European buoyancy boosts stocks marketsWednesday, 03 November 2010
After hitting 1162.48 points on Monday, the FashionUnited Top100
Index fell downtto 1160.45 on Tuesday, losing 2.03 points on its way. European stock markets rose on Tuesday, buoyed by expectations that the U.S. Federal Reserve will announce new measures to stimulate the sluggish economic recovery. FTSEurofirst echoed this buoyancy by reaching the 1,122 height.
Breaking the ice for the upcoming corporate releases this week it was to be found Hugo Boss, whose reported sales were up 14% on a currency-neutral basis. The group posted a sales increase of 19% to EUR 538 million, compared to same period one year before EUR 450 million. The improvement was supported by double-digit currency-neutral growth in all regions (Europe +12%, America +13%, Asia/Pacific +27%). Wholesale revenues were 6% higher than in the previous year after adjustment for currency effects. Retail sales (including outlets and online) increased by 36% after adjustment for currency effects. The first-time consolidation of the joint venture with the Rainbow Group in China supported this development. On a like-for-like basis, revenues at directly operated retail stores rose by 15% after adjustment for currency effects. The rise in the gross profit margin also resulted in an increase of 4.5 percentage points in the EBITDA margin before special items, which amounted to 27.9% (2009: 23.4%). However, the German label descended a little at the market closure yesterday, losing 0.17%.
Undoubtedly a value at rise, Lululemon Athletica, is attracting both analysts and investors praises on its late performance. Its shares have risen about 80 percent in 12 months on Nasdaq and roughly 40 percent since hitting two-month lows at the end of August. As reported by Reuters, Capstone Investments analyst Claire Gallacher, who has a price target of $50 and a "buy" rating on the stock, says Lululemon may have a premium valuation, but it also has much more growth ahead than its peers. In the meantime, its position within the FU Top 100 slightly dropped, ending up at $44.94.
Expecting their scheduled earning announcements, both Liz Claiborne and True Religion were trading lower yesterday. While the first is scheduled to announce earnings before the market opens on Thursday, November 4th, the design jeans wear firm will do the same on Wednesday the 3rd of November, as soon as the market closed. Looking at the analyst consensus, it appears most traders believe Liz Claiborne is going to announce a loss of 3 cents per share, what translated into trading meant a fall of 2.82% on Tuesday.