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Fashion market resembles the still-shy economic recovery

By FashionUnited

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During its first week, the FashionUnited Top100 Index

has given clear evidences of how the apparel sector is not alien to the ongoing economic uncertainty as its first days have been characterized by a succession of ups and downs.

With US apparel companies offering a positive performance as banks advanced and in response to the fastest American retail sales growth in four years, the international fashion industry has been generally following the path set by the USA market. This rally, which has lasted for more than five consecutive days already, is bolstering optimism that consumer spending is weathering a climb in confidence.

However, the high drawing power of the Football Championship appears to have come to its end, as it has been registered a general fall in the sportswear and related companies scope. As the new figured released early this week, neither the record fall in the prices of UK clothing and footwear in June, nor the good weather and earlier summer clearances were able to boost sales. Something similar is happening in the rest of Europe, with the largest apparel companied glancing at new African and Asian markets. With the South Africa Championship just ended, there is evidence of a growing Chinese consumer market as many international marketers are convinced that Chinese fans are contributing a lot to the world's multi-billion dollar sports merchandising business. Also big fishes as Burberry Group or Inditex are putting their eyes on Asian and African markets, seeking for virgin soil for their close future expansion.

Yesterday, the shareholders of UK clothing retailer Marks and Spencer were gathering in London for the company's AGM, with Sir Stuart Rose still chairman and ready to be replaced as chief executive by Marc Bolland. His taking the helm has cost the company a drop of 2.22% in the last market session. Just one week before, M&S reported a 7.4% increase in clothing sales for the first quarter period. Also H&M climbed 2.5 points, while Asos experienced an escalation of 25.75 points has undoubtedly become the star of the market. Established in June 2000, ASOS.com is the UK's largest independent online fashion and beauty retailer.

Good sample of the still-shy economic recovery is the UK based Ted Baker. The luxury casual wear house was at the top of the table just a week ago, losing 6.5 points in just one day and striking back with a climb of 8 points the day after. Also JD Sports, the leading sportswear house, is showing a similar behavior with swings of 5 and 6 points in average in just a matter of days.

Regarding the losses chapter, Triumph seems to have not got back on their feet yet, as the German lingerie and bath clothing company keeps on showing a drop of 11 points, becoming the most worrying share indexed in the FashionUnited Top 100.  Luxury brands don´t seem to be doing it much better lately, when offering falls ranging from the 1.51% of LVMH to the 2.28% from Christian Dior.

Index closed the session in 992.63 points, rising from the previous 975.85 points
FashionUnited