More corporate releases cheered up the markets, blurred somehow after China recognized its growth has dropped as unseen before. Lululemon Athletica, Burberry, American Outfitters and Guess? Inc were main stocks to watch on Thursday.
In London, Burberry was the second-best performer of the day on the FTSE 100 on Thursday, providing a lift to the personal goods sector. Shares were 4.17% higher at 1,323p before the close of trade today, nearly 14% higher over the last week.
And Lululemon Athletica inc. continues to cash in on the success of its yoga-inspired fashions and accessories. The Vancouver-based retailer saw its third-quarter profit soar by 51 per cent to US$38.8 million or 27 cents per share, beating estimates by two cents. However, it shares fell $7.31 or 14.4 per cent to $43.44 as revenue jumped 31 per cent to US$230.2 million, missing expectations of $235.7 million. Paul Marciano, Chief Executive Officer at Guess? Inc., stated how they are “pleased to deliver third quarter earnings consistent with our expectations, even as economic pressures have intensified and are affecting consumer confidence in many of our markets, particularly in Europe. During the quarter, we made good progress on many key strategic initiatives. Our efforts to elevate our brand in North America are yielding significant improvements in profitability. We enjoy momentum in Asia and the newer markets in Europe where our brand is well known but where our business is still under-penetrated. And we are focusing on sound execution, managing our inventories, expenses and capital prudently.” For Q3 (Jul '11), It had a Net profit margin of 9.13%, an Operating margin of 13.81%. Other Key stats and ratios are: Return on average assets of 13.85%, Return on average equity of 21.05%. The organization has employee strength of 15,000.
Finally, shares in apparel manufacturer Gildan Activewear Inc. plunged $7.37 or 30 per cent to $17.15 as profits fell to US$48.5 million from $56.8 million a year ago. The company also predicted a first-quarter loss on Thursday, saying its performance would be hurt by finishing up inventories that used higher priced cotton, the destocking of distributor inventory and some discounts.