Luxury stocks saved a turbulent weekFriday, 22 April 2011
The FTSE edged higher in early trading today, with investors so
far resisting the urge to take the money and run following yesterday’s 125-point rise. An unexpected 0.2% gain in retail sales helped to boost sentiment on trading floors across London, dispersing some of the doom and gloom hanging over the sector since the pre-Christmas snow storms.
The British benchmark index recouped all of its losses from April 18’s selloff after Standard & Poor’s cut its outlook for the long- term sovereign credit rating of the U.S. to negative. Since hitting its 2011 low on March 16, the U.K. gauge has rebounded 7.5 percent.
In US, retail stocks turned higher along with the broader markets Thursday, after better-than-expected results from companies including iPhone maker Apple Inc. boosted investor sentiment.
It might be not a good year for John Galliano, but it is not the case for its former home as the Christian Dior Group early this week recorded revenue of $5.5 billion in the first quarter of 2011, an increase of 17.5%. Organic revenue growth stood at 14.6% compared to the same period in 2010, which had itself shown strong growth. The luxury house had an excellent start to the year, continuing the trends seen at the end of 2010. The United States, Europe and Asia enjoyed strong momentum. After the earthquake in Japan, the Group's local teams worked hard to effect a gradual return to normal business. Shares closed 0.05% up Thursday.
The Financial Times reported how after another turbulent week, European equities are recovering, lifted by the luxury stocks. Over the week, LVMH rose 6.5 per cent to €119.30, while Swiss watchmakers Swatch and Richemont climbed 6.5 per cent to SFr419.70 and 6.8 per cent to SFr54.80 respectively. French fashion house Christian Dior rose 5.5 per cent to €104.55, while Luxottica, the owner of the iconic Ray Bans sunglasses range, added 5.1 per cent to €23.12.