Good session for traded fashion retailers on Wednesday,
led by a victorious Inditex and a handful of strong results reported from Wall Street by the likes of Nike Inc., Francesca Holdings or Fossil.
In Wall Street, The Nasdaq ended 0.2% higher, while the S&P 500 was cut by 0.1%. The Dow Jones industrial average slumped nearly 0.3%. Volume was running higher on the Nasdaq and lower on the NYSE, IBD reported.
Within the apparel market, Francesca's Holdings (FRAN) reversed lower after gaining 3% to a new high, giving it all back and ending with a fractional loss. The stock on March 8 rushed past a 24.73 early buy point within a deep cup base. Besides, Francesca´s Holdings has seen volume to grow sharply lately, up to its current 537,000 shares on average.
Meanwhile, Nike Inc. (NYSE:NKE) is expected to report its third quarter 2012 earnings after the market closes on March 22 The Zacks Consensus Estimate for the third quarter is $1.16 (Rs 60) per share. This represents a year-over-year growth of 7.4%. “We note that the company has been consistently surpassing the Zacks Consensus Estimate for the past three quarters, while it slightly missed in the results of the year-ago quarter. However, the average earnings surprise for the trailing four quarters, which comes to 4.7%, remains unaffected by last year’s miss,” analysts at Zacks Investment Research published Wednesday.
As reported by Daily Markets on Nike´s preview, “for the upcoming quarter, two out of 16 analysts made upward estimate revision in the last seven and 30 days, while none of them moved estimates down for both periods. Only one out 15 analysts moved up its estimate for the fourth quarter of 2012, while none of the analysts pulled down their estimates in the last seven days. Over the past month, two analysts moved up their estimates for the fourth quarter while one analyst moved down the same.” In the same vein, estimates for fiscal 2012 saw a similar revision trend, as for the fourth quarter, with two out of 18 analysts moving up their estimates in the last seven days, with no negative movements. Again estimates in the last 30 days were revised in the same fashion with 3 upward movements, offset by one downward movement.
To close the American news, Fossil (FOSL) scratched 3% and Fitch Ratings cut down its rating outlook for Levi Strauss & Co. to negative from stable arguing the retailer´s struggle to reverse a long-term decline in operating margins.
In Europe, Spanish giant Inditex, owner of Zara, reported full year net income up to 1.93 billion euros ($2.56 billion or Rs 13,173 crores) in the 12 months ended Jan. 31, compared to the average of 15 estimates compiled by Bloomberg was 1.92 billion euros (Rs 13,080 crores).
“Inditex 2011 earnings were really strong and sales performance at the beginning of this year is pretty good too,” said Jose Rito, an analyst at Banco BPI in Porto, Portugal, as published Businessweek.
Inditex advanced 0.6 percent to 72.20 euros (Rs 4,918), extending a winning streak to eight days, the longest since 2007.