Shares rise for Nordstrom, Zalando and Lululemon

The shares of upscale US fashion retailer Nordstrom (JWN) hit a 52-week high of 77.15 US dollars yesterday, before closing at 75.89 US dollar and accumulating a year-to-date return of 24.3 percent.

Earlier, the company posted strong third-quarter fiscal 2014 results that were spurred on by its latest acquisition of men's clothing service Trunk Club, consistent store-growth initiatives and a winning customer strategy that reflected growth across all channels.

Earnings rose by 5.8 percent in the third quarter and earnings per share by 73 cents, ahead of analysts' estimates. Nordstrom’s total revenue reached 3,140 million US dollars, an increase of 8.9 percent year-on-year. Over the last six quarters, the company has been able to deliver a consistent earnings increase of almost 4 percent on average.

Berlin-based online fashion retailer Zalando (ZAL) also posted positive results: For the first time since its stock market entry last month, the company traded above its IPO price and shares rose as much as 11 percent or 2.29 euros to 22.36 euros.

Europe’s largest online fashion retailer forecast it would end the year “slightly profitable”, which would be a huge milestone, and expects revenue to grow by as much as 25 percent in 2014. This should reassure other e-tailers who have suffered from diminishing investor enthusiasm for e-commerce stocks.

The yoga-inspired athletic apparel company Lululemon (LULU) also achieved positive results, seeing a rise of 4 percent on Tuesday and 17 percent for the whole month.

In a bullish move, one trader even bought several thousand Lululemon January 50/57.50 call spreads for 2.10 US dollars. The Canadian company will profit if the share price rises above 52.10 US dollars by the January expiration, with maximum profits if the share price rises to 57.50 US dollars in the next two months.