In another sign of how expectations have been altered by the recession, Wall Street essentially yawned through the bankruptcy of Chrysler on Thursday and retail shares rose 1.8 percent as the number of new unemployment claims fell last week.
The S&P Retail Index increased 5.93 points to 339.39. The Dow Jones Industrial Average rose earlier in the day, but ended with a 0.2 percent, or 17.61-point, drop to 8,168.12. The Labor Department said 631,000 people registered for unemployment benefits last week, a drop of 14,000 from the preceding week and a lower figure than expected.
Among the retail gainers were Pacific Sunwear of California Inc., up 18.4 percent to $4.05; J. Crew Group, 9.5 percent to $17.21; J.C. Penney Co. Inc., 7.9 percent to $30.69; AnnTaylor Stores Corp., 7.1 percent to $7.39, and Saks Inc., 5.5 percent to $5.21.
Overall, retail shares have risen 52 percent from their March 6 low as investors recalculated the recession’s impact on stores, but first-quarter results due out this month are still expected to reveal steep top- and bottom-line decreases.
Already the impact is seen in first-quarter statements from vendors and real estate companies.
Taubman Centers Inc. said first-quarter sales by its mall tenants fell 13.5 percent from a year ago, though junior apparel, family shoes and food showed more moderate trends.
Shares of Taubman rose 4.3 percent Thursday to $23.82 after the developer said its funds from operations, a standard real estate yardstick, rose 3.3 percent to $56.6 million for the first quarter ended March 31. Quarterly results were released after the market closed Wednesday.
Another developer, Kimco Realty Corp., said Thursday its funds from operations fell 28.3 percent to $117.8 million for the first quarter ended March 31. Occupancy at Kimco’s shopping center portfolio fell to 92.6 percent from 93.8 percent largely because of the liquidations of Value City Department Stores and Circuit City.
Last month, General Growth Properties filed the largest real estate bankruptcy ever after borrowing heavily to build a portfolio of over 200 malls.
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)
@heriethpaul and @gracebol have a moment on the @victoriassecret fashion show 2017. See every look from the runway on WWD.com. Link in bio. (📷: @giovanni_giannoni_photo) #wwdfashion #victoriassecret #VSFashionShow
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia