The FTSE 100 considerably rose on Thursday after rallying 89 points (1.55 percent) to close at 5,855 on Wednesday after the Greek parliament approved the €28 billion austerity plan.
However, it was not just cheery news for European retailers. German retail sales slumped at the fastest monthly pace in four years in May and hit their lowest index level on record, in a sign that household demand remains fragile despite an improving labor market.
Retail sales fell by 2.8% from a month earlier in price-adjusted terms, after rising by 0.6% in April, Germany's Federal Statistics office said Thursday. That is the sharpest drop since May 2007, when sales dropped 3.6% month-to-month. Dragged by the gloomy stats, Hugo Boss fell 1.29%, becoming the worst performer of the FashionUnited Top 100 Index on Thursday, as opposed to Puma AG, that achieved a place within the top 5 with a gain of 0.88%.
Similar news presented the US International Council of Shopping Center’s (ICSC) weekly report on aggregate retail sales for the week ended June 25th, that shows how much declining fuel prices impact the retail sector and the economy as a whole. Last week’s weekly data showed a 2.9% jump in the store sales compared to -7% two weeks ago. This shows how lower fuel prices could bring some respite to apparel companies like Abercombie & Fitch, Urban Outfitters, American Eagle, GAP and Aeropostale, some of which, have lowered their Q2 targets due to declining sales and lower consumer confidence, reminded Trefis’ analysts in their daily market round.
American Eagle Outfitters Inc. is going ex-dividend on July 6. To receive the dividend, the stock must be owned the day prior to the ex-dividend date. The current yield is 3.5%, which is equivalent to $0.44 for the year. In the meantime, its shares closed the session flat by $0 or 0% from its previous close.