Prada, Luxottica & Ferragamo overcome Greek bailout

Tuesday, 01 November 2011

British fashion houses were among the worst punished by the not quite positive news about the Greek bailout. The losers chapter at the FashionUnited Top 100 Index was topped with UK based firms , even when the National Office of Statistics released today data of the annualised rate of GDP growth rose to 0.5% in the third quarter of 2011, with surprisingly strong figures on services and production outweighing continued weakness in the construction sector.

‘The estimate for Q3 is complicated by the special events in Q2 (for example, the additional bank holiday in April for the royal wedding), which are likely to have depressed activity in that quarter,’ said a spokesperson for the Office for National Statistics.

Still in Europe and despite Italy being one of the most hit countries, Prada SpA was one of the winners of the day, with a final gain of 8.4%. Meanwhile, Luxottica fell by 0.05%.

U.S. markets also sold off as the Dow Jones industrial index fell 223.07 points to 11,731.94, the Nasdaq composite index dropped 59.1 points to 2,625.31 and the S&P 500 index lost 27.16 points to 1,226.14. The announcement of the referendum late Monday by Greek Prime Minister George Papandreou came just days after European officials outlined a plan to deal with the fact that Greece cannot pay its debts on time.

Guess?, Inc. percentage change dropped -4.63%, to close at $32.99 and its overall traded volume was 1.23M shares during the last session against its average volume of 1.49M. The stock has a 52 week low of $25.99 and 52 week high of $51.53. GES’s market capitalization is $3.06B and it has 92.78M outstanding shares.

Finally, in Mothercare, the stock plummeted by 10.7p to 168.3p after Goldman Sachs downgraded its rating to "sell". Mothercare has lost nearly 75 per cent of its value since December. Criticising the company for its "mid-market position" compared with the supermarkets' offerings, the broker's analysts refused to paint a pretty picture of the future, warning that Mothercare's losses in the UK would only get worse, with like-for-like sales falling until 2014.

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