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Bad news for Cotton, good news for retailers? A deadly combination of a record global crop and...

Bad news for Cotton, good news for retailers? A deadly combination of a record global crop and falling consumption will continue to pound cotton prices and keep sentiment bearish in the trading pits, according to analysts. Standing to benefit are manufacturers and retailers: Levi-Strauss is cutting back prices to reign in price-conscious shoppers, while American Eagle Outfitters' (AEO +0.4%) CEO highlighted the importance of the commodity to his firm's bottom line in an earnings CC.
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Comments (2)
  • HiSpeed
    , contributor
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    Anyone think the savings retailers get regarding cotton will actually be passed along to the consumers? <g>
    1 Dec 2011, 01:45 PM Reply Like
  • dancing diva
    , contributor
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    Good news for retailers? That depends whether the retailer was hedged against the possibility of higher cotton prices, as I'm sure many were. If they were, their hedges will offset most if not all the gains of lower cash costs.
    1 Dec 2011, 02:17 PM Reply Like
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