Session ends up for apparel stocks; renewed hopes

Wednesday brought a wave of hope for the apparel market,

with the likes of Hermès, Ralph Lauren, Yoox and Zumiez releasing positive financial results and lifting their quarterly and annual outlooks.

At Hermès, third-quarter sales climbed 5.5 percent to 895.5 million euros, slightly below the 908 million euros consensus estimate by 9 analysts polled by Bloomberg. Excluding currency moves, sales advanced 13 percent.

Consequently, the French luxury handbags brand raised its full-year revenue target, defying third-quarter sales that trailed analysts’ estimates as currency moves weighed on growth, stressed Reuters. Now, annual revenue for the French luxury goods group could exceed 11 percent at constant exchange rates, Hermès advanced Wednesday in a statement.

Similarly, Ralph Lauren Corp on Wednesday raised the low end of its full-year sales forecast on expectations of strong gains during the holiday quarter, and the designer clothing company increased its dividend. Strong sales at Ralph Lauren's own stores generated revenue up by 6.5 percent, without accounting currency fluctuations.

The quintessentially American fashion house now estimates revenue for the year ending in late March to come in higher, between 5 percent and 7 percent, compared upward against a previous range of 4 percent to 7 percent. For the current quarter, which includes the holiday season, Ralph Lauren remains confident, expecting revenue to be grow between 8 percent and 10 percent, despite a two-point hit from currency movements.

Revenue increased 1 percent in the wholesale business, which sells brands like Polo and Lauren by Ralph Lauren at department stores such as Macy's Inc. The company said growth in North America had offset declines in shipments to European and Japanese customers. However, CEO Christopher Peterson told analysts on a conference call that wholesale sales would be up "significantly" in the second half, helped in part by improvements in Europe.

On the wake of the news, the stock rose 3.7 percent to 177.57 dollars in morning trading in New York.

Also on the wave, the leading speciality retailer of action sports related apparel, footwear, equipment and accessories Zumiez Inc., which announced that total net sales for the four-week period ended November 2, 2013 increased 10.4 percent to 46.3 million dollars, compared to the 41.9 million dollars achieved in the same period a year ago. The company’s comparable store sales also increased, adding 1.2 percent for the four-week period ended November 2.

Shares of Zumiez fell 27 cents to close at 29.19 dollars. Being one of the latest market´s darlings, the stock is up 50 percent in the year to date.