If the past sessions were characterized by a generalized drop in most of the companies that integrate the FashionUnited Top 100 Index, this week appears to be the contrary: positive atmosphere and increases in the majority of the listed companies. Air of change was breathed by the apparel industry index, which closed yesterday at 963.24, compared to the previous day´s 967.36 points.
Hermés International gained 0.84% after the French maker of luxury handbags and silk scarves raised its 2010 revenue forecast after second-quarter sales increased faster than analysts estimated on demand in Asia. Thus, full-year revenue might escalate as much as 12%, excluding currency swings, as Paris-based Hermes said two days ago in an official record. This percentage contrasts to the Hermes International in March forecast revenue would gain at least 5 percent.
This increase responds to the accelerating demand for luxury goods as Chinese shoppers buy more high-end clothing and accessories, and U.S. and European retailers replenish inventories after the recession. Hermes sales gained 23 percent in the first half and the company said operating profit rose at a faster pace, helped by growth in high-margin products such as textiles, leather wear and watches.
With such a positive impulse, the luxury good niche resembles the French Maison´s good news as it can be seen in the last session upturn for LVMH, Bulgary or Burberry Group.
Also big high street chains such as H&M, Gap, Abercrombie & Fitch or J.Crew are increasing their positions within the trade market, with augments of 0.9, 0.16, 0.08 and 1.17 points each one. Ted Baker, the UK based label, sparkled with an increase of 2.99%, while French Connection gained 3.53% and Indian retailer Koutons added 1.85 points to its previous position.
Despite the generalized optimism, yesterday´s session brought some losses, piloted by cursed Triumph, with a registered drop of 92.9 points. It also was a bad day for Danish firm IC Companys, which lost three points, as well as for JD Sports Fashion, with a cut down of 9.5 points.