FashionUnited Top 100 Index overcame its previous day’s
closure by 5.41, finishing the session in 1115.5 and keeping therefore with the early week path of growth. Uncertainty about whether stocks can ultimately add to the heady gains of the past couple of weeks or are due for a pullback has made for a subdued mood this morning.
Citigroup has reiterated a Buy rating on Nike, last issued on Wednesday, according to a research note. "We continue to believe that Nike has attractive long-term growth opportunities with renewed growth in apparel, stronger futures growth in China/Emerging Markets, innovation driving product launches & share gains, and a strong management of supply chain/efficiencies," summed up Kate McShane, from Citigroup. This recommendation has transformed into a gain of 0.35% within the international apparel index.
In USA and according to the latest outlook conducted by Zacks Investment Research, Gap Inc., the largest U.S. clothing chain, delivered solid top-line and earnings results for second-quarter 2010. The company is expected to continue to deliver strong sales as comps comparisons remain easy throughout the year. Gap’s size and buying power as compared with other retailers help it to withstand higher costs. Also, the turnaround story in the U.S. has helped the company to build a strong position in order to expand overseas and improve its online reach. The American brand closed yesterday with earnings, gaining 0.75%.
In the same market analysis but on the other top of the list, American Eagle Outfitters reported an earnings drop of 64.2% in the second quarter of fiscal 2010. Inventory levels remain high and the pricing environment is competitive. High inventory levels as compared with peers are an obstacle to out-performance. However, the company’s plan to further expand internationally will help to bolster its growth, forecasted this research institution. However and within the FashionUnited Top 100, the sister brand of Abercrombie & Fitch went up by 0.30% at the end of the day.
This week there have been many promising deals following the trail of USA based low cost department Sear’s and the UK label French Connection. The latter will be available in several Sear’s stores by next spring.
In the meanwhile, stocks were opening on a down note in the European markets as economic news out Wednesday darkened the mood on the stock market. Manufacturing activity in New York slowed this month and came in below analysts' expectations. That disappointed investors who had become accustomed to seeing steady increases in activity at U.S. factories.
On national scale, commodity stocks pulled Britain's top shares lower as U.S. data showed a sharp slowdown in industrial output, and after investors switched into the dollar after BOJ's yen intervention and recent sharp gains. This could be observed in Ted Baker, which lost 2.39 points; and JD Sports Fashion, still losing yesterday, 7,5 points exactly. In Germany, Tom Tailor went down by 2,87% when Puma AG climbed 1.3 points.