Coach down 14 percent, A&F at full steam

Coach´s shares fell more than 14 percent on

Wednesday in early trading, after the luxury handbag maker reported slightly improved sales and earnings for their fiscal second quarter yet below market´s expectations.

“Looking ahead, we’re confident in our ability to address the near-term challenges in North America while leveraging the global opportunity, as we continue to evolve the Coach brand,” said Lew Frankfort, chairman and chief executive of Coach, in a statement.

US stocks closed higher Wednesday buoyed by strong earnings results in the technology sector and progress in the Washington fiscal budget debate. The Dow Jones Industrial Average rose 67.12 points, or 0.49 percent, to 13,779.33, its highest level since October 2007.

In Wall Street, many hopes are laid on Abercrombie & Fitch Co. (ANF) as following Zacks´analysis, its shares have “outperformed the Zacks Consensus Estimate for the last 3 quarters, delivering an average beat of 36.4 percent. Most recently, it topped by 47.5 percent in its fiscal third quarter and raised its earnings guidance for 2012, sending shares higher for this casual apparel retailer.”

In Japan, Nikkei index declined for the third consecutive day, with stocks in Tokyo declining sharply after investors shifted attention to corporate earnings. Fast Retailing, parent company of Uniqlo, declined 570 yen to 22,330 yen. The Japanese fashion retailer is said to be keen on taking its flagship brand public.

In Europe, Hermès and LVMH got the industry talking as Gérard Rameix, president of the French financial regulator, l'Autorité des marchés financiers (AMF), has announced that the resolution of the conflict over the acquisition of LVMH´s majority stake in the family-owned Hermès will be coming for the early summer. LVMH´s stock traded modestly up, closing 0.14 percent up from its last trading, whereas Hermès International gained 0.06 percent in Paris. Rameix said Wednesday in Paris that a decision could be issued in a case over LVMH Moet Hennessy Louis Vuitton SA (MC)’s stake in Hermes International (RMS) SCA by the summer. In October, Rameix said the AMF informed LVMH that its board will recommend its sanctions committee fine the world’s largest maker of luxury goods, reported Bloomberg at the time.

In the corporate news chapter, Luxottica Group S.p.A. (MTA: LUX; NYSE: LUX), the Italian fashion, luxury and sports eyewear group announced Wednesday the closing of its acquisition of Alain Mikli International, the French luxury and contemporary eyewear player. “The transaction was previously announced on November 2, 2012. As a result of this acquisition, Luxottica will significantly strengthen its luxury brand portfolio,” the company said in a communication.

Finally, in Australia, Women's fashion retailer Noni B plunged 13.79 percent to 75 cents after it announced that its interim net profit would fall to between 1.7 million Australian dollars and 1.9 million Australian dollars from 2.4 million in the comparable period a year ago.