Concerns on economic recovery weight June sales

Wednesday, 14 July 2010

Together with the British giant of sportswear, JD Sports, which amazingly climbed 11 points, which transformed into a revalorization of its share of a 1.47&, and also in the UK stock market, Next and Burberry led the ups of the session with a rise of 5 and 4 points respectively. The quintessential British label has got off to a strong start to its financial year after booking a 24% jump in first quarter sales helped by international growth and demand for its outerwear lines.

Also the largest Indian shirt manufacturer, Bombay Rayon Fashions belongs to the top ten of the journey, showing an increase of 3.4 points. Koutons, another Indian company, leader in the ready to wear niche market, saw a positive behavior, increasing its value 1.95%.

Regarding the American market, and despite a warm weather boost for summer merchandise and the later timing of the Memorial Day calendar which shifted some sales into June, worries about the still-fragile state of the economic recovery continued to weigh on US shoppers last month. This concern can be clearly seen in a shared negative behavior among the main US based apparel companies, with an average descent approaching the 0.20%. In the meantime, the American youth´s must have shoe wear, Skecher’s, has registered a decrease of 5.82%. Puma AG seems to be losing its up track yesterday, with a final drop of one point.

Finally, the high drawing power of the Football Championship appears to have come to its end, as it has been registered a general fall in the sportswear and related companies scope. As the new figured released yesterday, even the record fall in the prices of UK clothing and footwear in June, good weather and earlier summer clearances were unable to boost sales. Something similar is happening in the rest of Europe, with the largest apparel companied glancing at new African and Asian markets. The best evidence of this generalized caution is how Triumph seems to have not got back on their feet yet, as the German lingerie and bath clothing company keeps on showing a drop of 11 points, while Ted Baker, the luxury casual wear house based in the UK, which was at the top of the table just a week ago, has lost 6.5 points.

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