SuperGroup surges despite Burberry’s stormWednesday, 12 September 2012
The London Stock Exchange witnessed Tuesday how Burberry
shattered the entire luxury goods sector by the time SuperGroup surged 7 percent thanks to a 10 percent increase in sales for the last quarter.
Nomura and Seymour Pierce have both reacted to the profit-warning out from Burberry by downgrading their view on its shares to neutral. As published by ‘The Economy News’, Keith Bowman, Equity Analyst at Hargreaves Lansdown Stockbrokers commented: "While disappointing, the cautionary update is not a total surprise. The group's own 'clean-up programme', where management is axing cheaper fashion lines in order to buoy prices, is likely to take some responsibility, while the group's exposure to China has already been extensively highlighted. Comparatives have become increasingly challenging, while a still spluttering US economy remains unhelpful.
In the meantime, London’s FTSE 100 closed slightly lower (-0.02 per cent) at 5792.19 points while German DAX 30 rallied 1.34 per cent to 7310.11 points and in Paris the CAC 40 gained 0.89 per cent to 3537.30 points. In comparison, the FashionUnited Top 100 Index, that gathers the 100 largest quoted apparel companies, raised by 3.88 percent to 1,440.33 points.
In addition to Burberry, SuperGroup stole the show on Tuesday when its shares surged by 7 percent to 567 pennies after the company reported like-for-like sales growth of 1.7 percent for the second quarter. Total sales grew by 10 percent.
Across the Pond, Lululemon Athletica (LULU) climbed for six straight weeks through Friday and is up 18% so far in September. Foot Locker (FL) and TJX Companies (TJX) hit new highs while Michael Kors (KORS) held the group's highest rating. Finally, Under Armour (UA) was trading near new highs.