Retail escapes from market blues

FashionUnited Top 100 Index closed market in 1,191.32 with a rise of 5.57points, while European stock market indices remain stuck in the red after dropping sharply at their open.

Spain's sovereign credit rating downgrade, which came one day ahead of the special summit meeting of EMU leaders, raised concerns about the Eurozone debt issues. In addition, a record Chinese trade deficit released overnight added to worries about a high oil price on the back of reports of intense fighting in Libya. The FTSE 100 was down 1.2%. The CAC-40 was lower by 0.7%. The DAX closed down by 0.7%. A number of corporate earnings releases moved individual stocks but failed to provide broader support.

In the USA, Children’s Place was earning investors trust after reporting Wednesday a decline in fourth quarter earnings. Net income totaled $32.1 million, or $1.22 per share, compared to $34.1 million, or $1.23 per share, in the same quarter last year. Net sales fell 2.1%, to $453.2 million, on a 5.9% decline in same-store sales. Sales fell short of analyst forecasts, but earnings per share were well ahead.

Other stocks in spotlight yesterday in the retailing and apparel sectors were Aeropostale Inc. and Quiksilver, both of them reporting earnings after market closed. Aeropostale was expected to report quarterly earnings of 97 cents per share, on revenue of $834.6 million, while Quicksilver was anticipated by Wall Street to report loss of 5 cents per share, on revenue of $414 million.

On the lesser lucky stocks Thursday they were Burberry with a drop of 0.33% after owning markets on Wednesday, Abercrombie & Fitch, and British Ted Bajer and JD Sport Fashion.