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Retail Stocks on the Rise

Abercrombie leads way in U.S. despite tough second-quarter earnings.

U.S. retail stocks were buoyed today by Abercrombie & Fitch Co., which gained strongly even though it posted a 52 percent drop in second-quarter profits.

The S&P Retail Index rose 0.7 percent, or 4.53 points, to 632.19 as trading settled, and the Dow Jones Industrial Average slipped just 0.1 percent, or 7.36 points, to 13,164.78.

Abercrombie warned earlier this month that its second-quarter results would be disappointing and analysts said investor expectation were low when results came out today. That set up a 9 percent jump to $35.23 for the firm’s stock.

Other gainers included Perry Ellis International Inc., up 8.9 percent to $22.27; True Religion Apparel Inc., 6.7 percent to $22.83; Movado Group Inc., 6.1 percent to $27.87, and Rue21 Inc., 4.3 percent to $27.11.

Markets were mixed in Europe. Milan’s FTSE MIB gained 0.9 percent to 14,656.87, but the Paris CAC 40 slipped 0.03 percent to 3,449.20, Frankfurt’s DAX fell 0.4 percent to 6,946.80, and London’s FTSE 100 fell 0.5 percent to 5,833.04.

The strongest stocks for the day included Salvatore Ferragamo, up 1.1 percent to 17.38 euros; Burberry Group, ahead 1.1 percent to 13.77 pounds, and Luxottica Group, up 0.6 percent to 28.88 euros.

The euro traded at $1.23 and the pound went for $1.57.