J.Crew deal boosts apparel worldwideThursday, 25 November 2010
Lifting row material prices and outstanding deals have shaped
the market day worldwide. These operations impulsed the FashionUnited Top 100 Index towards a new height: 1.235.4 rising by 13.22.
In USA, a handful of retail industries posted gains vs. the market's broad losses last day after a $2.86 billion buyout bid sent J. Crew Group soaring 17% in huge trade on late Tuesday. This movement boosted the Retail-Apparel, Shoes and Accessories group to the day's best advance, according to local financial press. This impulse also translated into a final sprint up to $43.99 per share and the second position within the FashionUnited Top100.
The J. Crew deal would put the upscale casual clothing retailer in the hands of private equity firms TPG Group and Leonard Green & Partners. TPG initially bought J. Crew in 1997, then sold its position after the 2006 IPO. The offer of 43.50 a share was a 16% premium to the stock's closing price Tuesday., however, this deal gives J. Crew until Jan. 15 to shop for better offers.
Aeropostale also made the list, rising more than 3% in firm trade. Its earnings and sales growth have been in a slowing trend since Q2 2009 although it is true that shares have been correcting since April.Gains among department stores were smaller, but broader. J.C. Penney and Dillard's all gained more than 1%.
Amid cotton prices reaching new hikes and the consequential international response, Indian quoted apparel companies are struggling to cope with this week quotes. Provogue India jumped 4.62% to Rs. 71.30 last November 18th after the company said Triangle Real Estate India Fund is investing Rs. 306 crore for a 35% stake in three special purpose vehicles formed by unit Prozone Enterprises.The announcement was made on Wednesday, 17 November 2010, when the Indian equity markets were shut for public holiday and exactly one week after, their shares are suffering frommarket speculation, which afforded them the worst position in the Index, with a final loss of 4.13%. It is also worthy to remember that Provogue India's net profit rose 10.6% to Rs. 9.71 crore on 18.2% increase in net sales to Rs. 139.12 crore in Q2 September 2010 over Q2 September 2009.
Also India-based Koutons was listed at the bottom of the losers of the day. Koutons Retail Q2 profit crashed down to Rs 2.26 crore, down 90.42% from a year ago. The Indian retailer has been battered over the last few months after falling in line with the market since early 2008, what has recently motivated the part-exit of its capital of Ascent Capital (formerly UTI Ventures).
Though not being among the worst performances Wednesday, it was a surprise in the markets the little down experienced by H&M. The Swedish high-street champion not only is dying on success because of its last collaboration with Lanvin, but just completed the acquisition of the remaining 40% of the shares in FaBric Scandinavien AB, which runs the store chains Weekday and Monki as well as the Cheap Monday brand. FaBric Scandinavien AB will be incorporated fully into the H&M Group, but the brands will continue to be operated as separate concepts.