Corporate releases cheer London and Wall Street

In Europe, British FTSE plunged 2.12 percent, or 139.3 points

to 6419.3, dabbing 35.5 billion pounds off the value of shares. Wall Street big movers were American Apparel, Ascena and Vera Bradley.

In London, Tesco was one of the biggest fallers, dropping 5 percent, or 18.8p to 345.6p amid concerns over the progress of its turnaround plan as UK sales slipped 1 percent in its first quarter and declines also seen across its international operations - though Chief Executive Philip Clarke insisted recovery efforts were on track.

Other retailers were dragged into the red as well. It was the case of Marks & Spencer, which dropped 12.9 pence to 453.4 pence while Next was down 84 pence at 4,603 pence.

Still in London, Moss Bros benefitted from better than expected results with a 1 percent rise, up 0.8 pence to 56.3 pence, after reporting 0.3 percent increase in like-for-like sales since the end of January thanks to an online push.

Year-on-year online sales soared 138 percent in the 18 weeks to the start of June, which helped retail sales rise 2 percent and offset a 6.2 percent slump for suit hire.

In a separate note, British retailer Republic's future remains uncertain as Mike Ashley’s Sports Direct is understood to have missed its 75 percent target for Republic stores to agree to a new temporary leasing deal, reported ´Property Week’.

In Wall Street, Vera Bradley's fiscal first-quarter profit shrank 27 percent due to increased costs that dragged stronger revenue and higher same-store sales. In a separate note, Chief Executive Michael C. Ray said he is about to retire although he will remain CEO through a transition period and continue to serve as a director. Weighted by the latest news, shares traded lower, shredding 6.7 percent to 20.95 dollars in after-hours trading.

Francesca's Holdings Corp.'s (FRAN) also reported quarterly figures. The apparel group noted fiscal first-quarter earnings rose 25 percent as the women's apparel and accessories retailer continued its pace of double-digit sales growth. However, shares dropped 7.8 percent after hours to 27.75 dollars as sales came weaker than expected.

Elsewhere, Reitmans (Canada) Ltd. (TSE:RET.A), the largest Canadian fashion retailer by market value, shed 6.8 percent to 8.28 Canadian dollars a share after posting a first-quarter loss of 4 Canadian cents a share compared with breakeven results on a per-share basis a year earlier. Same-store sales also dropped 3.5 percent.

Last but not least, Ascena Retail Group Inc. (ASNA) Wednesday reported a decline in profit for the third quarter, as a surge in revenues were offset by higher costs. Both earnings and revenues for the quarter missed Wall Street estimates. In the same breath, the retailer also cut its full-year earnings outlook. Shares of the women's apparel retailer plunged 10 percent in after-hours trade.