LONDON — European stock markets dipped in midmorning trading on Tuesday, with Milan’s FTSE MIB the only index to gain some ground.

The Italian market was up 0.2 percent to 22,516.70, while the DAX in Frankfurt was down 0.2 percent to 10,930.96 and the FTSE 100 in London fell 0.1 percent to 6,358.08. The CAC 40 in Paris was flat at 4,916.79.

The euro traded at $1.10, while the pound fetched $1.54 and the Swiss franc equaled $1.01 at 11:00 a.m. CET.

Retail and luxury stocks were uneven, with the morning’s biggest gainers including Yoox Net-a-porter Group, 2.1 percent to 32.16 euros; MySale Group, 3.3 percent to 0.55 pounds, and Aeffe, 3.4 percent to 1.53 euros.

Among the stocks that lost the most ground were Mulberry Group, 2.2 percent to 9 pounds; French Connection, 1 percent to 0.35 pounds, and Primark parent Associated British Foods (ABF), 1.1 percent to 33.95 pounds.

ABF stock fell after the company reported a 6 percent decline in adjusted operating profit to 1.1 billion pounds, or $1.69 billion, in the year to Sept. 12. That dip was 4 percent at constant currency rates.

ABF figures have been calculated at average exchange rates for the 12 months to Sept. 2015.

ABF noted that “big movements in exchange rates” as well as food price deflation dented its bottom line. Profit before tax was 30 percent down, at 717 million pounds, or $1.1 billion, following losses on the sale and closure of businesses and exceptional items.

Group revenue was 12.8 billion pounds, or $19.71 billion, down 1 percent at actual exchange rates, and up 2 percent at constant currency rates.

Sales at Primark were 13 percent ahead of last year at constant currency, mainly driven by an increase in retail selling space of 9 percent. The company said “very high sales densities” were achieved by stores opened in the last 18 months, and especially by units in France, which has been Primark’s most successful new market entry to date.

Like-for-like sales were 1 percent ahead of last year, reflecting a strong performance across a number of countries.

ABF added it has an extensive pipeline of new stores to be opened over the next few years, with some 1.5 million square feet planned for the new financial year, the major elements of which will be in the northeastern U.S., the U.K., Spain and France.

In the U.S. it will add seven stores, totaling 400,000 square feet, most of which will open later next year. Spain has a new flagship, a 133,000-square-foot unit on Gran Via in central Madrid that opened this October, and stores are planned for Lyon, Nice and Toulon in France.

Primark will also open its first Italian store at a new shopping center in Arese, northwest of Milan, early next summer.

Click Here for the WWD Global Stock Tracker >>

load comments
blog comments powered by Disqus