FUTop100 Index fares better than S&P, FTSE100 and DJIAFriday, 30 December 2011
However, this lost should be compared to those registered by other indexes such as the Dow Jones Industrial Average, which has fallen from the 12,582.77 height it conquered the 1st of July to the border of 12,271, at which it was expected to close the year (and above the 11,577.51 mark it started the year). Meanwhile, the Standard & Poor's 500 index will end down 0.1 percent at 1,262, marginally up on the year's starting point of 1,257.64.
Finally, trading in Europe on Friday 30th December was fairly quiet with many markets were only trading for half the day. The FTSE 100 index of leading British shares closed up 0.1 percent at 5,572.28, meaning that it ended the year 5.6 percent lower, while Germany's DAX ended 0.9 percent higher at 5,898.35, a 14.7 percent decline over the year. The CAC-40 in France, which is trading normal hours, was 0.3 percent higher at 3,138. Despite the rise, it's still looking like it will end the year around 17 percent lower from where it started at 3,804.78. These compare to the 5,4% that the FU Top 100 lost in the past 6 months. The international fashion benchmark was trading at 1,237.4 points in January (12th Jan), compared to its close on 30th December 2011, date that the FUTop 100 farewell the year at 1,273.14., that is a 2.89% higher than it welcomed the now exiting year. The FashionUnited Top 100 Index is a capitalization-weighted index gathering some of the world largest stock listed apparel companies. All listed companies specialize in the sale of clothing, whether in physical retail stores, wholesale or by e-commerce. They do not necessarily have to be the world largest ones, but the main stock listed firms located in those countries represented in the index with their own weighting based on market capitalization, which is calculated June 30th of each year.
10 of 100 companies gain over 10% in 6 months
Ten of the hundred quoted companies from the fashion and apparel market listed within the FashionUnited Top 100 Index will farewell 2011 fairly better than they started in July. LIz Claiborne was the stock that gained the most in the last six months (+62%). In line with the sluggish circumstances seen in all markets around the Globe, quoted companies belonging to the Fashion and Apparel Industry have been severely damaged by the recession and the ever decreasing consumer´confidence. This gloom perspective somehow explains how 60 of the Top100 listed stocks declined over 10% in the last 6 months of 2011, as opposed to those 10 of listed stocks that managed to increase their market value (+10%) from 1st of July to 30th December.
American womenswear retailer Liz Claiborne Inc. has topped the top ten gainers of the year within the FashionUnited Top 100 Index by adding +62% between July and December. It is worthy a note to recall though that its stock is currently trading at 8.36USD per share in comparison with the 46.84USD per share it held in 2007. Dec 08, 2011 (SmarTrend(R) Spotlight via COMTEX) -- SmarTrend identified an Uptrend for Liz Claiborne (NYSE:LIZ) on October 12th, 2011 at $6.83. In approximately 2 months, Liz Claiborne has returned 20.79% as of 8th of Decemeber price of $8.25. In the past 52 weeks t that date, Liz Claiborne share prices have been bracketed by a low of $4.02 and a high of $9.18 and are now at $8.25, 105% above that low price. Over the last five market days, the 200-day moving average (MA) has gone up 0.9% while the 50-day MA has advanced 2.3%.
Second came Oxford Industries Inc (+28%). When the owner of Ben Sherman posted quarter results in early December, the stock was up 58% year-to-date. Oxford Industries Inc.'s (OXM) fiscal third-quarter earnings fell 71% as the repurchase of senior secured notes and other items weighed on the apparel company's bottom line, though adjusted earnings and revenue beat the company's expectations. Oxford boosted again its full-year outlook to $2.30 to $2.35 a share for adjusted earnings from continuing operations on revenue of $745 million to $755 million. In August, the company had forecast earnings of $2.20 to $2.30 a share on revenue of $735 million to $750 million. For the fourth quarter, Oxford expects earnings per share of 50 cents to 55 cents on revenue of $185 million to $195 million. Analysts surveyed by Thomson Reuters predicted 48 cents and $184 million, respectively.
Carter's Inc. won the copper medal in the second half of 2011 as its shares gained +26%. It has a market cap of $2.33 billion; its shares were traded at around $39.74 with a P/E ratio of 19.39 and P/S ratio of 1.33. Carter's Inc. had an annual average earning growth of 17.3% over the past 10 years. Stocks at Carter's were upgraded in December to buy from neutral by Goldman Sachs, which sees opportunities for gross margin growth. The benefits will come through the children's apparel retailer offsetting higher raw-material costs by raising prices in its wholesale business, which accounts for 50% of sales.
The rest of the top 10 chapter of those companies that have seen the best trading between July and December is as follows: Genesco Inc (+17%), TJX Companies (+17%), True Religion (+15%), NEXT (+14%), The Children's Place Retail(+14%), VF Corporation (+13%), and Charming Shoppes, Inc.(+11%).
At the bottom top they can be found 100 - K-Swiss, that has seen the largest drop with a fall of 75%, and Billabong International (-72%). Other stocks that have struggled in the past six months were Lululemon Athletica (-61%), Etam Developpement S.C.A. (-60%), CHARLES VOEGELE (-59%), or Esprit Holdings (-59%).
In early December and following the analysis of FNNO, K-Swiss crowned the three companies in the Footwear industry with the lowest Enterprise Value (EV) to Sales ratios. EV/Sales gives investors an idea of how much it costs to buy the company's sales and the lower the ratio, the more undervalued the company is believed to be. As reported by Financial News Network Online (FNNO), K-Swiss (NASDAQ:KSWS) was lowest with EV/Sales of 0.27. In the past 52 weeks to 5th of December 2011, shares of K-Swiss have traded between a low of $2.56 and a high of $13.04 and are now at $2.76, which is 8% above that low price. Over the past week, the 200-day moving average (MA) has gone down 2.5% while the 50-day MA has declined 4.5%.
On its own, Billabong International Ltd. (BBG) fell by a record in Sydney trading on Dec 19, after the Australian surf-wear maker said first-half profit may fall as much as 26 percent and flagged a review of its capital structure. The stock slumped 44 percent to A$2.03 at the close of trade, the largest drop since it was listed in 2000. The decline cut Billabong’s market value to A$518 million ($514 million), compared with A$1.5 billion as of the June 30 fiscal year end, reported at the date Bloomberg. Goldman Sachs Group Inc. (GS) has been hired to review all alternatives for Billabong’s balance sheet, with an equity sale "not the preferred path," according to a filing. The review comes "in light of the existing operating environment and the risk for further deterioration," Billabong said in the filing.