Wednesdays FashionUnited Top 100 Index was 1014.2 down
by 33.02 points, partially shacked by U.S. stocks that slipped Wednesday, as upcoming reports on new-home sales and durable goods kept investors on edge with worries that the data will show more evidence of a slowdown in the economic recovery.
Among the companies whose shares are actively trading in the after-hours session are Guess Inc., which second-quarter profit rose 12% as the apparel manufacturer posted a jump in North America wholesale and Asia revenue, helping results top expectations.
American Eagle Outfitters Inc.’s fiscal second-quarter earnings tumbled 66% on wider losses related to its failed Martin + Osa chain and as the apparel retailer reported weaker margins and higher overhead costs. The company said it plans to reduce its work force and close about 50 to 100 stores over the next two to five years and closed yesterdays with a drop of 0.15%. In the meantime, Perry Ellis International Inc.'s fiscal second-quarter loss narrowed as the apparel maker continued to see demand improve from last year's weakness and margins benefit from better inventory management. However, its report was transformed into a 2.89% up.
In India, textile exporters such as Gokaldas Exports or Koutons (+ 0.4 points) are upbeat about the two per cent interest subvention scheme provided to exporters in the annual review of the 2009-2014 foreign trade policy and see this as a positive move in helping exporters get interest payment relief. As per the annual foreign trade policy review, zero duty export promotion capital goods scheme has been extended by one year to March 31, 2012, duty entitlement passbook scheme has been extended by six months till June 30, 2011, the number of additional products from sectors like leather, engineering, textiles, jute were added to two per cent interest subvention scheme and additional benefit of two per cent bonus was given under focus product scheme. House of Pearl jumped 1.67% and
As the annual supplement to the foreign trade policy has pleased the labor-intensive textile and leather sectors, garment makers want incentives being given for the US market to continue. "The 2% incentive given under market-linked focus product scheme (MLFPS) for knitwear exports should continue as the US market has not fully recovered," said A Sakthivel, president, Tirupur Exporters' Association. Textile and apparel exports to the US, which account for over a quarter of the shipments made by the industry, started gaining pace from February after several months of decline. But industry officials insist that the growth has been robust as it came on a low base.
Little bit further to the East, in Australia; Gap opened today a store at Chadstone in Melbourne, followed by another in Westfield City in Sydney in October. The former British colony becomes thus the latest country to succumb to Gap's apparel imperialism. The American classic basics brand’s plans for Australia are ambitious: it plans to open 10 to 15 stores within three to four years. To cheer up their investors, the American brand went up by 0.12%.
Finally, Japanese United Arrows was the best value of the session, with a gain of 22 points at the closure of the day.