Encouraging profit results meet market hopes

Thursday, 18 November 2010

After such an intense but full of hopes day, the FashionUnited Top 100 could not more than keeping its growth path. Always in thick of things, the index closed yesterday in 1,208.74, after rising by 6.42 in the state of the international economy.

Teen apparel craze, Abercrombie & Fitch Co. on Tuesday reported a 29% increase in profit for the third quarter, which was also better than market estimates, reflecting an 18% increase in net sales. Comparable sales, or sales from stores open for at least one year, increased 7%. Their polemical strategy of hiring models to welcome customers is definitely working with a net income for the third quarter was $50.04 million or $0.56 per share, up from $38.78 million or $0.44 per share in the year-ago quarter. Just one day after presenting its quarterly figures, the big department stores Saks dropped by 4.12%, becoming one of the worst values on Wednesday.

Back to the former metropolis, Angela Ahrendts, Chief Executive Officer for Burberry Group, commented: “The Burberry team delivered a strong first half, with adjusted revenue up 21% and profit before tax up nearly 50%. The continued focus on the brand, ongoing investment in our digital, IT and retail infrastructure, especially in China, and a disciplined approach to driving growth underpin our confidence in delivering long-term sustainable returns.” However, this announcement turned into a loss of 10.5 points in the stocks market.

Also it came time to Ted Baker to publish its interim management statement, colored with 20.7% increase in Group revenue for the 13 week period from 15 August 2010 to 13 November 2010 , compared to the same period last year, with gross margins in line with expectations. Retail sales for the period were 8.6% above the same period last year and average retail square footage rose by 6.9% over the period to 221,443 sq.ft. (2009: 207,150 sq.ft.). Trading in the UK has continued to perform well and the improved trend in our overseas markets, as reported at the time of our interim results, has continued, albeit against stronger sales comparatives in the second half of the financial year. As previously announced, we launched our US transactional website in October and will be opening two new stores in the US at the end of this month in Chicago and New York.

Quoting Reuters, British fashion group French Connection sees profit at high end of hopes as their forecast for the year profit at the high end of current market expectations after its wholesale business showed an improved performance in its latest trading period. The firm said on Tuesday the business as a whole had performed in line with internal expectations in the 15 weeks to Nov. 13, its fiscal third quarter.It said slightly lower than expected retail revenue was more than offset by growth in wholesale revenue, gains in gross margin and overhead savings. This forecasts have little to do with the investors behaviour up to date, as FCUK lost nearly 5% of its value yesterday.

Last but not least, Benetton Group net revenues for the first nine months of 2010, characterised by continuing economic uncertainty in the most important markets for our brands, reached €1,498 million (+0.5% over the comparative period, equivalent to €7 million), due to the impact of commercial policies implemented to support the sales network, and as a result of the revaluation against the euro of the currencies of some emerging countries, totalling €29 million (Korean won, Indian rupee, Turkish lira and the yen). Apparel segment revenues were €1,418 million, up by €5 million (0.3%) compared with the first nine months of 2009. Textile segment revenues were €80 million compared with €78 million in the comparative period (+2.6%).

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