Retail stocks kicked off the second half on Monday in fine style, comfortably outperforming Wall Street — and analysts said the resilient consumer could propel stocks further during the key back-to-school and holiday seasons.
The S&P 500 Retail Industry Group rose 1.1 percent, or 8.57 points, to 796.94, outpacing the Dow Jones Industrial Average, which increased 0.4 percent, or 65.36 points, to 14,974.96. Retail stocks jumped 20.7 percent during the first half, ahead of the Dow’s 13.8 percent gain.
Consumers, who, according to sentiment surveys, have regained their prerecession confidence as the housing market improved, might be poised to send retailers higher.
“The consumer is still on track,” said Matthew Boss, a stock analyst at J.P. Morgan. “The consumer places an emphasis on the value of their home and that home equity is really the backbone of their ability to spend.”
Boss said retailers aren’t likely to break any revenue record over June or July, but could perk up as b-t-s price cuts take hold.
“While the consumer will come out, I think it will be a promotional back-to-school, and a well-received back-to-school will lead to a good holiday,” he said.
The holiday season will have six fewer shopping days this year versus last year, which could muddy the waters, but Boss said the fall comparisons could be favorable given the focus on the elections last year.
“Retail should do OK,” said Paul Nolte, managing director with Dearborn Partners in Chicago. “We’ve been counting out the consumer for some time and the consumer continues to be in there spending. The general retailers — Wal-Mart, Dollar General and Target — will be fine.”
Nolte predicted the market would grow by fits and starts, gaining another 4 to 5 percent this year as investors keep a close eye on the Federal Reserve’s moves and corporate earnings.
Fashion gainers on Monday included The Bon-Ton Stores Inc., up 4.1 percent to $18.79; Maidenform Brands Inc., 2.6 percent to $17.78; Gap Inc., 2.6 percent to $42.80; Nordstrom Inc., 2.1 percent to $61.21; The Men’s Wearhouse Inc., 2.1 percent to $38.65, and Kohl’s Corp., 2.1 percent to $51.57.
Markets also gained ground in Europe, where Canada’s former central bank chief Mark Carney became governor of the Bank of England, succeeding Sir Mervyn King. Markets are hoping that Carney will be able to jump start the British economy.
Milan’s FTSE MIB rose 1.5 percent to 15,459.57, as London’s FTSE 100 increased 1 percent to 6,307.78; Paris’ CAC 40 advanced 0.8 percent to 3,767.48, and Frankfurt’s DAX inched up 0.3 percent to 7,983.92.
@tradesy is turning the concept of a showroom upside down with its new space in Santa Monica. Here, the company plans to hold events, art exhibits and a showcase rare fashion pieces like this Louis Vuitton boxing set. Get all the details on Tradesy’s first showroom on WWD.com. #wwdnews
Spotted last night at the @erdem x @hm launch event: Kate Bosworth, Rashida Jones, Kirsten Dunst and Selma Blair. The party, which took place in LA, also marked the opening of their pop-up shop. “I was interested in creating a collection that wasn’t in any way disposable. It was about pieces you’d create and keep forever, things that have a permanence to it,” designer Erdem Moralioglu said. #wwdeye (📷: Katie Jones)
Renee Zellweger in yellow in 2001 and again in 2017. Chosen as one of the 12 @pantone Leading Spring Colors (and dubbed “Meadowlark”), it only makes sense that the bright hue stands the test of time and is making a resurgence this season, seen already on stars like @blakelively and @gigihadid. (📷: Donato Sardello & @rexfeatures) #wwdfashion #tbt
Dior’s 70th anniversary celebration continues with a new exhibition at the Royal Ontario Museum in Toronto. “Christian Dior,” which is scheduled to run through March 18, takes a look at the founders tenure from 1947 to 1057 and feature 40 designs. Pictured here is an evening gown from the Ailée, fall 1948-49 haute couture collection. #wwdfashion (📷: Brian Boyle)
As one of the most recognizable models in the world, Christy Turlington Burns has an insider’s view of the fashion industry and the allegations of sexual harassment swirling around it. “I can say that harassment and mistreatment have always been widely known and tolerated in the industry. The industry is surrounded by predators who thrive on the constant rejection and loneliness so many of us have experiences at some point in our careers,” Turlington told WWD, along with her suggestions for how the modeling world should protect younger women and men. Read more on WWD.com. Link in bio. (📷: Tony Palmieri) #wwdnews
@asics America has tapped a new brand ambassador: famed DJ/record producer @steveaoki. This initiative is intended to set the tone for the new brand identity and philosophy and will include partnerships with influencers and in-store and off-line activations that will continue into next year. This is Asics’ most significant marketing effort in two decades, and is expected to attract younger consumers to the brand. #wwdfashion
24-year-old Jean Prounis is redefining the rules of jewelry. Formerly a studio assistant to Jemima Kirke and a design apprentice at Ghuran, she focuses on handcrafted subtleties and ancient goldsmithing techniques. “There was a really sterile feel in the environment and I wanted to have jewelry with character that shapes how you wear it everyday,” Prounis said. Each piece is hand made in New York, either by Prounis or three other jewelers in the district. #wwdfashion
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews