negative effect on the wider group, which showed up starkly in its results statement.House of Fraser’s poor trading shouldn’t really have surprised anyone after years of chronic under-investment. Add in supplier problems and cautious consumers and it racked up more than 50 million pounds ($61 million) of losses from August to the end of Sports Direct’s financial year on April 28. Ashley is even losing money on House of Fraser stores where he’s paying no rent.While this hasn’t turned out to be the “Harrods of the high street” of Ashley’s dreams, he did at least manage to limit some of his financial exposure. Sports Direct paid 90 million pounds for the assets, and invested a similar amount in working capital, but it did pick up House of Fraser’s shop stock too. That might have been worth more than the purchase price.Ashley was never likely to keep all of House of Fraser’s stores. He’s still planning more upmarket outlets in Glasgow, Belfast, Liverpool and Newcastle. He’s keen too to sell more of the designer labels that have made his Flannels chain of smaller stores a hit, so having bigger flagship department stores will help. Many House of Frasers will probably be closed though.Ashley, who’s been targeted by U.K. politicians before because of his employment practices, can legitimately say he’s tried to save jobs. But turning around a chain with “terminal” problems (his words) was just too difficult. While he will no doubt be criticized, stemming financial losses and making Frasers – the new name for the high-end chain – smaller and higher quality make sense.Nevertheless, even this more limited ambition is a huge challenge, and his company has problems elsewhere. Its strategy of improving the attractiveness of its core Sports Direct stores – known for their “pile ‘em high and sell ‘em cheap” approach – hasn’t gained traction yet. Nike and Adidas are still reluctant to supply it with the latest sneaker models.An unexpected 674 million euro ( $754 million) tax bill – which caused that embarrassing delay in the results – was another unwelcome surprise and smacks of a group that’s spinning out of control. Indeed, Sports Direct’s management has been stretched thin by a string of Ashley investments that have also included Game Digital, a video game retailer, and Jack Wills, a struggling apparel supplier to affluent teens. This has been compounded by the departure of key executives, including the head of retail Karen Byers.In the current climate, Ashley’s strategy of having lots of high street property, in which he can drop different brands (which he usually buys on the cheap) appears sensible. In a distressed market, why not try to take advantage of the misery elsewhere? He might still take a fresh tilt at Debenhams, another British department store chain that’s now owned by a group of lenders and hedge funds.But Sports Direct appears to be fighting fires on too many fronts. Investors, who have pushed the shares down by 42% in a year, are right to be skeptical. Ashley has to win over the big brands for his Sports Direct chain, and some luxury names at House of Fraser. Given the history of his stores, that won’t be easy.While net debt is forecast to remain an undemanding 1.5 times in the current financial year, according to analysts, and the Sports Direct chain still generates cash, upgrading stores and making strategic investments isn’t cheap. As I’ve argued before, Sports Direct would be better off as a private company. Ashley, who owns 62% of the shares, says he has no intention of doing this because without outside shareholders he would be “uncontrollable.” But it’s hardly as if he’s been reined in by the demands of being a listed company.As it is, minority investors have little option than to hope he makes the right choices from here. There may yet be method in the Ashley madness, but he needs to prove that the last year wasn’t all just folly.To contact the author of this story: Andrea Felsted at firstname.lastname@example.orgTo contact the editor responsible for this story: James Boxell at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
On today's episode of Free Lunch here at Zacks, Associate Stock Strategist Ben Rains offers a quick global economic update. The episode also dives into Adidas (ADDYY), Lyft (LYFT), and Uber (UBER) earnings, and more...
