Retail stocks gained ground today as Wall Street briefly touched a five-year high and proved to be strong enough to support a rumor that accessories giant Coach Inc. could put itself on the market.
A Coach spokeswoman batted away the talk, noting, “We do not comment on speculation or rumors, particularly unsubstantiated ones.” But the report, attributed to DealReporter, was enough to push shares of Coach up as much as 5.4 percent before the stock closed up 2.8 percent at $47.82. More than 14 million shares traded hands, well above the 5.5 million daily average for the past three months.
Coach has an enterprise value of $12.3 billion, which would make any takeover an extremely big deal for the fashion industry, although low interest rates have helped make it relatively easy for big investors to borrow large sums of money cheaply, a fact that no doubt helped buttress the rumor.
The S&P 500 Retailing Industry Group gained 1.6 percent, or 10.86 points, to 703.33, as the Dow Jones Industrial Average gained 1.3 percent, or 175.24 points, to 14,075.37.
The other fashion gainers included Sears Holdings Corp.,up 4.5 percent to $47.47; Tumi Holdings Inc., 3.7 percent to $23.06; Aéropostale Inc., 3.6 percent to $13.23; Lululemon Athletica Inc., 2.7 percent to $67.72, and Nordstrom Inc., 2.6 percent to $53.90.
The Dow briefly traded as at 14,104.86 — a level not seen since 2007.
The market took a hit earlier this week when inconclusive elections in Italy sparked fears that the region’s debt crisis would flare up again. Federal Reserve chairman Ben S. Bernanke, however, helped calm nerves in Congressional testimony, standing by policies that pump money into the economy to help the recovery.
In Europe, stocks bounced back from Tuesday’s steep sell off sparked by the Italian elections. The CAC 40 in Paris led markets higher, gaining 1.9 percent to 3,691.48, and Milan’s FTSE MIB advanced 1.6 percent to 15,801.26. Frankfurt’s DAX gained 1 percent to 7,675.83, while London’s FTSE 100 0.9 percent to 6,325.88.
The euro traded at $1.31 against the dollar, while the pound was worth $1.52.
Retail and luxury stocks were mostly up, with the day’s biggest gainers including Marks & Spencer, up 2.1 percent to 3.70 pounds; Tod’s, 1.7 percent to 109 euros, and PPR, which was up 1.4 percent to 169.30 euros.
Among those losing ground were Mulberry, which dropped 1.8 percent to 13.28 pounds, and Yoox, 1.4 percent to 13.89 euros.
EXCLUSIVE: @tomford is opening its first-ever beauty store. The boutique, which opens November 20 in London’s Covent Gardens, was designed with the over-the-top glam Ford is known for. Read the full story on WWD.com, link in bio. #wwdbeauty #wwdnews (📷: Simon Wagner) #TomFordBeauty
New York-based DJ @harleyvnewton threw a party to celebrate the holiday collection of her dress and pajama line @hvn at the Ladurée Beverly Hills. It Girls @katebosworth, @rashidajones and more joined in on the fun, which included cocktails, croque monsieur sandwiches and a photo booth. #wwdfashion (📷: Owen Kolasinski/BFA.com)
For the holidays, @Burberry partnered with 20-year-old artist @blondeymccoy on a series of three outdoor murals in downtown Manhattan. The murals are McCoy’s interpretation of a Christmas eve party, the idea of charity and the spirit of family. His third mural, pictured here, is the most personal. The image depicts McCoy’s grandparents and father in London’s Trafalgar Square in the Seventies. “My work often features lots of sentimental objects.” #wwdeye
For spring 2018, designers applied bold colors and cartoonish motifs on everything from sneakers and belts to key chains. See all the top men’s accessories trends on WWD.com. #wwdtrends (📷: George Chinsee; Prop Styling by @rnasti; Market Editor: @luiscampuzano)
The @dior-sponsored @guggenheim international gala pre-party has a history of drawing cool-girl musical acts to serenade the crowd –– and last night was no exception. @haimtheband performed songs both new and old, and lured a star-studded audience with the likes of Rebecca Hall, Kate Mara, Mamoudou Athie and more. #wwdeye (📷: @lexieblacklock)
In a partnership between the @metopera and the @englishnationalopera, “Marnie” was born. The opera, with costumes sponsored by @mrporterlive, is an adaptation of the 1961 thriller by Winston Graham. Arianne Phillips, who created the costumes, is no rookie: She’s styled Madonna for her tours and created costumes for a myriad of films in the past. Read WWD’s interview with Phillips, where she talks about her inspiration for the opera’s costumes on WWD.com #wwdfashion
@barneysnyc took a different approach to their holiday windows this year. Instead of Christmas decor, Barneys tapped @thehaasbrothers to tell a story of positivity, gratitude and inclusivity via heartwarming silliness and humor. “It’s about kids and it’s about coming together and being family and loving each other,” said Simon Haas. #wwdfashion (📷: @joshuascottphoto)
Beauty influencer @kandeejohnson makes her foray into hair care with a collaboration with @ogx_beauty — making it the first time that OGX has teamed up for a product creation. The collab includes shampoos and conditioners in three scents. At 39 and a mom, Johnson is a different profile than the emerging social media stars, but is considered one of the pioneers of the digital beauty influencer world. Read WWD’s interview with her on wwd.com, including the strangest beauty product she’s ever tried #wwdbeauty