Burberry, Richemont, new hopes in Old Continent

Wednesday, 19 January 2011

European markets saw some light at the end of the tunnel, after luxury giants Burberry and Richemont, which gathers labels such as Chloe or Net-a-Porter, among others, posted their quarterly reports.

Swiss luxury goods group Richemont, the powerhouse behind labels such as Chloe, Dunhill, and retailer Net-a-Porter, has reported double digit growth in its fashion and accessories division. This outstanding twist transformed into a 0.71% gain within the FashionUnited Top 100 Index. In the three months to December 31 the group had a 23% growth in sales to €2.1bn (£1.8bn), excluding any change in exchange rates. Excluding the group’s acquisition of luxury retailer Net-A-Porter sales grew by 19%. Sales in its ‘other’ division including Dunhill, Net-a-Porter and Chloe increased by 75% to €260m (£218m) or by 63% at constant exchange rates.

In the UK, stocks climbed for the first time in four days as euro-area finance ministers agreed to strengthen the region’s rescue fund, spurring confidence in a recovery from the sovereign-debt crisis. Burberry took top spot on the blue chip leader board with a gain of 56p at 1,115p after reporting revenue grew 30% in the last quarter and full year profit is set to hit the top end of its forecast range. Fashion house Next rose 53p at 2,153p on the read across.


Regarding other companies posting profits and quarterly reports, Under Armour, Inc. is scheduled to report Q4 2010 results on Thursday, January 27, 2011. In the last four quarters ending September 2010, the company's reported EPS exceeded analysts' consensus estimates by margins in the range of 13.33% and 133.33%. In the meanwhile, the athletic brand was trading up by 1.67%. Also the shares of G-III Apparel hit a new all-time high on Tuesday. The stock traded as high as $36.99 during mid-day trading and last traded at $36.23. The stock previously closed at $36.19.


Shares of J. Crew Group, Inc. saw unusually high trading volume on Tuesday. Approximately 360,247 shares changed hands during mid-day trading, an increase of -81.61% from the previous session. The stock last traded at $43.42. On a related note, analysts at Zacks Investment Research upgraded shares of J. Crew Group, Inc. from an “underperform” rating to a “neutral” rating in a research note to Investors.

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