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Apparel stocks feel the cold and trade lower

By FashionUnited

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Wednesday retail stocks felt the cold at both sides of the

Atlantic, with timid advances – if any – at the main European markets and the S&P 500 Retailing Industry Group receding 0.5 percent to 911.71 points in its third consecutive declining day.

Aeropostale Inc (NYSE:ARO) traded at rise, adding 7.68 percent to 10.24 dollars on traded volume of 2.55 million shares after Hirzel Capital Management unveiled a 6 percent stake in the teens fashion apparel chain on Tuesday. The stock has a 52-week range of 7.78 to 17.10 dollars. The company´s market capitalisation currently stands at 799.78 million dollars.

On a separate note, Foot Locker (NYSE:FL) announced a quarterly dividend on Wednesday, to be paid to shareholders of record on Friday, January 17th. The dividend will be of 0.20 per share on Friday, January 31st, representing a 0.80 dollars annualised dividend and a dividend yield of 2.19 percent, as the company advanced Wednesday.

Analysts at UBS AG have recently reiterated their ‘buy’ recommendation on the stock, setting their target price on the shares at 39 dollars a share. Meanwhile, analysts at Canaccord Genuity reiterated a ‘buy’ rating on Foot Locker´s shares in a research note to investors on November 15th.

Foot Locker traded down 1.19 percent during mid-day trading on Wednesday, in the region of 36.50 dollars. The stock has a 52-week low of 31.07 dollars and a 52-week high of 37.85 dollars, giving the company a market cap of 5.429 billion dollars.

Elsewhere, Macy’s (NYSE:M) shareholder Tim Adams sold 10,000 shares of Macy’s stock in a transaction dated Friday, November 15th. The shares were sold at an average price of 50.79 dollars, for a total transaction of 507,900 dollars. Following the transaction, the insider now directly owns 20,422 shares of the company’s stock, valued at approximately 1,037,233 dollars, as per data disclosed in a legal filing with the SEC.

As for Thursday, “analysts have become increasingly bullish on Abercrombie & Fitch in the month leading up to the company’s third quarter earnings announcement scheduled for Thursday, November 21,” advanced Zacks analysis team on the release of quarterly figures at Abercrombie & Fitch. The consensus earnings per share estimate has moved up from 42 cents a share to the current expectation of earnings of 44 cents a share, Zacks stressed in a note to investors issues Wednesday.

In Europe, Inditex dipped by 0.30 percent in Madrid, prompting Bank of America Merrill Lynch to downgrade its rating on the stock from ‘buy’ to ‘neutral’. Meanwhile in London, Bonmarché was set to a strong debut on the smaller London stock market AIM and ANAP Inc., an apparel and accessory retailer, surged 310 percent in Japan´s stock exchange after going untraded on its debut Tuesday.


FashionUnited