Etam gained 1.89% after releasing quarterly results, while
Ted Baker became the second top mover of the FashionUnited Top 100 Index, adding 1.7%. Also LVMH closed in positive, scratching a humble 0.12% after posting 25% hike for its Q1 revenue.
Wednesday was led by a good number of corporate news. The lingerie group Etam posted net sales of €331.2 million ($434.5 million or Rs 2,242 crores) in the first quarter of 2012, including a positive currency impact of €11.5 million (US$ 15 million or Rs 77 crores) relating to the rise of the Chinese currency against the euro. In Europe, the group generated sales of €188.6 million ($247 million or Rs 1,274 crores), compared with the first quarter of 2011 and down 5.0% like-for-like and at constant exchange rates. As admitted by Esprit in a statement, they launched 2012 quite low of inventories, which impacted the commercial performance of winter end-of-season sales for the Etam and 1.2.3 brands, but had a favourable effect on margins, against the backdrop of tightly controlled costs. In China, sales totalled €142.5 million ($186.9 million or Rs 964 crores) in the first quarter, down 2.2% compared with the first quarter of 2011. Like-for-like and at constant exchange rates, sales in China fell by 17.1%.
Backing the great moment that luxury goods are going through, LVMH Moët Hennessy Louis Vuitton, registered a 25% increase in its revenue for the first quarter of 2012 taking it to €6.6 billion. Organic revenue growth for the luxury goods giant was of 12% in the first quarter of 2012.
Closing the corporate release agenda for this week, VF is scheduled to report earnings before the opening bell on Friday, April 27. Currently, analysts forecast 24.7% sales growth and 2.7% earnings growth, reported ‘Investors Place’.
Curious was the case of M&S, as the CEO, Marc Bolland, said the beloved British retailer sold 100,000 cardigans and jumpers from its core M&S Woman collection in the fourth quarter – but could have sold three times that number. "That was a miss," he said, blaming a temporary buying issue. Women's ballet pumps, he added, could have sold at double the quantity. The stock shortages meant like-for-like clothing and homeware sales at M&S fell 2.8% in the fourth quarter, missing City forecasts, published ‘The Guardian’. Consequently, M&S stock was the big loser of the traded apparel companies within the FTSE 100, the second biggest faller in the benchmark index, closing down more than 2% at 358.7p.
Meanwhile, Fitch Ratings has affirmed its ratings on Limited Brands, Inc. (Limited Brands), including the long-term Issuer Default Rating (IDR) at 'BB+'. The Rating Outlook is Stable. A full list of ratings appears at the end of this release. The apparel group has been in the investors’ radar for the past weeks, as its share’s price fluctuation might mirror.
In Asia, Fast Retailing Co. surged ¥260 ($3.19 or Rs 164.6) to ¥18,860 ($231.46 or Rs 11,945) a day after the largest apparel retailer lifted earnings outlook. J. Front Retailing Co. Ltd closed up ¥11 yen ($0.13 or Rs 6.7) to ¥428 ($5.25 or Rs 270.9). The Asian fashion giant saw its shares bolstered by the largest gain for Nikkei index in three weeks. Market sentiment was also bolstered after Bank of Japan Deputy Governor Kiyohiko Nishimura said that the central bank is ready to take additional steps to ease monetary policy if necessary.