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Zalando lifts retail index to highest levels in two years

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Adidas posts first loss in 30 years, shares fall

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Zara-owner Inditex climbs on boost from upmarket fashion

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EZ industrial production data for January, due 1000 GMT

(Updated at 9:13 GMT)

By Khushi Singh

March 13 (Reuters) -

European shares hit new record highs on Wednesday, led by

gains in retail and utility stocks following upbeat corporate

updates, while investors awaited industrial production data from

the region.

The pan-European STOXX 600 was up 0.1% by 9:13

GMT, following Tuesday's record-high close.

The retail index emerged as the top sectoral

performer, adding 2.5%, following a 13.6% jump in Zalando

shares. The online fashion retailer reported a

fourth-quarter profit beat and announced a share buy-back

program, anticipating a return to growth and improved

profitability in 2024.

Zara-owner Inditex shares jumped 4.5% following

higher sales at constant currencies in the first half of its

spring season, boosted by upmarket fashions and sustained strong

momentum.

Shares in E.ON surged 5.0% as Europe's largest

operator of energy networks increased its five-year investment

target to 42 billion euros ($46 billion) and provided 2024

profit guidance that beat expectations.

The upbeat outlook and investment goal propelled the broader

utilities index up 1.1%.

Upbeat corporate updates have fostered a risk-on sentiment

among European investors, reflecting confidence in the economy

and enabling investment in riskier assets despite sticky

inflation.

In other company news, Vallourec shares climbed

6.4% after steelmaker ArcelorMittal announced

acquisition of a 28.4% stake in the France-based company for

around 955 million euros ($1.04 billion) to increase its

presence in the tubular business.

In contrast, Adidas shares lost 1.9% after the

German sportswear giant posted its first loss in over 30 years

in 2023 and projected a decline in North America sales this year

due to the termination of its ties with rapper Kanye West in

2022, leading to the suspension of sales of the highly

profitable Yeezy sneaker line.

"While footwear sales are storming ahead thanks to strong

demand for Sambas and Gazelles, Adidas apparel has fallen out of

fashion, and the rise in popularity of athleisure clothing with

brands like Lululemon and Alo has come at the expense of Adidas'

clothing lines," said Victoria Scholar, head of investment at

interactive investor.

On the data front, investors awaited the release of euro

zone industrial production data for January, due 1000 GMT,

seeking further insights into the region's economic resilience

and the potential start of an interest rate cut cycle.