Markets aware of American ApparelThursday, 19 August 2010
Chico's FAS Inc., closed at $9.25, going up 84 cents. The kids wear specialist led gains in mid- and small-cap stocks in the United States on Wednesday. The retailer's quarterly profit more than doubled as sales rose and more customers bought items from its stores. The retailer jumped after it posted results that topped forecasts. Without leaving the New York Exchange, Chico's news lifted shares of Talbots Inc and AnnTaylor Stores Corp. While Talbots was up 5.4 percent to $10.28, AnnTaylor gained 6.5 percent to $15.96. All of them contributed to the general lift of the quoted international apparel industry, as the FashionUnited Top 100 Index showed yesterday.
Main competitor and other children´s favorite Gymboree Corp.'s, presented yesterday fiscal second-quarter profit and ticked up 0.8% on higher sales and margins, beating its guidance. The US based group was one of the main characters on Tuesday´s session as, according to Thomson Reuters, shares slid 1.4% to $40.60 in after-hours trading as the children's apparel maker predicted third-quarter earnings of $1.25 to $1.30 a share on flat to slightly lower same-store sales. The company--which sells clothes and accessories for newborns to 12-year-olds--has seen stronger sales and improved margins in recent months after cutting costs during the recession. Sales of children's apparel were fairly steady during the recession.
On the opposite side of the balance, American Apparel Inc., down 22 cents at 81 cents. The company beloved by hipsters said it might not have enough liquidity to sustain itself another year. The stock is still reeling after Tuesday’s going concern warning, which smacked the shares straight into penny-stock territory. The chic basic retailer has pared its losses steadily throughout the session and their main investors are studying an array of possibilities to bring the company back to positive figures. However, they managed to throw good numbers within the index, as it increased by 1.22%. This will undoubtedly be one of the defining values of the coming days, as market resembles every slight movement of the company.
In the Far East, in Pakistan, floods are ruining not only the country but the national stocks, as some international manufacturers are re-addressing their orders to other neighboring countries, aimed to avoid the flood ruining their productions. Not far, Indian House of Pearl Fashions Limited celebrated their up by 3.75%.
At the other side of the Globe, in Europe, British labels such as Next or M&S have cheered up the market, as the first gained approximately one point and a half, while the latter reached 1.1% more value than it had on the day before. Also ASOS was an outstanding assessment, closing the day with 13 points more than the previous day. Onward Holdings climbed up 4 points in Japan thanks to the attractive of some of the marks that as Jil Sander and Joseph, conform the Japanese holding.