Fashion slips on the parquet. The Selective Internacional Modaes.es de Bolsa (SIMB35) has ended its recovery and closed July with a fall of 5.36%. During the last month, most companies have presented their second quarter results, marked by the closing of stores around the world.
The SIMB35 had begun in recent months to regain lost ground after the March bump, a black month for international stock markets due to the outbreak of the coronavirus in the West.
After collapsing 15.9% in the third month of the year, to stay at just 16,658 points, SIMB35 traced back in April with a rise of 10.8%, it rebounded another 7.4% in May and 3.2% in June, until again exceeding 20,000 points.
As of July 31, SIMB35 had lost that barrier again, standing at 19,344 integers. The Ibex35 also closed July in decline, with a fall of 4.9%, and lost 7,000 points. The Dow Jones, on the other hand, rebounded 2.3% between July 3 and July 31.
The fall of the SIMB35 would have been greater if it had not been for two companies in restructuring, L Brands and Esprit, which closed the month with strong rebounds after announcing cut plans.
The parent company of Victoria’s Secret announced last week that it will fire some 850 people, 15% of its staff in offices, as part of a plan with which it plans to save $ 400 million a year.
The plan also includes the already announced 250 closings of Victoria’s Secret and the competition and potential sale of its British subsidiary. Wall Street applauded the project and the actions of the American giant soared 30% that same day. In the whole of July, the titles rebounded 61.5% in the parquet.
The second most bullish value of the month was Esprit, which rebounded 10.8%. The company faced internal conflict in the past month, after Hong Kong-based Karen Lo Ki-yan emerged 20.19% in capital, becoming the largest shareholder in the German group. The investor initially demanded the departure of the group's chief executive officer and chief financial officer, but eventually backed down.
Burberry and Coty were the stocks with the worst performance in July
On the opposite side of the table were Burberry and Coty. The British company left 23.4% in the stock market in the month in which it presented its quarterly results.
The company disappointed investors with a 45% drop in sales between April and June. This quarter marks the start of what should be the third year in Burberry's transformation plan.
Coty was the second worst performing value in July, noting a decrease of 16.6%. The company also published its quarterly results in July and announced that it will extend its reorganization plan, with which it plans to cut costs by 25%, or $ 700 million, in the next thirty months.
Updated monthly by Modaes.es, the SIMB35 is the result of the multiplication of the value of the previous month by the division of the sum of the market capitalizations in euros of the current month of the 35 companies that make up the selective between the sum of the capitalizations of the previous month, taking into account a correction factor if there are changes in the number of shares. The SIMB35 was born in September 2011, with a trading base of 10,000 points.