Richemont and Primark cheer European investors

Thursday was yet again heavily weighted by corporate releases.

In Switzerland, luxury giant Richemont posted a 2.8 percent increase in Q3 sales to 2.94 billion euro, while Primark’s Christmas figures sweetened parent group’s AB Foods results for the holiday season.

Richemont posted 2.94 billion euro or 4 billion dollars for the third quarter, mainly due to strong demand from the Americas and Japan, and lower sales in mainland China. The company noted the quarter was “in line” with trends seen in the first six months, and that slower growth in the wholesale channel reflected caution among the group’s business partners, primarily in Asia-Pacific. Retail sales at constant exchange rates increased 14 percent, compared with wholesale, which increased 3 percent.

In London, Primark has recorded Christmas sales up 12 percent, hence lifting its expectations on its profit to surpass that of last year’s same period. Margin at the apparel retailer are also expected to be higher. Primark sales were up 12 percent at constant currency for the 16 weeks to January 4.

Primark said trading in the year to date has built upon the “exceptional” like-for-like growth delivered in the same period last year. Additionally, the second half of the period was characterised by “excellent Christmas trading with very strong like-for-like growth”.

In US, Abercrombie & Fitch surprised analysts and investors alike with a better-than-expected holiday season. The teen apparel retailer has recently released a business update stating that its local comparable sales in November and December declined by 6 percent, far ahead of market’s expectations. In the same line, the retailer has increased its EPS guidance for the full year from 1.40-1.50 dollars to 1.55-1.65 dollars. The stock has gained almost 8 percent on the news.

Down Under, Country Road has reported a surge in sales for the first half of the financial year and forecast interim profit to rise by up to 74 percent, boosted by the acquisition of women's fashion chain Witchery and accessories brand Mimco in late 2012. The Australian fashion retailer reported total sales of 422 million dollars for the six months to December 28, up 27.4 percent - or 6.6 percent once the benefit of acquisitions was stripped out.