Europe pulls the Index upThursday, 23 September 2010
Despite the Index loss, majority of the companies gathered in the FashionUnited Top 100 threw good figures on Wednesday.
In Europe, market heard big news on Burberry Group, which went up by 1.68 points after unveiling the name of their new director for the Europe Group. Following the retirement of Joy Frommer, Andrew Maag has been promoted as the new President of Burberry Europe. Maag will look after the retail and wholesale operations of the British luxury label in Europe, their largest market. Investors have welcomed this election as when he was still the Senior Vice-President of Menswear, he helped to develop the business from licensing to wholly-owned and gained a revenue growth of 40%.
In the main, Wednesday brought good news in terms of quoting for a broad array of European based companies. It was the case of Ted Baker, registering an increase of 2 points, Triumph with 5 points more than on Tuesday, JD Sports Fashion with another 2.5 points or Next, climbing by 6 points. The beloved high street British chain just announced that they will be found in all Wall Mart stores thanks to a exclusive deal with the department store giant. Asos was the exception, with a final drop of 5 points.
In India, Bombay Rayon Fashions Limited closed an outstanding trading session with a gain of 3.45 points. Also Koutons closed better than previous day, with a gain of 5.85 points. Aware of the importance of rising middle classes in Asia, Affordable jeans for emerging markets’ that seems to be Levis' new mantra. To cater to the growing middle class segments in emerging markets like China, Singapore, and Korea, the denim manufacturer is coming out with a brand called Denizen. The brand is said to be built around the needs of the new emerging middle class and is all about giving them jeans at affordable price points and up-to-date fits and finishes.
The opposite trend was seen in America, where there were more losers than winners. J. Crew fell by 4.2%, whereas Gymboree went down by 2.4% and Buckle lost 9.22%. Also Deckers Outddors joint the losers team with a decrease of 1.26 points.
Finally, American Apparel saw its value cut by 2.17%, what sums up to a higher than 80% variance in value during the past month. The chicest basics firm faces a complicated short term, with its finances in turmoil, and having had to re-hired the auditor it previously fired after Deloitte & Touche resigned after taking a look at its books, it stands a good chance of getting delisted. They are working against time as they have to file its second quarter financial statements before the 15th of November.