(Bloomberg) -- Adidas AG said it’s more worried about a currency war between the U.S. and China than the possibility that President Donald Trump will increase tariffs on footwear.The German sportswear maker does as much as 45% of its business in the U.S. and China, and if the two countries weaken their currencies in a competitive tussle then it will ultimately come to hurt Adidas’s earnings when translated back into euros. There’s also the risk that such a conflict would slow down the world’s two biggest economies -- and everyone else.“There is no winner in a currency war,“ Chief Executive Officer Kasper Rorsted said on a call with reporters after releasing second-quarter earnings that narrowly missed estimates. “Eventually everybody will lose because it will lead to a slowdown in the global economy.”Fears of a currency war have rattled global markets this week, after Beijing moved to weaken the yuan amid Trump’s threat of new tariffs. Concerns eased slightly on Thursday when the People’s Bank of China set the daily fixing stronger than analysts expected.Rorsted’s warning is significant because Adidas in May signed an open letter to Trump warning of the risks of tariffs. That document, also signed by Nike Inc., Puma SE and other footwear companies, said new levies on shoes made in China would be “catastrophic for our consumers, our companies and the American economy as a whole.”The Adidas CEO said the German company was speaking for the footwear industry as a whole, rather than its own interests, when it added its name to the letter.While the U.S. imports the “vast majority” of shoes from China, Adidas ships only a small number of products along that route, Rorsted said. The German company has about 20% of its manufacturing capacity in China, but many of the products made there go to local buyers, who represent about 25% of Adidas’s overall business, Rorsted said.Shares DeclineThe company reported second-quarter operating profit that was slightly below the consensus forecast and confirmed 2019 targets, disappointing some investors who considered that outlook conservative. The shares fell for most of the day, then plunged as much as 8% -- the most intraday in almost three years -- after Rorsted told analysts that margins would decline in the second half of 2019.“The market had expected more,” Volker Bosse of Baader Bank said by phone. “In general, they’re on track, they have not missed, but look at their share price. It’s priced for perfection.”Shares were down 2.9% at 5:20 p.m. in Frankfurt, paring this year’s gain to 46%.One drag on earnings has been Adidas’s need to fly clothing from Asia to North America to fill a supply gap. The company has spent more on air freight to compensate for supply-chain bottlenecks affecting mid-priced apparel in North America, which it said in March would cut full-year growth by 1 to 2 percentage points. The snags will probably affect the company through the third quarter, Rorsted said in an interview with Bloomberg TV.“We are flying in products from Asia to make certain we can actually satisfy demand, which has been the constraining factor this quarter,” Rorsted said.While Adidas results were broadly in line with expectations, they were not enough to “drive further excitement” among investors, given recent share gains, Morgan Stanley analyst Elena Mariani said in a note.(Updates with falling shares, analyst’s comment in eighth, ninth paragraphs)\--With assistance from Lisa Pham, Anna Edwards and Matthew Miller.To contact the reporter on this story: Tim Loh in Munich at firstname.lastname@example.orgTo contact the editors responsible for this story: Eric Pfanner at email@example.com, John LauermanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg Opinion) -- Adidas AG is going back to the 1990s with some of its new product launches to capitalize on the craze for chunky “dad sneakers” (inspired originally by the high-end fashion house Balenciaga).It’s a shame that the German sportswear maker hasn’t managed to stick with a more recent trend in the meantime: That of regularly upgrading its sales and profit forecasts. On Thursday it said it would only maintain its financial outlook for the full year, disappointing investors who’d been hoping for a boost. Its shares fell by as much as 3.5%.Adidas looks like it’s getting to grips with the issues that weighed on its performance last year, including weaker demand in Europe and not being able to supply American customers with enough mid-market clothing. European sales were flat in the second quarter, excluding currency movements, while North American sales rose 5.8% as the supply constraints eased.Reebok, the sneaker brand that Adidas’s chief executive Kasper Rorsted is trying to turn around, managed to eke out some growth in the three-month period. This was driven by demand for its Classics range, a favorite among millennials. Group sales in Asia slowed, though. What’s more, the cost of dealing with the U.S. supply shortages, such as flying in stock, took its toll on profit.There was brighter news on the company’s operating margin, which increased year-on-year to 11.7% from 11.3%. Indeed, given the signs of a sales recovery in the U.S. and Europe, it’s surprising that the company would only maintain its guidance for 2019 revenue to expand by 5%-8%, and an operating margin target of 11.3%-11.5% (it was 10.8% last year).Still, you can see why Rorsted might be cautious. Sales rose 4% in the second quarter, so there will need to be a step up to meet the existing guidance. That looks likely as the company recovers fully from those U.S. stock shortages. Yet adverse impacts from a trade or currency war between China and the U.S. can’t be ruled out. Adidas makes about one-quarter of its sales in China and manufactures about one-fifth of its products there.By leaving the margin outlook unchanged, Rorsted also gave himself some wriggle-room to invest to compete with Nike Inc. and to continue to rejuvenate Reebok.With the shares rising almost 50% this year, investors were clearly expecting more. But this is a marathon, not a sprint. To keep narrowing the stock market discount to Nike (on a share price to earnings basis), Adidas has to show that its remarkable recovery is not petering out. Chunky trainers will go the way of all fashions, Rorsted’s job is to create something more lasting.To contact the author of this story: Andrea Felsted at firstname.lastname@example.orgTo contact the editor responsible for this story: James Boxell at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
European shares rose for a second day on Thursday, as investors took heart from a stronger than-expected rebound in Chinese exports and steadying of the yuan currency after a week of turmoil centred around a renewed escalation of U.S.-China trade tensions. Down as much as 5% in a three-day rout that began late last week, the pan-European STOXX 600 index was up 0.8% on the day by 0714 GMT, adding to a minimal rise on Wednesday and with the tech sector leading gains. Latest earnings showed disappointing second-quarter sales from German sportwear company Adidas, sending its shares down 1.5%, while Thyssenkrupp gained 2% in the face of a fourth profit-warning that traders said was already largely priced in.
