Retailers pay toll of US economic weaknessWednesday, 11 April 2012
Apparel makers and retailers were among the market's
worst-performers Tuesday as U.S. and global stock indexes continued to sell off amid economic growth concerns. Shares of fashion house Michael Kors (KORS) tumbled 8% in early afternoon trading, briefly undercutting its 50-day line for the first time in its short history, reported IBD.
PVH Corp. (PVH) and Nike (NKE) lost about 3%. In the same vein, Lululemon Athletica (LULU) sank 5% and teen apparel chain Zumiez (ZUMZ) lot 5.5%. Women's clothier Chico's FAS (CHS) and off-price apparel retailer TJX Cos. (TJX) lost 3% respectively.
Apparel retailers had been coming off a strong March as sales increased due to the unseasonably warm weather. The past month was the warmest in 50 years, according to weather data provider Planalytics and published by Investor´s Business Daily.
Meanwhile, G-III Apparel Group (GIII), Gildan Activewear (GIL), Hanesbrands (HBI), Lululemon Athltica (LULU), PVH (PVH), True Religion Apparel (TRLG), VF (VFC), and Warnaco Group (WRC) got updated coverage by Seeking Alpha analysis team.
In the UK, JD Sports will be presenting seasonal figures this week. As reported by national media, JD Sports has capitalized on the difficulties faced by its rival JJB Sports, which nearly went bust last year amid falling trade and mounting debts. David Jeary, analyst at Investec, said to ´Wales Online´ he would be looking for further detail on the Blacks acquisition, and added: “The biggest prize is to be gained from implementing JD’s retail operating disciplines and brand expertise to restore a more appropriate level of financial return from Blacks.”