A&F´s shares hit two years ‘recordWednesday, 06 April 2011
Spring sprouts suit FashionUnited Top 100 Index, which closed up to 1181.27 Tuesday,
thanks to a gain of 0.46 points. The international fashion benchmark index started strong the week, helped by Abercrobie & Fitch that soared by 12% after releasing unexpected long term sales goal.
Abercrombie & Fitch owned the session yesterday after forecasting a strong profit next year and set an ambitious long term sales goal in anticipation of successful overseas growth, sending its shares up nearly 12 percent to their highest level since 2008. The teen clothing chain told Wall Street analysts at its investor day on Tuesday, which was broadcast over the Internet, that it expects earnings of $4.75 per share for the fiscal year ending in January 2013, surpassing the average analyst forecast of $3.97 per share, according to Thomson Reuters. Abercrombie shares were up $6.88 to $66.05 in afternoon trading on Tuesday, their highest level since June 30, 2008.
Following Nasdaq Tuesday´s market insight, online sales of adult apparel in the U.S. grew almost 10% in 2010 far outstripping the 1.9% growth in the overall apparel market, according to research firm NPD's February 2011 report on the US apparel market. This is great news for Aeropostale, American Eagle Outfitters, J.Crew Group, and Limited Brands among others.
Finally, American Apparel has until 30 April to prove it is a "going concern" or its banks will call in their loans, according to Women's Wear Daily (WWD). American Apparel reported an $86m (£53m) loss in 2010, compared with a $1.1m profit for the previous year. According to AA's last regulatory filing, the company had $7.65m in cash at the end of 2010. Among its creditors WWD calculates AA owes $58.2m to the Bank of America and $4m to the Bank of Montreal. The banks have told CEO Dov Charney that unless the company sorts out its finances by the end of the month they will call in those loans.