Adidas shares slumped to the bottom of the German market Thursday after the world's second-largest sportswear group posted weaker-than-expected second quarter sales as growth in north America slowed.
NIKE (NKE) acquires Celect, an expert in retail predictive analytics and demand sensing. This is likely to accelerate its digital advantage by enhancing the ability to understand consumer needs.
(Bloomberg) -- WeWork Cos. is setting up $6 billion in financing to pursue its global ambitions, but there’s an unusual catch: It must first succeed in its initial public offering next month.The company has been meeting with analysts this week, outlining its business and plans for expansion as it prepares for a stock-market debut. Behind the scenes, the firm is seeking to borrow in two ways: a $2 billion letter-of-credit facility and a $4 billion delayed-draw term loan, people with knowledge of the matter said, asking not to be named because terms are private.But in a twist, banks will have to make good on their commitments only if at least $3 billion is raised in the offering, upping the stakes for the IPO. The larger facility can be drawn down beginning in September, and again in August 2020 and March 2021, if WeWork meets certain performance targets, one of the people said.The New York-based venture, which rents furnished office space to companies and freelancers, has been looking for ways to fund its expansion around the world, potentially investing in a broad array of businesses and properties, such as apartments and schools. Pressure on the company mounted after Japan’s SoftBank Group Corp. backed off a plan late last year to pump $16 billion of equity into the startup.The new financing round may give WeWork more discretion when setting the size of its IPO, which Bloomberg reported last week may raise $3.5 billion in September.JPMorgan Chase & Co.’s representatives have told rivals it’s poised to commit as much as $800 million to the two facilities, the people said. Some potential lenders were asked to commit $750 million by this week, while others have until mid-August to solidify commitments of $250 million to $500 million. If the company receives pledges in excess of $6 billion, as it expects, it will probably scale down how much it draws from each lender accordingly, according to one of the people.Representatives for WeWork and JPMorgan declined to comment.Swag for AnalystsEquity analysts who may soon issue recommendations to buy, hold or sell WeWork’s stock were invited to its location at 85 Broad St. in Manhattan, once the headquarters of Goldman Sachs Group Inc. Trading a T-shirt for a white button-down shirt and dark pants, co-founder and Chief Executive Officer Adam Neumann told the audience about his company’s early days. He went on to explain how it solidified relationships with major clients like Microsoft Corp. and what drove its decision to court others such as big banks, Facebook Inc. and Amazon.com Inc.WeWork disclosed metrics to analysts, including that its year-over-year run-rate revenue growth is 105%, based on $3 billion in run-rate revenue, according to people with knowledge of the matter. The company told analysts its net member retention rate is 121%, exceeding 100% because businesses already in its membership base are growing. Its lifetime value-to-customer acquisition cost ratio is 4.2 times; that exceeds the 3-times ratio that venture investing firm Andreessen Horowitz has said is a good sign a business model is working. Enterprise clients account for 41% of WeWork’s membership base. These include BlackRock, Adidas, Citigroup and Salesforce, according to that unit’s website.WeWork has moved beyond office space into such ventures as WeLive housing, WeGrow schools and Rise by We, a wellness concept. Neumann repeatedly compared WeWork with Amazon, noting the online retail giant began selling books before expanding into just about everything else. He later joked that he wants to stop using that analogy -- which has become something of a cliche for companies looking to raise money. The event wound down with avocado toast, quinoa and beer.In a possible sign of which banks are closest to WeWork, front-row seats were reserved for analysts from JPMorgan and Goldman Sachs. Attendees were offered swag, including tote bags and umbrellas emblazoned with “Do What You Love,” as well as coffee cups and T-shirts bearing the company’s “WE” logo.Lending FeesThe new term loan may be priced at Libor plus 475 basis points and deemed pari passu -- or equivalent in seniority -- to WeWork’s outstanding bonds, another person said. The loan is highly structured and secured against cash and leases.Banks are expected to receive upfront fees equal to about 3% of their final commitment.Altogether, fees earned from lending to WeWork are expected to exceed the bounty banks will reap for handling its IPO. The fees being discussed for the stock sale range from 2.5% to 3%. That’s higher than the approximately 1.3% paid by Uber Technologies Inc. for its debut in May, according to data compiled by Bloomberg.(Updates with financial metrics in ninth paragraph.)\--With assistance from Michelle F. Davis, Ellen Huet and Eric Newcomer.To contact the reporter on this story: Gillian Tan in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Alan Goldstein at email@example.com, David Scheer, Michael HythaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.