Nike on the investors, Puma and Adidas follow

Wednesday, 29 June 2011

The FashionUnited Top 100 Index took a ride at the international stocks´ rally, closing I 1299.1 Tuesday, what means a daily gain of   4.15 points from grayer Monday. London's blue-chips were rallying again, partly thanks to signs of strength on Wall Street.

European stock markets showed renovated and quite encouraging gains on Tuesday ahead of a critical Greek austerity vote, which is vital to assuring the nation’s short-term fundraising. Optimism over the Greek situation has increased over the last few days, despite the two-day general strike to protest budget cuts, pay cuts and tax reforms, reported varied European media.

Big mover of the session was athletic shoes and apparel maker Nike, which was rising 5% to $85.37 early on Tuesday  as its fourth quarter profit increased 14% from the previous year, as higher North American sales helped to offset a rise in expenses. Both earnings per share and revenue were above Wall Street view. After the market's close on Monday, Nike reported fiscal fourth-quarter earnings of $594 million, or $1.24 a share, up from $1.06 a share a year ago and ahead of the $1.16 that analysts had forecast (the fourth quarter ended May 31). Revenue rose 14% to $2.55 billion, exceeding Nike's projection for high-single-digit growth. Investors were racing to snap up shares, which rose 7.2% to $87.50 in midday trading. But we think they can run higher still.

Meanwhile, German sportswear firms Adidas and Puma shined above other retailers as investors pile in following better-than-expected fourth quarter earnings from US rival Nike last night.

Elsewhere, last in falling under the Asian stock market´s spell is  U.S. handbag maker Coach Inc., already listed in New York, and that has said its shares may start trading in the Hong Kong by year end, as it wants to promote the brand's profile across the Asian-Pacific region. Turbo-ed by these news, the handbag label traded up by 1.69%, entering the FU Top 100 Index winners’ group for first time.

Related News