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.
@fearofgod and @maxfieldla have teamed up on a pop-up installation. The store, located in the gallery space across from Maxfield’s Melrose Ave location, is the site of the brand’s House of God pop-up in which Fear of God founder @jerrylorenzo has created a church-inspired installation. A dozen vintage church pews sit in front of an LED screen playing 90s gospel singers in an effort to re-create an environment akin to a Southern Baptist Church, Lorenzo explained. Read more about the pop-up on WWD.com #wwdfashion (📷: Jennifer Johnson)
Known for his sleek, sophisticated American glamour, Norman Norell is the subject of an upcoming exhibition at @fitnyc. “Norell: Dean of American Fashion,” which runs from February 9 through April 14, will feature approximately 100 ensembles and accessories. His best work is exemplified by the designer’s glittering “mermaid” gowns frosted with thousands of hand-sewn sequins – like the one pictured. (📷: William Helburn) #wwdfashion
For pre-fall 2018, @balmain didn’t let go of the glitz. A crystal embroidered baseball jacket priced at around $40,000 hangs in the “couture” section of the brand’s first men’s pre-collection. Sporting the words “Balmain Army” across the back, the item took around two months to make. “When it was completed, it was like Christmas, it was like, ‘It’s done, it’s exactly what I wanted,’” said Balmain’s creative director @olivier_rousteing during a tour of the collection in a Paris showroom on Monday. #wwdfashion
Eighty degree temperatures and outdoor installations at the annual Art Basel Miami Beach called for bright, elevated beachwear. See more street style pictures on WWD.com. #theyarewearing #ABMB (📷: @lifeinreverie)
Following September’s emotional tribute to her brother Gianni, Donatella Versace wanted to bring the spring show’s deep sense of intimacy to her @versace_official pre-fall collection. Donatella found inspiration in Versace Palazzo in Milan and from Gianni’s opulent apartment. Archival patterns and new motifs were splashed on silk shirtdresses and fitted jersey frocks. See the rest of the photos on WWD.com. #wwdfashion
Demna Gvasalia continues to shake up the Paris fashion calendar — and experiment with new runway timetables for his @vetements_official brand. WWD has learned that Vetements plans to stage its next coed show for the fall 2018 season on January 19 during Men’s Fashion Week in the French capital. Details about the timing and venue have not been confirmed — stay tuned on WWD.com to catch the latest. #wwdnews (📷: @giovanni_giannoni_photo)
@zacposen's go-to holiday gift? Cookies! "I'll usually bake cookies and send them as a gift," said the designer, who recently released his cookbook "Cooking With Zac: Recipes from Rustic to Refined." Get the recipe for his Brown Butter-Chocolate Chip Cookies via link in bio 🍪🍪🍪 #wwdeye #cookingwithzac
For @monsemaison’s pre-fall 2018 collection, Fernando Garcia and Laura Kim honed in on the brand’s many signatures — men’s wear, which was tweaked and feminized through deconstruction, proportion play and lots of bare shoulders. See the rest of the photos on WWD.com #wwdfashion (📷: George Chinese)
On Friday night, @yohjiyamamotoofficial received the Design for Asia Lifetime Achievement Award in Hong Kong. The 75-year-old designer has been celebrated for many years and is best known for his dark and avant-garde tailoring. “In my long career, in design, architecture, [I’ve been to] so many parties, this is the very first time that I have such a warm feeling, I really appreciate this,” Yamamoto said. #wwdfashion (📷: @dominiquemaitre)