FashionUnited Top 100 Index closed up Tuesday in 1,367.47 thanks to a rise of 21.63 points that set the international fashion benchmark index apart from the European stocks, generally flat after a week of strong gains.
European stocks struggled for direction for a second consecutive session Tuesday, following strong gains last week, as many investors remained on the sidelines ahead of the European Central Bank's upcoming interest rate decision. The ECB is widely expected to hike interest rates on Thursday, a move that was signaled in June by President Jean-Claude Trichet.
In Germany, Hugo Boss rose 1.6 percent after Credit Suisse initiated the stock with an "Outperform" rating and a price target of 79 euros. In contrast, Eurozone retail sales declined more than expected in May, and private sector activity declined last month, official data revealed.
Big news was Next, which has sold its contact center business Venture to Capita Group for £65 million. Ventura has around 8,000 employees, mainly in Yorkshire, Cardiff, Milton Keynes and Pune, India, who will transfer to Capita. The retailer closed up by 1.11%.
Still in British soil, Ted Baker’s finance boss Lindsay Page has slashed his holding in the fashion retailer, pocketing £2m in the process. He offloaded 250,000 shares at 800p a pop, but still has nearly 44,000, or about 0.1% of the company. Ted Baker has been doing well despite the tough economic climate; the shares have climbed by more than 50% over the past year. The smart youngsters’ favorite lost 2.06pc by the market close on Tuesday.
Elsewhere, Burberry faces bitter discussion over executive pay after Pirc, which advises pension funds and asset managers, described rewards for executives as "excessive" and urged its members to vote against the luxury fashion house's remuneration plans. The lobby pointed to a one-off £5.8m share payment last year to chief executive Angela Ahrendts, which was equivalent to nearly six times her base salary of £990,000. Pirc has recommended that shareholders vote against the remuneration report at Burberry's annual meeting on 14 July.