Retail stocks responded with stronger performances than pastdays ‘ones to President Obama announce of new jobs package — as they mean more consumption at the mall. Wall St. Cheat Sheet highlighted the stocks to follow, including Nordstrom Inc., The Gap, Inc., Family Dollar Stores Inc., and Chico’s FAS, Inc.
Despite the green sprouts in Wall Street, Export market for EU and US is currently seeing a slow down due to the much feared recession. This has resulted in a decline in exports by 16.3% during 2010-11. Prospects for the next year are not promising as well. Industry sources state that out of 2000 apparel makers based in Ludhiana, only 20 of them are planning to export for the current year.
According to the American analysts, shares of Nordstrom Inc. were trading at $46.00, up $2.21 (+5%) from the previous close of $43.80. From July 8, 2011, to September 2, 2011, the stock price had fallen $6.74 (-13.5%) from $50 to $43.26. Meanwhile, The Gap, Inc. was one of the top price gainers. Its stock price was 63 cents (+4%) above the previous close of $15.69. Gap´s stock price saw one of its best stretches over the last year between February 2, 2011 and February 18, 2011 when shares rose for 13 straight trading days, rising 21.1% (+$3.97). However, it saw one of its worst periods between August 29, 2011 and September 2, 2011 when shares fell for five straight trading days, falling 6.8% (-$1.14).
Forbes reported that Foot Locker (has jumped more than 25% in just the last two weeks after rebounding aggressively from a short-term, market-driven sell off. The bounce comes on the heels of strong second quarter results and bullish movement in estimates, providing more support and momentum for this Zacks #1 Rank stock.
In the same vein, shares of Family Dollar Stores Inc. are trading at $52.62, up $2.27 (+4.5%) from the previous close of $50.36. From August 5, 2011, to September 2, 2011, the stock price had raised $3.38 (7%) from $48.53 to $51.91. To close the American chapter, Chico’s FAS, Inc. was also trading at rise on Wednesday, adding up 52 cents (+4%) from the previous close of $13.
According to a report by Textile Exchange (formerly Organic Exchange), neither the recession nor unstable economies put a damper on the fast-growing organic textiles industry which grew 20 percent to an estimated $5.61 billion in 2010. “Consumers continue to be committed to supporting the use of organic cotton and other sustainable fibers, while brands and retailers continue to make their product lines more sustainable by continuing to increase their use of such fibers and safer, more innovative manufacturing processes,” said LaRhea Pepper, Textile Exchange managing director. Several brands and retailers more than doubled their usage of organic cotton alone and plan to do so in 2012 as well. Others with large programs are staying the course. As a result, Textile Exchange projects the global organic cotton market will increase another 20 percent in 2011 to result in an estimated $6.2 billion market in 2011 and $7.4 billion market in 2012.