Supergroup, Inditex and Billabong lead international markets

Shares in Supergroup, owner of brands such as Superdry,

have fallen after it revealed a fall in profits. Inditex also shrugged off the economic gloom miring Europe to post higher profits. Despite its shares fell in early trading. later recovered to rise by 0.2 per cent to 103.85 euros.

The Zara-owner’s stock had its “hold” rating reiterated by equities research analysts at Bankia Bolsa in a research note issued to investors on Wednesday. They currently have a 98 euros price target on the stock.

Profits at SuperGroup grew by 13 per cent over the past six months, while Spanish retailer Inditex posted a 27 percent rise. The retailer reported pre-tax profits of £13.9m for the six months to the end of October, down 32percent from last year. But it pointed to a rise in sales and underlying profits as evidence that its brands are still strong.

Supergroup is having a difficult year. Co-founder Theo Karpathios resigned in August, shortly after the group announced a 15percent fall in annual profits. It blamed poor accounting and management controls for the fall.

In April, Supergroup's shares fell 37 percent in a day after it issued its fourth profit warning in a year, which it blamed on a mathematical error in its accounting.

"Although the trading environment has remained challenging and volatile, the group's sales performance in the first half of the year has been encouraging," said chief executive Julian Dunkerton. "During the last six months, there has been significant change in the group's management structure, as we commit to building a solid platform to support our future growth."

Meanwhile, Spanish Inditex became one of the main movers in the Old Continent. Inditex S.A. dropped 0.6percent to €103 after the Spanish apparel retailer reported first nine months net sales grew 17percent to €11.36 billion. Net income for the period rose 27percent to €1.66 billion from €1.30 billion in the previous year.

Elsewhere, Billabong International Ltd. (BBG), Australia’s biggest surfwear maker, signed an exclusive distribution agreement with Arvind Ltd. (ARVND) to expand sales of its products into India. According to the release issued by Arvind on Wednesday, the deal with the Arvind Lifestyle Brands Ltd. unit includes products sold through standalone outlets as well as department stores and other retailers. Billabong spokesman Chris Fogarty confirmed the agreement.

“Arvind has licensing relationships with a number of international partners,” Phil Nicole, Billabong’s general manager for Asia, said in the statement. “We are therefore convinced that we have found in Arvind a great partner for Billabong as we seek to further grow our Asian operations.”

In the wake of the news about their just nailed agreement, Billabong rose 2.2 percent to 93 Australian cents at the close of trading in Sydney, while Arvind Ltd.’s shares rose as much as 1.7 percent in Mumbai trading, and were up 0.8 percent to 90.70 as of midday – compared to India’s benchmark Sensitive Index, that fell 0.1 percent.