A profit warning from Costco Wholesale Corp., and a double-digit drop in its shares, couldn’t keep retail stocks from their second consecutive day of advances.
With crude oil prices again experiencing a sharp drop Wednesday and settling at below $125 a barrel for the first time this month, the Standard & Poor’s Retail Index gained 8.4 points, or 2.4 percent, to finish the day at 360.98. As on Tuesday, the performance far outstripped advances for the Dow Jones Industrial Average (up 0.3 percent to 11,632.38) and the S&P 500 (up 0.4 percent to 1,282.18).
However, Costco’s warning that higher costs would cause it to miss its fourth-quarter profit estimates pulled its shares down 11.9 percent, to $63.43, and weighed down several of its low-cost competitors. Most notably, BJ’s Wholesale Club Inc.’s shares were off 9.5 percent to $36.89. Wal-Mart Stores Inc., owner of Sam’s Club, saw its stock decline 1.6 percent to $58.09. Off-pricers TJX Cos. Inc. and Ross Stores Inc. were down 2.9 percent and 1.3 percent, respectively, to $34 and $39.18.
Declines were generally relegated to low-cost retailers, who’ve outperformed the overall market throughout the recent months of economic turmoil.
For apparel retailers, however, gainers far outdistanced decliners. The Talbots Inc. saw its shares advance 11.3 percent, to $13.03, after a research note from Buckingham Research Group heaped praise on its holiday assortment, which the retailer has characterized as indicative of its move toward more updated, less dowdy fashion.
The comment helped to propel other specialty stores catering to mature women upward as well. Charming Shoppes Inc. rose 8.4 percent to $5.43; Coldwater Creek Inc. was up 4.4 percent to $7.18; The Dress Barn Inc. was up 4.1 percent to $15.25; Chico’s FAS Inc. rose 3 percent to $6.29; Christopher & Banks Corp. was up 2.6 percent to $8.60, and AnnTaylor Stores Corp. rose 2 percent to $24.65.
In the teen space, Abercrombie & Fitch Co. moved ahead 4.4 percent to $63.09 and Pacific Sunwear of California Inc. increased 4.4 percent to $8.98.�
Taking the final spot on the mens’ portion of New York Fashion Week calendar next month will be none other than @tomford. Though he’s shown his men’s wear in New York in the past, this will mark the first time the designer has shown his men’s collection alone during New York Fashion Week: Men’s. His runway show will debut on February 6 at the Park Avenue Armory. #wwdfashion
London-based couture house @ralphandrusso has certainly been in the spotlight, having its dresses worn by @beyonce, Angelina Jolie, Meghan Markle in her engagement photos and more. For couture, Tamara Ralph focused on ornamentation — think: feathers with chain mail, jet embroidery and clusters of pearls and crystals. See the rest of the collection on WWD.com #wwdfashion #couture (📷: @giovanni_giannoni_photo)
Minnie Mouse celebrated her 90th birthday by getting her own star on the Hollywood Walk of Fame. For her celebratory luncheon, @coach’s creative director @stuartvevers dressed her in a custom made prairie dress, complete with Vever’s take on the polka dot – black sequined versions – under a cropped motorcycle jacket. The designer also put his own mark on Minnie’s classic red shoes, infusing the color with sparkles and adding some Coach crystals. “We chose colors that were very Minnie and also represented quintessential Coach elements,” said Vevers. #wwdfashion #nationalpolkadotday (📷: George Chinsee)
@nickjonas is unveiling his first-ever apparel collection through a partnership with John Varvatos. The limited-edition capsule, which makes its debut in spring, also marks the first time the designer has collaborated with anyone on a line. “The process in working with Nick is amazing. It’s inspiring to be around someone who is not only connected with the trade that they do, but also with what’s happening in the environment around him, and how that connects to what we do with style,” said Varvatos. (RG: @johnvarvatos) #wwdfashion
@margotrobbie steps out onto the red carpet wearing @miumiu. The actress is nominated for “Outstanding Performance by a Female Actor in a Leading Role” in “I, Tonya” at the #SagAwards. (📷: Stewart Cook) #wwdfashion
For @massimogiorgetti of @msgm, the Nineties are his favorite decade. “They had a huge impact on my personal growth. What I like of the Nineties is that they are not so precise in terms of style as other decades…there was actually a bit of everything,” he said. As seen on MSGM’s Spring 2018 show: tie-dye and a bit of grunge, two styles that are synonymous with the decade #wwdfashion #wwddecades (📷: @kukukuba)