The Malta Independent 24 October 2018, Wednesday

U.S. market update, fashion and gaming consoles

Thursday, 28 December 2017, 11:28 Last update: about 11 months ago

U.S. markets logged modest gains

U.S. stocks booked slight gains Wednesday, however, volumes were seasonally low and activity muted as investors are reluctant to make big bets with just a few trading days remaining in 2017. The Dow Jones rose 0.1% while S&P Index andNASDAQ Composite Index closed below 0.1%. Gains in health care, technology and real-estate helped to offset losses in energy.

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Stitch Fix’s plans to acquire new customers

Online styling service Stitch Fix's shares rose more than 10% after reporting its first earnings as a publicly traded company on Tuesday. Earnings and sales surpassed analyst’s expectations, however profit margins declined due to an increase on investments. Total sales climbed 25% boosted by growth in the company's recently launched men's and plus-size divisions.

Stitch Fix went public in mid-November, and currently shares are up 82% from their IPO price of $15. Looking ahead, Stitch Fix said it expects to post sales between $287 million and $294 million in the second quarter.

CEO Katrina Lake said Stitch Fix plans to grow with existing clients in its core women's business. Moreover, the company aims to acquire new customers.

There's also the opportunity for Stitch Fix to grow by selling lower-priced items, under $50 a piece, which can be more difficult to find online. It will be experimenting with other trends and considering growing some of its own private-label fashion lines.

Lake said, that in order for the company to acquire new customers it needs to use a diverse strategy.

Nintendo’s stock jumpsup 75%

Nintendo Co. Ltd. stock moved up more than 75% since January after releasing “Super Mario Run” for mobile devices in December 2016 and the company’s latest console, the Switch, in March.

Since its debut, the Switch has sold 10 million units world-wide. Nintendo in September launched its latest mini-console, the Super Nintendo Classic; selling 2 million units.

In October, Nintendo released “Super Mario Odyssey”,the latest 3-D adventure game featuring its beloved mascot Mario. In less than two months, Nintendo says the game has sold 5 million copies.

Analysts say that 2018 will be key for Nintendo to produce a robust list of games that continue to drive fan excitement for the Switch and beyond.It remains to be seen, however, if the Switch can be as successful as the Wii, which sold 101 million units world-wide over seven years.

Disclaimer:

This article was issued by Linda De Luca, Trader at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article is being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.

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