FashionUnited Top 100 Index was 1,274.91 rising by 6.79 and keeping on the growth path took at the
beginning of the week. European stocks keep on advancing for a second week as investors speculated that corporate profits and improving macro-economic data will overcome the region’s sovereign-debt crisis.
At the head of the EU stock exchanges motor they can be found numerous apparel companies such as Burberry, Inditex, ASOS, LVMH or French Connection UK. In the U.K., a report showed manufacturing expanded in October twice as much as economists forecast, a sign that the economic recovery maintained its momentum into the final quarter of the year. In Germany, Europe’s largest economy, industrial production rose almost three times as much as economists forecast in October, led by demand for investment goods such as machinery.
According to The Guardian, Deminor, a French shareholder consultancy, revealed it had written to LVMH asking for an explanation for its surprise 17.1 per cent stake building in Hermès. The stake-building has already been referred to the French bank regulator, ACP. The family shareholders of Hermès agreed last week to place more than 50 per cent of the shares in a holding company to protect the luxury house from future takeover threats. The plan is awaiting regulatory approval nut in the meantime, the Parisien label's titles are upping bigger than ever. The French maison dropped 0.13% by the closure of markets Tuesday.
Another company coming bigger last week was Lululemon Athletica. The retailer of upscale fitness apparel for women rang the registers with a profit of $0.36 a share, considerably ahead of the $0.25 a share that analysts were expecting. In fact, the athletic brand has Wall Street stumped, as it has beaten analyst net income targets by 25% or better in each quarter over the past year. However, the company was trading lower yesterday late, finishing the session down by 1,66%.
It appears to be that as Christmas is coming, more apparel companies are appealing to the wealthier sector and trying to attract and reaffirm their clients. It was also the case for Tiffany, which has been lately raising its guidance last month. The jewellery label gained 0.17% by the end of the day.