Firms With Disposable Funds
Company Cash and Short-term Investments Year-over-year Change Amazon $37 billion 48.3% Alibaba Group $30.3 billion -9.7% Compagnie Financière Richemont $12.4 billion 49.9% Procter & Gamble $9.8 billion -36.7% Inditex $7.8 billion -2.3% Walmart Inc. $7.7 billion 14.3% LVMH Moët Hennessy Louis Vuitton $6.1 billion 18.3% JD.com $5.3 billion -0.20% Nike Inc. $4 billion 0.1% Adidas $3.3 billion 51.4% Hermès International $3.2 billion 13.8% TJX Cos. Inc. $3 billion -7.2% The Estée Lauder Cos. Inc. $2.4 billion -3.9% Ralph Lauren Corp. $2.1 billion 1.2% Target Corp. $1.6 billion -41.1% Tapestry Inc. $1.3 billion 28.8% L Brands Inc. $1.4 billion -7.0% Ross Stores Inc. $1.4 billion 9.5% The Gap Inc. $1.4 billion -23.2% Source: S&P Capital IQ, most-recent figures available. Cash is still king in retail and fashion. And some of the industry’s biggest names have saved up the biggest stock piles — from Amazon’s $37 billion horde to Compagnie Financière Richemont’s $12.4 billion cash pile to LVMH Moët Hennessy Louis Vuitton $6.1 billion in holdings. But oversize bank accounts can be both good and bad. Having billions held in reserve for a rainy day gives investors a sense of confidence and stability. It also opens up opportunities for the more acquisitive companies to use that money to buy competitors or acquire new skills as they seek to supercharge growth. But having a lot of cash on the books can also invite scrutiny from investors. If a company has too much money sitting around, some investors might start to push management to put the funds to work or give it to shareholders by way of stock buybacksFollow WWD on Twitter or become a fan on Facebook.
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