• Home
  • V1
  • Design
  • Red for European stocks and turnaround for menswear in US

Red for European stocks and turnaround for menswear in US

By FashionUnited

loading...

Scroll down to read more

European markets ended Tuesday's session

in the red, while investors were cautious ahead of a large number of U.S. economic reports to be released before the Thanksgiving holiday on Thursday.

In an unexpected turn of the tables, Men's Wearhouse – which weeks ago turned down a buyout offer from smaller rival Jos. A. Bank at a purchase price of 2.5 billion dollars- has announced that they´d be happy to pay 55 dollars a share for Jos. A. Bank. This offer implies a 9 percent premium over its closing price on Monday.

Shares of both Jos. A. Bank Clothiers (NASDAQ:JOSB) and The Men's Wearhouse, Inc. (NYSE:MW) gleamed Tuesday, gaining up to 12 percent each after Men's Wearhouse´s surprising offer for Jos. A. Bank.

Elsewhere, Janney Capital market downgraded Francesca's Holdings to Neutral from ‘buy’ to ´neutral’ “based on the following: 1) challenging mall traffic and promotional environment that we believe will continue to pressure margins over the next 12 months; 2) potential for sustained negative comps in the near-to-medium-term; and 3) apparel and accessory trends that are not as strong as prior year.” The broker now has a “fair-value estimate” price on the stock of 22 dollars.

Meanwhile, analysts at Trefis have been closely following Aeropostale, as activist investment firm Crescendo Partners has recently urged the teen apparel retailer to go private, just days after Hirzel Capital Management LLC disclosed a 6 percent stake in Aeropostale. Commenting the acquisition, the private capital firm explained that it will see a better impact as a private company. On the wake of the news, the stock gained a 10 percent.

On a separate note, Chico’s saw its adjusted net income fell 14.8 percent. This was the third consecutive quarter of losses for the womenswear brand, what led adjusted earnings per diluted share also down, dropping 12 percent.

In Europe, Luxottica Group fell by 0.83 percent in Milan, after analysts at Berenberg downgraded the stock to ‘hold’ from ‘buy’.


FashionUnited