SIMB35 to plummet a 6% in May weighed down by American fashion

The SIMB35 plummets in May. After beating a new record in April, the Modaes.es Stock Market’s International Selective has closed the fifth month of the year with a setback of a 6.5%, which has made him lose again the 19,000 points. Most of the decrease is due to American companies that, after presenting quarterly results, have concluded in May with a decline on the trading floor.

The selective, which groups the 35 most representative quoted of international fashion, was able to overcome the 20,000 points in April, noting a new historical maximum. After May’s drop, the SIMB35 is positioned in 18,964 points.

Its evolution is in line with another international selectives, like the Dow Jones, that decreased a 6.5%, or the Ibex 35, which registered a fall of a 5.3% in May. The exchange rates have not had a big impact in SIMB35’s evolution: disconnecting the currency effect, its setback was of a 6.6%.

Six of the ten companies that had a worst evolution in the stock market in May are American. The first starting by the bottom is PVH, with a plummet of a 35%, followed by Gap, with a 38.6%, and Capri (parent company of Michael Kors, Jimmy Choo and Versace), with a 27.3%. PVH, owner of Tommy Hilfiger and Calvin Klein, plunged a 14.7% last Thursday after reducing its perspective for the exercise closure. The company concluded the first semester with a drop of a 54% on its benefit.

Also Gap announced its quarterly results last week, with a decrease of a 4% in comparable sales. Art Peck, CEO of the group, qualified the quarter as “extremely challenging”. The investors would have thought the same: group’s shares plunged a 19.9% after the market’s closure.

Six of the ten worst evolv in May SIMB35’s companies are American

Michael Kors’ owner evolved in the same line: the company fell a 10% in the stock market on Wednesday, after reducing its benefit in an 8% on the first quarter of the exercise. Ralph Lauren, Swatch, Guess, Tiffany, Zalando, Burberry and H&M complete the ranking of worst values of the month, all of them with drops at double-digit.  

Inditex, world’s number one in fashion distribution, also concluded in descend in May, the month in which announced the proposal of Carlos Crespo as the next CEO in the following shareholders general meeting. The analysts backed the appointment and the share of Spanish group rebounded a 1.5% that day, but it was not enough to close the month downwards.

Instead, the most upwards values of the month were of two European companies: Safilo, which increased a 24.1%, and Adidas, with a raise of a 11.9%. Coty completes the top 3, with a progress of a 9.6% despite having communicated a descend of an 8% in its benefits in the first quarter.

Safilo, Adidas and Coty were the most upwards values in May 

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 market capitalization in euros of the current month of the 35 companies that form the selective. These is divided between the sum of previous month capitalizations, taking into account a corrective factor if alterations on share numbers are produced. The SIMB35 was born in September 2011, with a quotation base of 10,000 points.

In March, the SIMB35 has renewed its composition with two departures and two incorporations. On the one hand, the American Levi Strauss, which has initiated its quotation in the American stock market the latest March, substituting Abercrombie&Fitch. For its part, Luxottica departs the Italian stock market (and the SIMB35), to start quoting again as Essilor Luxottica in Euronext, after the merging between both companies.