Giving Thanks for such an encouraging Black Friday, the FashionUnited Top 100 closed yesterday at 1,250.57, rising by 15.17 points.
Most European shares advanced by Midday on Thursday in the lack of economic supporting from most important economies and in the course of celebration of Thanksgiving Day holiday in the United States which reduced the volume. European affairs over Ireland and euro debt unceased to contour European stocks. But in the US, closed marketplaces were surpassed by American retailers who sought to increase their bottom line and get a jump on the holiday shopping time of the year by opening their doors on American Thanksgiving. In this way, and still in the Old Continent, the best performers in terms of added value to the index were led by LVMH Moet Hennessy Louis Vuitton which inclined 1.84 per cent to settle at €118.95.
In general, J. Crew’s takeover has increased the stock prices of some other sellers, probably because this acquisition – and that of Gymboree (NASDAQ:GYMB) earlier – is stoking interest in the segment. Jim Cramer, an early hedge fund manager and host of CNBC’s Mad Money, supposes the retail sector could see more M&A in the coming months. “Many retailers are selling at ridiculous prices to their long-term growth rates,” explained Cramer in an MSN Money commentary.
With such a hoping scenario, stocks that rallied in hopes of being the next buy-out goal include Urban Outfitters,
Abercrombie & Fitch, J.C. Penney, Gap Stores and Macy’s among others, according to Cramer.
Taking other specialists remarks on this subject, Urban Outfitters holds an superior position, as its shares are up 6.74 per cent year to date, under performing the S&P Retail Index, as a change in fashion (more streamlined looks) and not easy comparable store sales contrasts led to moderating increase rates in each of 2Q10 and 3Q10. Consensus earnings estimates have been marked down, and though analyst enthusiasm on the stock rests high, there is a general understanding that the near-term for Urban will be brief of historical growth examples.