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European stocks drop to a month-low on Ukraine's tensions

By FashionUnited

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European stocks dropped Wednesday to their lowest level in a month as Russia

and Ukraine continued their standoff over the region of Crimea. US index futures and Asian shares also fell, reported Bloomberg.

In the UK, the local business of Forever 21 reported a pre-tax loss of over 66.55 million pounds for the 12 months to February 28, that is over nine times the 7.6 million pounds loss in 2012. The retailer's UK revenues more than doubled, gaining a 59 percent year-on-year to 37 million pounds, while gross profit came in at 15.2 million pounds.

In juxtaposition, British fashion retailer French Connection Group PLC said Wednesday it narrowed its financial losses in the last financial year thanks to an exhaustive turnaround that includes a drastic reduction of operating expenses, overhauled stores and a new design team. The retailer said trading in the second half of the year improved in the UK and Europe, with like-for-like sales growth of 1.4 percent in the second half, compared with a like-for-like sales decline of 4.5 percent in the first half of the year.

Still in London, Burberry has alleged Korean underwear maker SBW of copying the luxury brand's trademark check patterns. Therefore, the quintessentially British group is seeking 100 million pounds won in damages from SBW for infringing trademarked designs, according to the lawsuit filled.

Across the Atlantic, American Eagle Outfitters shares closed down by almost 8 percent after the teen clothing chain officials recognised on Tuesday that they've survived down cycles and outlasted other teen retailers, and they expect to do so again. "Over the years, we've had our share of challenges and we've always recovered," said Roger S. Markfield, the company's chief creative officer.

In the same vein, executive chairman and interim CEO Jay Schottenstein called last year "highly disappointing". Similarly think analysts polled by Thomson Reuter said, had been looking, on average, for 13 cents per share.

For the fourth quarter of the company's fiscal year - which ended Feb. 1 - American Eagle made a profit of 10.5 million dollars, or 5 cents per share, plunging from 94.8 million dollars, or 47 cents per share, achieved a year earlier. After adjusting for one-time items, the company earned 27 cents per share -- a penny above analysts' expectations.

FashionUnited